Whole Foods Case Questions

Whole Foods Case

1. What are the chief elements of the strategy that Whole Foods Market is pursuing?

The chief elements of the strategy that Whole Foods is pursuing begin with its purpose of focusing on offering the best natural and organic foods. The company has been able to build a strong image based on offering fresh organic foods from all over the country. One element of its strategy that has an impact on majority of its operations is a strong focus on quality. This strategy starts with offering the highest quality natural and organic foods possible. Whole Foods is able to achieve high-level net income to revenue results because of their high profit margins on products they sell. This leads into its focus on hiring quality people that the company can trust and having a friendly store environment that is inviting to customers. Whole Foods pursues offering a unique and enjoyable shopping experience and has had great success from the beginning. Whole Foods tries to naturally decorate its stores, giving it a friendly- like atmosphere. They offer different products in its store that cannot be found at other grocery stores such as Kroger and Publix. Whole Foods is trying to spend more time and money on our communities and environment greatly helping them build a strong relationship with customers. Whole Foods only offers products that promote its values in agriculture and sustainability. They also donate a portion of profits to causes that seek to gain sustainable agriculture and healthier environment.

2. Is Whole Foods' strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)?

Whole Foods' strategy is very well matched to market conditions in the natural and organic foods industry, and it is becoming increasingly aligned with the overall food retailing industry. Whole Foods has been extremely successful in the natural and organic food industry mainly because of a simple principle the company believes, its values match the values of the customers within the market. They have built a strong relationship with their customers. Also, consumers are more concerned with health related issues as compared to previous years. Whole Foods' strategy seeks to offer these healthy products and has a very strong focus on environmental safety. While this used to be a smaller part of the enormous food retailing industry, there has been an increased awareness for health and the environment thought the entire industry. Grocery stores and other stores offering food have had to adjust to market movement. Whole Foods has been a step ahead compared to competition such as Trader Joe's or Publix, attributing to their success. They have excelled at taking advantage of current market conditions as much as possible. Whole Foods' has made its values visible, and these values are well matched to those of the market of the food retailing industry.

3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company's mission/vision "Whole Foods, Whole People, Whole Planet" that is set forth in case Exhibit 1? Do the mission/vision and the core values underlying it (case Exhibit 3) really matter at this company or are they just nice words and cosmetic window dressing? Explain.

John Mackey has a great strategic vision for Whole foods. The strategic vision for Whole Foods is well rounded and all of their goals focus on a unique, centralized purpose. It is important for companies to not only have a purpose, but to live and operate with that purpose in mind. Keeping the company purpose as a main focus, Whole Foods does everything to serve its overall mission, and pays extreme attention to details that align with its goals. The company does a great job aligning its mission with its overall purpose, and their mission is starting to align with the overall vision of the consumers. The fact that the company looks to offer natural and organic products and the fact that the company uses part of its profit to support an innovative type of farming is a great model for success. I also think it is very important that the company continues placing an emphasis on the customer. This is part of what makes the shopping experience different at Whole Foods and it helps the company be successful. I think the mission/values at this company do matter and they are not just cosmetic window dressing like they are at some companies. They really do offer the best organic and natural foods, and employees go above and beyond for customers. These qualities are what separate the company from competition. The company does make a point to support sustainable agriculture and a clean environment, and this is advertised in its store. I think the company has lived by its mission, but it will be interesting to see if they will continue to live by this mission if the recession continues and their profits begin to dissolve.

4. Do Whole Foods Market's core values as presented in case Exhibit 3 really matter? Are they "real" or just cosmetic window dressing? What evidence can you cite to support your answer? Have Whole Foods' core values contributed to the company's success? Why or why not?

The core values of Whole Foods really do matter to the company, and I think they have done a great job at demonstrating and living up to their high values. These values are becoming more and more popular to the general population, and this is can only help the company. I think the fact that they donate at least 5% of their profits every year to non-profit and community organizations is something they can't hide from, and it supports part of their mission very well. The donation to community organizations helps build strong relationships with its customers. The company mission is supported very well by their product line strategy and this strategy can be seen if you actually look at the products in the store. I think that its core values have contributed to the company's success so far. The store has a loyal following, and Whole Foods relies heavily on them to market products by word of mouth to potential customers. This is a great marketing strategy to have because it is virtually free for Whole Foods and has a large impact on sales. The values of the company are what make the company unique, and have given them a competitive advantage over its competitors by offering a product that can only be found at Whole Foods. However, it will be interesting to see if they stick to their core values with the recent recession and a slowing