Whole Foods Market

Case study Assignment #1: Whole Foods Market

Mustapha Gbassa

Thomas Edison State College

Bus-421-OL009

Mustapha Gbassa

Written Assignment #1

Case study #1

Case Study Assignment 1: Whole Foods Market

Does your local grocery store have a section dedicated to natural or organic foods? I bet it does. That probably wasn't the case in 1980, when Whole Foods Market opened their first store in Austin, Texas. In the past 30 years, Whole Foods Market grocery chain has become the worldwide leader in natural and organic foods.

Over the past few decades, the diet and health food industry has become big business. Americans, along with people in many other countries, have become more educated about the benefits of exercising regularly and eating healthy. Whole Foods Market is pursuing a business strategy that strives to offer products that are of the highest quality, least processed, most flavorful and natural foods possible (Whole Foods Market, Inc., 2011). There are ever-growing concerns over the genetic engineering of foods (like salmon), the use of pesticides on crops, and the use hormones in animals. The strategy that Whole Foods Market has developed is naturally a great match for consumers with those concerns.

When deciding on a company motto, co-founder of Whole Foods, John Mackey, wanted to use a motto that he felt best described the principles and vision of the company. "Whole Foods, Whole People, Whole Planet" is the motto that he chose. I'm a true cynic, so when I see that motto, it makes me laugh. I guess I just have a hard time believing that the reason for starting Whole Foods Market was to help make the planet healthy. Most often, making money is the reason most people choose to start their own business. That being said, I do believe that businesses can make a profit, while also being a positive for the communities that reside in. Each year the community giving donations of Whole Foods Market exceeds over 5% of their total net profits. That amounts to over $12 million in 2010 that was spent to fund programs such as: Healthy eating Education, Whole Planet Foundation, and Green Mission. Whole Foods Market seems to really stand behind their motto. Along with their motto, Whole Foods Market also has a list of core values. Many companies claim to have values, but they are merely for show. Whole Foods Market does a great job of following through with their values. These values include:

a. Selling the highest quality natural and organic products available - Whole foods market has set a high standard that each product they sell must meet. This assures that the customer is only getting products of the highest quality.

b. Satisfying and delighting our customers - In 2008, Business Week ranked Whole Foods as having the 33rd best customer service in the nation. Customers reacted positively to the skilled employees hired by each department of Whole Foods Markets. (Whole Foods garners kudos for customer service, 2008)

c. Team member happiness and excellence - Whole Foods Market has been included in Fortune magazine's annual list of the "100 Best Companies to Work For" every year since the list's inception in 1998, most recently at No. 5 in 2007. (Whole Foods Market, 2011)

d. Creating wealth through profits and growth - Sales, gross profit and net income have all risen consistently from the company's inception. (Flanagan, 2010)

e.