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Whole Foods Casebstudy Essay

3216 words - 13 pages

Strategic Management and Business Policy
MGMT 4303 – P02
Spring 2015

Faculty Sponsor:
Dr. Jermaine Vesey
Department of Management & Marketing
College of Business
Prairie View A&M University

Group Case Study: Whole Foods Market
Jamal Bacon, Briana Bedford, Alexis Castleberry, Jordon Powell

Strategic profile & case analysis purpose

Whole foods was the world’s number one leading retailer of natural and organic foods. It was founded by John Mackey when he started with one store, but it has now grown to the nation’s leading food chain. The purpose of this business case study is to explore the strengths, weaknesses, opportunities, and threats facing Whole ...view middle of the document...

Now, Whole Foods is the only supermarket to operate and own a waterfront seafood facility. Whole Foods other objective was not only to delight their customers, but also to ensure their employees enjoyed their jobs. Whole Foods considered their customers to be the “life blood of our business” (Hunger and Wheelen pg. 28-3). Initially, Whole Foods had no competition, there were less than six small other natural food characteristics in the United States. When the organic industry began booming, Whole Foods began to have competition. But they maintained its rank and image as the world’s number one natural foods chain.
A detailed assessment of Whole Foods past performance in key factors such as management policies, company structure, situational analysis, industry and competitive analysis, financial analysis, strategy formations, and controls as for the purpose of providing a set of strategic recommendations as it pertains to the organization’s position in the organic industry. Whole Foods main concern was if there will be enough organic food to satisfy the growing demand, because its objective for 2010 was to reach $10 billion in revenue with 300 or more stores while maintaining their reputation and quality.

Situtional Analysis

Currently, the natural food industry is growing as well as the number of competitors. Resources are limited with only 3% of U.S. farmland being organic. There is a growing demand for organic foods, therefore the demand will soon far exceed the supply. Whole Foods takes these factors into consideration when choosing where to build their stores which is income, education, and population. Their demographics they aim for are people with college degrees, higher incomes, baby boomers, working women, and urban singles. They want to locate their stores in areas that receive heavy traffic so they can increase the number of shoppers in their stores. At least 40% of the population have college degrees because these people are more likely to be conscious of nutritional issues.

Some sociocultural trends within this case are a vast number of people becoming health conscious, more people are becoming aware of how their food is processed, preserved, and grown or raised. More and more people are not wanting food or produce that contains pesticides or is genetically modified because they are learning that it can be harmful to their health, therefore they are opting to have food that is natural and organic. Also, many people prefer farm raised humanely treated meat. There is now a demand for freshly prepared or ready to cook quality meals and a growing interest in healthier eating habits, greater diet and fitness to improve overall health and quality of life.
According to the 24th Annual Market Overview “Americans spent $45.8 billion on natural and organic products in 2004”(Hunger and Wheelen pg. 28-3) Sale of organic foods is increasing and this can be attributed to consumers growing concern for health along with consumers...

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