Looking at the information for the (annual) report for Whole Foods Market, we can determine that their strategy for success on the market place is providing high quality natural organic food to their customers. Being the Americas firs national “Certified Organic” grocer and also the leading retailer draws a lot of responsibility and commitment. This is done through providing diverse health natural products for the growing consumer market. As far as Wife’s primary value proposition, since being first in the business as its quality standards differentiation we can say it has elements of product leadership as a follow up.
Since WFM promotes healthy life and this is achieved through intake of natural organic food they understand what the customer demands so buy focusing on food with no artificial additives, sweeteners, colorings, etc. Customer intimacy is a primary value position because there are numerous food supermarkets out there but not all have the offer that the consumer wants especially in this ever growing global environment where economies of large scale are taking its toe on the food market.
WTFO has a good approach on the subject buy learning from its long history present on the market (31 years) and by being the leader in this branch they have diversified their offer at a competitive price. II) Going from the stockholders perspective and their expectations, they are mostly focused on how well are their stocks positioned and what is the dividend payout ratio (this goes for potential ones to). All of this can be achieved by growth (but at a steady paste) increasing companies NAP. Although one of the mayor business risks not only for
WFM but for the whole global market is the resection that is still present because it affects the average consumers and limits their buying power, there are other risk factors WFM needs to consider. Identifying some of the main risk factors we can go from the fact that the stock price has been volatile and may be negatively affected by reasons unrelated Wife’s operating performance. Since in 2011 the closing market price per share of common stock has ranged from $34. 57 up to $72. 10 and therefore the stock market could be affected by fluctuation in sales, prices etc…
This although a hard risk to cope with there must be a long term strategy for prices, new store location openings and providing a steady planed growth. Competition is a risk because increased competition may adversely affect Wet’s revenues and profitability. Their main concern is their breach on the natural organic market, their history and their competitive power with their growth rate that could endanger WFM position on the market. Good SOOT analysis must be put into place in order to make WFM environment competitive, and proper management planning is necessary.
Changes n the availability of quality natural and organic products could impact Wife’s business position as their main motto is high quality natural products. This can be a direct risk because a decrease in quality can directly lead to loss of sales and even grater is the damage of bad reputation especially in the food industry which is very hard to rebuild. WFM needs to have diverse supply chain management and also grater internal quality control must be put in to place. Since 68% of the total sales for WFM in the fiscal year 2011, perishable t s product losses could materially impact
Wife’s operations. This can happen due to unexpected events like, natural disasters so a contingency plan needs to be set up for emergencies. Also facilities must be equipped to deal with power shortages these events can be coped with in terms of providing alternative sources of energy. A failure of WFM internal control over financial reporting could materially impact its business or stock price. Reviewing the existing system of internal controls and management responsibilities, which provide checks and balances for every aspect of a company, although there is no absolute errant for success.
Loss of key management could negatively affect business since they are the fundamental structure of a company. Proper care of key team members and managers is done by keeping them satisfied and making them identify with Wife’s mission statement is crucial. Also looking for new future employs that would benefit the company is done by proper scouting and intervening propose so a strategy needs to be set up for that. Unfavorable changes in governmental regulation could harm WFM business, so a proper monitoring service has to be in trend with overspent plans and regulations.
Furthermore since business is done internationally other government regulations must be carefully examined before making any investment decisions. A good legal department is vital for conducting business and minimizes risk in that area. Ill) Whole Food Market’s mission statement is high quality natural products and its motto is “Whole Foods, Whole People, Whole Planet”. WFM has managed to connect their goals with its business model. They do a good Job in providing and maintaining products to keep customers satisfied and they versified their offer making room for new customers and retaining current.
Good planning and realization was vital for this for example whenever WFM wants to open a supermarket they do intensive research and analyze and calculate what their future EVA will be if they move on with the project. They managed to connect their vision with some projects they introduced like Healthy Eating Education, Wellness Clubs, Whole Planet Foundation etc… All of this gives more competitive advantage because the fundamental principles are being promoted.
But in contrast there are mom questionable statements as far as making their employs identify with their mission statement which was not always the case since legal proceedings involving personnel and employment issues have occurred. Also on October 27, 2008 “Cottar’s” filed a putative class action against Whole Foods Market for the acquisition of Wild Oats Markets. This raises a question of ethical responsibility or is WFM driven by profit and future growth disregarding antitrust laws. Logically a company needs to create value but it must also consider how it achieves that and how it presents itself to the public.
