A Case Study of Strategic Management at Whole Foods Market Inc

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A Case Study of Strategic Management at Whole Foods Market Inc * Contents Contents 3 Executive Summary 5 1 Introduction 6 1.1 Company Profile 6 1.2 Achievements 6 1.3 Financial Snapshot 7 2 General Environment Analysis 8 2.1 Demographics 8 2.2 Technology 8 2.2.1 Supporting a Fast-Paced Retail Environment 8 2.3 Innovation 10 2.3.1 Health Starts Here Program 10 2.3.2 Healthy Eating Partnerships 10 2.4 Social, Cultural, and Political 10 2.4.1 WFM Commits to Mandatory GMO Labelling 11 3 Industry Environment Analysis 11 3.1 US Organic Food Industry Expected to Grow 11 3.2 Dominant Economic Characteristics: market size, growth rate and forces of change 11 3.3 Consumer-driven U.S. organic market surpasses $31 billion in 2011 12 3.4 Health Conscious Lifestyles 13 3.5 Porter’s Five Forces Model of the organic foods industry. 14 4 Competitors Environment Analysis 15 4.1 Whole Foods Market Inc. Competition 15 4.2 Whole Food’s Acquisition of Wild Oats 15 4.3 Increasing Competition 16 5 Internal Environment Analysis 17 5.1 Firms Resources 17 5.2 Capabilities 17 5.3 Core Competencies 18 5.4 Value Chain Activities 18 5.4.1 Line Expansion 18 5.4.2 In-Store Education 19 5.4.3 Team Member Support and Incentives 19 5.4.4 The Team Member Healthy Discount Incentive 19 5.4.5 The Total Health Immersion Program 19 5.5 Financial Conditions 20 5.5.1 Explosive Revenue Growth: WFM Reports First Quarter Results 20 5.5.2 Dividend 20 5.5.3 COGS 20 5.5.4 Direct Store Expense 20 5.5.5 General and Administrative Expense (G&A) 21 5.6 Current Strategies and Objectives 21 6 SWOT Analysis 21 6.1 Strength: 22 6.2 Weakness 23 6.3 Opportunities 24 6.4 Threats 26 7 Recommendations 27 7.1 Marketing and Advertising 27 7.1.1 Support Local Charities 27

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