Strategic Choice and Evaluation Paper Clea Williamson McKinney STR/581 October 8, 2012 Kenneth Kobus Strategic Choice and Evaluation Paper This submission will evaluate alternatives Whole Foods Market should consider to stimulate growth. Whole Foods Market vision is that of a sustainable future where everyone will be living in a world that values human creativity, diversity, and individual choice. To see this vision realized, WFM should consider a value discipline, generic strategy, and grand strategy. This submission recommends strategy and gives examples of how combining different strategies organizations can increase profitability. Value Discipline Value discipline is the alternative approach to a generic strategy.
As a result, GB is committed in their approach in trying to encourage and promote a healthy lifestyle for the world and advocate the benefits of meatless eating to aid in sustaining the integrity of our world. POSITIONING STATEMENT Gardenburger’s veggie burger is for the health conscious consumers who are looking for healthier alternatives to meat. It is made from the finest natural ingredients and provides great-tasting flavor. The Gardenburger is dedicated to creating and promoting meatless and other healthy food items that is very flavorable. TARGET SEGMENT Target markets for consumers buying meat alternatives fall into three different groups: vegetarians, health modifiers, and cultural
Each team member will include one alternative and recommend a single strategy that Kudler Fine Foods may implement. The alternatives discussed will be (1) expansion by horizontal integration (2) expansion by adopting generic competitive strategies (3) expansion by product development (4) expansion by recruiting new management team, and (5) expansion by identifying a specific plan for new location. Expansion by Horizontal Integration To maintain and increase its competitive edge, an alternative strategy KFF will consider is to realize growth and increase productivity through horizontal integration. Horizontal integration will increase KFF’s economies of scale and scope, marketing power and reduce the cost of international trade when this opportunity arises (University of Phoenix, 2007). To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product.
Whole Foods Case Assignment Questions 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? Some of the chief strategy elements the Whole Foods market is pursuing is fresh natural and organic foods and products with no preservatives or artificial ingredients. They also promote a healthy eating lifestyle and want to increase consumer knowledge of food safety, environment and how pesticides affect the land as well as the human body. 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)?
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 include: Creating a differentiation-based advantage - Whole Foods attempts to distinguish themselves from the competition by focusing on selling high quality natural and organic products. They also promote sustainable agriculture and organic production. They also want to maintain a certain atmosphere for their customers while they shop so they have that great experience and want to come back, for instance natural displays and educational demonstrations.
Kudler Fine Foods Problem Statement University of Phoenix MGT/251 Dr. Patrick E. Murray Kudler Fine Foods has the unique opportunity to dominate the organic fine foods market in California. While business is currently good at Kudler there are many weaknesses the company needs to address in order to remain profitable on a grand scale. Currently the weaknesses Kudler is experiencing are problems with perishable goods, high payroll; management has too many responsibilities, sales at Del Mar location, and geographic expansion limitations. There is no way to completely resolve the issues with perishable foods. Being a fine foods store that specializes in foods that do not use any type of preservatives there will always be a problem with waste.
Modify the growth of new stores in acquisitions and opening new stores to a more sustainable level. There were reports that they were considering reinstating their dividend in the near future (Reports that Whole Foods may reinstate their Dividend, 2010). Whole Foods Strategy as a whole has been working. They have the ability of picking prime real estate locations coupled with choosing the right companies to acquire. They should move forward with growth but at a more conservative pace.
The marketing strategy will present consumers with a line of fine quality imported or domestic foods or products. The marketing strategy will also include the introduction of a loyalty program in which will reward consumers with perks and savings for their continued support. In order to create such a program that will become popular with consumers, data will need to be collected and analyzed. This is where the marketing department will be spending a lot of time on. The expansion of the company will require additional market research in interested regions.
Kudler Fine Foods is a premium specialty store stocked with bakery products, meat and seafood, cheese, diary, and wine products. The stores are in the San Diego area with locations in La Jolla, Del Mar, and Encinitas. The organization has a mission to “provide their customers with the finest selected foodstuff, wines, and related needs in an unparallel led consumer environment” (Kudler, Mission Statement, p. 2, 2008). Kudler Fine Foods has its targeted market established. Marketing research allows the organization to implement an effective marketing mix that includes the 4p’s.
To develop a IMC plan, the company must insure that all marketing initiatives align with the company’s mission statement. When selling gourmet foods, it is more important to have the highest quality foods and customer service than it is to have low prices. Kudler must stay focused on this aspect at all times when developing new tactic and strategies as not to succumb to the pressures of the discount shopper. For example, Our family use to own unique high end shoe stores in Southern California. They were run by two different family members with two very distinct management styles.