Whole Foods Case Study

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Unit Five Whole Foods Market 2007 Case Study Analysis Robert Neal Kaplan University School of Business and Management MT 460-01 Management Policy and Strategy Dr. Carrie A. O’Hare [ August 5, 2012 ] Unit Five Whole Foods Market 2007 Case Study Analysis Introduction Whole Foods Markets is a food market that prides itself on providing its customers with the highest quality of natural and organic foods. With natural and organic foods increasing in consumer purchases it looks as if it is a sure win for profitability. Through the acquisition of a number of other companies, whole Foods may have grown to become the largest natural food supermarket in the United States. Staying true to their mission statement and original ideals is the formula the company credits their success to. Synopsis (Background) of the Situation John Mackey (founder) may not have dreamed that the one Whole Foods market store he helped to create back in 1980 would grow to become the leading supermarket in the natural foods industry. Whole Foods has come a long way since the first store opened in Austin, Texas over 30 years ago, we have seen that there has been an increase in the organic food industry in its entirety. Expansion of the natural foods industry has brought with it increased demand for organic food and new competition. With such demand on the rise, supply has now become a concern for Whole Foods. Key Issues Only 3 percent of US farmers grow organic products. US shoppers spent 45 billion dollars on natural and organic products in 2004. (Harasta, Hoffman, 2007). The growing organic foods industry has created major competitors like Trader Joes that offers high quality products at low prices and has seen a 13.6% sales increase from 2002 to 2003. Conventional grocery stores and wholesale chains like Costco and Sam’s Club, seizing the opportunity in this rapidly growing

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