Why or why not? During the J.M. Smucker Company’s transition in 2000-2001, Richard Smucker stated “Our strategy is to own and market Number 1 brands, sold in the center of the store, in North America. The real money in supermarkets is made in the middle of the store, where processed foods and well-known brands reign supreme.” Smuckers shares this strategy across all its brands, and because of this their sales have increased a great deal from 2000 to 2010. Not only did it make sense to expand their business beyond jams, jellies, and preserves, but it may have saved them.
Introduction Founded in 1980, Whole Foods Market (WFM) has evolved from a local supermarket for natural and health foods, into the world’s largest chain of natural and organic food supermarkets. As of 2010, Whole Foods operated in 278 stores in 38 U.S. states and the District of Columbia, 6 stores in Canada, and 5 stores in Great Britain. WFM does business by offering customers the highest quality, least processed, most flavorful naturally preserved and fresh foods available, and marketed them in appealing store environments that made shopping at WFM enjoyable. John Mackey, the company’s cofounder and CEO, vision was for WFM to become an international brand synonymous with carrying the highest quality natural and organic foods available and being the best food retailer in every community in which WFM stores were located. WFM mission, summarized in the slogan “Whole Foods, Whole People, Whole Planet,” extended well beyond food retailing.
The average sales per store averages $636,000. Total revenue for the fiscal year 2012 ended with $11,698 million while showing a gross profit of more than $4,155 million (hoovers.com, 2013). Issues Pearce and Robinson (2011) explain that a SWOT analysis is a tool which is used to identify the strengths, weaknesses, opportunities, and threats assessing what an organization can and cannot do in order to achieve desired results. The following SWOT analysis for Whole Foods Market exposes negative issues concerning product recalls and presence in the global economy. According to the U.S. Food and Drug Administration (2011), Whole Foods has recalled many products due to various contamination discrepancies.
AEA in 2005 selected some qualified workers and then started the growth of the firm tremendously. Dough Hansel the new CFO, mark that there was no specific infrastructure for the company to support the manufacturing and controlling the policies and procedures. The company sells its product in the market at price of $4.50 at a wholesale price but actually, the retail price of the product must be $9. This created a sense of feeling in the minds of the consumer that the product does not meet the quality. The company researches show that 15% of the customers sold its product at a discount to consumers and 15% is sold at premium.
A case study of Chipotle Mexican Grill Problem Identification Chipotle Mexican Grill (CMG) is an American restaurant chain founded in 1993, currently has more than 1000 locations throughout the United States, United Kingdom and Canada. The company is a New York Stock Exchange listing Corporation announced US$214 million in net income in 2011. Despite its success, Chipotle does have key problems that they have to face and deal with. If they would like to continue to use quality and sustainably sourced inputs as differentiators to justify a higher priced menu and keep their frequent customers, fighting competition could be the main challenge. The article told us that the competition is mainly from Taco Bell and Qdoba, especially a new menu called “ Cantina Bell” generated by Taco Bell, which offers very similar food like Chipotle, and the price is much lower.
Patagonia prides itself on its deep commitment to environmental and socially sustainable industrial practices, and continually launches new products that are dedicated to its mission statement: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” An unusual mission statement, company founder Yvon Chouinard’s vision for long-term sustainability and low environmental impact has attracted employees devoted to shared environmental causes. Currently, Patagonia employs 1381 people worldwide, with 11 staffed in its Environmental Analysis Department. Its impressive environmental responsibility agenda and human resources practices have result in a high employee retention rate compared to industry averages. Moreover, the level of customer loyalty and brand recognition surpasses the size of its company. Customers rely on Patagonia for its technical excellence, performance and quality, with only 20% of its customers caring about the environmental impact of their purchases.
CVS has grown its business into the largest retail pharmacy in the world through strong organic growth and a tradition of acquisitions. To maintain successful growth, CVS focuses on new store development, nourishing same store growth through product diversification and a low cost approach, and continuing an impressive track record of producing synergies from retail acquisitions. From the perspective of a potential competitor or investor, I think there are many advantages of owning a drugstore industry. Most importantly, you are not limited to selling specific items which is enabling you to be flexible and accommodate to the customer’s needs. The drugstore industry is comprised of providers of both prescription and non-prescription medicines in the form of retail pharmacies, mail order services, hospitals, and other third party distribution channels.
For those customer that purchase organic foods, these mainstream supermarkets have now become a one stop shop. The trend of growing concern for a healthier lifestyle and environmental awareness could have a positive impact on Whole Foods Market. Evaluate the competitive environment of the firm: Apply Porter’s model and analyze each factor relative to the company. Whole Foods Market competition comes from “local, regional, national and international supermarkets, natural food stores, warehouse
Business Mission Zonnatura mission stands for organic, responsible and tasty. Objectives are generated from business mission centrally stated by Royal Wessanen and based on hierarchy of objects (Fig.1). The business mission of Royal Wessanen NV “Our organic food, your natural choice” is aiming to bring massage to its customers; • Organic food is good for you, our living planet and the next generations • Feature of organic food is that it is sustainable in every aspect • Our pioneering organic food brands make the difference • We need to make organic nutritious, tasteful and affordable for consumers External Marketing Audit Macroenvironment Political and Legal forces Organic agricultural methods are internationally regulated. The regulations are based on the standards set by the International Federation of Organic Agriculture Movements (IFOAM) organization established in 1972. Regulations in the Europe are ensured through European Action plan (http://ec.europa.eu/agriculture/organic/eu-policy_en).
Group 2: Food and Beverage Industry Vinamilk PART 1: SECTOR ANALYSIS I. Food Industry Introduction 1. The importance of food industry Consumer electrics/electronics, food processing, agriculture machinery, ship building, environment and energy saving, automobile/car part manufacturing have been defined as the six key industries. Food processing has been highlighted as the industry to have the highest production value with the gradually improving added value concentration. Many experts believe that this industry would make a significant contribution to the sustainable development of Vietnam’s economy (TBKTVN, 2013) Food is essential for life.