2. Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? Yes, because most industry observers expected that, as a demand for organic foods increased conventional supermarkets would continue to expand their offerings and selection. A survey done by Whole Foods in 2005 found that 65 percent of U.S. consumers had tried organic foods up from 54 percent in previous years. Whole Foods had a head start on the niche of providing a variety of natural and organic foods.
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.
According to the National Resources Inventory, which tracks and documents the nation's natural resources, conditions and trends, 4,080,300 acres of farmland were transformed for development between 2002 and 2007. This is roughly the size of Massachusetts. If we continue to develop our land then we will have to rely more and more on bringing in food from other countries to keep up with the demand. So it is good that we have the technology to preserve and transport food around the world, but often we are using it when we don't have to. Buying local foods also has many advantages.
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
Jeremy Shankman March 18th, 2015 Case Study 2 Questions Week 3 1. What are the sources of pressure on a firm such as Frito-Lay to reduce its environmental footprint? The effect of industrialization and the increasing population of humanity are both reasons why natural resources are being overly consumed, outstripping the resource base on an unprecedented scale. The use of resources and subsequently reductions in operational costs is the primary reason why several companies are making the efforts to reduce their carbon footprints. Sustainable business spending would also increase rapidly because it is seen as a catalyst for more productive improvements which is a win for human beings, the company and our earth when reducing resources and lowering cost while still being sustainable.
Their company headquarters is located in Austin Texas where they were founded in 1978. Whole Foods Market does not have an official mission statement however; they do express their mission through their companies’ core values: * “We sell the highest quality natural and organic products available * We satisfy, delight and nourish our customers * We support team member excellence and happiness * We create wealth through profits & growth * We serve and support our local and global communities * We practice and advance environmental stewardship * We create ongoing win-win relationships with our suppliers * We promote the health of our stakeholders through healthy eating education” (http://www.wholefoodsmarket.com/mission-values/core-values) While they do not have an explicit mission statement John Mackey did make clear his vision for the company, “We aspire to become an international brand synonymous with not just natural and organic foods, but also with being the highest quality food retailer in every community in which we are located. We believe our strict quality standards differentiate our stores from other supermarkets and enable us to attract and maintain a broad base of loyal customers.”
Scientists can modify foods to be healthier, adding fats, proteins and sugars to plants so that consumers with a limited income can have a healthy diet. Genetically modifying organisms will benefit the environment too. With traditional farming, farmers spray their crops with herbicides and insecticides around 4
5. Due to increased consumer preference for low fat and organic products, Mars Nutrition and Health Well Being has also developed a line of low-fat products and healthy snacks. 6. Mergers and acquisitions in the past few years have influenced both the market share and product portfolio of global firms in the confectionery industry. Competitive Profile Matrix Hershey Nestle Cadbury Mars Critical Success Factors Weight Rating Score Rating Score Rating Score Rating Score 1 Global Expansion 0.20 4 0.80 4 0.80 3 0.60 3 0.60 2 Market Share 0.15 3 0.45 4 0.60 4 0.60 2 0.30 3 Product Quality 0.15 4 0.60 3 0.45 3 0.45 3 0.45 4 Price Competitiveness 0.10 3 0.30 3 0.30 4 0.40 3 0.30 5 Advertising 0.15 4 0.60 3 0.45 3
To keep their passion for the company offers their employees flexible schedules, benefits and profit sharing, just to name a few. Focusing on serving special needs and tastes – Whole Foods sells natural and organic food products which represents a small percentage of the entire U.S. grocery store sales (less than 8%). This is a niche market that is growing rapidly. To expand their growth they felt this should be done via several small acquisitions in order to breakthrough those desirable markets they are after. 2.
These genetic modifications result in crops that produce higher yields, survive weeks of drought, and resist the invasion of pests and weeds. Monsanto owns the market share of certain crops and nearly all the world’s Genetically Modified Organisms (GMO) crop seeds use Monsanto genes (either from companies using Monsanto genes or from Monsanto directly). Monsanto’s primary crops of interest are corn, canola, soybeans, and cotton. Monsanto has supporters and of critics ranging from activist and advocacy groups to farmers and governments. Supporters believe that Monsanto aids farmers to increase both revenues and food production.