Crafting and Executing Strategy
Assignment # 1
BUS 599: Strategic Management
Develop an argument supporting the importance of a strategic plan for the success of the defined business.
For the success of the defined business, in this case for Whole Foods Market, the importance of a strategic plan is unquestionable. In Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases Arthur A. Thompson, Jr., A.J. Strickland III, and John E. Gamble (2009) state that “a company’s strategy is management’s action plan for running the business and conducting operations” (p.6). They go on to further explain that a company’s strategy is all about how management intends to grow the business, how it will build a loyal clientele and outcompete rivals, how each functional piece of the business will be operated, and how performance will be boosted. Any organization without these defined “how’s” cannot succeed because all aspects of the business would be out of sync and could potentially take action that would be counterintuitive to the success of the company as a whole.
If Whole Foods Market’s strategy (outlined below) didn’t fit the company’s situation, didn’t help the company achieve a sustainable competitive advantage, or result in better company performance, than the overall strategy would come up short and need to be re-evaluated to meet the needs of the business to drive success in these three big areas.
Whole Foods Market’s strategy focuses on being America’s healthiest grocery store, seeking out the finest natural and organic foods available, maintaining the strictest quality standards in the industry, and having an unshakeable commitment to sustainable agriculture. All of these pieces make up the Whole Foods Market’s strategic plan for its day-to-day operations in all aspects of the business, and without all of its employees being clear on this it would fall apart and not be the success that it is since its inception in 1980.
Create a mission statement for the company explaining how the mission will be essential to the company’s success.
Thompson, Strickland, & Gamble state that the mission statement for any organization is essential to a company’s success because “…it represents the company’s present business purpose and reasons for existing, and sometimes its geographic coverage or standing as a market leader” (pg 28). The mission statement for Whole Foods Market is a good example of this due to providing customers and potential customers what Whole Foods Market is now and how they function as an organization. Whole Foods Market’s mission is to be known for selling the highest quality of natural and organic products available, for satisfying and delighting their customers, supporting team member excellence and happiness, creating wealth through profits and growth, supporting communities and encourage local involvement, promoting environmental stewardship, acknowledging all business associates, and operate with balance and integration. All of these boil down to one fact… that Whole Foods Market intends to grow, and that today’s growth is just the beginning of tomorrow’s development.
If Whole Foods Market didn’t have a mission statement clarifying exactly how they want to be portrayed in the food retail industry, then any current or potential customer would never know the type of business they were dealing with. The drive to be a leader in the organic and natural foods industry, and for every single “team member” to be a part of that drive, is an indicator that the organization values its standing in the industry and has a trusted staff invested in its own success. This is used as a lure for customers to want to do business with an organization that prides itself on being the best in the country. Whole Foods Market states that “our...