Whole Foods Case Analysis

Topics: Whole Foods Market, John Mackey, Salary Pages: 6 (1043 words) Published: March 18, 2013


Whole Foods Case Analysis

Thomas Edison State College


The Whole Foods company mission is whole foods, whole people, whole planet. The Whole Foods

company strategy reflects the company mission. Their whole foods mission is achieved by offering a

wide variety of food and non-food items that are organic or natural. They source their products locally

and usually have stricter store guidelines for the definition of “local” requiring a shorter maximum

distance for traveling. “Locally grown” n.d. Their standards of quality are high and they strive to

provide products that are fresh, safe and support well being. They have a list of unacceptable

ingredients for food and quality standards for other products. “Quality standards” n.d.

Their mission of whole people is achieved through the formation of teams at the store level. The

teams manage themselves and are encouraged to make decisions about their department they are

responsible for. Compensation is in part from stock options so they are invested in the profitability of

the store. Fortune magazine has listed them as on the top 100 companies to work for for 13 years in a

row now. Team members can go on field trips to visit suppliers and have access to a company wage

report to see everyone's salary. “Fortune 100 Best Companies” (2013) The average hourly wage is

$16.98 and John Mackey, CEO has drawn a $1 salary since 2006.

Their mission of whole planet is achieved by having a social responsibility strategy. They support

animal welfare and have created the Global Animal Partnership to work with farms to improve

conditions for animals. Their Whole Kids Foundation supports children's health and wellness by

providing grants for school salad bars and gardens. “Whole kids foundation” n.d. They also provide

low interest loans to independent local farmers and food artisans to help them achieve their goals.

“Local producer loan program” n.d.


The customer value proposition is the first part of a company's business model. Whole Foods

customers want high quality, natural and organic products. Whole Foods provides this by sourcing

fresh foods from local and regional producers. They have very strict guidelines on what is expected

from their suppliers. They seek out foods that are wholesome and safe and that promote well-being and


They must provide these products at a price that the consumer will find a good value. They have

their own store brand called 365 Everyday Value. They offer weekly deals and post signs pointing out

value items. They also have the added value of excellent customer service from team members and

education at the store level. Their marketing strives to have it's customers leaving with a favorable

perception when it comes to the value of their purchases.

The second part of the business model is the profit formula. Their larger stores enable them to

provide the customer with the products they want and need. Their pricing strategy works to keeps

prices competitive and costs low. They do this by negotiating volume discounts with national suppliers

and also by sourcing fresh food locally to reduce distribution costs. They have also streamlined their

distribution of bakery items, prepared foods and fresh roasted coffees.

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