Preview

Whole Foods Market 2007: Will There Be Enough Organic Food to Satisfy the Growing Market

Satisfactory Essays
Open Document
Open Document
368 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Whole Foods Market 2007: Will There Be Enough Organic Food to Satisfy the Growing Market
Whole Foods Market 2007: Will There Be Enough Organic Food to Satisfy the Growing Market

Whole Foods Market 2007: Will There Be Enough Organic Food to Satisfy the Growing Market Unit 5 Case Study Analysis
Kaplan University
School of Business
MT460 Management Policy and Strategy
Author: Tiwana N. Smallwood
Professor: Dr. Tracy Bagley
Date: March 1, 2013

Whole Foods Market 2007 2
Introduction
John Mackey, current president and cofounder of founder of Whole Foods, opened “Safer Way” natural grocery store in 1978. The store had limited success as it was a small location allowing only for a limited selection, focusing entirely on vegetarian foods. John joined forces with Craig Weller and Mark Skiles, founders “Clarksville Natural Grocery” (founded in 1979), to create Whole Foods Market. This joint venture took place in Austin, Texas in 1980 resulting in a new company, a single natural food market with a staff of nineteen. Whole Foods Market was an early entrant into the organic food market and they have used their early mover advantage to solidify their position and continue their study growth.
Synopsis of the Situation In 2005 Whole Foods Market acquired the Wild Oats Food chain. Wild Oats operates 100 full service stores in 24 states and Canada. With the changing economy and a more competitive industry landscape, John Mackey is uncertain about how to meet the company’s aggressive growth targets. Whole Foods Market’s objective is to reach $12 billion in revenue with 300+ stores in 2010 without sacrificing quality and their current reputation.
Key Issues With increased demands from mainstream super markets also carrying organics, the demands for such products could outreach the limited supply. Changes in the Availability of Quality Natural and Organic Products could impact our Business. There is no assurance that quality natural and organic products will be available to meet our future needs. If conventional
Whole Foods Market
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    SIB429 Whole Food
    • 3764 Words
    • 12 Pages

    SIB429 Whole Food

    Whole Foods Market is natural foods, fresh foods supermarket chain. John Mackey, Rene Lawson Hardy, Craig Weller and Mark Skiles founded the whole foods market in Austin, Texas. Originally, in 1978 Rene Hardy and John Mackey borrowed 45,000 dollars from relatives to open a natural foods store in Austin Texas. Two years later, they partnered with Craig Weller and Mark Skiles merging their natural foods store SaferWay with Weller and Skiles Clarksville Natural Grocery. The resulting new natural foods store was named Whole Foods Market and opened in 1980. This store had 10,500 square feet and a total staff of 19.…

    • 3764 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Whole Foods Strengths And Weaknesses
    • 271 Words
    • 2 Pages

    Whole Foods Strengths And Weaknesses

    Whole Foods Market has managed to build a strong brand reputation and has achieved having unique products in their stores. They’ve mastered the ability to offer high quality organic food and carry a variety of products, which most organic markets are not able to achieve. Furthermore, when visiting their stores customers are welcomed into a positive employee environment (Whole Foods SWOT, n.d.).…

    • 271 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Whole Foods Triple Bottom Line
    • 243 Words
    • 1 Page

    Whole Foods Triple Bottom Line

    Whole Food Market has become the largest retailer of natural foods in the United States. The company's fundamental values are the commitment to promoting sustainable food production practices and social responsibility; meanwhile, they also generate significant profits to satisfy the requirements of the traditional bottom…

    • 243 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Whole Foods Mission Statement
    • 824 Words
    • 4 Pages

    Whole Foods Mission Statement

    I think John Mackey has an excellent strategic vision for Whole Foods. Whole Foods meets a need that most big box retailers don’t. Consumers are obviously pleased with the strategy as well, as evidenced by their willingness to pay higher prices for the quality they desire. I like the company’s vision statement. The mission statement does a good job of conveying what Whole Foods is all about.…

    • 824 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Carroll Jana Paper3 Final Draft
    • 1351 Words
    • 4 Pages

    Carroll Jana Paper3 Final Draft

    Grocery shopping in today’s society can be extremely confusing for most consumers; I have often pondered over which product to feed my children and if organic food is actually better than processed food. Although I have heard many people say organic food is a gimmick to get more of today’s consumer’s money, or that they just can not afford it; I argue that eating organic is a more healthy choice. “Organic food consumption is one of the fastest growing segments of U.S. domestic foodstuffs” (Crinnion 4).…

    • 1351 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Whole Foods
    • 652 Words
    • 3 Pages

    Whole Foods

    2. My first reaction was that yes, the Whole Foods Market strategy matches market conditions. Evidence for this is that the demand for organic or natural products in continually increasing at an above average rate. More suppliers will carry and support farmers that are generating these organic products. With the increased demand is an increased awareness in the market that allows for increasing sales as well. On the other hand, only 13% of the retail food worldwide is made from organic or natural products. Looking at this figure, then I would say no, Whole Foods Market is not well matched to market conditions. In order to become well matched I would suggest they offer a product mix of organic and non-organic foods. This strategy would increase market with the majority of retail food purchases while still holding a strong share of the natural food market.…

    • 652 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Benefits Course Project
    • 6922 Words
    • 28 Pages

    Benefits Course Project

    Whole Foods Market was founded in Austin Texas by four local business folk. Whole Foods Market sells natural food in the supermarket format. Founders John Mackey, Renee Lawson Hardy (Owners of Safer Way Natural Foods) Craig Weller, Mark Skiles (Owners of Clarksville Natural Grocery). The original store opened in 1980; with 19 staff it was an immediate success. During that particular time the store concept in the natural way had less than half a dozen natural food supermarkets in the United States. The brand had major growth with mergers and acquisitioning.…

    • 6922 Words
    • 28 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Miss
    • 8881 Words
    • 29 Pages

    Miss

    Specifically, “a cereal company has pledged that beginning in 2015, all of the new foods that it introduces will be non-GMO project verified and will contain at least seventy percent USDA organic certified ingredients” (Smith, 2012). With signs pointing to a growing amount of disgruntled consumers, this is a trend that will continue to have an impact on the future of food production. This is evident in the table listed below that defines the sales trends of organic beverages (Table 1). With statistics provided by Stephanie Cernivec in the article “Taking Beverages Back to Basics” the table displays the percent change from the year prior while also displaying the dollar amount of sales. Perhaps the most important sales trend to notice is that the overall purchases or organic beverages has been on the rise since 2012.…

    • 8881 Words
    • 29 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Whole Foods
    • 1021 Words
    • 5 Pages

    Whole Foods

    * Whole Foods Market was founded in 1980 working with natural and healthy foods in Austin, Texas; it’s one of the world’s largest of natural and organic foods supermarkets. In 2009, the sales total $8 billion and had 289 stores in the U.S. The Whole Foods Market plans to come up with strategies to help improve the company but to do so understanding the core values plays a major role in the company’s planning. The strategies they want to improve the growth strategy, store location strategy, product line strategy, pricing, control expenses, and merchandising strategy. This company values keeping all its products natural meaning minimally processed, largely or completely free of artificial ingredients, preservatives, and other non-naturally occurring chemicals, and as near to their whole, natural state as possible.…

    • 1021 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Whole Foods
    • 2291 Words
    • 10 Pages

    Whole Foods

    From the fairly humble beginning of being a one-store entrepreneur living on the third floor and taking baths in the dishwasher, John Mackey has seen his 1978 Safer Way grocery store grow into an $8 billion a year corporation. As of September 2008, Whole Foods had 264 stores in the United States, six in Canada, and five in the United Kingdom. Whole Food’s is now the leading chain of natural food supermarkets in the United States. The company 's stores average 28,500 square feet in size and feature foods that are free from artificial preservatives, colors, flavors, and sweeteners. They also offer many organically grown products. Many locations include in-store cafes and juice bars. Whole Foods has also developed a growing line of private label products such as organic pasta, freshly roasted nut butters, oak-aged wine vinegars, and aromatic teas. After the company was founded in 1980 with a single store, it grew dramatically into a chain of more than 130 stores in 25 states, the District of Columbia, and Canada. It is a Fortune 1000 company, ranked as the 41st largest U.S. supermarket and the 730th largest U.S. company overall. There are few companies that attract the kind of following Whole Foods and its CEO/founder has both among its customers and the national media. Their corporate website averages more than 50,000 visitors a day. Through a long series of acquisitions, John Mackey has created a niche retailer which enjoys lofty profits in a very price competitive industry that is typically characterized by accordingly low profit margins. Whole Foods had 275 stores, and 50,000 plus team members in 2008 with a goal of 1,000 stores open in the future (Whole Foods Market, 2008a).This ever-evolving, often controversial organic retailer is facing several major strategic issues in both its external and internal…

    • 2291 Words
    • 10 Pages
    Better Essays
    Read More
  • Powerful Essays

    Whole Foods
    • 3063 Words
    • 13 Pages

    Whole Foods

    The organic foods giant originated in 1978 as a simple dream by its CEO and founder John Mackey: to do something different with food. His vision first began with the simply realization of food 's importance in personal well-being. It all began as a humble storefront in Austin Texas, Mackey and his then girlfriend, Renee Hardy, who made everything from scratch and helped develop this grocer empire. Together, their budding company became America 's first national certified Organic grocer (Whole Foods Market, 2011). Today, with over 330 stores expanding across North American and the UK and with around 60,000 employees, Whole Foods Market is the world 's largest grocer of natural and organic foods.…

    • 3063 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Concept of Organic Farming
    • 1249 Words
    • 4 Pages

    The Concept of Organic Farming

    The organic farming market is a worldwide growing business. Companies who are willing to become certified in organic farming can make sustainable profit. Organic farming has been growing in the numbers during the last couple of years and it is predicted that organic market will grow even higher to 9 percent (Haumann 2011). Since organic food is on the raise there is a shortage of organic products. In an…

    • 1249 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Actual and Potential Development of Consumer Demand on the Organic Food Market in Europe
    • 492 Words
    • 2 Pages

    Actual and Potential Development of Consumer Demand on the Organic Food Market in Europe

    These days, rapid growth in organic products sector has become noticeable. This research has focused on potential demand on organic products in Europe. It revealed that more than 8 in 10 of the Danish households consume organic products. And 2 in 3 of Italian and British households do so. However, in all three countries, at least half of all households spend a small portion of their food budgets on organic products(p84). The result of this research also gave some possible factors and problems needed to be address in order to continue driving this market in the future. It also distinguish consumer as three groups : regular, occasional and non-user to sketching suitable marketing strategies for market competition. The study mentions that European are potential market in future since the demand for organic increasing dramatically(p89)…

    • 492 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    Consumer Attitudes and Purchase Intentions in Relation to Organic Foods
    • 4927 Words
    • 20 Pages

    Consumer Attitudes and Purchase Intentions in Relation to Organic Foods

    The organic market back in 80’s, while remaining a niche sector, has grown to be able to grab a share from the total spending on food in some countries in the recent years. Organic fruit and vegetables are amongst the products which have been expanding in the rapid production. The demand for organically-produced meat and dairy products has undergone the same rapid progress,…

    • 4927 Words
    • 20 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Organic Food Market in Hong Kong - Environmental Scan
    • 410 Words
    • 2 Pages

    Organic Food Market in Hong Kong - Environmental Scan

    In 1950s, consumers are starting to aware of organic product and in 1970s to 1980s, organic sector start to develop, e.g. set up regulation and certification around the world. In 1990s, the organic food market has a sharp growing, expanding at 20% a year. In 2006, the sales of organic baby food were increased 21.6%. There are also has dramatically increase in variety, availability and decreasing the cost of organic food.…

    • 410 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics