Whole Foods Market

Topics: Organic food, Strategic management, Whole foods Pages: 61 (16815 words) Published: March 11, 2010

Business Policy and Strategic Management
Spring 2009

Team C

Section 1: Case Study of Whole Foods1
1.1 Historical Background1
1.2 Organization Mission1
1.3 The External Environment2
1.3.1 Remote Environment2
1.3.2 Industry Environment3
1.3.3 Operating Environment3
1.4 The Internal Environment4
1.5 Generic Strategy4
1.6 Long-Term Objectives5
1.7 Grand Strategies6
1.8 Short-Term Objectives6
1.9 Functional Tactics7
1.10 Strategy Execution Policies8
1.11 Executive Bonus Compensation Plans8
1.12 Organizational Structure, Culture, and Leadership9
1.13 Strategic Control10
1.14 Innovation10
Section 2: Identification of Key Strategic Issues for Whole Foods11 Section 3: Analysis and Evaluation of Whole Foods12
3.1 The External Environment12
3.2 Industry Analysis12
3.3 Internal Analysis14
3.3.1 Resource-Based View14
3.3.2 Value Chain Analysis15
3.4 SWOT Analysis16
3.5 Mission Statement Analysis16
3.6 Generic Strategy Analysis17
3.7 Long-Term Objectives Analysis19
3.8 Grand Strategy Analysis20
3.9 Short-Term Objectives Analysis21
3.10 Functional Tactics Analysis22
3.11 Strategy Execution Analysis23
3.12 Executive Bonus Compensation Plans Analysis23
3.13 Organizational Structure, Culture, and Leadership Analysis24 3.14 Strategic Control Analysis25
3.15 Innovation and Entrepreneurship Analysis25
Section 4: Recommendations27
4.1 Major Insights of External Analysis27
4.1.1 Remote Environment27
4.1.2 Industry Environment28
4.1.3 Operating Environment29
4.2 Major Insights of Internal Analysis30
4.3 Mission Statement30
4.4 Generic Strategy31
4.5 Long Term Objectives32
4.6 Grand Strategies32
4.7 Short Term Objectives34
4.8 Executive Compensation35
4.9 Effective Strategy Implementation36
4.10 Control Recommendations37
4.10.1 Premise Control37
4.10.2 Strategic Surveillance37
4.10.3 Special Alert Control37
4.10.4 Implementation Control37
Appendix A39
Appendix B41
Appendix C43
Appendix D47
Appendix E48
Appendix F52
Appendix G53
Appendix H56
Section 1: Case Study of Whole Foods

1.1 Historical Background

Whole Foods started in 1980 with one small store in Austin, Texas. At the time, there were less than half a dozen natural food supermarkets in the United States.[1] Today, they are the world’s leader in natural and organic foods, with more than 270 stores in North America and the United Kingdom. Whole Foods was founded by John Mackey, Renee Lawson Hardy, Craig Weller, and Mark Skiles. Whole Foods seeks out the finest natural and organic foods available, maintaining the strictest quality standards in the industry. They also have an unshakeable commitment to sustainable agriculture.[2] See Appendix A for a more detailed history.

1.2 Organization Mission

Whole Foods talks about their mission in terms of “Whole Foods – Whole People – Whole Planet.” Each of these elements plays a dynamic role in the company’s success.[3] For the “Whole Foods” element of their mission, they search for the highest quality, least processed, most flavorful, and most natural foods available. They believe that food in its most natural state is the best tasting and most nutritious food that there is.[4] The second element of their mission is “Whole People.” Whole Foods believes that their people make their company. They want their employees to be passionate about healthy food and a healthy planet. Since Whole Foods is a decentralized organization, they want their employees to take advantage of it and use the self-directed team culture to create a respectful workplace where everyone is treated fairly and are motivated to succeed.[5] The third element of their mission is “Whole Planet.” Whole Foods actively supports organic farming and sustainable...

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