Whole Foods Market: Will There Be Enough Organic Food to Satisfy the Growing Demand?
Unit 5: Whole Foods Market: Will There Be Enough Organic Food to Satisfy the Growing Demand?
Kaplan University
School of Business and Management
MT 460 Management Policy and Strategy
Tosha Collins
Dr. K. Peterson
2/5/12
Introduction
Whole Foods, founded by John Mackey, is one of the largest natural food grocery chains that is trying to bring a more organic and natural way of buying and consuming foods to its consumer base. In order to provide this to consumers, it is important that Whole Foods continues to grow in the organic food market. As they grow, there needs to be continuous supply for the demand for organic food.
Synopsis of the Situation
Whole Foods entered the industry hitting the ground running, making a name for them and positioning themselves as a leading natural food chain. Whole Foods Market’s success continues to grow, but in this market, the owner knows that he or she must maintain this success and meet the company’s growth targets along with making a profit. Continuing to adhere to the company’s philosophy and mission statement has helped with their continual growth through mergers, new store openings and other purchases.
Key Issues
The issues that Whole Foods Market faces are maintaining quality and a reputation through a growing industry. Harasta & Hoffman states the organic food industry is growing and Whole Foods finds itself competing hard to maintain its elite presence (Pearce & Robinson, 2010). The competition for Whole Foods continues to grow because of the growing demand for natural and organic food. Other issues that arise for Whole Foods are the competition with larger grocery chains, difficulties with suppliers, and the possibility of not having the products for the customers. Only 3% of U.S. farmland is organic, so there is limited output (Pearce & Robinson, 2010). Whole Foods must also face the fact that store locations could become limited. When the consumer base and location sites are defined by those that
Kaplan University
School of Business and Management
MT 460 Management Policy and Strategy
Tosha Collins
Dr. K. Peterson
2/5/12
Introduction
Whole Foods, founded by John Mackey, is one of the largest natural food grocery chains that is trying to bring a more organic and natural way of buying and consuming foods to its consumer base. In order to provide this to consumers, it is important that Whole Foods continues to grow in the organic food market. As they grow, there needs to be continuous supply for the demand for organic food.
Synopsis of the Situation
Whole Foods entered the industry hitting the ground running, making a name for them and positioning themselves as a leading natural food chain. Whole Foods Market’s success continues to grow, but in this market, the owner knows that he or she must maintain this success and meet the company’s growth targets along with making a profit. Continuing to adhere to the company’s philosophy and mission statement has helped with their continual growth through mergers, new store openings and other purchases.
Key Issues
The issues that Whole Foods Market faces are maintaining quality and a reputation through a growing industry. Harasta & Hoffman states the organic food industry is growing and Whole Foods finds itself competing hard to maintain its elite presence (Pearce & Robinson, 2010). The competition for Whole Foods continues to grow because of the growing demand for natural and organic food. Other issues that arise for Whole Foods are the competition with larger grocery chains, difficulties with suppliers, and the possibility of not having the products for the customers. Only 3% of U.S. farmland is organic, so there is limited output (Pearce & Robinson, 2010). Whole Foods must also face the fact that store locations could become limited. When the consumer base and location sites are defined by those that
References: Pearce, J. A., & Robinson, R. B. (2010). Strategic management. (12 ed.). McGraw-Hill/Irwin.