Whole Foods Market

16830 words 68 pages

Business Policy and Strategic Management
Spring 2009

Team C

Section 1: Case Study of Whole Foods 1 1.1 Historical Background 1 1.2 Organization Mission 1 1.3 The External Environment 2 1.3.1 Remote Environment 2 1.3.2 Industry Environment 3 1.3.3 Operating Environment 3 1.4 The Internal Environment 4 1.5 Generic Strategy 4 1.6 Long-Term Objectives 5 1.7 Grand Strategies 6 1.8 Short-Term Objectives 6 1.9 Functional Tactics 7 1.10 Strategy Execution Policies 8 1.11 Executive Bonus Compensation Plans 8 1.12 Organizational Structure, Culture, and Leadership 9 1.13 Strategic Control 10 1.14 Innovation 10
Section 2: Identification of Key Strategic Issues
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The economy, both in the United Kingdom and the United States, has had unstable activity resulting in an increase in unemployment and a decrease in consumer spending. Both of these factors have negatively affected Whole Foods direction, as far as expanding and building new stores. Whole Foods has been keeping up with the changing technology. The organic retailer has been improving the growth of organic foods. Not only has Whole Foods been focused on their technology efforts, but they have also become a leader in ecological efforts. As a result, they have been the leader in the “green” movement and caring for the ecological environment. They have created the 3R’s “Reduce, Reuse, Recycle” and used it to promote green efforts internationally.

1.3.2 Industry Environment

The environment that Whole Foods also places a focus on is the industry environment and their product differentiation. Most people can identify a Whole Foods product by its organic information. Whole Foods can easily differentiate their product because they are the leader in selling organic foods. However, Whole Foods is facing a threat from substitute products and services that is leading to increasing rivalry from established players in the grocery industry.

1.3.3 Operating Environment

The operating environment is another critical focus for Whole Foods. Whole Foods has done a great deal of research to evaluate their customer profiles. This


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