Whole Foods - Case Study Example

?Introduction In the current environment of long drawn financial meltdown and recessive economy, the survival of businesses has become critical part of business strategy. The leadership initiatives within organizations become the major imperative that interprets the vision and mission of the organizations in the context of changing business dynamics. Thus, changing business dynamics to suit the transforming business environment ensure that companies not only survive but are also able to maintain their competitive advantage within the industry. The paper would therefore be analyzing Whole Food Inc for business initiatives that has helped them to maintain their market position even during the recessive period. Analysis of Whole Food Whole Food Market was started in 1980 in Austin, Texas as local supermarket that focused on natural and health food with emphasis on organically produced food products. As one of the largest retail market chains of organic food, the company’s 276 retail outlets across US, UK and Canada have seen stupendous revenue growth of 30% by 1991 and 20% since 2000. The company intends to achieve a target of 400 stores with revenue worth $12 billion by 2010. John Mackey, CEO of Whole Food, has been an exemplary leader whose intrinsic beliefs in the strategic vision and core values of the company have steered it to the path of enviable success. Strategic vision and core values Company’s vision is to become a global brand for best quality natural and organic food and best food retailer in every community that it serves. The mission statements of the company are designed to meet the food requirements of the people by providing them with healthy food so that they can lead a healthier life and live longer. The core values of the company highlight sustainable business practice and are fundamentally based on ensuring customer satisfaction not only through quality food that is organically produced by also by empowering them with knowledge and information that would promote their general well being. The core values are aligned to their vision and mission. Interests of all stakeholders including workforce, customers and supply chain is taken into consideration within the business strategy of Whole Food. Business strategy and operational efficiency The company ensures customer satisfaction by providing them with high quality of natural and organically produced wide variety of food products. The Whole Food stores had large, open format on huge area, often exceeding 40,000 square feet. The stores had well defined segments with cafeteria facility which ensured that customers could also taste and test the quality food that they would be buying. The brochures and information about food products and sustainable business practice were made available. The organizational culture emphasizes diversity in workplace and promotes cross cultural understanding to create barrier free and encouraging environment. The team leaders within the stores are empowered to make independent decisions that ensures improved performance outcome. The company fulfills its social accountabilities through measures of employees’ welfare schemes, environmental concerns and charitable works in the area of education, training and development of entrepreneurial skills etc. Its suppliers of food products from low waged countries were helped financially to ensure quality produce that also helped them to raise their living standard. It has introduced various innovative measures to propagate its environmental policies among its in-house staff and business partners. It has also facilitated wider interaction with various focus groups and forged alliances to motivate and promotes proactive participation of the public and workforce in its drive for environmental conservations. The growth plans of companies are primarily through opening of new stores and through acquisition of smaller stores which have also been into the same business. The company’s philosophy of ‘Whole Food, Whole People, Whole Planet’ give insight to its principles which value its customers and various other stakeholders. At the same time, emphasis on sustainable business practice ensures that environment conservation and preservation remain the top priority at all levels of its operation. Effectiveness of strategic business plans The company’s business strategy has been successful despite the higher prices of its goods and services. The main reason has been its culture of transparency that encourages all stakeholders to satisfy their curiosity and also become empowered to make decisions based on informed choices. Bateman and Snell (2009:132) assert that ‘the conscious, systematic process of making decisions about goals and activities that an individual, group, work unit or organization will pursue in future’ is critical element of strategic planning. Indeed, leadership within Whole Food ensures that it adopts proactive measures of competitive advantage and evolves flexibility in its approach to suit the needs of changing times. Was acquisition of Wild Oats acquisition a good move or mistake? Acquisition of Wild Oats was a major breakthrough for Whole Food because it not only helped to facilitate the sustenance of Wild Oats which was on the brink of financial crisis but it also helped it to expand its business across new regions with significantly lower cost. Kay (1995:50) believes that ‘all types of contract business relationship are the linkages that facilitate higher level of efficiency and organizational growth … not by legal process, but by the need the parties have to go on doing business with each other’. Thus, acquisition of Wild Oats served as crucial element of success in the current environment of recessive economy. Recommendations for maintaining competitive advantage during recessive trend The company’s faux pas before and during the acquisition proceedings of Wild Oats vis-a-vis blogs that decried the operational efficiency of Wild Oats was ethically wrong. Though apologies were made but the dent in the credibility of Whole Food was a major setback, especially amongst its various stakeholders. Hence, the company leadership must at all time, maintain high standards of ethics and promote code of conduct hat exemplify its principles and core values. The threat of intense price competition must be met by more innovative input that would help it maintain its higher price strategy. The companies can focus on the issue of sustainable business practice and social consciousness by ensuring that its supply chain promotes the development of region. Buying directly from the farmers from underdeveloped and developing countries would help in improving their living standard. The company must continue to community development programs in various fields like education, skill based training in low waged countries so people can become empowered. In the current environment of advancing technology, online presence would greatly facilitate business objectives. Online marketing and sale would not only help to get customer feedback but it would also increase its customer database. This is important factor in the survival strategy during recessive times. (words: 1097) Reference Bateman and Snell. Management: Leading and Collaborating in a Competitive World. 8th ed. McGraw hill. 2009 Kay John. Foundation of corporate Success. Oxford University Press. 1995. Case Study: Thompson, Arthur A. Whole Food Market in 2008: Vision, Core Values and Strategy. University of Alabama. 2008 Read More