Whole Foods Market in 2008 - Case Study Example

Whole Foods Market in 2008 Chief Elements of Strategy The ‘chief elements of the strategy’ that Whole Foods Market is pursuing are people, processand the planet.Whole Foods Market was highly concerned about its customers’ values and always strived to make the customers feel its stores to be their “third place”. Also at the same time, the firm valued its team members greatly. Its approach was to make the team members feel as if they are contributing towards the society’s and their customers’ well being through the provision of fresh and healthy foods.

Process is the means through which ideas generated are preserved and effectively inspired within the organization. Process as a strategic element made the firm realize that provision of nutritious food products to the consumers would enhance consumers’ preferences of its products and in turn would generate competitive position in the market. Through its strategic implementation, Whole Foods Market wanted to strive towards creating nutritious food adoption as a policy of the entire world’s people. 2. Compatibility of the Firm’s Strategy to Present Market ScenarioThe strategy for Whole Foods Market has great compatibility with the present conditions prevailing in the section of organic and natural foods in the retail food industry.

This compatibility can be proved from the huge success that the firm has generated over the previous two decades or so. One of its main strategic elements i.e. the people has accepted its performance across the world and the firm is now bestowed with both satisfied customers and satisfied team members (Thompson, 2008). 3. Strategic Vision of John MackeyJohn Mackey, the present CEO of Whole Foods Market is deemed to hold strong strategic vision for the firm. He has kept his performance level in line with his strategic vision throughout the several years of his reign in the organization.

His achievement by maintaining high level of performance is evident from the firm’s products of higher quality, firm’s stores across the home country (US) and certain locations outside the country and enhanced incentives being offered to Whole Foods’ team members operating all over the stores chains (Thompson, 2008). 4. Contribution of Core Values to Company’s SuccessCompany’s success is heavily dependent on the perceptions and notions of the people within an organization and the core values play the most important role in motivating the people towards achieving success.

It is important for an organization to effectively design its core values. The core values determine the path to be followed by the organization’s personnel and it is the core values which creates one common goal in the minds of every person within an organization. Core values are at times so effective that they lead the organization towards framing the long term strategic vision (Collins & Porras, 1996). 5. Performance of Whole Foods from a Financial PerspectiveConsidering the financial performance of Whole Foods Market, during the year 2008, it can be stated that the firm was not in a financially healthy position.

This is because although the amount of net income rose consecutively throughout the period from the year 2003 to 2007, this amount has significantly declined during the year 2008 (from $203.8 million to $182.7 million). Moreover, on comparison of this firm’s performance with those of its competitors, it was observed that Whole Foods stands at an inferior position than its competitors (Shoes, Meador, Britton, Phillips, & Howery, 2008).Additionally the cost of goods sold had been depicting an increasing trend sine the year 2003 which is not a favorable sign for the company.

Along with this, the amount of debt has also increased from the year 2006 to 2007. ReferencesCollins, J. C., & Porras, J. I. (1996). Building your Company’s Vision. Retrieved June 17, 2011, from http://www.tecker.com/downloads/buildingvision.pdf Shoes, C., Meador, D., Britton, M., Phillips, P., Howery, A., (2008). Case Analysis – Whole Foods Market. Retrieved June 17, 2011, from http://pnphillip.asp.radford.edu/Whole%20Foods%20Case.pdf Thompson, A. A. (2008). Whole Foods Market in 2008: Vision, Core Values and Strategy.

The University of Alabama.