Analysis of Whole Foods Market - Case Study Example

Unit Five Whole Foods Market 2007 Case Study Analysis Learner’s Kaplan School of Business and Management MT460-02 Management Policy and StrategyDr. Daniel K. DaytonDateUnit Five Whole Foods Market 2007 Case Study AnalysisIntroduction The research focuses on the Whole Food Market’s objective of continually improving the company’s declining marketing and financial performance (Pearce & Robinson, 2011). In terms of strategies, the research focuses on generating alternative solutions to resolving Whole Food Market’s main problem.

Whole Food Market’s research process specifically includes coming up with a synopsis, major issues, and listing possible solutions to resolve the main problem. Further, the Whole Food Market research includes picking the best alternative solution that will resolve Whole Food Market current problem, recommending actions, and generating conclusions. The best alternative solution generates the best Whole Food Market result. Synopsis of the Situation Next, the company, Whole Foods Market, sells organic food products.

The company started in 1980. The leader of Whole Foods Market is John Mackay. The company has over 300 stores strategically located in 24 North American states and Canada. The company’s expansion included mergers and acquisitions. The company acquired Wild Oats Food in 2005.Key IssuesFurther, there are key SWOT issues in the case study. In terms of strengths, the Whole Foods Market sells healthy foods and has over 23 American and Canadian branches. The company does not sell non-organic food products and refuses to reduce avoidable expenses.

The company’s opportunities include selling to other niche markets (fast food) and catering to restaurant clients and an increase in the number of organic food competitors. The company must overcome the increasing number of organic food types or alternatives (Pearce & Robinson, 2011). Define the Threat and ProblemFurthermore, Whole Foods Market is beset with a major problem. The major problem is reversing the company’s declining food-related revenues and profits. The increasing influx of competitors and product alternatives precipitated to the decline.

The increased mobility of the customers resulted to the customers’ preference for fast food restaurants like McDonald’s (Hartline, 2010). Alternative SolutionsIn terms of strategies, there are several grand alternative solutions to Whole Food Market’s main problem (Pearce & Robinson, 2011). First, Whole Foods Market can open a restaurant section to fill the needs of the customers preferring unhealthy food products. To increase revenues by more than 10 percent per year, the company can set up more stores in other uncharted territories.

Third, the company can advertise the company’s products and services to increase the demand for the company’s organic food products by more than 15 percent per year. Fourth, the company can reduce operating expenses to allowable levels to increases profits. Fifth, the company can implement all the first four alternative solutions.Selected Solution to the ProblemConsequently, the best strategic solution is to implement the fifth alternative solution. All the four alternative solutions will increase total revenues.

Implementing the fourth alternative solution increases the amount of net profits. Setting into motion the fourth alternative solution will best attain the company’s objective (Pearce & Robinson, 2011) and increasing revenues (Parry, 2004). ImplementationTo resolve the issue, the company should implement a strategic solution. Whole Food Market should advertise the advantages of buying Whole Food Market’s reasonably priced products. Next, the company can include other food choices to increase overall customer demand.

Third, the company can establish more branches in new cities. Fourth, the company must reduce avoidable expenses and costs. RecommendationsTo attain the company’s objective, the company can implement the best solution to resolve the company’s greatest threat or problem (Pearce & Robinson, 2011). The company’s greatest threat is the increasing influx of competitors in a saturated market. The best solution is to implement the chosen best solution. The best solution is to implement the 7th alternative solution.

Consequently, the company’s revenues and profits will rise to unprecedented levels. Indeed, the best solution will resolve the main problem.Conclusion Based on the above discussion, the in-depth case analysis of the company, Whole Foods Market, indicates several issues. First, the findings indicate that the company’s revenues and net profits declined in 2004. Second, the researcher enumerated several alternative solutions that will increase the company’s revenues and profits.

Third, the researcher offers the best solution to resolve the threat or problem. Fourth, researcher recommends the implementation of the best solution. Indeed, implementing the fifth alternative solution resolves Whole Food Market’s main problem, attaining the company’s objective of generating the best operational outcome. REFERENCES:Hartline, M. (2010). Marketing Strategy. New York: Cengage Learning Press.Parry, M. (2004). Strategic Marketing Management. New York: McGraw-Hill Press.Pearce, J. A., & Robinson, R. B. (2011).

Strategic management: Formulation, implementation, and control (12th ed.). New York, NY: McGraw-Hill/Irwin.Appendix ASWOT Analysis Template for Whole Foods MarketStrengthsSelling of healthy organic foods.More the 23 stores in 24 U.S. cities and Canada. WeaknessesRefusal to sell products to clients preferring non-organic food products.Refusal to reduce avoidable expenses and costs.OpportunitiesSelling to other niche markets (fast food niche markets.)Selling to the restaurant niche market.ThreatsEntry of more competitorsEntry of more organic food types or alternatives.