Industry Analysis For Foods Market - Term Paper Example

Industry Analysis For Foods MarketWhole foods supermarket is one of the fastest growing companies in the US that is providing a source of employment to many people around the globe. It has become a powerhouse in the American macro-economy despite offering products to the market at an affordable rate. The company has a return on assets of 9.46%. Moreover, the company is trading in the American stock market and it has sold a majority of its shares. The company recorded 11% growth rate in 2011.

According to King (277), the current trend of development of the entity in the market results to competition from many players in the food business. For instance, Whole foods chains supermarket, which is a major player in food business, is facing competition from companies such as wall mart, signature foods and Kroger. The company has certification as a credible supply of organic foods in the market. Moreover, the organization has more years of experience in the food industry with a gross profit of 14.

20% (Ferrell 2).Industry analysisThe company focuses on providing quality products to its clients in the market. Indeed, the management takes pride in serving customers of the supermarket chain. Equally, the organization has a fair dividend policy. Shareholders trade in the company stocks reflects positively as indicated in the company’s balance sheet. This is providing whole foods supermarket an opportunity of exploring the global market. The company was ranked at number 24 among the best 100 employers in the globe.

The momentum in sales of the company indicates the potentiality of growth in future (Shim & Joel 311). The company has invested much on expanding its operations to different places of the globe. The company should not be analyzed solely using stock recommendations. People should use information from the companies trading and loss accounts. The historical data of the company indicates that “whole foods supermarket” is experiencing growth in its sales. In the year 2011, it posted higher revenue compared to the previous financial year.

The company has facilitated its expansion in the global market through mergers (King 116). There are cases in which whole foods market acquired other businesses as part of their operations. It is listed in the NASDAQ stock market as one of the promising company. The company’s profit margin for 2012 was at 3.84%.Conclusion The food industry is expected to revolutionize trading in the stock exchange market. Currently it has a positive cash flow margin of 3.34%. The recent expansion of the activities of whole foods signifies that several people depend on the company.

Whole foods is a part of the $32 billion food industry. However, whole foods market has struggled to meet the requirement trading policies initiated by the government. Moreover, the food industry business has experienced the effects of inflation on the economy (Warren & James 2). The management has engaged in pricing wars with competitors of the company in the market. Recommendations It is advisable for the company to expand its operations to enhance its growth in the market. At first, the organization should begin by selling stocks directly to the public.

Secondly, the company can increase the number of their “stock transfer agents” to make it possible to penetrate the mainstream market. Shareholders ought to be allowed to reinvest their dividends with the company. People interested in trading with the company should be provided trading information of the company on the company’s website. Ferrell (2) suggests that a company should expand to new markets to attain its goals. Prior to expansion, the management should identify strategic locations for the businesses.

Lastly, whole food management should conduct campaigns to promote consumption of organic foods in the market.Works CitedFerrell, O C, & Michael D. Hartline. Marketing Strategy. Australia: South-Western Cengage Learning, 2011. Print. King, Jan B. Business Plans to Game Plans: A Practical System for Turning Strategies into Action. Hoboken, NJ: John Wiley & Sons, 2004. Print. Shim, Jae K, & Joel G. Siegel. Financial Management. New York: Barron's, 2008. Print. Warren, Carl S, & James M. Reeve.

Financial and Managerial Accounting. Mason, OH: Thomson/South-Western, 2007. Print.