International Strategic Management - Crafting and Executing Strategy - Case Study Example

? International Strategic Management International Strategic Management Q The chief strategy of Whole Food Market is to establish a globally recognized name as a leader in the market of natural and organic supermarkets. This is by providing products of high quality that is, the naturally preserved food to the global market. The company is getting committed to developing a value chain process by recruiting knowledgeable and specialized workers to keep up with the firm’s growth and profit margin. Whole food market strategy is also on a sustainable agriculture system that serves the members of the society. The whole food market strives to have the highest variety of quality products in the market. This they do by ensuring a top selection of food suppliers who produce and maintain high standards of food production. They also ensure that these suppliers maintain a reasonable degree of social and environmental responsibility while producing the goods. Whole food since 2002 has tried to develop new individual stores to help them stock a lot of this produce (Thompson, 2010, p.1). Whole Food Market is also pursuing its goal for providing products of high quality in the market. These are healthy products free from all the preservatives and any other product that becomes genetically engineered that will reduce its quality as organic. The company strives in dominating the local market and also the international market. Whole food market stores are also developing ways of attracting customers to the store. They ensure that they maintain a conducive environment for their customers. This include the use of ambient lighting, educational demonstrations to encourage their shopper to come back again and bring other customers to the stores. Whole food also uses a strategy of team work for their operations. The members of the staff get involved in the process of hiring new employees, developing and implementing new ideas and also encouraging members’ individual thinking, while still maintaining individual accountability for both the success and failure (Thompson, 2010, p.14). Q2 Yes, the strategy is well matched since Whole food objective is to supply their consumers with products of the highest quality. These are products that lack pesticides and other genetically engineered products that are likely to affect the consumers, community and agriculture health. The products also have a flavored taste to the benefits of consumers and as a current trend in a healthy lifestyle. In order to maintain their natural and organic food sectors, the firm's product line include nearly 30000 natural, organic food and non food products (Thompson, 2010, p.10). The firm also provides fresh produce like meat and poultry, exceptional quality cheese, frozen foods and a selection of daily baked goods. All the meats and poultry provided are natural. The animals got raised without artificial growth hormones or the byproducts in their animals. The entire sea food is wild caught or found from the aquaculture farms. Q3. Yes, He has a strong vision for Whole Foods being an international brand not only just for organic and natural foods, but also as the best and leading food retailer in every region where the food stores are present. His vision was to see whole food set high standards for excellence in the business of food retail. His vision of marketing high quality and natural, organic foods to more customers all over would eventually transform the diets of people. This will make them live longer, healthier and happier lives. His vision sees the company’s future strategic course. It resonates what the firm wants to be, where it’s heading to and the scopes of its future. He is not planning to leave it at only the supply of natural and organic foods but also, take the entire food retail business (Thompson, 2010, p.2). The company’s motto is a compelling one. This is because it covers three most vital areas of success in the food industry. It majorly focuses on superior quality of the products getting offered it covers the employees as a whole, and also focuses on the company’s social responsibility. Nevertheless, the company does not mention on consumer satisfaction as this is the background of any organization. However, the firm follows its motto to the core in running the business. Ty those are not just lovely words from the company to impress their consumers. The firm focuses on providing customers with high quality, least processed organic and natural food to satisfy the consumers. Whole food market also fulfills its social responsibility to the people by giving donations to educational institutions. It becomes involved in the promotion of proper animal farming and has stopped using disposable plastic bags (Thompson, 2010, p.6). Q4 Yes, the values shown in the third exhibit are crucial to the whole food market. The company aims for high quality products efficient supply of thousands and thousands of organic food and natural products. Whole Food has a high regard to the standards and quality of the goods they produce. The company sells organic, preservative free goods of high quality and standards. They also provide aquaculture fish and products that are highly environmentally friendly. The firm is honest about its core values, and this is the main reason for the success it has faced in the market (Thompson, 2010, p.10). Q5 From exhibits 9 and 10, it is evident that there is an increase in the Company’s net income. The company’s gross profit is increasing as they acquire more locations and continue dominating the markets. Nevertheless, as Whole Food grows, there is a significant increase in their long term debt. This is because most of the capital expenditure of the firm goes to financing the development or the acquisition of the new stores. In 2007 World Market performance declined (Thompson, 2010, p.9). The returns in Sales have decreased, and the current ratio is less than that in 2006. The debt-to-equity ratio and also the debt to capital ratio have significantly increased. This is of disadvantage to the firm. Nevertheless, the company is doing well from a financial perspective as the firm’s inventory turnover per day decreased in 2007. Q6 Whole Foods Market is performing extremely well from the strategic perspective. They have successfully managed to increase the number of their markets and location. All the things they have become involved in being in accordance with their made strategies, their core value and motto. They still produce and supply high quality healthy products that are suitable for their customers, their growth and also the environment in which they are operating. Whole food market enjoys a tremendous competitive advantage over its rivals. It has developed strategies for all aspects of their businesses. It had a growth strategy, and when a need came for its change, they changed it. It also has strategies for the stores location, the design of the stores, quality of product, marketing and also for giving customers satisfactory service. The company maintains competitive advantage over its competitors because of the good implementation of its strategies for getting its goals and running the company. The company also acquired one of the organizations large rivals, Wild Oats in 2007. The company enjoys a competitive advantage from other firms also due to the products of high quality they offer and supply. The name itself gives them a large advantage over their rivals. The name is well known for providing products of high quality (Thompson, 2010, p.7). Q7 I approve the decision of the firm in acquiring Wild Oats Market. This was a legitimate approach in dominating the market. The pros are far much more than the cons. It eliminated competition, and this allowed for other locations in regions where Whole Foods was not situated. Whole food is also able to grow and be more dominant in the industry. The cons are that this acquisition accounts for large, long term debt Whole food experienced. In the recession, consumers stopped shopping, and this was a massive blow to the company’s business. It will also take some time for customers loyal to Wild Oat accommodate Whole Food. This is a normal reaction for comers everywhere (Thompson, 2010, p.7). Q8 Yes, the postings were unethical and inappropriate because of the expectations the public has towards the business and its leaders. It was inappropriate for him to expose confidential business dealings. His behavior portrays an indecent image to the involved stakeholders. The board of directors should fire him, or make sure that he gives a public apology to the affected parties, in order to mend the negative image he has portrayed of the FTC and the stakeholders (Thompson, 2010, p.8). Q9 John Mackey should develop a new strategy that will enable them reach new customers and the current customers on the existing economic situations. The company should cut back on the opening of new stores until the economy is back on track. The company should focus on maintaining their existing businesses until the economic situation turns around (Thompson, 2010, p.9). Bibliography Thompson, A., 2010, Crafting and Executing Strategy, New York: McGraw-Hill. Read More