Case #3 Whole Food Market Coursework Assignment (Coursework Sample)

Case #3 Whole Food Market (Assignment)
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Case #3 Whole Food Market (Assignment)
Question 1
What are the chief elements of the strategy that Whole Foods Market is pursuing?
Whole Foods Market can be considered the world’s largest retailer of natural and organic foods. Their rapid expansion and success can be attributed to the various strategies they have set. Some of the chief elements of strategy that Whole Foods Market is pursuing include:
1 Open large stores that are 50,000 square feet or larger (Harbin & Humphrey, 2010). The concept of opening large stores is meant to create an inviting environment to customers. Besides, the stores will have an interactive atmosphere. The strategy is aimed at attracting many clients to their various facilities around the globe.
2 Whole Foods Market aims at being different from competitors by providing a wide selection of lunch, dinner, and dessert positions in their menu. Besides, the company targets at increasing the range of lower-priced food items.
3 The company uses word-of-mouth for advertising to cut the cost of marketing. In addition, the firm wants to cut discretionary spending by 50% (Harbin & Humphrey, 2010).
4 Most of the workers in the organization work on a full-time basis. They are also well trained, and the management encourages each employee by providing a healthcare insurance at zero cost.
5 The company wants to penetrate the international markets, since it is currently located only in the USA, Canada, and the United Kingdom.
6 Lastly, the organization wants to popularize their brand worldwide.
Question 2
Do Whole Foods Market’s core values as presented in case Exhibit 2 really matter? Are they “real” or just cosmetic window dressing? What evidence can you cite to support your answer? Have Whole Foods’ core values contributed to the company’s success; Why or why not?
Yes, the core values given in Exhibit 2 do matter for the firm. In adhering to the stated values, the company will be able to provide high-quality food items that promote vitality and well-being for the customers. The values are achievable provided the firm carefully selects the ingredients and uses natural flavors and preservatives. It is evidenced that the core values matter because the organization has been able to grow to be the largest retailer in natural and organic food items globally (Harbin& Humphrey, 2010). Therefore, the Whole Foods core values have contributed to the company’s success.
Question 3
Based on the financial statement data in case Exhibit 1 and the store operations data in case Exhibits 3 and 4, how well is Whole Foods Market performing? Use the financial ratio information in Table 4.1 of Chapter 4 (pages 81-83) to assist you in calculating a revealing set of` financial ratios and interpreting them.
The financial statements show that the net income for the company increased from $119 in 2009 to $551 in 2013 (Martrous, 2016). However, the gross profit margins have remained steady. The profits were 34.3% in 2009 and 35.8% in 2013 (Martrous, 2016). The net profit margins increased from 1.5% to 4.3% between 2009 and 2013 (Martrous, 2016). In addition, the asset turnover ratios showed that the return on assets declined from 9.1% in 2009 to 3.9% in 2013 (Martrous, 2016). This information indicates that the firm is performing relatively well considering the unfavorable economic environment.
Question 4
How well is Whole Foods Market performing from a strategic perspective? Do Whole Foods enjoy a competitive advantage over its 3 chief rivals—The Fresh Market, Trader Joe’s, and Sprouts Farmers Market? Does the company have a winning strategy?
Before concluding on the situation of Whole Foods Market, it would be crucial to investigate some of the milestones undertaken by the company since 2009. The revenue of the enterprise has significantly grown each year since 2009. Notably, the size of the firm has increased from 10, 566, 000 square footage in 2009 to 13, 779, 000 in 2013 due to the opening of new stores (Harbin & Humphrey, 2010). Therefore, from a strategic perspective, the Whole Foods Market Company is performing well. However, the business is also acting poorly in other quarters. The firm is making profits, and the long-term strategies ensure that Whole Foods Market will be a formidable force in the retailing of natural and organic foods.
In addition, the firm has a competitive edge over its rivals such as Fresh Market, Trader Joe’s, and Sprouts Farmers Market, since it has a wide selection of food items. Further, the firm has much bigger stores which attract more customers. However, the company is disadvantaged over its rivals in terms of the geographic coverage; Whole Food Market has stores only in the United States, Canada, and the United Kingdom. From a strategic view, this is not good for the business. The current economic market requires organizations to penetrate into the international scene due to globalization, which has created a vast pool of customers (Thompson & Strickland, 2001). Moreover, the company has a weaker brand name and reputation in comparison to its competitors. A weaker brand is attributed to lack of marketing and advertising practices of the firm. However, Whole Foods Market has a competitive edge over its riv...