Whole Foods Market, Inc.
Whole Foods Market, Inc is a supermarket outlet that handles natural and organic foods. It has outlets in United States, United Kingdom and Canada. By year 2011, it had 311 stores in U.S., five in U.K and seven in Canada. The firm offers an array of natural and organic food items with particular focus on perishable foods. Some of its foods include grocery, bakery, specialty, nutritional supplements, body care, books, pet products, seafood, meat & poultry, catering, coffee & tea and vitamins among others. A quick glance at the financial statements its net income after tax has been growing ...view middle of the document...
All these achievement fulfill their mission and expectation even though stockholders did not get dividends in year 2010.
2. Three business threats for Whole Foods ability to meet their financial objectives for the next 3 years
The threat of new entrants and traditional ones are real. The market is likely to become more intense and competitive in the near future. There is a high possibility that other players will copy the concept and probably enhance it even further. Substitute products form a formidable source of intense competition. The culture, philosophy and values seem to auger well with modern ideals and this may result to cultural imitators.
Weak and unstable economy
Organic and whole foods tend to come with a premium price. They are priced higher than the common inorganic foods. In an economy that is riddled with high unemployment rates and poor economic indicators, the chances are that the targeted market may not have the buying power to sustain the firm at the planned rate.
Policies and regulations
The government and its agencies are constantly changing their policies and regulation to meet interests of the society (Kirkpatrick & Parker, 2007). The food industry plays a critical role in the wellbeing of citizens and especially in relation to health and wellness. Food is closely associated with many leading diseases such as Cancer and diabetes, and this is causing more interventions from the government. Policy or regulations affect the plans of Whole Foods Inc. as any changes cause adjustments in the company’s short and long-term plans and strategies. Recent reports indicate regular disease breakout for crops and animals across the globe where the company has sourced its produce. The government impose a requirement of certificates of origin and test to control the spread of such diseases. Other times, the government ban importation of such products and this affects the company’s operations.
Threat of mergers and takeovers
The steady growth of Whole Food Markets Inc can be appealing to any serious investor. Although mergers and takeovers are not a bad thing, new owners may change drastically the existing values, strategies and philosophy to the detriment of consumers. Some of The strategic moves have a long term effects on employees and other stakeholders.
3. Control activities Whole Foods Market, Inc. could use to minimize these risks
One of the ways to outsmart competitors is to be creative and innovative. This will ensure that the rest will be playing a catch up role in the industry, and this will assure the firm a constant flow of high return. Building a sustainable brand is also key to sustainability of competitive advantage. The brand comprises many features such as quality, customer satisfaction, value, good reputation among other. A strong brand will develop a strong loyalty base and consequently, assured repeat visits by customers (Hennig-Thurau,...