Date: April 14th, 2010
Subject: Which Country Next for Whole Foods
A Market Screening Exercise
Section I. Introduction
1. The Objective and Scope of the Study
The objective of this study performed is to provide clarity, insightful analysis, and recommendations Whole Foods Market will use when selecting a preferred destination for opening a new “natural and organic foods” grocery market. The project focus revolved around achieving long-term success in a market for Whole Foods. The analysis was to determine the most lucrative candidate country in which to introduce a three-store market, keeping all stores no further than ten miles ...view middle of the document...
Therefore, emphasis on long-term growth potential and market capacity (growth rate and population growth potential) were not critical objectives throughout the project.
2. Research Methodology
Once it was determined which critical indicators could potentially be used in evaluating each market, the next objective of the project was to find the most current and credible data. It is important to recognize that the project was limited to using only secondary data. This made it crucial that the sources specifically indentified the variables upon which the evaluation was dependent.
Since many of these desired indicators were extremely specific, available data was often broad and at times limited. It became essential to incorporate modifications and creative analysis if the desired variables were to be measured. The two sources that proved to be the most helpful were the IMF (International Monetary Fund) and World Bank websites.
1.3 Project Limitations
The two most critical limitations encountered throughout the project were condensing the deemed necessary components into five indicators, and adjusting those components into accommodating the available secondary information. Both of these limitations stemmed from the lack of time and the scarcity of resources. This prevented primary research that was otherwise inaccessible.
In addition, this report didn’t attempt to evaluate the influence of political stability. Any influence will be addressed later in the research process. Finally, all company background information was limited to what was currently available on the Whole Foods website. The use of outside sources was prohibited.
1.4 Executive Summary
The tactical approach to this study involved the following: establishing five key indicators, assigning a weight to each factor that represented its relative importance, and compiling a composite score for each alternative candidate. This was designed to identify the target market best suited for Whole Foods to enter based upon the location which registered the highest composite score.
Section 2: Presentation of Key Data
2.1 Key Indicators for Analysis
Gross Domestic Product-Purchasing Power Parity Per Capita
Defined as the total value of goods produced and services provided in a country in one year, divided by the average population for the year cited. It is then valued in International Dollars deriving from purchasing power on a global platform.
The reason for selecting GDP-PPP per capita is that it was believed to provide the best financial measuring stick for any candidate country. This indicator provides a measurement of a country’s wealth as goods produced and sold, and then values this amount as an indicator of purchasing power. Because Whole Foods is a US-based company, having the ability to understand a country’s actual purchasing power is critical due to the potential cost variation of imported goods.
Human Development Index
Defined as a measure of three...