Case Assignment #1
Does the Whole Food Market Strategy reflect their mission?
The Whole Food Market (WFM) mission “Whole Food, Whole People, and Whole Planet” is made up of seven core values: selling the highest quality natural and organic products available; satisfying and delighting customers; supporting team member happiness and excellence; creating wealth through profits and growth; caring about the communities and the environment; creating ongoing win-win partnerships with suppliers; and promoting the health of their stakeholders through healthy eating education.(Thompson, Peteraf, Gamble, & Strickland. (2012)) WFM has developed strategies to fulfill each ...view middle of the document...
WFM created a value guide, the Whole Deal, which is available in store and on the store website, which features vendor-sponsored and WFM store brand coupons, budget conscious recipes, money saving shopping and cooking tips, and Sure Deals that highlight everyday value pricing on high quality products customers love. (Thompson et al., 2010)
Customer service also plays a key role in delighting customers. WFM makes it a priority that all of their team members exceed in customer service and are knowledgeable and enthusiastic about WFM products. WFM merchandising strategy also plays a role in satisfying customers. The merchandise in each store is tailored to suite the needs of its customer base. Fresh produce are set up to look appealing to the customer; the goal is to create a pleasurable atmosphere one where the customer enjoys spending time in. The decor is pleasing and the aisles are wide and clean. WFM wanted to change shopping for food from a chore into a pleasurable experience (Thompson et al., 2010). The stores offer sit down areas to eat and interact with others and health centers where personnel can assist customers with any health questions. Some of the whole food stores offer cooking classes, tastings, and demonstration dinners and workshops. (Thompson et al., 2010) The intent was for customers to see WFM stores as a third place, besides the home and office, where they could gather, interact, and learn while at the same time discovering the many joys of eating and sharing food. (Thompson et al., 2010)
Supporting team member happiness and excellence
WFM stores are organized into as many as 13 self-managed teams each being led by a team leader. To empower team members, management had teams make most of the decisions in regards to store merchandising, department operations, and customer service at the store level.(Thompson et al., 2010) The company employed a strategy to encourage store profitability by rewarding team members for profitability through compensation rewards and stock options. The company rewards team members who work hard and are motivated to succeed; team members take responsibility for their own success and failures. (Thompson et al., 2010) Whole Foods management created a share fate environment in which there are no entitlements. There is a salary cap in place that limits the compensation of any Team Member to nineteen times the average total compensation of all full-time members in the company. Whole Foods Markets opens their financial books to all team members to allow team members to view annual individual compensation reports.
Creating wealth through profits and growth;
WFM created a “gain-sharing program” based on an economic value added (EVA) management and incentive system. (Thompson et al., 2010) Management felt that the EVA system was the best way for team members to use in order to make decisions that created shareholder value. (Thompson et al., 2010) Teams are challenged to boost store...