Unit 5 Whole Foods Case Study Analysis
School of Business and Management
MT460 Management Policy and Strategy
Author: Devin Thomas
Professor: Dr. Thigpen
Date: January 17, 2012
Whole Foods Markets is a food market that prides itself on providing its customers with the highest quality of natural and organic foods. Through the acquisition of a number of other companies, whole Foods have grown to become the largest natural food supermarket in the United States. Staying true to their mission statement and original ideals is the formula the company credits their success to.
Synopsis of the Situation
Founder John Mackey may not have ...view middle of the document...
The study shows that 67percent of people are now aware that we should eat at least five portions of fruit and vegetables per day, up from 43% in 2000. (food.gov, 2006)
Define the Problem
Whole Foods enjoyed little to no competition when the first store opened in 1980. Now with Americans becoming more conscious of their health, Demand for natural and organic foods are on a rise. With such a demand on the rise, the question of: “Will there be enough organic food to supply the growing demand?” comes into play. Whole Foods stands to face a supply shortage from competition with conventional supermarkets as they increase their natural and organic supply.
The solution to a shortage in organic food supply would be to come up with a strategy that would ensure that Whole Foods continues to meet the demands for organic foods to their customers. Implementing a generic plan like: becoming a low-cost leader or differentiation might not be the best solutions for this problem since Whole Foods has already differentiated itself from the market and prices are not the problem but scarcity of product is.
Implementing a grand strategy to ensure supply of organics to Whole Foods is an alternative solution. Whole Foods can focus on concentrated growth by either establishing contracts with known Farmers that ensure the delivery of organic products to Whole Foods or creating their own farms to ensure their supply demands are met.
Selected Solution to the Problem
Looking long-term, I believe Whole Foods should implement a Grand Strategy to create their own farms that produce high quality organic foods. By creating their own source of supply, Whole Foods will surely remain anchored as the leader in the natural and organic foods.
Of course, Whole Foods will have to perform their due-diligence prior to creating organic food...