1.

What are the chief elements of the strategy that Whole Foods Market is
pursuing?

The chief elements of the strategy that Whole Foods Market is pursing is
providing the finest quality of products in the market that is free from
preservatives and other genetically engineered products that reduce the
quality of being organic. This means that it is has the least amounts of
processed prods and are naturally preserved. Whole Foods Market strives
to eventually dominate the local market and eventually the international
market. They promote the vision of Whole Food, Whole People, Whole
Planet.

2. Is the strategy well matched to recent developments and conditions in

the natural and organic foods segment of the food retailing industry?

Yes, their strategy is definitely well matched as Whole Foods focuses on

supplying consumers with the healthiest products available. The products
are without pesticides, hormones, and other genetically engineered
products that could affect health, community, and agriculture. The quality
products at Whole Foods have a flavorful taste and are preferred by the
demands of health conscious consumers and the current trends of a
healthy lifestyle.

3. Do you think John Mackey has a good strategic vision for Whole Foods?
Why or why not? What do you like/dislike about the company’s motto
“Whole Foods, Whole People, Whole Planet?” Do the motto and the
principles underlying it (Exhibit 1) really matter at this company or are
they just nice words and cosmetic window dressing? Explain.

Yes, John Mackey has a good strategic vision for Whole Foods because it is
realistic and above the normal expectations of what a vision should be. As
the healthy eating patterns change in the population as well as the
demands, Whole Foods strives to supply that demand by offering products
that will fit the needs of living a better life style. In doing so, the chemical
and hormone free products also help for a more agriculturally sustainable
practice.

Personally, I like the motto of “Whole Foods, Whole People, Whole Planet”.
I like the play on words involving “Whole” in each important factor of their
core values. I believe that the principles underlying these visions really
matter and that Whole foods does in fact live up to them. The company
promotes for fine and high quality products that are organic and free from
any genetically altering factors. The company promotes for a high quality
of service and a competent team of people representing them. The
 company also strives to see a more sustainable agriculture from the
products they supply. They believe in being responsible to the community
and the planet.

4. Do Whole Foods Market’s core values as presented in case Exhibit 3

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, I agree that the values as presented in case Exhibit 3 really matter to
Whole Foods Market. They aim for high quality products and supply
thousands of organic food and gourmet products. They have a high regard
for quality and standards in what is offered to their customers. Whole
Foods focus on the quality of their products selling organic, preservative
free products, wild or aquaculture fish and products that are
environmentally friendly. Using this information I believe that they are
“real” towards their core values which is why their company has been
successful in the market.

5. How well is Whole Foods Market performing from a financial perspective?

Do some number-crunching using the data in case Exhibits 9 and 10 to
support your answer. Use the financial ratios presented in Table 4.1 of
Chapter 4 (pages 104-105) as a basis for doing your assessment of the
company’s financial statements and financial condition.

Finally viewing Exhibits 9 and 10 it looks as if from 2001 – 2007 there is a

gradual increase of their net income. The gross profits of the company
continue to increase as they acquire and dominate the market with more
locations. We can study from these numbers and support the huge
increase of Whole Foods Market as they continue to grow. As Whole Foods
Market continues to grow, their long-term debts increase significantly
from the acquisitions of Wild Oats Markets.

6. How well is Whole Foods Market performing from a strategic perspective?

Does Whole Foods enjoy a competitive advantage over its rivals? Does
the company have a winning strategy?

Whole Foods Market is preforming well from a strategic prospective as

they are increasing their locations and markets. They continue to provide
healthy high quality foods and brands that are good for consumers, the
environment, and their own growth in the industry. Whole Foods Market
has been able to acquire the second largest competitor in their industry,
Wild Oats Market, which eliminates the competition. They have a
competitive advantage to other supermarkets because of their high and
fine products that they carry. Whole Foods also has the advantage of a
well-known name that’s associated with a higher quality for supermarket
 products at more competitive prices.

7. Do you approve of the decision to acquire Wild Oats Market? What pros
and cons do you see?

I believe that the acquisition of Wild Oats Market was a good approach to
dominating the market. In weighing the pros and cons, I think that the
pros have outweighed the cons that have resulted in being more
beneficial to Whole Foods. The pros of acquiring Wild Oats Market are that
it eliminates the competition and allows for more locations in places
where Whole Foods was not available. This is a huge possibility for growth
on Whole Foods Vision of expanding and being dominant in the market.
The cons associated with the acquisition are that it accounts for the rather
large long-term debt that Whole Foods picked up. Another terrible thing to
account for is the unpredicted recession. As consumers stop shopping and
spending more often, Whole Foods Market as with every other business
took a devastating blow to the business. Lastly, another acquisition con is
the conversion of the clientele of Wild Oats to Whole Foods Market. As
with any loyalty, there is hostility when one loses what they love. This will
take time but if Whole Foods can win their loyalty by offering what they
need they will be able to better flourish.

8. Were John Mackey’s Internet postings unethical or in any way

inappropriate? What actions, if any, do you disapprove of? What actions, if
any, should the company’s board of directors take with regard to his
Internet posting and blogs?

Yes, I believe that Mackey’s internet postings were very unethical and
inappropriate as there are expectations from the public for every business
including CEO’s. I believe that he stepped over the line when he could not
keep certain business dealings confidential. It is important that a CEO is a
good businessman and it seems as if he were controlled by his emotions
rather than keeping the good business standards. Mackey’s bad behavior
gives a negative image to the stakeholders that are involved. These
include the business itself, the investors, the public, and many more. I
would suggest that the directors revoke his title or force a public apology
to the FTC and all the stakeholders so that they can have a positive image
again.

9. What recommendations would you make to John Mackey regarding the

actions that Whole Foods’ management needs to take to get through the
recession that began in earnest in 2008? Should the company severely
cut back on opening so many new stores? Should the company vigorously
contest the reopening of the FTC’s challenge to the Wild Oats acquisition?
Are any other strategy changes needed?

My recommendations to Makey for Whole Foods’ management are to

create a new strategy in reaching out to new and current clientele given
the new economic situations. It is important that every business is able to
adjust and make changes to unpredictable factors. I think that the
company should cut back on opening until the economy gets better and
should not focus on any acquisitions. They should be focusing on keeping
the businesses that they and wait till there is a rise in this economic
downfall.

References:

Federal Trade Commission v. Whole Foods Market, Inc., ET AL. (2008)

http://www.ftc.gov/os/caselist/0710114/080729wholefoodsopinion.pdf

MINTON, B.L. (2008). The Whole Story About Whole Foods Market.
Retrieved from http://www.natural
news.com/02281_food_foods_whole.html

Thompson, A.A. (2010). Crafting and Executing Strategy. New York, NY:
McGraw-Hill/Irwin.