Whole Foods Case Study Analysis

In: Business and Management

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Unit 5 Whole Foods Case Study Analysis
Kaplan University
School of Business
MT460 Management Policy and Strategy
Author: Jonelle Newman
Professor: Dr. Norris
Date: March 29, 2014

Whole Foods Market Case Study Analysis
Introduction
Whole Foods Market began with a vision from entrepreneur John Mackey and his chain of stores has been successful for 30 years. Whole Foods Market focuses on natural and organic food items. One of the reasons why Whole Foods has been so successful is because their stores are different than its competition and the differentiation “allows them to charge a premium price for premium products.” (Pearce & Robinson, 2013, p. 29-1). Whole Foods focuses on natural and organic foods which is a definite plus as more people become focused on wellness and eating healthier. This leading supermarket chain does not waiver on its core values and mission and their mission statement which has also become their motto is simple: “Whole Foods, Whole People, Whole Planet.” (Farfan, 2014).
Synopsis of the Situation Whole Foods has grown drastically over the years. The growth of the supermarket chain has been credited to store openings, acquisitions, and mergers. It is necessary to note that although the company’s total sales continue to increase; the operating margin and stocks have declined. (Pearce & Robinson, 2013).
Key Issues
There are key issues that have been attributed to the decline of the company. The recession caused many people to not spend as much money on food, especially high quality premium food as they did in the past. Another key issue is when Whole Foods acquired its competitor, Wild Oats, they suffered a hard hit and their operating margin decreased drastically from 5.7% in 2006 to 3% in 2008 and fought to stay afloat with the new stores. (Pearce & Robinson, 2013). Lastly, more stores are…...

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