Whole Foods Market Case Questions

1. What argon the psyche elements of the dodge that whole Foods marketplace is pursuing? Is self-coloured Foods strategy well matched to merchandise conditions in the food retailing industry?The chief element of the strategy that whole food is pursuing is providing the finest prime(prenominal) of products in the market that is free from preservative and other ge exculpateically engineered products that reduce the side of being organic. They promote the vision of the whole food, whole people, and the whole planet. all told food market is focus to hatch their market to get everyplaceriding position in both the local and the international market with increase the amount of caudexs itself and acquisition.For high demand from customer and higher pelf margin than normal food, Whole foods magnification and character reference control market strategy was well matched to recent developments and conditions in natural and organic goods portion of food retailing industry.2. Do W hole Foods Markets pump values as presented in case Exhibit 3 really matter? atomic number 18 they real or just cosmetic window dressing? maintain Whole Foods core values contributed to the ships companys success? Explain/support.The 7 core values be very important. It guides the company on how to achieve the company mission bringing the highest flavor products to satisfy the consumer.The core values are also real. Through these 7 core values, the company link their give birth profit and growth to customer benefit, bind their suppliers with win-win partnerships and try to create an interests fraternity involving all their stakeholders.For example, to implement the first core value selling the highest quality natural and organic products available, the company set nutrition, freshness, appearance, and taste quality standard and abundant principal categories to supply thousands of organic food and epicure products in their store. any these value rotter directly deliver t o customer, fail satisfy their needs and lead to success in product quality and variety.3. Based on the financial statement data in case Exhibits 9, 10, and 11, how well is Whole Foods Market performing?From E9 statement of operations, sales in conclusion increased 1 unrivalled cardinal million million every year from 4.7 billion 2005 to 8.03 billion 2009. However, the net incomes were kept in the scale between 114 million to 203 million these years due to the change magnitude input of store contribution. This situation matches the expansion activities of their origin operations.Then, combine with the data from E10Return on stockholders equity 9.02% 7.60%works capital(in thousand) 371356 -43571Long term debt-to-equity ratio 0.65 0.80Long term debt-to-capital ratio 0.28 0.36The long-run debt largely decreased from 08 to 09 which is the main difference between the 2 years.In E11, the cash provided by operation activities in 09 is more than 08 and 07. And outside the business W hole Food also have investment activities. The company was difficult to attract extra profits from exchanging securities. In 07, it earned 198343 thousands in 08 it didnt earn anything, then in 09 the company didnt have any investment activities on exchange securities.4. How well is Whole Foods Market performing from a strategic perspective? Does Whole Foods enjoy a competitive advantage over its 3 chief rivals Wild Oats, Fresh Market and Trader Joes?Whole Foods Market is performing exceptionally well from strategic perspective. Whole Foods Market is performing well by increasing their locations and markets. The company has made strategies for its stores, their location, and Whole Foods product line, the design of the stores, the product quality, and marketing and for providing their customer most competent service. It follows the strategy of team based management for store operations. It also offers pay and rewards to its employees.It has also made strategies that are feasible for the purchasing and distribution of items. All these strategies are in accordance with the companys requirement and thus the company maintains a competitive advantage over its rivals due to its endorseable implementation of strategies for achieving its goals and managing the company. It acquired one of its biggest rivals Wild Oats in 2007. The companys strategy has helped it in gaining the d position in the market.5. What recommendations would you make to John Mackey regarding the actions that Whole Foods management needs to take to sustain the companys growth and financial performance?Whole Food was very successes on decreasing their long-term debt level while keeping their profitability and increasing sales. However, through it kept expansion through opening refreshed stores and acquisition, the net income is not enough for big change like enter into a new area.So, I suggest Whole Food may extend their service, such as adding a fast food to go window or even a dining area in their store to better utilize their urban metropolitan store location and readiness ability. The costs of food service just need to develop the new recipe and change the store wouldnt too much but can attractive more customers.