Mt 460 Whole Foods Analysis

In: Business and Management

Submitted By djnnaps
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Whole Foods Analysis

Introduction
Whole Foods Markets is a grocery store chain that specializes in natural and organic foods. The company prides itself on delivering the highest quality of natural and organic foods to their customers. With the help of some smart acquisitions, Whole Foods has grown to become the largest natural and organic food chain in the United States. The company credits their success to staying true to their mission statement and their original formula.
Synopsis of the situation
Whole Foods has been around for over 30 years. During this time, the landscape of the market has changes immensely. The company’s founder John Mackey has some big decisions ahead of him. With the changing economy and a more competitive industry landscape, Mackey is uncertain about how to meet the company’s aggressive growth targets. The company has an objective to reach $12 billion in revenue with 300 plus stores by 2010 without sacrificing quality and their current reputation (Harasta, Hoffman, 2007).
Key Issues
The key issue that Whole Foods has to face is a surge of competition in the market. At inception, Whole Foods was one of only a few grocery stores catering solely to natural and organic food customers. The market has grown in that time. Conventional grocery stores and wholesale chains like Costco and Sam’s Club, seizing the opportunity in this rapidly growing market, have also become competition since they have now incorporated organic food sections within their current stores (Harasta, Hoffman, 2007). US shoppers spent 45 billion dollars on natural and organic products in 2004 (Harasta, Hoffman, 2007). This is an issue because only 3 percent of the farms in the U.S. grow organic products. It is going to be tough for Whole Foods to maintain their high growth levels.
Define the Problem
Americans are becoming more health conscious. With this new increase…...

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