Whole Foods Executive Summary

Financial Capabilities Financially Whole Foods Market is faring very well. WFM's has had revenue growth of 1.8% in the last year which has slightly outpaced the industry average of 0.5% over that same period. Along the same lines net operating cash flow has increased to $284.00 million or 22.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.29%. (Lysack 1) The firm also has strong gross profit margins and debt to equity ratios but net profit margins trail the industry average and a quick ratio of .85 is a little weak and may be a cause for future problems as this shows how well a firm can meet its short-term liabilities. Overall WFM is financial stable and set up well for expansion into Italy. Refer to the chart in the appendices, table 1, to
show how WFM has been able to expand its stores recently showing it has the financially capabilities to invest in global expansion. Technological Capabilities WFM is in the process of replacing its old core systems with new scalable solutions and leveraging these new technological advances to improve the overall shopping experience. Some of these new implementations include Workday which is an online human resources management system, the launch of Whole Foods robust mobile app, a partnership with Apple Pay and the rollout of a new customer platform centered on unified point-of-sale systems. These technological advancements will provide the firm the technological capabilities to move forward the new technologically based business environment. Reputational Capabilities
Whole Foods has a very strong brand image, which is a strength that attracts customers to its stores.
Also the company has the highest quality standards for its products. WFM’s mission and core values state, “We have high standards and our goal is to sell the highest quality products we possibly can. We define quality by evaluating the ingredients, freshness, safety, taste, nutritive value and appearance of all of the products we carry. We are buying agents for our customers and not the selling agents for the manufacturers.” (Whole Foods Market) This allows WFM to stand out from its competitors that offer cheaper products but are lower quality. This reputation as a high-end natural and organic seller also allows WFM to charge premium prices for its premium products and not have to compete based on price with the likes of Walmart Price Chopper and Hanford. WFM also has a reputation as a high quality seller of natural and organic goods that appeals to the health conscious above average income earners. WFM has global brand recognition that would allow it to transition smoothly into global markets that are looking for more natural and organic
options.