Whole Foods Mission Statement

Whole Foods Strategy
Prior to the recession of 2008, Whole Foods’ strategy focused on Growth, Store Location, Product Line, and Pricing. After going public in 1991, Whole Foods implemented a Growth strategy that included opening new stores and acquiring smaller chains in attractive markets. Store Location strategy involved finding locations in affluent, urban areas. High traffic shopping destinations and prime real estate spots were part of this Location strategy. The strongest strategic element Whole Foods adopted was its Product Line. Whole Foods specialized in a huge selection of organic and natural foods not found in traditional grocers. Pricing strategy for Whole Foods aimed to be competitive. A majority of its private label foods
were considered value-priced. Higher prices on other items did not seem to deter Whole Foods’ customer base from shopping there.
Once the recession took hold of the economy in 2008, Whole Foods modified its strategy. Whole Foods began to aggressively market its value-priced items in the store with signs, aisle end caps, and offered a flier with coupons and advertisements for sales. Whole Foods didn’t stop there; it implemented a new Expense strategy, cutting costs wherever it could. Whole Foods also began to focus more on a Merchandising strategy. Each store’s layout was specifically tailored to be pleasing to all customers.
Whole Foods Strategy Matches Up
Whole Foods strategy is very well matched to the current market.
Consumers today are looking for retailers who carry a wide variety of organic and natural products. Whole Foods meets this consumer demand.
John Mackey
I think John Mackey has an excellent strategic vision for Whole Foods. Whole Foods meets a need that most big box retailers don’t. Consumers are obviously pleased with the strategy as well, as evidenced by their willingness to pay higher prices for the quality they desire. I like the company’s vision statement. The mission statement does a good job of conveying what Whole Foods is all about.
Core
Values
Whole Foods core values aren’t merely “window dressing” for the company.
Whole Foods “walks the talk” when it comes to fulfilling its core values. Whole Foods has extremely high standards when it comes to choosing its suppliers and products. Whole Foods has strict standards which are adhered to when it comes to the ingredients used in the products it sells; no artificial colors, flavors, preservatives or chemicals are found in the products at Whole Foods. Whole Foods also contributes to local communities by donating a percentage of its earnings to charities and non-profit organizations. Whole Foods’ core values have definitely contributed to its success. Whole Foods boasts a very low employee turnover rate; one much lower than traditional big box grocers. Whole Foods offers competitive benefits packages for its employees and promotes from within the company. Employees seem very satisfied with working for Whole Foods, which is a major contributor to its success. The high quality of products offered and the relationship with its suppliers has also been a major success factor. Whole Foods actually works with the farmers and suppliers, often times extending loans so that its high quality standards can continue to be met.
Financial Performance
Whole Foods financial performance seems to be on an upward trend after suffering from the recession in 2008. Earnings per share increased in 2009. No dividends were declared in 2009, however, shareholders are likely willing to
forego a dividend if the company continues to recover and do better. Due to the actions which Whole Foods took in response to the recession, cash flows provided by operating activities increased by 50% in 2009. This gave Whole Foods ample means to cover expenses. Whole Foods current ratio increased from 0.9 in 2008 to 1.54 in 2009.
Whole Foods’ Performance
From a strategic perspective, Whole Foods enjoys a competitive advantage over its rivals. Whole Foods’ main advantage is product selection. Whole Foods has several large stores and carries more varieties than any other organic grocer. Trader Joe’s is Whole Foods closet competitor. Trader Joe’s would need to expand and grow significantly to be on par with Whole Foods’ market dominance. Whole Foods’ employs a winning strategy.
Recommendations
Wholes Foods seems to be doing everything right in regards to its strategy. My recommendation would be to continue to focus on its employees. Whole Foods would not be as successful if its employees were not as passionate as they are. When a company recognizes the efforts of its workers, they are more productive and loyal. Whole Foods low employee turnover rate proves that it is winning strategically in this area. Giving employees more control of the company and sharing in its profits motivates them to do a good job and help Whole Foods overall. A second recommendation I would make is to continue to look for ways to provide lower costs on its items. While Whole Foods will never be able to match prices of Walmart and other chain grocers, consumers will appreciate continued efforts to lower prices.