Strategic Analysis of Whole Foods Market Case Study Report

This case study report analyzes the Whole Foods Market, a major player in the organic and natural foods industry. The report begins with an executive summary highlighting the focus on artificial foods and the implications of business policies. It delves into the company's operations, revenue generation, and strategic decisions in response to the rapidly growing organic food market. The discussion section explores key issues, including the increasing consumer demand for organic products and the competitive landscape. The analysis section examines the financial performance of Whole Foods, including financial ratios and market trends. The report then presents alternative strategies, such as improving timeliness and safety. Recommendations are made to enhance profitability and customer satisfaction. The conclusion summarizes the key findings, emphasizing the need for new manufacturing techniques and maintaining quality standards. The report includes references to relevant academic sources and an appendix.

Running head: STRATEGIC MANAGEMENT
Strategic management
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Executive summary
The study report discusses about the artificial foods supplied and prepared by the whole foods
company. Further the study report discusses about implication of different effective business
policies and procedures implemented in this case. These policies are implied towards making
healthy food products and services as a whole. On the other hand safety and freshness is
another aspect which is directly related to this aspect.

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Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................3
Issues..........................................................................................................................3
Analysis......................................................................................................................4
Alternatives................................................................................................................5
Recommendation............................................................................................................6
Conclusion......................................................................................................................6
References......................................................................................................................7
Appendix........................................................................................................................9

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Introduction
The overall study report discusses about the case of whole foods market which is one
of the biggest grocery dealers of United States. They are the most reliable grocery service and
food providers of US. The study is related to the overall operation of the company as well as
the total revenue generation in the financial year. Since the food market is growing rapidly
therefore the company is thinking of adding some extra facilities which will take them one
step ahead of the competitors.
Discussion
Issues
Over the past few decades, the organic supermarkets had gradually increased as well
as expanded their operations rapidly. These process had operated because of two reasons.
Firstly since the consumer demands towards organic foods are gradually increasing, thus this
process had allowed the retailers to attract high profit margin amount in the financial year.
Secondly the overall consumer demand for the organics are expected to be growing for two to
three times faster than what was the demand of these products at the initial stages. Therefore
there are several factors which had combined to transform the basic issues related to the
organic food products, once in a niche market into the fastest growing segment in the US
market as a whole. There the issues which have been directly related to this process (Grunert
et al.,2014). These are as follows-
A wellness or health options are trended among people in many ages and other ethnic
groups.
The awareness had been highlighted related to the roles of food process, nutrition and good
eating partners played in the long- term health (Peters et al., 2016).

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Analysis
The organic food producers have competitors in the name of Kraft, general mills,
DANONE, dean foods and Kellogg. These companies sometimes purchase products from
organic food suppliers in order to make the products efforts to capitalise on these process.
Further Heinz had also introduced certain organic foods and brought a 19 percent stake from
organic food company. In the year 2011-2012, the company had increased their overall
product demand to 25 percent annually. Further it is also seen that natural, organic and grass-
feed groups have also estimated the overall changes in the process (Rauber et al.,2015)
As per the data base generated from this aspect, it can be said that the US agriculture
products and service had valued at 5.4 million in the farmland. Among this 3.4 million from
cropland and rest amount had been generated from rangeland. Thus the whole valuation of
cropland has been triggered to 0.5 percent of the total valuation. Since there are more than
13000 organic food products available in the likes of certified farmland, cropland of
California, Oregon, New York overall. Further the organic food products are calculated in a
total of 10 to 40 percent. This value is subjected to the overall organic food valuation. The
whole food market had collected an overall revenue of $92.5 million whereas the total net
income is calculated at an approximate value of $1.6 million. Further in the year 2014, the
company sales had been recorded up to $37.4 million annually, overall weekly sales volume
is calculated at $1 million and $2 million per month. Thus it can be said that the overall sales
had been very much satisfying. Further the financial statement of the company is calculated
in this case had also addressed the overall accounting reporting as a whole.

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From the annual reports of whole foods limited certain financial ratios are calculated
in this case. In order to discuss about the company’s performance overall financial ratios are
calculated. These financial reports discusses about the liquidity position of the company and
gives a brief view of the overall operations from 2009-2013 (Monteiro et al., 2016). Firstly
gross profit ratio is calculated from taking the gross profit and net sales for five consequitive
years. It is seen that the company’s gross profit has gradually increased from 34.29 in 2009 to
35.84 in 2013. Further the assets turnover ratio of the company described the overall change
in the valuation of the assets. The company’s asset ratio has increased gradually. It depicts
that the company had increased net assets valuation over the years. Apart from this the debt
equity ratio had described the change in equity shareholders valuation. Therefore this change
is subjected to be effective towards meeting long term sustainability goals. Thus it is a good
sign from the company’s point of view. All these changes have correctly reviewed the
changes.
Alternatives
Timeliness and safety is the main feature on which the company is highly looking
forward to. It can be said that in this case it is expected that the company is highly focused on
providing quality food products and services to the potential suppliers and clients. The
company is expected to meet all the customer obligations and provide qualityful products to
the customers. Therefore it is said that if the company is not maintaining the time limit, then

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the company needs to imply some alternative technique (Gwirtz & Garcia-Casal 2014). These
are as follows-
Not maintaining the product quality due to timelessness is an effective factor, and the
company is expected not to meet the target set by them. In that case the company may lose
their prime customers.
Since these foods are prepared artificially, thus it is important to keep them fresh.
Thus the processing those needs to imply effective techniques every time to keep them fresh.
Elsewise it could get rotten and company may lose money overall.
Recommendation
Certain recommendations are made to let the company earn good amount of profit.
These are as follows-
 The management needs to ensure that the foods processed in a hygienic way rather
than unhygienic way.
 The company must ensure to provide best quality foods to its clients so they don’t
lose customers overall.
Conclusion
It is to be concluded from the study topic that “whole foods” company needs to imply
certain new manufacturing techniques to produce the products. Since these products are
artificial foods products, therefore it is needful that the company has to maintain quality
standards as a whole. It is addressed in the financial report of the company.

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References
Baier, S. K., Bhaskar, A. R., Bortone, E., Faa, P., HWANG, C. S., Morales-Alvarez, J. C., &
Palta, D. (2018). U.S. Patent Application No. 10/076,132.
Canella, D. S., Levy, R. B., Martins, A. P. B., Claro, R. M., Moubarac, J. C., Baraldi, L.
G., ... & Monteiro, C. A. (2014). Ultra-processed food products and obesity in
Brazilian households (2008–2009). PloS one, 9(3), e92752.
Grunert, K. G., Hieke, S., & Wills, J. (2014). Sustainability labels on food products:
Consumer motivation, understanding and use. Food Policy, 44, 177-189.
Gwirtz, J. A., & Garcia-Casal, M. N. (2014). Processing maize flour and corn meal food
products. Annals of the New York Academy of Sciences, 1312(1), 6
Monteiro, C. A., Moubarac, J. C., Cannon, G., Ng, S. W., & Popkin, B. (2013). Ultra‐
processed products are becoming dominant in the global food system. Obesity
reviews, 14, 21-28.
Peters, R. J., van Bemmel, G., Herrera-Rivera, Z., Helsper, H. P., Marvin, H. J., Weigel, S., ...
& Bouwmeester, H. (2014). Characterization of titanium dioxide nanoparticles in
food products: analytical methods to define nanoparticles. Journal of agricultural and
food chemistry, 62(27), 6285-6293.
Rauber, F., Campagnolo, P. D. B., Hoffman, D. J., & Vitolo, M. R. (2015). Consumption of
ultra-processed food products and its effects on children's lipid profiles: a longitudinal
study. Nutrition, Metabolism and Cardiovascular Diseases, 25(1), 116-122.
Rauber, F., Campagnolo, P. D. B., Hoffman, D. J., & Vitolo, M. R. (2015). Consumption of
ultra-processed food products and its effects on children's lipid profiles: a longitudinal
study. Nutrition, Metabolism and Cardiovascular Diseases, 25(1), 116-122.

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Appendix