Strategic Management for Whole Foods Market

This article provides an in-depth analysis of the strategic management of Whole Foods Market, including its mission and vision statement, milestones, external assessment, EFE matrix, IFE matrix, and SWOT analysis. It also discusses the company's strengths, weaknesses, opportunities, and threats, as well as its focus on superior quality, health benefits, and organic farming.

Running head: STRATEGIC MANAGEMENT
Strategic Management
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Table of Contents
Mission and Vision Statement...................................................................................................2
Milestone....................................................................................................................................3
External Assessment..................................................................................................................6
EFE Matrix.................................................................................................................................6
External Key Factors.......................................................................................................6
Internal Factor Evaluation Matrix (IFE)..................................................................................10
Internal Key Factors......................................................................................................10
SWOT Analysis.......................................................................................................................11

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Mission and Vision Statement
The mission statement of the company Whole Foods Market is to appropriately address a
various important factors that are pertinent in the operations of the business. The mission
statement of the company states that the company is a vibrant leader in essentially quality for
food business. The company is necessarily a mission-driven firm that intends to set
excellence standards for mainly food retailers. The company is also developing a business
operation in which superior standards pervade different aspects of the functionalities of the
business. Essentially, superior quality can be considered to be a state of mind at the company.
In this regard, it can be said that the mission statement reflects what the company Whole
Foods is carrying out or intends to do to attain industry leadership. The important points that
can be noted from the company’s mission statement are as follows:
1. Overall quality of output
2. Striving for higher standards of excellence for mainly the food retailers
3. Superior standards in different aspects of the operations of the business
4. Superiority of mind state
Whole Foods stresses superior quality in various points mentioned in the mission statement.
Essentially, the firm delivers superior quality of food products. It itself, the “standards of
excellence for food retailers” element of the mission statement reflects that Whole Foods
Market intends to be the industry leader in particularly maintenance of excellent standards.
Furthermore, in this mission declaration, the corporation infuses necessarily a quality frame
of mind, that pertains to mindset of employees in the culture of the organization, and
particularly the food preferences of the consumers of the firm. Therefore, the mission
statement of the firm Whole Foods accounts for output of the organization (quality of the
product), positioning in both industry as well as market (this refers to excellence levels as

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well as quality), culture of the organization and company’s focus on health of customers
(quality mindset).
Vision Statement:
It can be hereby said that the company Whole Foods does not necessarily have an official
vision account. Nevertheless, a study of the official website of the firm reflects that vision
statement tantamount to company’s motto that is:“Whole Foods, Whole People, Whole
Planet”.
In long-drawn-out form, the vision statement of the company is: “Our motto – ‘Whole Foods,
Whole People and Whole Planet’ – stresses that vision of the company reaches far ahead of
just becoming a food retailer. Essentially, the success of the company in satisfying vision is
enumerated by satisfaction of the customer, excellence as well as happiness of team member,
return earned on capital investment, enhancement in the state of business environment and
regional and wider community support.
Milestone
Profile of the company Whole Foods
Whole Foods can be considered to be the largest natural foods grocery series in the world.
Established in the year 1980, the company pioneered the supermarket notion in natural as
well as organic foods retailing. In addition to this, the company carries out operation in over
and above 470 stores across areas such as US, Canada, as well as the UK. The company also
stresses on organic fragile as well as prepared products. Furthermore, the company also
markets private-label items by means of 365 Organic Everyday Value as well as Allegro
Coffee lines. In addition to this, the company also delivers a wide assortment of non-GMO,

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vegan as well as gluten-free foods. During the year 2017, the firm Amazon.com obtained
Whole Foods, which creates sales mainly in US, for approximately $13.7 billion.
Milestones
Milestones are somewhat similar to check points for various entrepreneurs, indicating that a
business enterprise is struggling and at the same time developing. Milestones of the firm
expressed in terms of short as well as long term goals of the company Whole Foods are as
mentioned below:
1. The revenue of the company has risen consistently over the past 5 years, nonetheless
enhancing accessibility of fresh foods and novel channels of distribution throughout
the industry. In essence, this had a negative impact on comparable store sales.
2. Taking into consideration technology, the company Whole Foods has the intention to
execute a specific category management program across different stores across US by
the end of the year 2018 together with additional robust data analytics and a combined
purchasing framework. The company also intends to realize approximately $300
million in supplementary cost savings by 2020 with enhancements in various in-store
procedures as well as labour allocation, higher effectiveness of different support
function, and optimization of supply chain.
3. As regards health-aware clientele, the management of the company Whole Foods has
also assured that by the year 2018 different products in the stores of the company
operating in North America need to be labelled to point out in case if they include
GMOs.
4. The company Whole Foods Market 365 store was instituted on May 25 in Los
Angeles’ Silver.

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5. The company upholds the augmentation of standards of Global Animal
Partnership’s (GAP) in order to call for slower-growing breeds of chicken by the
year 2024 for the purpose of certification.
6. The company declares Lifesaving Scheme that is The Whole Foods Diet that is
initiated for maintenance of Health as well as Longevity.
7. The company attains approximately $20 million in terms of loans to diverse
growing businesses countrywide by means of the Local Producer Loan Program.
8. The company has acquired “Best of the Best” award during the 2015-2016 for the
Green Chill Partnership of particularly the Environmental Protection Agency.
9. Value eggs marketed by Whole Foods Market satisfy new, highly developed
standards and the company accepts the Cage-Free Award from particularly the
Compassion in World Farming.
10. The company declares novel policy of sourcing for maintenance of sustainable,
noticeable canned tuna and canned tuna of the company sourcing helps in earning
top results from Greenpeace.
11. Whole Foods 365 establishes first Texas location.

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External Assessment
EFE Matrix
External Key Factors Weight Rating Weighted Score
Opportunities
1. Expansion of the business 0.25 4 1.0
2. Provision of health benefits by means of
media
0.20 2 0.40
3. Stress on particularly organic farming 0.15 3 0.45
Threats
1. Supermarkets are instituting various
organic products as their offers
0.15 4 0.60
2. Enhancing inflation 0.15 3 0.45
3. Low expend for every trip owing to
increased process of the firm’s products
0.10 2 0.20

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TOTAL 1.00 3.1
There are several corporate success factors. Essentially ratings can be implemented to reach
one of the factors stated in this case.
-Major instability is reflected by the number 1
-Major instability is reflected by the number 2
-Major stability is reflected using the number 3
-Major stability is reflected using the number 4
Sum of stated weighted scores is primarily equal to total weighted score. In essence, in final
value of particularly total weighted score has the need to range between low values (1) and
the highest value (4). Particularly, the total weighted score explains and reflects the extent of
importance of various factors, as regards whether the identified factors can help in whether it
will lead to success of the corporation. Again, the average weighted score for the external
factor evaluation matrix is seen to be (3.1). In addition to this, in case if a corporation’s
weighted score is beneath the level of (2.5), then it can be said to be weak. Again, in case if a
company’s total weighted score is greater than (2.5), then it can be regarded to be a business
operation that is a having a strong standing.
Business Expansion:
As per the above presented matrix, it can be hereby mentioned that the most important key
factor is essentially expansion of business. Starting during the year 1984, the company
expanded its operations out of Austin and went to function in Houston, Dallas and thereafter
to New Orleans. The firm also established supplementary acquirements and continued its

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expansion in different parts of North America. It can be hereby mentioned that the expansion
of the company has enhanced the overall need for various products along with processing
plants.
Emphasis on organic food:
The company stresses on the organic food sector and roughly 20,000 diverse food as well as
non-food product categories is offered by the company at each one of the store locations. As
per the regulatory obligation, the organic food products that are marketed in the US
necessarily have the need to satisfy the strict standards of the USDA Organic. The company
strives relentlessly to meet the requisite standards as they believe in maintaining good health,
superior quality as well as sustainability. The organic standards that the company maintains
include the following:
Provision of health advantages:
The company maintained various health disciplines and earned returns that stand at $1.4
billion in particularly EBITDA, roughly $1.1 billion in particularly flow of cash from
operations and 13% of return earned on particularly firm’s invested capital. It can be hereby
mentioned in this regard that value matters a lot and the company’s Whole Cities Foundation
dedicated to health of both individual along with that of the community by means of
collaborative partnerships, improved education and wider accessibility to various nutritious
food products in diverse underserved communities. Again, it has invested particularly in

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partnerships in mainly Englewood, New Orleans, Detroit and many other cities. Furthermore,
the Local Producer Program also has distributed roughly $21 million in terms of loan to
approximately 260 regional producers. Analysis of the annual report of the firm also reveals
the fact that the company concentrates on several metrics that can be regarded to be long term
health of the business, and company’s outlook include growth of sales of the firm from 2.5%
to around 4.5%, increase in EBITDA to 8.2%, diluted earnings per share of $1.42 and 11%
ROIC. The report announced by the firm also asserts that the management embrace
accountability for the purpose of nourishing overall health as well as well being of
population. The company operating as the leading natural as well as organic supermarkets for
food is exclusively placed as the Healthiest Grocery Store of America. The company delivers
personal wellness dollars as health reimbursement form or else health savings account.
Founded on hours of service, members of the team can accept around $1,800 every year in
order to help cover deductibles cost as well as other permissible out of pocket care expends
that are also not covered by insurance.
Lower expenditure for every trip owing to increased process of the firm’s products can be
regarded as threat with the lowest weight while various supermarkets offering organic
products generate substitutes and have the highest weight. As the total weighted score is
equal to 3.1, it can be said that it is said to be significant.

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Internal Factor Evaluation Matrix (IFE)
Internal Key Factors Weight Rating Weighted Score
Strengths
1. Recognition of the brand equity of the
firm Whole Foods
0.12 4 0.48
2. Superior quality of the company’s
products
0.15 4 0.60
3. Huge selection or else variety of
products
0.10 4 0.40
4. Positive work environment of the
employees
0.08 3 0.24
5. Large and at the same time customizes
stores
0.10 4 0.40
6. The company ranks number 16 on
particularly Fortune’s World’s Most
Admired List of companies
0.05 3 0.15
Weaknesses

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1. Concentrated mainly on the market of US 0.15 1 0.15
2. Comparative slow rate of growth .05 2 0.10
3. Limited/Inadequate number of company’s
suppliers
0.10 1 0.10
4. Advertising budget of the corporation is
very less
0.10 2 0.20
TOTAL 1.00 2.82
Superior quality of the products of the firm can be considered to be the most important factor
that acts as strength for the entire corporation. The company maintains sector leading
standards of quality along with commitment to maintain transparency.
The first stage includes the input phase where the external factor evaluation as well as
internal factor evaluation is also taken into consideration. Thereafter, the succeeding phase
includes matching the same with SWOT matrix.
SWOT Analysis
Strength
-Recognition of value of brand of the firm
-Superior quality
-Positive work environment
-Large modified stores
-Regarded as Fortune’s World’s Most
Weakness
-Focussed on the US market
-Comparatively slower rate of growth
-Restricted number of company’s suppliers
-Lower levels of advertising budget

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Admired List of Companies
Opportunity
-Extensive expansion
-Health Benefits by means of media
-Greater stress on organic farming
Threats
-Different supermarkets presenting various
products
-Enhancing inflation
-Low expenditure for every trip owing to
higher level of prices

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