Comprehensive Strategic Audit Report: Whole Foods Market Analysis

This strategic audit report provides a comprehensive analysis of Whole Foods Market, beginning with its history and an examination of its mission and vision statements. The report delves into corporate governance, including the roles of the Board of Directors and senior management. It features an external environment analysis using the EFAS Matrix, and an internal analysis with the IFAS Matrix. Key strategic factors are identified and assessed using the SFAS Matrix, leading to the development of strategic alternatives and recommendations via the TOWS Matrix, focusing on international expansion. The analysis reveals strengths such as a strong brand image, balanced against weaknesses like dependency on the U.S. market. The report concludes with recommendations for implementing the proposed international expansion strategy, particularly in Canada, to mitigate risks associated with market dependency and global economic factors. Desklib provides this and many other solved assignments for students.

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business Management and Strategic Management
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Executive Summary
The study intends to address various dimensions of strategic audit report on Whole Foods
Market. The discussions about the corporate governance interpretations will include the relevant
details about the “Board of Directors” and senior management. The various types of the External
Environment analysis the study has created an EFAS Matrix. The significant discussion on the
internal analysis is depicted with the IFAS Matrix. In addition to this, some of the other
interpretations of the study will be able to include the analysis of the strategic factors portrayed
with the SFAS Matrix. In the final section the study will depict the strategic alternatives and
recommendations with the use of TOWS Matrix. The latter part of the study will consider the
implementation of the recommended strategy. The main findings of the discourse have stated
that the external environment has shown a total opportunity scored of 0.22 and weighted rating
of 0.6. In addition to this, the total threat score is identified as 0.24 with a weighted rating of
0.56. The total strength score is seen as 0.21 with a weighted rating of 0.49 and the weakness
scored of 0.23 with a weighted rating of 0.64. The most identified nature of the weakness of the
is considered with the dependency of the company on the American market, which will prevent
the future growth of the business. The whole foods markets are considered as the cannot take
major steps for threats associated to the GMO global warming and products. The main long-term
strategy suggested as per TOWS analysis is depicted with strategy of international expansion.
During the first few initial years the company needs to setup another business unit in Canada.

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Table of Contents
Introduction......................................................................................................................................3
History of The Strategic Audit Firm............................................................................................3
Mission and Vision Statements Analysis....................................................................................4
Explain what makes a good mission and vision statement..........................................................4
Corporate Governance.....................................................................................................................4
Board of Directors.......................................................................................................................5
Senior Management.....................................................................................................................5
External Environment: Opportunities and Threats..........................................................................6
EFAS Analysis.............................................................................................................................6
Internal Environment: Strengths and Weaknesses..........................................................................7
IFAS Analysis..............................................................................................................................7
Analysis of Strategic Factors...........................................................................................................7
SFAS Analysis.............................................................................................................................7
Strategic Alternatives and Recommended Strategy......................................................................12
TOWS Analysis.........................................................................................................................12
Implementation of Recommended Strategy..................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

3BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Introduction
The study aims to conduct a strategic audit report on Whole Foods Market. The discourse
of the study will include the aspects which will state what makes a good mission and vision
statement and create a mission and vision statement for the selected company. The discussions
about the corporate governance interpretations will include the relevant details about the Board
of Directors and senior management. The various types of the External Environment analysis the
study has created an EFAS Matrix. The significant discussion on the internal analysis is depicted
with the IFAS Matrix. In addition to this, some of the other interpretations of the study will be
able to include the analysis of the strategic factors portrayed with the SFAS Matrix. In the final
section the study will depict the strategic alternatives and recommendations with the use of
TOWS Matrix. The latter part of the study will consider the implementation of the recommended
strategy (Global Marketing Today, 2016).
History of The Strategic Audit Firm
In 1978, “twenty-five-year-old college dropout John Mackey and twenty-one-year-old
Renee Lawson (Hardy), borrowed $45,000”, from the family members and friends to start a
small usual foods store known as “SaferWay in Austin, Texas”. At the time when the couple got
booted out of the apartment for storage of food products, they decided for simply living at a
single store. “Two years later John and Renee” were seen to partner with Craig Weller and Mark
Skiles for merging with “SaferWay” with “Clarksville Natural Grocery” leading to creation of
the original “Whole Foods Market on September 20, 1980” (Whole Foods Market, 2014). The
company’s initial journey started with a small store in “Austin, Texas”. The business started with
four local business people’s decision to join the natural foods industry, who followed on the path
of supermarket format. The founders have been identified with “John Mackey and Renee
Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners
of Clarksville Natural Grocery”. The original “Whole Foods Market” started in 1980 with a total
staff of 19 employees. The business was seen to be an immediate success and there had been less
than half a dozen of the natural food supermarket in the United States. A considerable amount of
the growth of the company is seen to be accomplished in terms of the mergers and acquisitions.
The expansion of the stores started in 1984, when “Whole Foods Market” decided to start
operating in “Houston and Dallas and then into New Orleans”. In 1989, the company expanded
to West Coast with a store in “Palo Alto, California”. The additional acquisition of the company

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stated in the third decade with additional acquisition of food for thought in the “Northern
California and Harry's Farmers Market stores in Atlanta” (Whole Foods Market, 2014).
Mission and Vision Statements Analysis
It has been discerned that the company at present does not have an official vision
statement. Despite of this, an exploration of the different aspects in the firm’s website shows that
the vision statement of “Whole Foods Market” is synonymous with its motto of “Whole Foods,
Whole People, Whole Planet”. The expanded vision statement of the company can be discerned
as- Our moto “Whole Foods, Whole People and Whole Planet” signifies that our “vision reaches
beyond just being a food retailer”. The success of the organization has been discerned in terms of
emphasizing on fulfilling the vision which is measured with the reaching beyond the than being a
food retailer (Free, 2014). The success in terms of fulfilling the vision is seen to be measured in
terms of the satisfaction of the customers, excellence of the team members and return on the
capital investment along with the improvement in terms of the “local and larger community
support”. The ability to instil a clear sense of interdependence among the stakeholders is seen to
be contingent with the more compassionate and open communication process. It needs to be
discerned that better communication needs to be in line with more trust (Strategic Direction,
2014).
Explain what makes a good mission and vision statement
The vision statement of “Whole Foods Market” is seen to be effective in terms of the
desired future state of the business. For example, the “whole people” aspect is seen to be based
on indicating that firms aim for global leadership in the industry. The aims of the company are
also seen with supporting the people to adopt healthy food habits.
Corporate Governance
The main form of the role of board of Directors is considered to be elected by the
shareholders for supervising the various events which are seen to be considered with the different
types of the factors which are seen to be associated to exercising the long-term interest of the
shareholders and stakeholders.

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Board of Directors
As per the depictions made from the financial statement it has been discerned that Dr.
John Elstrott, is the Chairman of the Board, “Mary Ellen Coe is the Vice President, Sales and
Product Operations”, Google”, Greenmont Capital Stephanie Kugelman is identified as the,
Founder and Chairman, A.S.O. In addition to this, John Mackey is observed as the co-founder
and chief executive officer. In addition to this, Walter Robb is considered as “Co-Chief executive
officer”. Some of the other members of the board is depicted with “Jonathan Seiffer as the
partner of, Partner, Leonard Green & Partners, L.P., Morris Siegel, Owner, Capital Peaks
Investments, Jonathan Sokoloff, Managing Partner, Leonard Green & Partners, L.P., Dr. Ralph
Sorenson, Managing Partner, Sorenson Limited Partnership, Gabrielle Sulzberger, Principal,
Rustic Canyon/Fontis Partners, L.P. and William (Kip) Tindell, Chairman of the Board, The
Container Store”.
Senior Management
The senior management team of the company is identified with the”
 “Scott Allshouse, Mid-Atlantic Region”
 “Michael Bashaw, Midwest Region”
 “Patrick Bradley, South Pacific Region”
 “Laura Derba, North Atlantic Region”
 “Mark Dixon, Southwest Region”
 “Omar Gaye, South Region”
 “Bill Jordan, Rocky Mountain Region”
 “Christina Minardi, Northeast Region”
 “Juan Nunez, Florida Region”
 “Joe Rogoff, Pacific Northwest Region”
 “Jeff Turnas, 365 by Whole Foods Market”
 “Rob Twyman, Northern California Region”
In addition to this, the global vice president of the are seen as:
 “Bart Beilman, Distribution”

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 “Brooke Buchanan, Communications”
 “Don Clark, Procurement / Non-Perishables”
 “Sam Ferguson, Accounting & Controller”
 “Betsy Foster, Business Development”
 “Sonya Gafsi Oblisk, Marketing”
 “Tien Ho, Culinary & Hospitality”
 “Edmund La Macchia, Procurement / Perishables”
 “Roberta Lang, Legal Affairs & General Counsel”
 “Cindy McCann, Investor Relations”
 “Lee Matecko, Construction & Store Development”
 “Brian O’Connell, Operational Finance”
 “Martin Tracey, Team Member Services”
External Environment: Opportunities and Threats
EFAS Analysis
External Factors Score Rating Score x
Rating
Opportunity
 Competitive Price Strategy
 Global expansion across the supply chain
 Global expansion in the retail operations
0.09 3 0.27
0.07 3 0.21
0.06 2 0.12
Total of Opportunity 0.22 0.6
Threats
 Global Warming disrupting the food production
 Low cost competition with competition such as
Walmart
 Increase in the “genetically modified organisms
(GMO)” products
0.08 3 0.24
0.09 2 0.18
0.07 2 0.14

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Total of Threats 0.24 0.56
Internal Environment: Strengths and Weaknesses
IFAS Analysis
Internal Factors Score Rating Score x
Rating
Strengths
 Strong brand image which is able to attract more
customers
 High Motivation among the existing workforce
 High quality of standards
0.08 2 0.16
0.07 3 0.21
0.06 2 0.12
Total of Strengths 0.21 0.49
Weakness
 Dependency on the U.S. market is considered as the
main weakness
 High prices associated to the products
 Limiting network pertaining to the suppliers
0.08 2 0.16
0.08 3 0.24
0.08 3 0.24
Total of Weakness 0.23 0.64
Analysis of Strategic Factors
SFAS Analysis
Factors Weight Rating Weighte
d Score
Comments
S1- Strong brand image which is able
to attract more customers
0.08 2 0.16 Whole Foods
Markets has been
seen to maintain a

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strong brand image
which has been seen
to attract the
customers to the
stores.
S2- High Motivation among the
existing workforce
0.07 3 0.21 The highly motivated
workforce is able to
significantly captured
the overall “Whole
Foods Market
organizational
culture”.
S3- High quality of standards 0.06 2 0.12 The maintenance of
the high-quality
standard is able to
differentiate the
company and make it
stand out from the
competitors by
offering cheap and
low-quality goods.
W1- Dependency on the U.S. market
is considered as the main weakness
0.07 2 0.14 The dependence on
the US market is
considered as the
main form of the
weakness which is
makes the company
more vulnerable to
the economic
changes in the United
States. Additionally,

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the relative prices are
also depicted to be
significantly high.
W2- High prices associated to the
products
0.08 3 0.24 Another significant
concerned with
making the “Whole
Foods Market” less
attractive to “price-
conscious or price-
sensitive consumers”.
W3- Limiting network pertaining to
the suppliers
0.08 3 0.24 The limited network
of the suppliers has
been identified as the
main issues, thereby
restricting the supply
of quality products.
O1- Competitive Price Strategy 0.09 3 0.27 The significant
reductions in the
price will not cause
any harm to the
superior image of the
products of the firms.
This aspect of the
SWOT has been able
to signify that the
“Whole Foods
Market has major
opportunities to grow
its business in the
international arena”.
O2- Global expansion across the 0.07 3 0.21 “Whole Foods

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supply chain Market’s”
opportunities are
identified with
expanding its “supply
chain”. This
opportunity is
considered with the
need for more
organic producers
who complement the
growth of the firm.
O3- Global expansion in the retail
operations
0.06 2 0.12 One of the most
significant
opportunity for the
company has been
depicted with global
expansion. Based on
the present
operations based only
in the United States,
the company is
vulnerable to various
types of the
economic changes in
America. The
“Whole Foods
Market’s”
opportunities have
been depicted in
terms of the need for
the organic producers

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to adjust the prices
and make the firm
more competitive in
nature.
T1- Global Warming disrupting the
food production
0.08 3 0.24 “Global warming”
possesses a
significant threat
against the Whole
Foods Market. This
has been depicted in
term of the
significantly altering
with the reduced
food production.
T2- Low cost competition with
competition such as Walmart
0.09 2 0.18 The “increasing
number of the
organic and health
food retailers” has
been seen to be
beginning to offer
lower prices which
will shift the
customers away from
the “Whole Foods
Market”.
T3- Increase in the “genetically
modified organisms (GMO)” products
0.07 2 0.14 The “genetically
modified organisms
(GMO)” is identified
a major threat for the
company which can
considerably reduce