Strategic Audit Report: Whole Foods Market

Executive

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).

 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 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).

History of the Strategic Audit Firm

 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).

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.

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.

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”.

Mission and Vision Statements Analyses

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”
• “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”

EFAS Analysis

IFAS Analysis

SFAS Analysis

The overall analysis from the SWOT has indicated that the companies most significant strength is considered with the high quality of its products. 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 company will be further able to address the threat of the low-cost competition by adjusting the pricing strategy. The SWOT analysis is seen to be mainly focusing on the “Whole Foods Market” thereby emphasising on the global expansion. However, it need to be noted that the company is having a strong brand image in terms of the attracting customers to the stores (Järvinen & Taiminen, 2016). 

TOWS Analysis

SO Strategies

The company need to take the benefits from the present trend prevailing in the food market industry. These trends are mainly seen with the increased awareness of the healthy eating habits and long-term wellness. “Whole Foods Market” needs to take the main advantage from the strength and opportunities such as maintaining a strong brand image which is able to attract more customers and at the same time aim for expand its market in the various types of the international locations (Kotler & Keller, 2016).

This strategy needs to be implemented with the identification of the issues such as “High prices associated to the products, limiting network pertaining to the suppliers and maintaining a Competitive Price Strategy”. The company needs to incorporate the strategies which are associated to maintaining premium quality of the products. The global expansion across the supply chain will be able to minimise the problems which are associated to the limiting network pertaining to the suppliers (Management & Hülsemann, 2015).

The international expansion will be able to contribute to the international growth of the company. The main expansion strategy needs to be taken in Canada. This will ensure that the operating cost at the initial stages is significantly low. In addition to this, the company will be able to maintain a sufficient scope for the “Global Warming disrupting the food production”. Some of the various types of the other factors for the growth has been seen to be based on the various type the significant issues which are associated to the threats such as limited locations have higher margins than the corporate average (Goworek & McGoldrick, 2015).

Corporate Governance

The company needs to consider the high prices associated to the products and address these problems by adopting a low-price strategy for companies such as Walmart. In addition to this, it also needs to consider the other options such as global expansion across the supply chain which will be able to eliminate problems such as dependency on the U.S. market (Nastanski & Management, 2014).

The various depictions made in TOWS analysis has been able to recommend the main strategies in form of taking expansion initiatives, engage itself in price competition and take advantage of brand reputation. Among the several types of the strategies identified in TOWS matrix, the most suitable approach for the company is identified in terms of proceeding with the strategy of international expansion. During the first few initial years the company needs to setup another business unit in Canada. It is likely that more number of the consumers are aware of the quality of the products manufactured by “The Whole food market”. Some of the other advantages in terms of expansion into other markets would allow the company to eliminate the dependency only in the US market and explore new market opportunities in Canada. This strategy may be able to curb other associated problems such as limited supply chain network and allow the company to create a better source list, which would be conducive in their overall production process (Publishing, 2018).

Conclusion

The inference about the history of The Strategic Audit Firm has been able to state that 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 Mission and Vision Statements has been suggested with “Whole Foods, Whole People, Whole Planet”. 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 board of directors is identified with Dr. John Elstrott, as the Chairman of the Board, “Mary Ellen Coe as the Vice President, Sales and Product Operations, Google”, Greenmont Capital Stephanie Kugelman as the, Founder and Chairman, A.S.O”. The different types of depictions on 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.  This strategy may be able to curb other associated problems such as limited supply chain network and allow the company to create a better source list, which would be conducive in their overall production process.

References

Company Info. (2014). Whole Foods Market. Retrieved 3 May 2018, from https://www.wholefoodsmarket.com/company-info

Free, M. (2014). Vision, Mission … Purpose? Production Machining, 14(11), 17–19. Retrieved from https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=99396364&site=ehost-live&scope=site%5Cnhttps://content.ebscohost.com/ContentServer.asp?T=P&P=AN&K=99396364&S=R&D=bth&EbscoContent=dGJyMMTo50SeprQ4y9fwOLCmr02ep7BSr6q4S7WWxWXS&ContentCustomer=dGJy

Global Marketing Today. (2016). Global Marketing Management. Global Amrketing Today Websitte (Vol. 22). https://doi.org/10.1080/08911760903022556

Goworek, H., & McGoldrick, P. (2015). Retail Marketing Management. Management.

Järvinen, J., & Taiminen, H. (2016). Harnessing marketing automation for B2B content marketing. Industrial Marketing Management, 54, 164–175. https://doi.org/10.1016/j.indmarman.2015.07.002

Kotler, P., & Keller, K. L. (2016). Marketing Management. Global Edition (Vol. 15E). https://doi.org/10.1080/08911760903022556

Management, S., & Hülsemann, N. (2015). Master thesis. Mycotoxin Research, 6(2), 100. https://doi.org/10.1007/BF03192151

Nastanski, M., & Management, S. (2014). Sustainability?: Benefits of Social Responsibility to Brand Value & Profit. Journal of International Management Studies, 9(2), 164–174.

Publishing, V. (2018). SWOT Analysis: Whole Foods Market, Inc.. Valueline.com. Retrieved 3 May 2018, from https://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Whole_Foods_Market,_Inc_.aspx#.Wus4kYhuYdU

Strategic Direction. (2014). Building a corporate reputation. Strategic Direction, 30(4), 21–23. https://doi.org/10.1108/SD-04-2014-0051

Whole Foods Market History. (2014). Whole Foods Market. Retrieved 3 May 2018, from https://www.wholefoodsmarket.com/company-info/whole-foods-market-history

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