Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Whole foods market project


Published on

Whole foods market project

  1. 1. Selling the Highest Quality Natural and Organic Products By:- Claudia Fortune Erdogan David
  2. 2. History   Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided that natural foods industry was ready for a supermarket format. The original Whole Foods Market opened in 1980 with staff of only 19 people. It was an immediate success. At the time, there were less than half a dozen natural food supermarkets in the United States. Whole foods is a socially and environmentally conscience supermarket. Whole Foods customers value the store’s commitment to superior quality in organic and natural products, as well as, their ethics and dedication to the environment, animal welfare and customer satisfaction. Whole Foods is more costly than a traditional supermarket. Whole Foods Market’s corporate objective is to become an international brand synonymous with, not just natural and organic foods, but also with being the best food retailer in every community in which they are located. They believe a heavy emphasis on perishable products is helping to reach that goal, differentiating the stores from conventional supermarket and enabling them to attract a broader customer base. Their business objective is that all shoppers, not just natural and organic food shoppers, appreciate great produce, dairy, meat, seafood, bakery and prepared foods. Whole Food’s objective is to produce higher sales growth, comparable store sales increases and sales per square foot, than their public competitors.
  3. 3. Mission Statement Whole Foods Market is a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market.
  4. 4. Vision Statement Our motto — Whole Foods, Whole People, Whole Planet — emphasizes that our vision reaches far beyond just being a food retailer. Our success in fulfilling our vision is measured by customer satisfaction, Team Member excellence and happiness, return on capital investment, improvement in the state of the environment, and local and larger community support. Our ability to instill a clear sense of interdependence among our various stakeholders (the people who are interested and benefit from the success of our company) is contingent upon our efforts to communicate more often, more openly, and more compassionately. Better communication equals better understanding and more trust.  
  5. 5. John Mackey, one of the founders of Whole Foods Market states that “happy team members create happy customers, and happy customers create happy investors”.
  6. 6. <ul><li>Team Members are committed and dedicated to the store’s core competencies, which are to: </li></ul><ul><li>Provide the highest quality natural and organic foods </li></ul><ul><li>Conveying to the customer the high quality of product </li></ul><ul><li>Offer a healthy lifestyle and unique experience; and </li></ul><ul><li>Caring about communities and environment </li></ul>
  7. 8. <ul><li>Values where the foods come from or grown </li></ul><ul><li>Socially responsible </li></ul><ul><li>Markets to customer who are willing to pay for high quality natural products </li></ul><ul><li>Looking for customers who are focused on the health benefits of the products sold </li></ul><ul><li>Markets to educated affluent men and women living in large cities </li></ul><ul><li>Customers looking for convenience and bargains </li></ul><ul><li>Friends of current customers who are newly educated on the benefits of organic foods </li></ul>
  8. 9. <ul><li>We Satisfy and Delight Our Customers </li></ul><ul><li>Customers are the lifeblood of our business and we are interdependent on each other. </li></ul><ul><li>Customers are the primary motivation for our work — they are not an interruption of our work. </li></ul><ul><li>Customers are people who bring us their wants and desires and our primary objective is to satisfy them as best we can — they are not people to argue or match wits with. </li></ul><ul><li>Customers are fellow human beings with feelings and emotions like our own; they are equals to be treated with courtesy and respect at all time </li></ul><ul><li>Customers have a right to know where our products come from </li></ul>
  9. 10. <ul><li>Human Resources </li></ul><ul><li>Employees are well trained, knowledgeable and experienced in industry products </li></ul><ul><li>Offer an economic value added management and incentive system for employees </li></ul><ul><li>Decentralized team work </li></ul><ul><li>The teamwork, not the hierarchy is the defining unit of activity </li></ul><ul><li>Individual stores are autonomous with almost 10 self-managed teams </li></ul>
  10. 11. <ul><li>Competition with other companies as well as within Whole Foods Markets stores </li></ul><ul><li>Not a lot of rules are handed down from the head office </li></ul><ul><li>Peer pressure substitutes for bureaucracy </li></ul><ul><li>Peer pressure enlist loyalty in a way that bureaucracy would not </li></ul><ul><li>Employees as stake and stockholders </li></ul><ul><li>Teams have a say on who gets hired after the one month trial period </li></ul><ul><li>Executive pay is no more than 8 times the average pay </li></ul><ul><li>Pays 100% of the employee benefit package </li></ul><ul><li>Financial information is widely available for everyone to see. </li></ul><ul><li>Teamwork and information sharing is not just about cooperation, it is about competition </li></ul>
  11. 12. <ul><li>Products </li></ul><ul><li>Stores are encouraged to get their products locally </li></ul><ul><li>Poultry and beef products that are raised under human conditions </li></ul><ul><li>Produce are either natural or organic </li></ul>
  12. 13. <ul><li>Planning </li></ul><ul><li>Maximum Freedom. Minimum Governance </li></ul><ul><li>Small Pieces Loosely Joined </li></ul><ul><li>Getting Bigger by Acting Smaller </li></ul><ul><li>Food as Theater </li></ul><ul><li>Shoppers as “Brand” Ambassadors </li></ul><ul><li>Education Leads to Appreciation </li></ul><ul><li>Everything Matters </li></ul><ul><li>Price to Value </li></ul><ul><li>Profit is a Good Competitive Game </li></ul><ul><li>Team Members Make the Difference </li></ul><ul><li>In addition </li></ul>
  13. 14. <ul><li>Organizing </li></ul><ul><li>  </li></ul><ul><li>Whole Foods Market stores are clean </li></ul><ul><li>Products are properly labeled </li></ul><ul><li>Employees well trained and knowledgeable </li></ul><ul><li>Fresh products all the time </li></ul><ul><li>Every store is designed to fit the community in which it is located </li></ul><ul><li>Every store is autonomous, but they must follow the company’s core principles </li></ul>
  14. 15. <ul><li>Controlling </li></ul><ul><li>  </li></ul><ul><li>Ensures that their products are always fresh and of high quality </li></ul><ul><li>Ensure that team members participate in hiring decisions </li></ul><ul><li>Expansion is done only after an expansive research </li></ul><ul><li>Conduct a public hearing in a community before opening a new store in that community </li></ul><ul><li>Hires employees from the community in which they are located </li></ul><ul><li>Buy their products locally whenever possible </li></ul>
  15. 16. Whole Foods Culture and Leadership <ul><li>Whole Foods approaches and promotes success depending on the collective energy and intelligence of all Team Members. </li></ul><ul><li>Overall flat structure, not hierarchical decision making. </li></ul><ul><li>Decentralized decision making, based on input of many people. </li></ul><ul><li>Empowerment-Promoting self-directed team culture “The fundamental work unit of the company is the self- directed Team. Teams meet regularly to discuss issues, solve problems and appreciate each others' contributions. Every Team Member belongs to a Team”. </li></ul><ul><li>Team Members motivation facilitating and promoting their success to their highest potential. </li></ul><ul><li>Appreciating effort and rewarding results tied to performance. </li></ul><ul><li>Peer pressured vs. bureaucracy. Non bureaucratic structure creates loyalty among colleagues. </li></ul><ul><li>Self responsibility ,for our own success and failures. </li></ul>
  16. 17. <ul><li>Allowing members feel their work is important make them have good things to say about the organization and its people. </li></ul><ul><li>Promoting open communication at all levels. </li></ul><ul><li>Management welcomes employees willingness to ask questions, share information, and express their points of view, increasing employees accountability. </li></ul><ul><li>“ No secrets” philosophy allowing employees to have access to company-wide information and financial data that is generally in the hands of senior management only, including annual compensation report. </li></ul><ul><li>Store leaders also communicate goals, ensure company policies and procedures are followed, and infuse core values. </li></ul><ul><li>They motivate and inspire team members by providing them with opportunities to develop their skills and passion for the products and services they sell and the company they work for. </li></ul><ul><li>In addition, one of the most important responsibilities store leaders have is working with local producers to select the right products for the store shelves. </li></ul>
  17. 18. Organizational Chart
  18. 19. Core Values <ul><li>Selling the highest quality natural and organic products available </li></ul><ul><li>Satisfying and delighting our customers </li></ul><ul><li>Supporting team member happiness and excellence </li></ul><ul><li>Caring about wealth through profits & growth </li></ul><ul><li>Creating ongoing win-win partnership with our suppliers </li></ul><ul><li>Promoting the health of our stakeholders through healthy eating education </li></ul>
  19. 20. SWOT Analysis <ul><li>Strengths </li></ul><ul><li>Whole Foods Market (Whole Foods) owns and operates several wholly-owned subsidiaries. </li></ul><ul><li>International expansion located in the US, Canada, and the UK. It employs about 52,900 people. In 2001, moved to Manhattan, attracting the media and financial industries. 2002 saw an expansion into Canada and in 2004, Whole Foods Market entered the United Kingdom. </li></ul><ul><li>The company recorded revenues of $7,953.9 million during the financial year (FY) ended September 2008, an increase of 20.7% over FY2007. </li></ul><ul><li>They have had 25 years of double digit revenue growth. </li></ul><ul><li>Undisputed $4.7B Organic Supermarket Industry Leader. Originally, health food stores were small, expensive, and didn't carry a large variety of products, Whole Foods changed all of this and they became the founding firm of this industry. </li></ul>
  20. 21. Strengths (cont.) <ul><li>Offer catering , seasonal products and recipes, in-store events such as cooking classes, free tours around the store for customers with food allergies. </li></ul><ul><li>Amazing website with blogs, recipes, sale items, tips, podcasts and more. The website is well designed and explains the Whole Foods concept very well. </li></ul><ul><li>Supported by complementary industries such as: Health Industry, Health Insurance Companies, Health Care Specialists, Fitness Centers and Wellness Programs. </li></ul><ul><li>Whole Foods has a commitment to selling high quality natural and organic products. </li></ul><ul><li>Caring about their communities and environment. </li></ul><ul><li>Reputation for largest selection of organic, healthy, locally grown foods of any supermarket worldwide makes them attractive to customers. </li></ul>
  21. 22. <ul><li>Weaknesses </li></ul><ul><li>US government subsidizes the corn growers industry, but not the organic farmer-therefore companies not utilizing organic ingredients can grow more food cheaper and faster. </li></ul><ul><li>The number of organic food farmers is growing, but slowly and the supply chain for organic foods is underdeveloped and cannot meet the needs of the American food system. </li></ul><ul><li>They are known as &quot;whole paycheck&quot; because some of the foods are higher priced than other grocery stores. </li></ul><ul><li>The commitment to high quality natural and organic foods leads to higher prices than non organic and natural foods. </li></ul><ul><li>Many consumers have the misconception that healthy foods are more expensive than other foods </li></ul>
  22. 23. <ul><li>Opportunities </li></ul><ul><li>As the world is becoming more aware of how important it is to eat healthy, Whole Foods need to be there to pull those consumers in to the stores. </li></ul><ul><li>Whole Foods provides a store brand that is comparable in price to other grocery chains. Whole Foods needs to change the attitude of consumers that perceive healthy food as more expensive. </li></ul><ul><li>Finding cost effective way to give a little something back to customers that do buy on a regular basis and try to get new customers in the same tactic. Making a free rewards card--after so much bought or points accumulated a customer can get a discount on the next purchase or get something free from the store. </li></ul><ul><li>Involvement in sponsoring town events (not just in-store events) to increase recognition of the brand name and make customers more aware of the products they offer. </li></ul><ul><li>Promote and building brand identity with organic foods, eventually leading to the idea that when people think &quot;organic&quot; they will think &quot;Whole Foods.&quot; </li></ul>
  23. 24. <ul><li>Threats </li></ul><ul><li>Whole Foods has increased competition from existing supermarkets that are re-branding in order to compete with them-Wal-Mart, HEB Central Market (Texas, Mexico) Wegman's (New York), and Publix (Southern US). These stores have copied the atmospherics and some of the food items sold by Whole Foods. </li></ul><ul><li>Current economic situation in the US is a threat due to Americans' desire to save money and that means groceries. Food is expensive and Americans' don't see the cost effectiveness of purchasing organic food. </li></ul><ul><li>Any changes in government regulations on organic food would impact consumer spending even further. </li></ul><ul><li>  </li></ul>
  24. 25. That concludes the presentation from the AA Team. Thank you all for listening. Enjoy the rest of Summer. VOTE AA TEAM!
  25. 26. References