Running Head: Whole Foods, Inc. 1 WHOLE FOODS 6 Introduction The purpose of this project is to provide a strategic plan for Whole Foods, Inc. This strategic plan will be composed of identifying strategies and how they are used at the corporate, business, and functional levels of Whole Foods Market. The following areas will be analyzed: vision, mission, organizational background, long term objectives, strengths, weaknesses, opportunities and threats. Vision and Mission Statement “The mission statement should define the purpose of the organization, customers, products or services, markets, philosophy, and basic technology” (Characteristics of a Mission Statement, n.d., para.7). Whole Foods Market is a company whose vision and mission statements are expressed through its core values. WFM focuses on providing the highest quality of natural and organic products, satisfying customer needs, promoting excellence in their team members, and exercising stewardship over shareholder investments. The mission also ensures to address their stakeholders by expressing social and environmental responsibility to the local and global communities. Background Organization John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods merged with Clarksville Natural Grocery owners Craig Weller and Mark Skiles to form the original Whole Foods Market in 1980 located in Austin Texas. Boasting with a staff of 19 personnel, Whole Foods Market was seen as an immediate success due to the high demand for natural food supermarkets in the U.S. Today, the company is one of the top leaders in organic sells with more than 430 stores, throughout the U.K., Canada and 42 U.S. states (Whole Foods News Facts). The company continues to provide the best natural and organic foods while maintaining strict quality of standards. Mackey, cofounder and CEO believes Whole Foods Motto – Whole Foods, Whole People, Whole planet sets the standard for reaching far beyond just a food retailer. He attributes the success in fulfilling the vision by marketing high-quality natural and organic foods to communities helping to change the eating habits of individuals in a way that attribute to the longevity of life and health. In 2015, Whole Foods Market placed No. 18 on Fortune’s World’s Most Admired Companies’ list as well as No. 25 on the list of companies that have the best corporate, social, and responsible reputations among the U.S. public. COO, A.C. Gallo states “Whole Foods Market has consistently stayed true to its mission by putting a clear set of core values into practice that actively help make our planet a healthier, more prosperous, and more sustainable place” (Whole Foods Newsroom, 2015). Industry Analysis The natural and organic food indu.

1. Running Head: Whole Foods, Inc.
1
WHOLE FOODS
6
Introduction
The purpose of this project is to provide a strategic plan for
Whole Foods, Inc. This strategic plan will be composed of
identifying strategies and how they are used at the corporate,
business, and functional levels of Whole Foods Market. The
following areas will be analyzed: vision, mission,
organizational background, long term objectives, strengths,
weaknesses, opportunities and threats.
Vision and Mission Statement
“The mission statement should define the purpose of the
organization, customers, products or services, markets,
philosophy, and basic technology” (Characteristics of a Mission
Statement, n.d., para.7). Whole Foods Market is a company
whose vision and mission statements are expressed through its
core values. WFM focuses on providing the highest quality of
natural and organic products, satisfying customer needs,
promoting excellence in their team members, and exercising
stewardship over shareholder investments. The mission also
ensures to address their stakeholders by expressing social and
environmental responsibility to the local and global
communities.
Background Organization
John Mackey and Renee Lawson Hardy, owners of Safer Way
Natural Foods merged with Clarksville Natural Grocery owners

2. Craig Weller and Mark Skiles to form the original Whole Foods
Market in 1980 located in Austin Texas. Boasting with a staff
of 19 personnel, Whole Foods Market was seen as an immediate
success due to the high demand for natural food supermarkets in
the U.S. Today, the company is one of the top leaders in
organic sells with more than 430 stores, throughout the U.K.,
Canada and 42 U.S. states (Whole Foods News Facts). The
company continues to provide the best natural and organic foods
while maintaining strict quality of standards.
Mackey, cofounder and CEO believes Whole Foods Motto
– Whole Foods, Whole People, Whole planet sets the standard
for reaching far beyond just a food retailer. He attributes the
success in fulfilling the vision by marketing high-quality
natural and organic foods to communities helping to change the
eating habits of individuals in a way that attribute to the
longevity of life and health.
In 2015, Whole Foods Market placed No. 18 on Fortune’s
World’s Most Admired Companies’ list as well as No. 25 on the
list of companies that have the best corporate, social, and
responsible reputations among the U.S. public. COO, A.C.
Gallo states “Whole Foods Market has consistently stayed true
to its mission by putting a clear set of core values into practice
that actively help make our planet a healthier, more prosperous,
and more sustainable place” (Whole Foods Newsroom, 2015).
Industry Analysis
The natural and organic food industry continues to rapidly grow
as the demand for healthier eating is on the rise. According to
USDA, consumer demand for organic goods continues to grow
by the double digits resulting in a total contribution of over 4%
of total U.S. food sales (Organic Market Overview, 2014).
Many surveys account for a variance of age groups who choose
to shop for natural and organic foods. Genetically modified
organisms seems to be the big push behind consumers wanting
foods that are fresh and locally grown.

3. The industry analysis is based on Porter’s Five Forces Model
whose purpose is to identify how much profit potential exists in
an industry (Strategic Management, 2014). It shows the
company’s strengths or intensities of external forces significant
in the industry environment. The table below will identify the
five forces and impact associated with each force.
Five Forces
FORCE
EXPLANATION
IMPACT
Buyer Power
This force involves determining how easy it is for buyers to
drive prices down (Strategic Management, 2014).
Strong force
Supplier Power
Supplier Power is accessing how easy it is for suppliers to drive
up prices (Strategic Management, 2014).
Medium Force
Threat of Substitute of new Products or Services
Threat of substitution is the force that identifies whether the
products or services provided can be easily substituted
Strong Force
Threat of New Entrants
Threat of New Entrants is where people can enter into the same
market of the existing business” (Strategic Management, 2014.).
Strong Force
Rivalry Amongst Competitors
This force identifies if competitors can offer the same products
or services offered better than what is currently being offered
(Strategic Management, 2014)
Strong Force
Buyer power – According to Food Marketing Institute, in 2015,
the average number of trips per week consumers make to the
supermarket is 1.5 (FMI, n.d.). Buyers typically don’t purchase

4. in large quantities, but do frequent the grocery stores regularly.
Whole Foods buyers show a low switching cost and can find
many of the products the company sells at their local
competitors such as Trader Joes, Costco, or Wal-Mart. As well,
customers can easily access product information being offered
at Whole Foods to stay well informed about the products and
prices of what’s being sold.
Supplier power – The rise in organic and natural food products
can cause limited supplies for the company and for this reason,
suppliers could force the demand. However, Whole Foods
Market suppliers include local, regional and national
wholesalers and as a result, the variance in suppliers help to
reduce the force behind the bargaining power of suppliers.
Threat of Substitute of new Products or Services – The grocery
industry poses a huge threat to Whole Foods. As a result,
substitutes such as cheaper products which aren’t organic, or
the option to dine at a restaurant can be cheaper than shopping
at Whole Foods. These products makes it easier for customers
to switch products.
Threat of New Entrants – The food retail industry requires huge
spending. There are several competitors such as Wal-Mart,
Wegmans, Trader Joes, and Costco who all operate in the food
industry. These companies also provide organic products at a
more economical price. As a result, customers can easily be
drawn away for better prices.
Rivalry Amongst Competitors – The demand for more grocery
food and health food stores are low as the industry is saturated
with many options. The rivalry amongst competitors is really
strong because food stores use special promotions, coupons, and
reward programs to save money. Whole Foods occasionally
offers such specials and as a result customers can easily switch
for their advantage.
References
Characteristics of a Mission Statement (n.d.). Retrieved
November 15, 2015 from

5. http://www.zainbooks.com/books/management/strategic-
management_6_characteristics-
of-a-mission-statement.html
Core Values. (n.d.). Retrieved November 17, 2015, from
http://www.wholefoodsmarket.com/mission-values/core-values
Newsroom. (n.d.). Retrieved November 15, 2015, from
http://media.wholefoodsmarket.com/fast-
facts
Newsroom. (n.d.). Retrieved November 14, 2015, from
http://media.wholefoodsmarket.com/news/whole-foods-
market-is-no.-18-on-fortunes-
worlds-most-admired-companies-list
Our Commitment to GMO Transparency. (n.d.). Retrieved
November 16, 2015, from
http://www.wholefoodsmarket.com/our-commitment-gmo-
transparency
Quality Standards. (n.d.). Retrieved November 17, 2015, from
http://www.wholefoodsmarket.com/quality-standards
Strategic Management (2014). Washington, D.C.: The Saylor
Foundation
Supermarket Facts. (n.d.). Retrieved November 13, 2015, from

6. http://www.fmi.org/research-
resources/supermarket-facts
USDA ERS - Organic Agriculture: Organic Market Overview.
(2014, April 7). Retrieved
November 15, 2015, from
http://www.ers.usda.gov/topics/natural-resources-
environment/organic-agriculture/organic-market-overview.aspx
We Create Ongoing Win-Win Partnerships with Our Suppliers.
(n.d.). Retrieved November 17,
2015, from http://www.wholefoodsmarket.com/mission-
values/core-values/we-create-
ongoing-win-win-partnerships-our-suppliers
Whole Foods Market History. (n.d.). Retrieved November 15,
2015, from
http://www.wholefoodsmarket.com/company-info/whole-foods-
market-history
Whole Trade Guarantee. (n.d.). Retrieved November 17, 2015,
from
http://www.wholefoodsmarket.com/about-our-
products/product-lines/whole-trade-

7. guarantee