Whole Foods Market Case Study Example | Topics and Well Written Essays - 2500 words

Whole Foods Market - Case Study Example WFM’s mission is: â€Å"Whole Foods – Whole People – Whole Planet,† aiming â€Å"to promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available† (WFM Form 10-K, 2013, p. 1) – thus the reference to Whole Foods. It follows, however, that the purity of the food provided WFM’s customers is directly determined by the quality of the environment, therefore the reference to Whole Planet. Finally, the provision of good, healthy food and maintenance of the environment can only be achieved by dedicated individuals working towards a common objective; therefore the reference to Whole People. This analysis explores WFM’s business and control strategies, adopting the paradigms of Porter’s generic strategies and the organisational theory by Coase/Williamson, respectively. It discusses the approach of WFM to substantial changes in terms of technology, products and services, and o rganisational structure, strategy and culture, and explains how change policies have evolved in WFM. Finally, discussion is focused on WFM’s virtual and self-managed teams which are the fundamental organisational units of the firm and the source of its competitive advantage. WFM’s Business and Control Strategies Business strategy of WFM A business strategy, in its simplest definition, is the means by which a business organisation identifies and attains its goals (Porter, 1996). Devising a strategy for business begins with identifying the firm’s goal, and then systematically formulating a plan by which the goal may be achieved. WFM’s purpose is embodied in its mission and core values. Its strategy goes well beyond merely providing fresh foods. The vision emphasises that â€Å"whole people† are as important as â€Å"whole foods† – that is, developing their human component to their fullest potential, allowing them the freedom to create a nd innovate, and the power to decide on matters that affect their sphere of work. Generic strategies based on Porter’s typology (Parnell, 2013, p 184) Emphasis on Entire Market or Niche Emphasis on Low Costs Emphasis on Differentiation Emphasis on Low Costs and Differentiation Entire Market Low-cost strategy Differentiation strategy Low cost differentiation strategy Niche Focus low cost strategy Focus differentiation strategy Focus low cost differentiation strategy WFM’s business strategy emphasises creativity and innovation which create a difference in the stores’ choice of product offerings and the quality of their service delivery, for the entire market. This is the differentiation approach. This is the strategy that is ideal in markets dominated by large market leaders – in this case, Wal-Mart which overshadows all other competitors in the grocery industry. Rather than going head-to-head with Wal-Mart and inevitably lose in the process, WFM could achi eve greater business success if it distinguishes itself along key strategic points. These key attributes are those competitive factors that the smaller grocer can develop but which Wal-Mart cannot easily duplicate, such as less hectic stores, superior selection of certain food products, or greater convenience to the customer (Parnell, 2013). WFM’s favourable employee policies that develop a sense of engagement and ownership among its workers are evidenced by its annual inclusion in Fortune Magazine’