Case Analysis of Whole Foods Decides to Open in Detroit Essay
Mission Statement The mission statement of the Whole Foods Company begins with its motto, which is ‘Whole Foods, Whole People, Whole Planet”. They explained as this: “Whole Foods – We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. Whole People – We recruit the best people we can to become part of our team. We empower them to make their own decisions, creating a respectful workplace where people are treated fairly and are highly motivated to succeed.
Whole Planet –
We recognize the connection between our lives, our communities and the environment. ” ( Barbara ) The mission statement shows their deepest purpose as an organization is helping support health, keep member happiness and excellence, create wealth through profits and growth and care about communities and environment. Products and Services Whole Foods Market offers about 2,400 healthy and high quality items by creating a quality standard focused on ingredients, freshness, taste, nutritive value, safety and appearance; foods unadulterated by artificial additives, sweeteners, colorings and preservatives.
The selected product categories is listed in the following: Bakery Body care Educational products Floral Grocery Household products Meat and poultry Nutritional supplements Pet products Prepared foods Produce Seafood Specialty (beer, wine, cheese) Textiles Also Whole Foods Market provides premium customer experience and services such as product information (labels, seasonal information, recipes, on and offline), catering, cooking classes, free allergen tours, pre-order online and pick up in the nearest store. Target Markets Whole Foods Market targets consumers are younger people with the age of 8 to 39 years old.
The target customers have a strong connection with the environment like college students, live in urban areas who are focused on the health benefits of the products and willing to pay for high quality natural products. Company Culture In order to get a sustainTABLE future, Whole Foods expressed the company culture as always keeping quality in mind and the vision they reaches is far beyond just food retailing. They encourage the teamwork and share love and joy of the world. Financial statements Profit & Loss – 12 months ending Sep 29, 2013 – In millions.
Sales $12,917 Expenses $12,366 Net Income $551 Balance Sheet – Period ending Sep 29, 2013 – In millions. $5,538 Liabilities $1 ,660 Owners Equity $3,878 Cash Flow – 12 months ending Sep. 29, 2013” In millions. Operating Activities $1 ,007 Cash Flow from Investing Activities ($289) Cash Flow from Financing Activities ($517) Assets Cash Flow from Net Cash Flow Case Summary $201 Whole Foods is keeping expanding their market in the North America and one location they plan to choose is Detroit, which represents a serious, declining economic and population in recent years.
It’s a big challenge for Whole Foods to make the decision to open a new store in this area. However, by doing lots of marketing research and practices, Whole Foods’ high-level managers use probability theory and group evaluation as tools to analysis the internal and external conditions to process the decision, and they conclude the result that it is possible to profit from the new store in Detroit. There are three main reasons. First, they found in Detroit there exiting their target customers who are from university, medical center and nearby working place. Also these ustomers have the buying power and demand of their organic food.
Second, midtown that they choose is a good location for Whole Foods to open new store and get benefits. Because around this area gathered thousands of shops and fewer competitors for Whole Foods. Also the nation’s largest farmers’ market is in here, which can be Whole Foods’ future supplier. Third, demographic information provides that if Whole Foods open new store in Detroit, they not only can attract downtown customers but also can get potential customers from outskirts. In general, decision-making is the study of dentifying and choosing alternatives based on the values and preferences of the managers.
Whether open new store in Detroit is a wise choice, Whole Foods still need time and marketing feedback to prove. Case Questions and Answers 1. List three alternatives Whole Foods’ management might consider in opening a store to serve Detroiters before selecting the Midtown site. Answer: First, Metro station which has large person flow everyday and this location can increase the store’s exposure to attract customers. Second, suburb that is the nearest location to Detroiters who can provide enough uying power. Third, Detroit neighborhood is the location that can get both cities’ customers. 2.
What information would management need to evaluate these three alternatives? Answer: Customers’ demand and buying power. Managers need to evaluate these information first, because they are the core factors that determine the Whole Foods market sales directly. Then managers should take consideration about competitors’ information of these locations. As we know, Detroit’s economic situation is not optimistic, if the location, which Whole Foods choose, exiting major organic food competitors; they may rasp customers and sales from Whole Foods. That will be hard for Whole Foods’ new store to earn profit.
In addition, safety is also the important information to evaluate. A safety environment is the foundation of a business to get sustainability and to avoid unpredicTABLE loss. 3. Do you think you would have enjoyed making the decision to open a Whole Foods store in Midtown Detroit? Explain. Answer: I think so. Because to compare with other alternatives, making the decision to open a new store in Midtown can get the most advantages such as meet the target customers, high demands of rganic food, growing population, convenient transportation, safety, location is near supplier and both city and suburb people can arrive.
Also the fact proves that Whole Foods new store business is running well now. Conclusion The new Whole Foods store in Detroit is becoming popular and getting good reviews. Detroiters said that they are thankful to Whole Foods for providing them the high quality food. And Whole Foods market indicates they will try their best to make efforts to keep the long-term development and share joy of food with everyone.