Case Study(Whole Foods) - 1481 Words

1.) The Whole Foods strategy seeks to provide products of the best quality to its customers by maintaining high standards that the farmers, organic growers must match. The strategy also involves providing best tasting food and foods that are fresh, wholesome and safe to eat. It also involves promoting organically grown foods to exercise their influence on the people and the industry. Customers are the most important stakeholders responsible for the growth of Whole Foods Market, thus satisfying their needs and meeting their every possible demand is key behind the success of this company. Inviting store environments and retail innovation also enhances this. Their strategy involves working efficiently with its vendors, team members and†¦show more content†¦Return on Shareholder’s Equity= (Profits after taxes/Total Equity) 2004 2005 2006 2007 (3,864,950-2,523,816/3,864,950) (4,701,289-3,052,184/4,701,289) (5,607,376-3,647,734/5,607,376) (6,591,773-4,295,170/6,591,773) = .34699 or .35% = .35 % =. 35 % = .35% 2.NP= .033 % = .050% = .036% = .027% 3. N/A N/A (49+8,606/2,042,996) = .004 (24,781+736,087/3,213,128) = .023 4. N/A N/A (203,828/2,042,996) = .099% (182,740/3,213,128) = .056% After analyzing some of the important financial ratios of the company it seems that the Gross Profit is consistent throughout the years 2003-2007 remaining at 35%, however the net profit margin displays another story it has decreased significantly from 2005-2006(.050-.036 %) and from 2006-2007(.036-.027%). The net profit dropped 2.3 % in two years, which is not alarming but the management should look into the reasons behind the decline. The debt-to-equity ratio is used to evaluate borrowing capability and the amount of debt in the company. Usually ratios above 1.0 indicate excessive debt, in the case of Whole Foods Market the ratio has gone up from 2006-2007 (.004-.023), which indicated an increase in the amount of borrowings. The ratio is nowhere close to one, which indicates credit worthiness of Whole Foods Market and their ability to pay back debt. The return on shareholders equity hasShow MoreRelatedWhole Foods Case Study1568 Words   |  7 PagesNick Zawisa Strategic Management September 23, 2010 Case Study: Whole Foods Market Since 1980, Whole Foods Markets has grown from a small local store in Austin, Texas, to the largest retail chain of natural and organic foods in the United States. Whole Foods has been leading the natural and organic foods movement across the United States, working to gain acceptance among the growing number of consumers interested in eating healthier foods. The company has built a reputation for being selectiveRead MoreCase Study Whole Foods1155 Words   |  5 PagesCase Study assignment 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? Fresh natural and organic foods and products with no preservatives or artificial ingredients. Promote healthier eating/lifestyle and increasing consumer knowledge/education of food safety, environment and how pesticides affect the land as well as the human body. 2. 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However, part of a good business strategy is toRead MoreWhole Foods Inc Case Study1200 Words   |  5 PagesIntroduction Industry Overview The Whole Foods Inc was founded in 1980 by john Mackey, from a local supermarket store on safe grocery. Since then, it has grown into the world’s largest retail store all kinds of organic and natural foods. As of 2004, the annual sales were recorded as $8 billion. It has approximately 264 stores in the USA, 6 in Canada and 5 in the United Kingdom (Thomson, 2010). The headquarters are located on an 80,000 square feet flagship store in Austin, Texas. Over the yearsRead MoreCase Study : Whole Foods Market1370 Words   |  6 Pages Performance Mangement-4013 Assignment Title: Whole Foods Market Report by: Kiranpal Mann Student #: c0645417 Date: 1st March 2016 Table of contentsRead MoreWhole Foods Case Study Essay1324 Words   |  6 PagesWhole Foods Markets is a retailer of natural and organic foods. The company was founded by current CEO John Mackey who partnered with Craig Weller and Mark Skiles to merge their two natural food stores, Saferway and Clarkville Natural Grocery, resulting in the opening of the original Whole Foods Market on September 20, 1980. They had a 12,500 square foot store manned by 19 staff members. With a passion this industry, Mackey devised great visions, values, and strategies to take Whole Foods MarketsRead MoreWhole Foods Market Inc. Case Study Essay1200 Words   |  5 PagesAccording to the Whole Foods Market Inc. case, study shows that Whole Foods Market is an American supermarket chain exclusively featuring foods without artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats. It is the United States first certified organic grocer, which mean s it ensures, to National Organic Program standards, organic integrity of the heterogeneous products from the time they reach stores until they are placed in a shopping cart. Whole Foods Market Inc. openedRead MoreWhole Foods Operations Management Case Study1794 Words   |  8 PagesWhole Foods Operations Management Case Study Assignment With the launch of the 365 brand, Whole Foods is hoping to target and bring in a younger, more hipster demographic of customers. Their hopes are that these younger, more price sensitive shoppers will grow with the brand, become accustomed to the organic, GMO-free selection, and will transition into customers of the regular, more expensive, Whole Foods stores as they grow in their careers and begin making more money. The most important challenge