The organization's production and purchasing strategies Whole Foods Market has a strong bargaining power due to the large number of suppliers. The organization owns and controls several significant subsidiaries, hence keeping the bargaining power of suppliers in control (News Releases, 2010)
The whole foods industry gets boost from the technical developments, as mechanized farming means that the products are readily available. Mechanized processing and manufacturing equipment promote the industry's success (Rahel, 2012)
The model can be used to comprehend how the organizational elements are interconnected, and so guarantee that the wider influence of variations made in one area is taken into consideration. The basic objective of this model is to improve the performance of the organization, examine the expected impact of future changes in the company, and examine the merger process like carefully aligning the merger and figure out the best possible way to implement a proposed strategy (Lusthaus, 2002)
Open systems theory consists of recurrent cycles of input, transformation, output, and renewed input within organizations. A feedback loop joins organizational outputs with renewed inputs (Smith, 2003)
An assessment concerning how Whole Foods Market has generated organizational learning and how this organization can go further and generate additional organizational learning is followed by a summary of the research and important findings in the conclusion. Review and Discussion Balancing and Reinforcing Loops at Whole Foods Markets All systems thinking models use two basic feedback loops, Balancing and Reinforcing loops, to depict the relationships between the constituent elements (Baker, 2006)
54). In addition, both managers and staff encourage work-related learning in a learning organization, including the exchange of information between employees to generate new concepts and knowledge, as well as continuous improvement (Giesecke and McNeil, 2004)
5. Teamwork and Cooperation - An emphasis on teamwork and group problem-solving as the mode of operation and for developing innovative ideas (Goh, p
Becoming a learning organization involves a thorough understanding of what factors comprise the strategic internal drivers that are required to build learning capabilities (Goh, 1999). Consequently the opportunity exists for the company to avoid the so-called "Icarus syndrome" wherein they continue to rely on their existing business model to the exclusion of other market segments (Nagl, 2011) as discussed further below
This is why, given its inability to compete with Wal-Mart and offer a comparable range of goods that spans from organic products to gas, SuperValu is struggling. At the beginning of 2011, it announced that it was forced to close 20 of its grocery stores nationwide and require many of its employees to take unpaid leave (Hughlett 2011)
Wal-Mart Supercenters, Sam's Club, Costco, and Dollar Stores have all been eating into traditional supermarkets' market share. "In 2001, Wal-Mart became the largest seller in food" (Imlay 2006)
Furthermore, the public's questioning of the industrialization of organic agriculture has caused many of Whole Foods' most loyal consumers to seek out local farmer's markets rather than resort to commercial superstores. "If I shop at Whole Foods, I'm choosing Chain," wrote one food blogger (Levin 2011)
Whole Foods has enabled itself to lower costs in comparison to totally independent stores. Its acquisition of its smaller competitor Wild Oats, which had significant penetration in the West, enabled it to expand its stores and sell at a higher volume (Moore 2007)
coli poisoning, antibiotics in cow feed, and high levels of added sweeteners make Whole Food's extensive organic and locally grown lines of food a comfort to worried consumers and a viable alternative to traditional supermarkets. "Catering to the growing interest in organic and gourmet foods," Whole Foods merchandise offers customers peace of mind at a price, but customers appear willing to pay higher prices for such goods (Brady, 2005)
Together, these elements will highlight the way outputs are having an impact on the firm and the strategies they are utilizing. (Schmidt, 2012) The Nadler Tushman Congruence Model The Nadler Tushman Congruence Model is focused on evaluating and improving a firm's ability to respond to critical challenges through objectively analyzing different outputs
Consumers shopping at the Whole Foods Market in Union Square know they are getting the best possible product, because the store is set up like no other; clerks are not just clerks, they are specialists in their department. For example, if you were to walk into the WFM (Whole Foods Market) in Union Square in search of a health or beauty product manufactured from all natural ingredients, or specific ingredients like tea tree oil, then you would find a specialist clerk or aid working in that department to help you decide which product would best meet your needs based on your budget, your skin type and your desires
Whole Foods need to be selective not only from a produce standpoint but also from a time-to-market one as well. Studies of food retail supply chains show that the more coordinated the efforts in terms of sourcing locally to high standards, the less wasted produce is incurred as a loss (Beckeman, Olsson, 2011)
The mix of products, their specific product lifecycles, and the pricing of those products are all critical success factors in the launch of a new Whole Foods Market in El Paso, Texas. Marketing Plan Product and Service Definition A core component of Whole Food's unique value proposition is the sourcing of local fruits, vegetables and other inventory items that are considered perishable due to their relatively short shelf life (LaMotta, 2006)
The mission of the company is summed up in the intersection of While Foods, Whole People and Whole Planet. The combining of these three elements is the cornerstone of the supply chain, sourcing, logistics, retailing and customer service success the company has achieved (Lewis, 2006)
As the company is highly reliant on its supply chain, it organizes the divisions and subsidiaries by each major commodity it resellers, with coffee, fish, and produce having vertically integrated supply chains. The company was founded in 1980 and continues to pursue its mission of being the highest quality supplier and retailer of natural foods to support healthy lifestyles and a health planet (Bokaie, 2008)
It takes significant investment to become a supplier of organic products and once established, a stable and higher-end pricing strategy as well. Suppliers compete however on their overall reputations for delivering quality products, and often can substantiate higher prices based on the quality levels (Drichoutis, Lazaridis, Nayga, Jr