Case Analysis Of Whole Foods

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Whole food has a track record of organic and natural food dating back to John Mackey’s college drop-out days which resulted in him getting employment at a natural food store. Renee Harding his girlfriend was attracted to the healthy food idea which led them to join hands in opening a restaurant called Safe Way including a health food store. Although they experienced financial difficulties, Mackey’s father invested $25, 000 which resulted in him urging organic local grocery owners to join. The strategy was a huge success which led to the first opening in 1980 of a Whole Food Market and turned out to be a success. However, a in 1991 a flood almost destroyed the store but due to goodwill and loyalty by customers who pitched in, the store was functioning…show more content…
Instead Mackey spread out his offerings after purchasing 10 stores and ventured into vegetarian natural products, fish, meat, coffee, wine, bread, etc. This was meant to not limit the organization productivity by concentrate on one thing but maximizing profit by spread out its businesses. Diversification also deals with risk reduction if one market is not doing too well and helps having a diversified portfolio. In having a lot of stores featuring many products in the case the one businesses faces financial difficulties, the other businesses help with loss incurred. This as well increases the organizations market file because Whole Foods is now having a large market. Diversification is a corporate strategy in terms of companies expanding their businesses. This action plan benefited Whole Foods in expanding it market internationally in Britain (Simpson,…show more content…
Great customer and employee loyalty by one bought chain had gain a great reputation. This could be the result of a good organizational fit in the company among its employees. Mackey was known for his personal style, a bookworm, and fosters a healthy work environment. Operational synergies are an important factor in how the organization manages its brand. In incorporating a strategic fit, Whole Foods injected the successful management practices of companies it had acquired into its existing stores, by adding new departments in its existing stores of something that works well. They targeted a certain market in selected areas for business who were more likely to be white a collar demography. The preferred choice was restaurants, retailers, bookstore and college graduates. This market is probably healthy conscious and into the trend of eating

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