Whole foods diversified its business strategy by not only focusing on one product in the market. 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 ...
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...alue to creation of wealth through growth and profit. Through social corporate responsibility, the organization donated 5% after tax initiative towards promoting environmental stewardship.
One of the largest US. organic food chains Whole Foods, has done relatively well in the conglomeration of other business. Although, conglomeration can help reducing risks through the purchasing of various businesses as required, the best strategy is to not diversify its products but remain focused on concentrating on strategies that were created in the first place. Whole Foods has had its ups and downs and should refocus on concentration strategies by focusing on their strengths only and re-focusing on their core offerings. Conglomeration of businesses try to reduce risks but with the current scenario and challenges, refocusing and having a concentration strategy works better.
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