Whole Foods Market 2007 Case Analysis

Unit 5 Whole Foods Market 2007 Case Study Analysis

Kaplan University

School of Business and Management

MT460 Management Policy and Strategy

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Introduction

Whole Foods is an organic and natural foods retailer. Through mergers and acquisitions, they have become the country’s largest retailer in organic food offerings. Their belief in providing foods untainted by chemicals and from animals that have been treated humanely is the backbone of their existence (Whole Foods Market, 2012). This case analysis will provide information, analysis, and recommendations for the company in its future operations.

Synopsis of the Situation

Consumers are seeking healthier food options. Whole Foods Market is the leading provider of organic and natural foods, however, providing those options is problematic due to a shortage of available farmlands, cost, government regulations, and lower quantity yields (Whole Foods Market, 2007). The question remains if Whole Foods will be able meet the increased demands of consumers for healthy, organic, and natural food products.

Key Issues

There are several key issues to be considered. These issues include consumer demand, scarce resources, the supply of organically and naturally grown food, and the location of Whole Foods Market stores.

Define the Problem

The problem, as shown in this case analysis, is whether Whole Foods Market specifically and the organic food industry as a whole, will be able to meet the increasing demand of consumers for high quality, low cost, healthier foods. Can the supply meet the demand? Currently, Whole Foods Market’s target market is affluent older citizens, and urban singles who do not have dependents that use up their disposable incomes. The stores are set in metropolitan areas where their target market resides (Whole Foods Market, 2007). If the stores are in short supply, then consumers will be unable to frequent the...