Juan M.

Piera

Session #5

Problem Statement:
Whole Foods
Session 5
Juan M. Piera
FIU EMBA COHORT 22

Juan M. Piera

Session #5

Problem:
Whole Foods began as an aha moment, which paved the way for owner John Mackey
who had the strong notion that your emotions are governed by what you eat. By 2006, Whole
Foods Market had grown into the worlds largest chain of natural and organic foods
supermarkets. Their dedication to quality, highly selective product selection, and core values
has led them to rapid growth and success.
Their strategy has been to open their own large stores, which provide a customer
experience that is pleasing and interactive. By the same measure, Whole Foods competition has
come from three fronts: Alternative markets, competition from conventional stores stocking
organic products, and farmers markets have eroded the top spot which Whole Foods held. We
can also added regulatory bodies which have investigated and stood in the way of their
acquisition of Wild Oats.
The problem is one of mission in conflict with sustained bottom line growth. In order for
Whole Foods to expand even further, they must sell products that appeal to a larger group and
price those products within the median means of that group. Larger stores mean less profit per
square foot, which places Whole Foods just a little above their conventional competitor and
almost doubly behind Trader Joes their alternate market rival.

Agenda:
The costs of goods sold are on the rise over the past three years and debt over the past
three years has risen dramatically to all time highs.
Examine how they can shrink to be leaner yet provide quality.
Practices to bring organic into the mainstream have become troubling to the core
customer base.
Corporate organic and whole pay check are images that need to be addressed in the
growing company.
Reconcile inconsistencies between mission and vision.
Strategy for drawing more non-users (customers who do not normally purchase natural
organic food) away from competitors.
Convince current customers to buy more and more often. Whole Foods seen as the one
stop market for all needs.
Align stores to the area in which they serve. Make Whole Foods more for all than for a
select few.