Whole Foods Market Business Management Case Study
Whole Foods Market is a big, growing food retailing company that has the stores all over the world. Its chief headquarter is located in the USA, but the organization aims at expanding its activity to other countries. Apart from selling healthy food, the company motto is to teach the society to consume products of high quality, refuse from goods that may do harm to their health.
The company has to take certain steps to increase its competitive potential. Among the main competitors of Whole Foods Market, The Fresh Market and Trader Joe's can be distinguished. However, the company has higher rates and is successful in its own particular market segment – organic and natural food. Thus, such hyper- and supermarkets as Wal-Mart or The Kroger Company do not squeeze Whole Foods Market out of business and occupy their own niche.
The revenues of the company also show an impressing result. In 2015 the sales increased to 8%, as well as record $15,4 billion, $1,3 billion returns and 15% returns on invested capital, $1,1 billion in cash flow from operations. The tendency of selling products is quite positive in comparison with the previous years. The company finished 2015 with $582 million in cash and investments.
Showing good rates, the company is constantly expending and 2015 is far from being an exception. With 38 new stores opened, Whole Foods Market has managed to return $700 million to stakeholders through dividends and share repurchases.
For sure, it is quite difficult nowadays for a company to occupy a particular market niche and draw clients. The brand, slogan and business has to become appealing both for customers and investors. In the case with Whole Foods Market, the most interesting thing is its attitude to organic food and how it tries to promote healthy eating with its products. Moreover, it creates strong connection ties with its customers.
According to some latest news, the company still has to overcome some problems, as overpricing and inappropriate conditions of some stores, as Paul la Monica from CNN mentions (Monica).
References
Monica, Paul R. Whole Foods gets warning letter from FDA. CNN Money, June 2016
http://money.cnn.com/2016/06/14/investing/whole-foods-fda-warning/. Assessed 06 December …
