Whole foods market inc.

06/07/20152
National Textile
University
Ali Zaib 11-NTU-1011

Group Members
06/07/20153
Awais Ahmad 11-NTU-1018
Hamid Raza 11-NTU-1031
Furqaan Ahmad 11-NTU-1027
Asfand Noor 11-NTU-1016

06/07/20155
Introduction
Case No.7
Whole Foods Market Inc.
National Textile
University
World’s leading supermarket
 United States: 264
 Canada: 06
 United Kingdom: 05
Google, John Mackey & Website

06/07/20157
Introduction
Case No.7
National Textile
University
 CEO: John Mackey
 QS Coordinator: Joe Dickson
 Rapid expansion driving revenue growth.
 Socially responsible retailer Award for the whole
planet foundation.

06/07/20158
History
Case No.7
National Textile
University
 SaferWay store in 1978.
 SaferWay + Clarksville = Whole Foods Market 1980.
 Expansion in 1984 (Houston, Dallas, New Orleans &
California).
 In 2004 United Kingdom.
 In 2007 acquisition of Wild Oats Market Inc.

 Fortune magazine’s annual list.
 John Mackey Overall National Ernst &
Entrepreneur.
 Environmental issues & Community involvement.
06/07/20159
History
Case No.7
National Textile
University

 Started in boulder, Colorado in 1987.
 Acquisition due to competition.
 Opposition by FTC.
 $565 Millions for 110 stores and another $19 millions for
settlement of issues.
06/07/201510
Wild Oats Market Inc.
Case No.7
National Textile
University

06/07/201511
National Textile
University
Asfand Noor 11-NTU-1016

Coffee, tea
Fresh fruits & vegetables,
Frozen fruits & vegetables
Nuts, seeds, trail mixer, seed butters
Rice, grain, dry bean and spices
Natural cosmetics
Approximately 20,000 different food & non-food product types
at each store location. 06/07/201512
The Organic Food Industry
Case No.7
National Textile
University

06/07/201513
Competitors
Case No.7
National Textile
University

Our deepest purpose as an organization is helping support the health,
well being and healing of both people, customers, team members and
business organizations in general and the planet.
06/07/201514
Vision
Case No.7
National Textile
University

To promote the vitality and well-being of all
individuals by supplying the highest quality, most
wholesome foods available.
06/07/201515
Mission
Case No.7
National Textile
University

We bring health to the whole planet through well being of whole
people by providing them wholesome of best foods.
06/07/201516
Proposed Vision
Case No.7
National Textile
University

To serve customers with superior quality food, customer
focused service and continuous innovation while generating
long term profitable growth for shareholders and contribute
for the welfare of society.
06/07/201517
Proposed Mission
Case No.7
National Textile
University

SWOT Analysis
STRENGTHS
 Brand Recognition
 Good Quality
 Huge selection/variety
 Positive Employee Environment
 Large, customized stores
 No. 16 on Fortune’s World’s Most
Admired Companies list
WEAKNESSES
 Concentrated just on US market
 Relative Slow Growth
 Limited number of suppliers
 Advertising Budget is very low
OPPORTUNITIES
 Expansion
 Consumer Health Benefits through
media
 Emphasis on organic farming
THREATS
 Supermarkets introducing organic
products
 Increasing inflation
 Low spend per trip due to higher prices

06/07/201519
National Textile
University
Awais Ahmad 11-NTU-1018

06/07/201520
Whole Foods Market
Case No.7
National Textile
University

External Factor Evaluation
Matrix (EFE)
06/07/201521
Whole Foods Market
Case No.7
National Textile
University

EFE Matrix
Key External factors Weight Rating Weighted
Score
Opportunity
•Expansion
•Consumer Health Benefits through media
•Emphasis on organic farming
0.25
0.20
0.15
4
2
3
1.0
0.40
0.45
Threat
•Supermarkets introducing organic products
•Increasing inflation
•Low spend per trip due to higher prices
0.15
0.15
0.10
4
3
2
0.60
0.45
0.20
Total 1.00 3.10

Internal Factor Evaluation
Matrix (IFE)
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Whole Foods Market
Case No.7
National Textile
University

IFE Matrix
Key Internal factors Weight Rating Weighted
Score
Strengths
•Brand Recognition
•Good Quality
•Huge selection/variety
•Positive Employee Environment
•Large, customized stores
•No. 16 on Fortune’s World’s Most Admired
Companies list
0.12
0.15
0.10
0.08
0.10
0.05
4
4
4
3
4
3
0.48
0.60
0.40
0.24
0.40
0.15
Weaknesses
•Concentrated just on US market
•Relative Slow Growth
•Limited number of suppliers
•Advertising Budget is very low
0.15
0.05
0.10
0.10
1
2
1
2
0.15
0.10
0.10
0.20
Total 1.00 2.82

Competitive Profile Matrix
(CPM)
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Whole Foods Market
Case No.7
National Textile
University

CPM
Critical success factor weight Whole Foods Market Trader Joe's
Rating Score Rating Score
Brand Recognition 0.20 4 0.80 4 0.80
Product Quality 0.13 4 0.52 3 0.39
Management 0.10 3 0.30 3 0.30
Price Competitiveness 0.15 2 0.30 3 0.45
Financial Position 0.15 3 0.45 3 0.45
Customer Loyalty 0.15 2 0.30 4 0.60
Global Expansion 0.12 2 0.24 3 0.36
Total 1.0 2.91 3.35

06/07/201527
National Textile
University
Hamid Raza 11-NTU-1031

06/07/201528
Whole Foods Market
Case No.7
National Textile
University
SWOT Matrix
SPACE Matrix
IE Matrix
Grand Strategy Matrix
Stage 2:
The Matching
Stage

SWOT Matrix
06/07/201529
Whole Foods Market
Case No.7
National Textile
University

SWOT Matrix
SWOT
MATRIX
Strengths - S
1. Brand Recognition
2. Good Quality
3. Huge selection/variety
4. Positive Employee Environment
5. Large customized stores
6. No. 16 on Fortune’s World’s Most
Admired Companies list
Weakness – W
1. Concentrated in US
2. Relative Slow Growth
3. Limited number of suppliers
4. Advertising Budget is very
low
Opportunities – O
1. Expansion
2. Emphasis on organic
farming
3. Consumer Health Benefits
through media
SO – strategies
(S1,O1)
(S2.O3)
WO – strategies
(W2,O1)
(W3,O2)
Threats – T
1. Supermarkets introducing
organic products
2. Increasing inflation
3. Low spend per trip due to
higher prices
ST – strategies
(S1,S5,T1)
WT – strategies
(W1,T1)
(W3,T3)

SPACE Matrix
06/07/201531
Whole Foods Market
Case No.7
National Textile
University

SPACE Matrix
Internal Strategic Position External Strategic position
Financial Strengths (FS) Environmental Stability (ES)
Return on Investment
leverage
Liquidity
Earning per share
Total
Average
+3
+2
+2
+3
+10
+2.5
Price range of Competing products
Competitive pressure
Price elasticity of demand
Total
Average
-3
-4
-3
-10
-3.3
Competitive Advantage (CA) Industry Strength (IS)
Market Share
Product Quality
Customer Loyalty
Control over suppliers
Total
Average
-2
-6
-2
-2
-12
-3
Growth Potential
Profit Potential
Financial Stability
Productivity, capacity utilization
Total
Average
+3
+3
+3
+4
+13
+3.25

SPACE Matrix
-6 -5 -4 -3 -2 -1
+1 +2 +3 +4 +5 +6
+6
+5
+4
+3
+2
+1
-1
-2
-3
-4
-5
-6
AggressiveConservative
CompetitiveDefensive
ISCA
X-axis =CA + IS
= -3+(3.25)
= 0.25
Y-axis = FS + ES
= 2.5+(-3.3)
=-0.8
FS
ES

06/07/201534
National Textile
University
Furqaan Ahmed 11-NTU-
1027

Internal-External
Matrix
06/07/201535
Whole Foods Market
Case No.7
National Textile
University

Internal-External Matrix
i ii iii
iv v vi
vii viii ix
Strong 3.0 – 4.0 Average 2.0 – 2.99 Weak 1.0 – 1.99
2.03.04.0
IFE Total Weighted Score 3.05
1.0
2.0
3.0
Low
1.0 – 1.99
Medium
2.0 – 2.99
High
3.0 – 4.0
EFETOTALWEIGHTEDSCORE2.75

GRAND STRATEGY
Matrix
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Whole Foods Market
Case No.7
National Textile
University

GRAND STRATEGY Matrix
Quadrant IV
1. Concentric diversification
2. Horizontal diversification
3. Conglomerate diversification
4. Joint ventures
Quadrant III
1. Retrenchment
3. Horizontal diversification
4. Conglomerate diversification
5. Liquidation
Quadrant I
1. Market development
2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
Quadrant II
1. Market development
2. Market penetration
3. Product development
4. Horizontal integration
5. Divestiture
6. Liquidation
RAPID MARKET GROWTH
SLOW MARKET GROWTH
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION

GRAND STRATEGY Matrix
Weak
Competitive
Position
Quadrant II Quadrant I
Quadrant IVQuadrant III
Strong
Competitive
Position
Rapid Market Growth
Slow Market Growth

06/07/201540
National Textile
University
Ali Zaib 11-NTU-1011

06/07/201541
Whole Foods Market
Case No.7
National Textile
University
Quantitative Strategic
Planning Matrix
(QSPM)
Stage 3:
The Decision
Stage

Quantitative Strategic Planning
Matrix (QSPM)
06/07/201542
Whole Foods Market
Case No.7
National Textile
University

QSPM
Key Internal Factors Market
Penetration
Market
Development
Strengths Weight AS TAS AS TAS
Strong marketing .12 4 .48 3 .36
Product Quality .15 4 .60 2 .30
Brand Recognition .10 2 .20 3 .30
Trademark Licensing .08 - -
Supplier relationship .10 4 .40 3 .30
Designer Store Service .05 2 .10 2 .10
Weaknesses
Concentrated just on US market .15 2 .30 4 .60
Slow Growth .10 1 .10 3 .30
Limited number of suppliers .15 2 .30 3 .45
- -
Total 1.00 2.48 2.75

QSPM
Key External Factors Market
Penetration
Market
Development
Opportunities weight AS TAS AS TAS
The international market is now larger
than the U. S.
.25 1 .25 4 1.0
Women and younger riders are
increasing becoming interested in bikes.
.20 3 .60 3 .60
Industry registrations of heavyweight
motorcycles are increasing.
.15 2 .30 3 .45
Threats
Loss in domestic market share in recent
years
.15 3 .45 3 .45
Competitors of Harley Davidson .15 1 .15 2 .30
Higher production Costs .10 2 .20 2 .20
Total 1.00 1.95 3.0
Grand Total 4.43 5.75

On the basis of QSPM, we make the decision to adopt the
Market Development
Recommendations

 Expand into Foreign Markets like Asia,Europe.
 Concentric Diversification with Other recreational vehicles and
Expand HOG and BRAG owner member groups
 Product Development byExpanding Motorcycle line for
younger market.
06/07/201546
Recommendations

????? 06/07/201547
Any Question
Case No.7
National Textile
University

Whole foods market inc.

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