Zahi Y. Abi Chaker
BUS599 Module 1 CA
Dr. Gary Hascall
November 29, 2015
Whole Foods Strategic Audit Since 2014 Whole Foods has registered growth in a strong market. Its earnings per share are likely to continue to grow (Zack’s, 2015). However, Whole Foods may not be able to meet its goals if its competitors grow and prosper. Whole Foods was set up to be a leader in the organic and quality food business. The company is mission-driven and intends to be a standard-setter for the industry. The company states that it holds high standards and that the standards “permeate all aspects” of the company (Whole Foods, 2015). The company’s catchphrase is that quality is a state of mind.
Mission & Objectives, Strategies, and Policies
Mission, Objectives & Values To "help support …show more content…
SWOT Summary.
Competitors Yahoo Finance (Yahoo, 2015) lists Kroger (KR), Sprouts Farmers Market (SFM) and Trader Joe’s (Pvt1) as direct competitors of Whole Foods. There has been speculation that Whole Foods will buy Sprouts, but the company has said that they will not. Krogers is the food giant; it vastly outperforms Whole Foods, but it is not really in the same niche despite the stock market classification. Krogers is likely to continue to grow, and may buy A&P. Sprouts is roughly 1/3 the size of Whole foods, but has far less than one third of the revenue. Net Income is roughly 16% of Whole Food’s. Price to earnings ratio is higher.
Recommended Changes The first recommendation is that Whole Foods lower prices. Even though it would lower revenue per product, lowering price is likely to increase volume. They need to increase their online presence and increase Amazon sales. At the same time they should do strategic partnerships with Walmart, Kroger’s, and Giant. As Whole Foods continues to grow their chain they should also grow their brand in other corporations’’ stores. They also need to develop a classic line of hydroponic goods for gourmet