Literary Review of Whole Foods Grocers
The Whole Foods grocer is considering the implementation of centralized distribution structure to cut prices without sacrificing the selling of local products. These efforts come from investors who encourage Whole Foods to run like a big-box grocer. As a result of declining sales and pressure from Jana Partners, LLC who has invested about 8.8% into Whole Foods. They want to drive a strategy to implement operational changes. Competitors have seen a 10% increase in natural and organic foods, which has sparked a price war with big-box grocery chains. At the same time, smaller suppliers are concerned that Whole Foods will compromise their ability to stock the latest food trends and local brands. Even though …show more content…
Operational effectiveness will need to meet the needs of the chain, customer, or e-commerce customer. Independent retail businesses are personal because they negotiate with sales representatives either in person, or during store visits. Due to a personal relationship the buyer can be more flexible, and open to new products. While, big box retailers are a part of a corporation, and are less supportive in promoting a product. Therefore, on a business level Whole Foods is currently offering a superior experience to their targeted market. Their specialty products and store staff is familiar to their customer and offers a high level of service and knowledge, whereas, big-box retailers can only offer the customer lower prices which are not always bargains. Furthermore, local businesses provide a greater economic return as a result of recirculation of the local economy by investing in locally owned supply chains and employees. Local businesses also encourage the community’s level of social capital and civil participation. The reputation of Whole Foods is on the line with a dilemma of how to incorporate big-box national brands into their customer friendly environment. Their development strategy will have to compete with their competitors, and their business obligations will need to meet with their operational effectiveness. John Mackey mission is to integrate traditional supermarket practices with big-box retailers, and success will be measured by his
The Whole Foods grocer is considering the implementation of centralized distribution structure to cut prices without sacrificing the selling of local products. These efforts come from investors who encourage Whole Foods to run like a big-box grocer. As a result of declining sales and pressure from Jana Partners, LLC who has invested about 8.8% into Whole Foods. They want to drive a strategy to implement operational changes. Competitors have seen a 10% increase in natural and organic foods, which has sparked a price war with big-box grocery chains. At the same time, smaller suppliers are concerned that Whole Foods will compromise their ability to stock the latest food trends and local brands. Even though …show more content…
Operational effectiveness will need to meet the needs of the chain, customer, or e-commerce customer. Independent retail businesses are personal because they negotiate with sales representatives either in person, or during store visits. Due to a personal relationship the buyer can be more flexible, and open to new products. While, big box retailers are a part of a corporation, and are less supportive in promoting a product. Therefore, on a business level Whole Foods is currently offering a superior experience to their targeted market. Their specialty products and store staff is familiar to their customer and offers a high level of service and knowledge, whereas, big-box retailers can only offer the customer lower prices which are not always bargains. Furthermore, local businesses provide a greater economic return as a result of recirculation of the local economy by investing in locally owned supply chains and employees. Local businesses also encourage the community’s level of social capital and civil participation. The reputation of Whole Foods is on the line with a dilemma of how to incorporate big-box national brands into their customer friendly environment. Their development strategy will have to compete with their competitors, and their business obligations will need to meet with their operational effectiveness. John Mackey mission is to integrate traditional supermarket practices with big-box retailers, and success will be measured by his