MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
Organizational Background - Summary
of company’s history, vision, mission,
growth, development, and core
competencies
ORGANIZATIONAL BACKGROUND  Whole Foods Market, Inc. was founded by CEO John Mackey in 1978 (12)
 Started out with one small store in Austin, Texas with only 19 employees (12)
 Now is the world's leader in natural and organic foods (12)
 Has more than 360 stores in North America and the United Kingdom (12)
 Began expansion outside of Austin in 1984 to Houston and Dallas (12)
 Then spread to New Orleans in 1988 and the West Coast in 1989 (12)
 Continued to grow by acquiring other natural food chains throughout the 1990's
(12)
 Expanded into Canada in 2002 and the United Kingdom in 2004 (12)
Core Values
 To sell the highest quality natural and organic products available at a high value
for customers(11)
 To satisfy, delight, and nourish customers. WFM aims to meet or exceed the
expectations of customers on every shopping trip. (11)
 To support Team Member excellence and happiness(11)
 To create wealth through profits and growth(11)
 To serve and support local and global communities(11)
 To practice and advance environmental stewardship(11)
 To create ongoing win-win partnerships with suppliers(11)
 To promote the health of stakeholders through healthy eating education(11)
 Company motto is "Whole Foods, Whole People, Whole Planet" and emphasizes
that the company vision reaches far beyond simply being a food retailer(11)
PLANNING –
Analysis of Management Functions:
Planning. Based on what you have learned
 WFM faces mainly unstructured problems. These issues are new, have imperfect
through your research, how would you
information, and do not have a straightforward solution. For example, WFM
characterize conditions in the planning
faces the problem of increased competition in natural and organic items from
environment? What types of problems does
large rivals such as Kroger. There is not one clear answer to how Whole Foods
the organization face (e.g., structured,
should keep their competitive edge with this increased competition and this
unstructured), and to what extent should
problem will require a unique solution.
the organizations decisions be programmed
 The organization's decisions should be programmed when it comes to common
or nonprogrammed? How would you
in-store issues, such as handling a customer's dissatisfaction with a product or .
characterize the level certainty, uncertainty,
 Nonprogrammed decisions should be used to make choices regarding bigger
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
and risk the organization faces?
Organizing. How is the organization
organized? Would you characterize it as
centralized or decentralized? Describe the
organizational structure and evaluate how
appropriate this structure is for the
organization (the strengths and drawbacks
of its structure). If you learned about the
organizational culture, describe the culture
and evaluate the extent to which the culture
enhances organizational effectiveness and
efficiency.
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company issues such as how to improve distribution systems, compete with
larger rivals, and maintain/expand the customer base in times of economic crisis.
The outcomes of all alternatives for the problems WFM faces are not completely
certain, but there is not much risk involved in these solutions either. Many of the
alternatives for the issue of increased competition from larger rivals involve
having more special sales prices and generally creating more/better bargains for
customers. Managers don't know exactly what will happen, but they have a fairly
good notion, and even if there is some unforeseen negative effect, it most likely
will not be overly detrimental to the company as a whole.
ORGANIZING –
 I would characterize WFM as centralized. The board of directors and other upper
level managers make the big decisions. I do think there is a good centralizationdecentralization balance though because lower-level management and employees
do provide input and their opinions are valued and taken into consideration.
 I think this structure is very appropriate for Whole Foods. It helps to maintain
employee satisfaction as it shows them that they are important to and valued by
the company. This structure also helps to make the company more efficient as
those who are affected the most by in-store problems (employees and lower level
management) are able to offer viable solutions. However, there is still the
necessary chain of command in place that leaves the ultimate decisions to upper
level management. This structure simply allows upper level management to
make more informed decisions. This method has been working well for WFM so
far and I think they should continue to employ it.
 I have learned a decent amount of information on the organizational culture
through my research and what I already know about WFM. There is a strong
sense of community, especially within the different departments of the stores.
Employees are encouraged to communicate and learn. There is little to no fear of
criticism, rather there are rewards and recognition for good work and
communication. There is a strong sense of caring and trust as WFM makes it
clear through their policies and core values that the success and happiness of
employees is vital to the company.
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
Leading. Based on your research, how
would you characterize the nature of
leadership of your organization? How
would you characterize its leader’s
leadership style, communication style and
interpersonal skills? How effective is this
leader?
Controlling. Describe what performance
indicators are important for this company
to track and measure. How effective is
management at using these controls to
ensure that it is achieving its goals and
objectives?
LEADING –
 I would characterize the leadership of WFM as democratic. Team Member
feedback is encouraged and is used in decision making. Authority is delegated
out to a board of directors and to Team Leaders.
 The leaders' style of leadership would be characterized as democraticconsultative. The board of directors and CEO are the ones who make final
decisions, but the input of Team Members and Team Leaders is heard first.
 The Team Leaders have excellent interpersonal skills. They effectively
communicate with and motive Team Members. They are also available and
willing to help in any way they can, making them good mentors.
Analysis of company’s internal strengths
and weaknesses
Strengths: What does it do better than
anyone else in its industry? What sets it
STRENGTHS –
 In general, employees are more knowledgeable and willing to help than those in
most grocery stores (3)
 Have an extremely extensive selection of items(3)
CONTROLLING  Important performance indicators include but are not limited to spoilage per day,
amount of electricity used per day, weekly employee hours, and store sales per
day.
 Measures of employee satisfaction, turnover, performance, and absenteeism are
also good to have.
 Management keeps very organized, well-written documentation of all sales,
employee production, employee hours, spoilage, etc. They set realistic yet
challenging standards for the company to ensure concurrent achievement of
goals and progress. Lower level management patrols the store to answer any
employee questions and ensure that employees stay on task. They also handle
any customer related issues.
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
apart from its competitors? Some examples
of strength could be a particular product,
high customer satisfaction, brand
recognition, loyalty of customers, being
innovative, financial resources, uniqueness
of product or service, skills of employees,
etc. The strengths are what will help the
company survive.
Weaknesses: Every organization has them.
As with strengths, weaknesses are internal
concerns. These are the factors that the
company is not good at or at least not as
good as most of its competitors. These are
the issues that can and often do hurt the
company in some way. Examples of
weaknesses are poor management, a lack of
proper planning, inadequate financial
resources, poor product line or services,
low customer satisfaction, high employee
turnover, etc.
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Donates at least 5% of after tax profits to non-profit organizations(3)
Promoting positive company image and creating contacts as well as relationships
with growers through Local Producer Loan Program (9)
2012 one year sales growth was about 15.74% (6)
2012 one year employee growth was about 13.24% (6)
2012 gross profit margin was about 35.5% (6)
2012 Net Income After Taxes was about 465.5 million dollars (6)
Has digested main competitor Wild Oats Markets (6)
World's #1 natural and organic foods chain (6)
Focus on customer relations (1)
Have super-motivated employees by tying bonuses to productivity (1)
Employees are referred to as "team members" and "team leaders" to promote a
feeling of equal individual importance (1)
Newly built stores are 25% larger than the average supermarket (1)
Has received a 2012 Green Power Leadership Award for sustained excellence
from the EPA (7)
Also has 3 previous Green Power Partner of the Year awards from the EPA (7)
Has 2 Green Power Purchasing awards from the EPA (7)
Has won a GreenChill award from EPA five years in a row for reducing
refrigerant emission (7)
Ranks 5th on the EPA's National Top 50 List (7)
Is the nation's leading green food retailer (7)
By 2018, will require all foods in its stores containing GMOs to carry labels
disclosing that fact (2)
WFM has its own private label brand called 365 Everyday Value
Whole Food Planet Foundation 2014 Supplier Alliance for Microcredit Partners
donate $50,000 each to fund microloans in 58 countries, U.S. included. Promotes
an ethical, morally responsible business image. (10)
Was recognized as the 2013 Outstanding Food Donor at Food Lifeline's 3rd
annual Dress Down Hunger event (8)
Has partnered with Food Lifeline since 1999 and has provided over 4.2 million
meals, shared financial and in-kind contributions, and donated volunteer time in
Food Lifeline's warehouse (8)
Is 1 of 13 companies to be included in Fortune magazine's annual list of the "100
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
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Analysis of company’s external
Best Companies to Work For" every year since the list's inception in 1996 (3)
Executive pay is capped at 19 times the average workers' annual wages (3)
CEO John Mackey is one of the most followed CEO's in the American media (3)
Mission is to promote the vitality and well-being of all individuals by supplying
the highest quality, most wholesome foods available (3)
Prepared meals represent about 20% of total sales (3)
In Harris Interactive/The Wall Street Journal ranking of the world's best and
worst corporate reputations, WFM placed 12th overall and received the best
score of any company for social responsibility (3)
Recently rated as #1 "green brand" with Generation Y (3)
Customers will come from at 20 mile radius to shop at WFM compared to 2
miles for the typical supermarket shopper (3)
92% of employees are full-time (3)
Those who work 30+ hours per week and have worked a minimum of 800
service hours qualify as full-time (3)
Provides healthcare insurance at no cost to its full-time team members(3)
In late summer of 2008, began emphasizing value, offering greater discounts and
lower priced goods(3)
WEAKNESSES –
 High Prices (3)
 Rely mostly on word-of-mouth for advertising (3)
 Many customers only shop at WFM for a few select items they can't find at the
big name stores (3)
 Some people view WFM as a store for the wealthy only
 For 8 years, CEO John Mackey used an alias to post messages on Yahoo Finance
message boards bashing his competitors and praising his company. This came to
light during the Federal Trade Commission's investigation of WFM's takeover of
Wild Oats (3)
 Almost 50% of WFM stores are in just 6 states (3)
 Distribution isn't as effective as national competitors (3)
OPPORTUNITIES -
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
environment - Opportunities and
Threats.
Opportunities. What opportunities does
the organization have to grow? Where does
it see itself in the coming years?
Opportunities can come from new products
or services, expanding its market share,
getting into new markets, diversification,
de-diversification, correcting current
weakness, etc. Opportunities are derived
from conditions in the external
environment, such as demographic trends,
consumer lifestyle patterns, political,
economic, and legal forces, etc. The
organization turns these patterns into
opportunities by planning on how it will
respond to these external conditions.
Threats. What are the potential threats that
will keep this organization from attaining
its stated opportunities? The most typical
threats are competition, the economy,
technology or consumer demand. As with
opportunities, threats are factors in the
external environment.
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Food companies have been increasing prices because of rising commodity prices
and currency affects, price gap between regular and organic food has
decreased(3)
58% of supermarket consumers say they are "very concerned" about nutrition (1)
63% of supermarket consumers say they've purchased products labeled as
"natural" (1)
70% of supermarket consumers say high-quality fruits and vegetables are "very
important" to them (1)
Health food trends in U.S are growing with formation of activist groups such as
GMO Inside (2)
There is an increasing demand for convenience food in the U.S (4)
The Modern Grocery Retailing market in the U.S. is expected to grow at a
CAGR of .76% over the period of 2012-2016 (10)
Customers in the U.S. have been increasingly adopting private label brands (10)
According to the Food Marketing Institute, about 28% of shoppers don't know
what they are having 2 hours before a meal, creating opportunity in prepared
meals (3)
The global market for organic food and beverages was worth $22.75 billion in
2007 and U.S. accounted for about 45% of that (3)
A core group of organic consumers consists of approximately 15% of overall
American population (3)
THREATS –
 Larger rivals such as Kroger and Wal-Mart, are starting to offer natural and
organic items (3)
 About 60% of natural and organic foods are sold by regular grocery stores (3)
 Organic foods industry future is uncertain (3)
 U.S. economy is in crisis (3)
 Most consumers bargain shop (1)
 Huge chains have extremely large inventories and elaborate distribution systems
that allow them to give customers low prices (1)
 General Mills Inc. has started to produce original Cheerios free of ingredients
made from GMOs (2)
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
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Some big companies are planning changes related to removing GMOs from their
products (2)
 There is added pressure on brands other than General Mills Inc. to remove
GMOs from products (2)
 Higher gas prices, mortgage failures, job losses, and stock market fears (3)
Conclusions
CONCLUSIONS  I would want to invest my money in this company. I think there is a growing
In this section you should state your
trend/interest in natural and organic foods and that there is a future for the
opinion on what you have learned from
industry. Whole Foods Market has highly respectable core values and ambitious
your research. Would you want to invest
goals. They treat their employees well, offer high quality products, and provide
your money in this company? Do you think
above average customer service. They are one of the most environmentally
it is a survivor? Would you buy its product
conscious and responsible companies in the country. The company is truly
or service? Is its competition better than it
unique from all other large chains with its high moral standards.
is? If the reader only read this section, what
 This company is a survivor. Despite being in a niche market, Whole Foods has
would you want him or her to know about
managed to grow to 360 stores strong from its humble beginning of one store.
this organization?
When Whole Foods Market opened in 1980, there were only 12 natural food
stores in the U.S. (12). A year after the opening, the original Whole Foods store
was caught in the worst flood Austin, Texas had seen in 70 years and suffered
roughly $400,000 in damage. The store had no insurance, but was able to reopen 28 days later with the help of staff, customers, and neighbors. (12).
 I would buy and have bought products of Whole Foods Market. The quality of
their products is unmatched by any of their competitors in my opinion. Their
prices are slightly higher than those of the average grocery store, but that is to be
expected of any high quality product; people are willing to pay for quality. There
are also frequent sales, so the savvy consumer can manage to get decent bargains
on products.
References – Your Annotated
ANNOTATED BIBLIOGRAPHY (PASTE HERE)
Bibliography from Week 4, with
improvements, if they were needed.
(1) Greco, J. (1997). Retailing's rule breakers. The Journal of Business Strategy,
18(2), 28-33. Retrieved from
http://search.proquest.com/docview/202719107?accountid=28644
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
This source explores the niche strategy of Whole Foods, Inc., Zany Brainy, and
Anthropologie and the rapid growth they have been experiencing as a result of
their unconventional methods. According to BusinessDictionary.com, a niche
strategy is "A marketing approach for a good or service with features that appeal
to a particular minority market subgroup." This text reveals benefits as well as
special challenges that result from this niche strategy.
This is a useful source because it discusses the strategy Whole Foods, Inc.
employs. It is a scholarly journal, so information is considered reliable and
objective. The goal of this source is to show how these three companies set
themselves apart from their competitors and to suggest how they may continue to
succeed. However, the journal may be slightly outdated as it was published in
1997.
This source is helpful to me. I believe it will be useful in analyzing the strengths
and weaknesses of Whole Foods, Inc. when I begin my SWOT Analysis. This
journal article could also provide good support in my Analysis of Management
Functions. Although it is a slightly older article, it may provide useful insight to
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
how the company has grown and expanded since 1997.
(2) GMO-free cheerios: What it all means. (2014, Jan 02). Wall Street Journal
(Online). Retrieved from
http://search.proquest.com/docview/1473678901?accountid=28644
This source is an online newspaper article from the Wall Street Journal. It
explains that many food producers which market their products as containing
"natural ingredients" have ingredients that are made from genetically modified
organisms, also known as GMOs. General Mills Inc. has began to make its
original Cheerios without these GMO ingredients, and will have a label on them
that reads "Not Made With Genetically Modified Ingredients". The newspaper
article highlights the pressure and effects this will have on many other big food
companies. The text states that by 2018 Whole Foods Market, Inc. will require
all foods with GMOs in its stores to have labels alerting consumers of the fact.
This Wall Street Journal article is a useful source. The Wall Street Journal is a
credible newspaper and the article seems unbiased. It provides good information
on the importance consumers are beginning to place on healthy, natural food as
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
well as the need for producers to be ethical. This article was published in 2014,
so it is up-to-date and relevant.
This newspaper article should be helpful in my research, especially in the areas
of opportunities and threats in my SWOT Analysis. It also shows what Whole
Foods is doing to continue to be a leader in selling quality natural foods, which
could be incorporated into the analysis of management functions.
(3) Harbin, J. L., & Humphrey, P. (2010). Whole foods market, inc. Journal of Case
Research in Business and Economics, 2, 1-19. Retrieved from
http://search.proquest.com/docview/759568080?accountid=28644
This scholarly journal discusses the ascent and development of Whole Foods
Market, Inc. The text describes the struggles that founder and CEO John Mackey
faced when beginning the company and its now impressive current standings of
his business. It also explains internal and external concerns that the company
faces, among which are the United States economic decline, the rising cost of
food, and heightened competition from major food producers.
As this source is a scholarly journal, information found within is trustworthy. It
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
was published in 2010 so it is still fairly pertinent. It appears to be unprejudiced
and very illuminating.
This source will be extremely helpful to me when performing my SWOT
Analysis as it discusses all four components of the study. The journal article
could also be helpful in describing the organizational background of Whole
Foods Market.
(4) Modern grocery retailing market in the US 2012-2016. (2013, Sep 19). M2
Presswire. Retrieved from
http://search.proquest.com/docview/1433498529?accountid=28644
This source aims to predict the growth in the Modern Grocery Retailing Market
in the U.S. as well as to identify what main elements add to this growth. The text
also identifies leading vendors in the market while providing a detailed market
analysis. The increasing demand for convenience food is also addressed as well
as many other factors that may affect the market.
The article is considerably recent, it was published in September 2013. There is a
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
large amount of material that comes from a credible research institution. Grocery
retailers are the intended audience of this text. It is very informative, and there
seems to be no emotional language used, leading me to believe the article is
fairly unbiased.
There are many opportunities and threats listed in the article. This will be
advantageous to have when I perform a SWOT Analysis of Whole Foods
Market, Inc.
(5) Research and markets adds report: 2012 U.S. supermarkets & grocery stores
industry-industry & market report. (2012). Professional Services Close - Up,
Retrieved from
http://search.proquest.com/docview/917101912?accountid=28644
This source is a trade journal report. It provides forecasts, demographics, and
statistics of the Supermarket/Grocery Store Industry as reported by Barnes
Reports. This report estimates things such as the size of the industry nationally,
financial ratios, and number of firms. It also includes historical trends and other
various numerical information related to the industry.
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
This report is from 2012, so the 2013 forecasts can no longer be considered such.
However, they do provide valuable insight to the accuracy of predictions made
in 2012 as well as past trends. There is a good amount of quantitative data
supplied by a credible institution, and the article is informational and objective.
This report will come in handy mostly for the external factors of my SWOT
Analysis. Some of this data may also be useful in evaluating the planning portion
of management functions. I could look over what Whole Foods did during 2012
as far as developing a strategy to adapt to the predicted industry statistics.
(6) Whole foods market, inc. (2014). (). Austin: Dun and Bradstreet, Inc. Retrieved
from http://search.proquest.com/docview/230662890?accountid=28644
This source is a report. This report provides information on Whole Foods
Market products and operations, financials, and rankings in standard industry
listings. It also lists important people to the company, subsidiaries and affiliates,
competitors, a history of the company, and various other company facts.
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
With a publication date of January 15, 2014, this is the most recently published
of all my sources. There is lots of qualitative and quantitative data. The
information is all reliable and seems to be unbiased.
I believe this will be my most valuable source. There is data here that can assist
me in all areas of my final project. This report has slightly changed how I plan to
analyze the company as it enlightened on the subject of Whole Foods Market's
multinational status. I did not realize WFM operated stores outside of the U.S.
and Canada.
(7) Whole foods market; EPA doubles up green awards for whole foods market(R).
(2012). Energy Weekly News, , 148. Retrieved from
http://search.proquest.com/docview/1081932701?accountid=28644
This source is a trade journal. It discusses the various awards that Whole Foods
has received from the Environmental Protection Agency (EPA) for its
renewable energy purchases and emission reduction efforts. It also reveals the
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
rankings that WFM holds on various EPA environmentally responsible lists.
This trade journal article is somewhat helpful. It is reliable and has very good
sources of its own. The article is fairly short, but the data is from 2012 so it is not
irrelevant. There are no opinions, the article is purely informative, so there are no
concerns about biasing.
The journal could be moderately helpful to me. It might aid in the description of
the organizational background. It could also be considered in my analysis of
management functions as well as strengths and opportunities.
(8) Whole foods market; food lifeline recognizes whole foods market(R) as 2013
outstanding food donor. (2013). Food Weekly News, , 65. Retrieved from
http://search.proquest.com/docview/1468901788?accountid=28644
This particular source is a trade journal. The journal overviews Food Lifeline's
third annual Dress Down Hunger event and the recognition Whole Foods Market
received at this event. Whole Foods Market, Inc. was named 2013 Outstanding
Food Donor at this occasion and was applauded for its donations and programs
aimed at ending hunger. This article also examines the partnership between
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
WFM and Food Lifeline.
This trade journal was published December 26, 2013 so it is very recent. The
information is trustworthy. The article is a little short, but has a good amount of
qualitative data. There is no language that indicates a bias.
This source will be helpful in performing my SWOT Analysis of WFM. The
information in this article showcases what the company is doing to maintain its
positive image and to give back to the community. Data from this trade journal
will more than likely be listed with strengths of the business.
(9) Whole foods market pledges $25 million in funding for loans. (2014). Wireless
News, Retrieved from
http://search.proquest.com/docview/1476527052?accountid=28644
This is a trade journal. This source summarizes the goals and purpose of the
Local Producer Loan Program (LPLP). The LPLP is a program run by Whole
Foods Market, Inc. that provides low-interest loans to local and independent
food businesses. The article explains that loans are not exclusively given to
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
recipients who sell products in WFM stores, they are also presented to
businesses that support the natural foods industry.
This is a the second most recent source I have, with a publishing date of January
12, 2014. There is a nice portion of quantitative and qualitative data in the article
even though it is not very long. The publisher is credible, indicating the
information can be trusted.
This is an wonderful source. It describes a program that Whole Foods is funding
to expand the unique natural foods industry they are a major leader of and are
aiding in supporting small business growth. This will factor into the strength
section of the Whole Foods Market SWOT Analysis as well as the analysis of
the management functions.
(10) 16 natural and organic brands invest $800,000 in a future without poverty in
U.S. and in developing countries. (2014, Jan 07). Business Wire. Retrieved
from http://search.proquest.com/docview/1474797391?accountid=28644
This source is a wire feed. It discusses a foundation called Whole Planet
Foundation (WPF) that was established by Whole Foods Market. WPF has made
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis
a supplier alliance with 16 companies and provides small grants and loans to
people living in impoverished areas. Each company gives $50,00 every year to
help WPF poverty programs in the U.S., Africa, Latin America, and Asia.
This source is short, but offers good insight to programs owned by WFM and
their goals. The information comes from a reliable news distributor and was
published in 2014, so it is relevant. The wire feed seems objective as it has no
language that would indicate otherwise.
This source will probably not be too helpful. It shows what Whole Foods is
doing to be globally morally responsible which strengthens their image, but I
already have other sources that do the same. This will most likely just be added
support to the strengths of Whole Foods in relation to its positive image.
(11) Our core values . (2014). Retrieved from
http://www.wholefoodsmarket.com/mission-values/core-values
(12) Whole foods market history. (2014). Retrieved from
http://www.wholefoodsmarket.com/company-info/whole-foods-markethistory
MGT 302 Final Research Project Worksheet
Student Name : Audrie Bielskis