Whole Food Analysis
In order to perform better in the global market, companies must be able to strategically manage all the challenges brought by internal and external business environment. One of the successful retail companies is Whole Foods; hence, it is important to determine the changes that affect the operation of the company. Moreover, porter’s five forces model will also be conducted and the analysis of stakeholders of the company will be discussed.Environmental ChangesWholefoods Market is known to be one of the largest retailers of organic and natural foods with their stores in United Kingdom and North America. The company aims on providing quality and unique organic and natural foods across UK and North America and strongly committed in sustainable agriculture. The rapid growth as well as the success of the company is because of the ability of the company to be highly selective about what they offer the market and their core values and standards (Meador et al, 1).
There are some environmental changes that affect the operation of the company. One of most obvious general environmental changes that affect the operation of the company is climate change. The company still lacks the ability to have efficient strategy that will help them in times of climate changes. The company tends to buy wind-based renewable energy certificate in order to provide power to all their stores, however, the issue is that the company has not been able to measure the entire greenhouse gas emissions pr set goals to decrease those emissions. In addition, the company has also considered relatively little approach to enhance energy efficiency or promote products that has lower carbon footprints. Such action of the company can also affect their overall integrity and reputation in the business, since people who are concerned with the environment may disagree with the methods used by the company (Lubber, 1).
Porter’s five Forces ModelThrough the use of Porter’s Five Forces model, the analysis of the industry sector of Whole Foods industry will be considered.· Buyer Power (Low)Whole foods, does not really face the threat of buyers which shifts their loyalty to other retail stores because of their natural and organic products and its high quality. Although there are many rival companies, the consumers still remain loyal for Whole foods.· Supplier Power (High)Whole foods may face threats from suppliers with the power to be in control of the raw material prices for their operations. Since there are few suppliers for the organic market, it shows that suppliers can basically have the power to pick the price.· Barriers to Entry: ( Very High)The changing consumer behaviour as well as the awareness of the people for healthier practices and lifestyles, the threats of entry for natural and organic food is very high.
This is because new company and products will have the power to outgrow existing industries which do not adhere to these needs of the consumers. Although Whole foods, has a strong brand, there is a potentialities that new existing companies will make it to the retail market.· Rivalry (HIGH)The environment in the retail industry can be considered as high. There are different aspects which keep the food, natural and organic industry to become the highly competitive industries in the global market. One of these is in line with the competition in price. Such industries do not compete on price, however, retail industries do compete with strong brands that makes the competition tougher, particularly with regards to loyal customers.
· Threat of Substitutes (VERY LOW)In line with the substitute products, the natural and organic face very low substitutes because there are no other bigger competitors that offer this kind of products to the market. However, this force is very significant and depends on the performance as well as the price of the Whole foods market.Stakeholder AnalysisTo be able to understand better how Whole foods operate, it is important to determine their stakeholders. The main goal of this analysis is to identify who among the stakeholders will have high and interest on the Whole foods, which will have the authority to influence the company’s performance,. Further, this stakeholder analysis also aims on identifying who are the subjects, players, bystanders and actors involved within the company. The stakeholder analysis use the stakeholder’s grid.
Figure 1Stakeholder AnalysisHIGHINTERESTCEO of the CompanySuppliers,Shareholders,EmployeesStockholders,Consumerscommunity or local government and federal governmentmedia,Educational organisationRival IndustriesConsumers who do not buy natural and organic foodsFood and Drugs Department,Health departmentLOWPOWER/INFLUENCEHIGHWhole foods have different stakeholders, which include their leaders, suppliers, shareholders, employees and others. In the first quadrant, it shows that these stakeholders have the one with high interest in the company and they also plays vital role in affecting the performance of Whole foods. The 2nd and 4th quadrant shows those organizations which have little to high interest, because these are government and community stakeholders which regulate laws and policies to be followed by the company. It shows that stakeholders of the company plays vital role in the overall performance of Whole Foods.ReferenceLubber, Mindy. Leading Green: Whole Foods Needs a Holistic Approach on Climate ChangeOnline available http://blogs.
harvardbusiness.org/leadinggreen/2008/12/whole-foods-needs-a-holistic-a.html, 2008. Retrieve February 17, 2009.Meador, D.
Britton, M, Phillips, P and Howery, A. Case Analysis – Whole Foods Market. Online available http://pnphillip.asp.radford.
edu/Whole%20Foods%20Case.pdf. Retrieve February 17, 2009.