Wednesday, January 29, 2020
Whole Foods Market 2007 Essay Example for Free
Whole Foods Market 2007 Essay Introduction John Mackey, current president and cofounder of founder of Whole Foods, opened Ã¢â¬Å"Safer WayÃ¢â¬ natural grocery store in 1978. The store had limited success as it was a small location allowing only for a limited selection, focusing entirely on vegetarian foods. John joined forces with Craig Weller and Mark Skiles, founders Ã¢â¬Å"Clarksville Natural GroceryÃ¢â¬ (founded in 1979), to create Whole Foods Market. This joint venture took place in Austin, Texas in 1980 resulting in a new company, a single natural food market with a staff of nineteen. Whole Foods Market was an early entrant into the organic food market and they have used their early mover advantage to solidify their position and continue their study growth. Synopsis of the Situation In 2005 Whole Foods Market acquired the Wild Oats Food chain. Wild Oats operates 100 full service stores in 24 states and Canada. With the changing economy and a more competitive industry landscape, John Mackey is uncertain about how to meet the companyÃ¢â¬â¢s aggressive growth targets. Whole Foods MarketÃ¢â¬â¢s objective is to reach $12 billion in revenue with 300+ stores in 2010 without sacrificing quality and their current reputation. Key Issues With increased demands from mainstream super markets also carrying organics, the demands for such products could outreach the limited supply. Changes in the Availability of Quality Natural and Organic Products could impact our Business. There is no assurance that quality natural and organic products will be available to meet our future needs. If conventional Whole Foods Market 20073 supermarkets increase their natural and organic product offerings or if new laws require the reformulation of certain products to meet tougher standards, the supply of products may be constrained. Any significant disruption in the supply of quality natural and organic products could have a material impact on our overall sales and cost of goods.