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Grocery's Acquisition Of Whole Foods

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Introduction
The expansive drive of Amazon.com may not be slowing down in the next few years. It has been disrupting industries in the past: bookstores; electronics; and then retail. It cut down the market share of bookstore dominant Barnes & Noble; then, drove Borders, another dominant book retailer, to file bankruptcy in 2011 (La Vito, 2017). It drove electronic retailing giant RadioShack into bankruptcy in 2015 and No. 2 retailer Circuit City Stores to the same fate three years earlier. It also drove Sears and Macy’s to cut down their workforce to survive. Recently, it is bidding to disrupt again the brick and mortar grocery industry with its acquisition of Whole Foods for an offered price of $13.7 billion (Adamson, 2017). And, players in …show more content…

North America, International, and Amazon Web Services [AWS]).
Strategic Implementation With its recent acquisition of grocery provider Whole Foods (Adamson, 2017), expansion to target market number 1 (TMN1) must be pursued in its International segment through, first, reviewing continents for potential acquisitions with Whole Foods’ comparable markets; second, conducting a thorough business, financial, and organizational review of the top three potentials in each country; third, approach to offer a reasonable price for full ownership preferably (or majority ownership, otherwise); and, fourth, close the transaction and complete the legal workup. With regards to target market number 2 (TMN2), the same four-step process will be adequate with expected fewer efforts expended in the first and second steps due to its existing business relationships with the candidate service providers in its supply chain.
Governance and Ethics
Company Social …show more content…

Legal Limitations Amazon.com committed itself strongly to a lawful and ethical business behavior in relation to its suppliers, customers, and employees (Amazon, 2017c). Its policy against conflict minerals is being pursued in accordance to the Securities and Exchange Commission (SEC) rules and the OECD (Organization for Economic Co-operation and Development) policies on the issue (Amazon, 2017b). It is also serious in complying with copyright laws in countries where it operates despite multiple legal challenges it is currently facing in courts (Amazon, 2017a).
Evaluation and Control
Strategic Metrics Amazon.com had been using and may continue to use at least two strategic metrics to determine the strategic value of the acquisition: (a) Price-to-economic book value (PEBV): For the TMN-1 and TMN-2 candidates, the company must be at least 1.0 in PEBV (Trainer, 2017); and (b) High value customer markets (HVCM): For the TMN-1, the candidate grocery business must be a high end business serving high value customers of at least $100,000 in annual income, living within three miles of their stores (Trainer,

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