Whole Foods Case

Whole Foods Management Case Study Assignment

1) Whole Foods is an unusual corporation through and through. From their highly decentralized organizational structure, to the way they practice social responsibility, and even the way they treat employees they have to lay off, Whole Foods demonstrates care for the environment and its people. With the introduction of the new 365 store chain, Whole Foods hopes to continue on with their values and philosophies. However, launching a new type of store with a different target market, price range, and even design poses some challenges of its own. In this way, the 365 stores can be considered a “cooler, young brother” to the main Whole Foods chains; fundamentally similar, but different in nature.

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- Less overhead involved compared to a traditional Whole Foods location.

- More accessible pricing; helps to shed the Whole Foods “whole paycheck” perception.

WEAKNESSES:

- Technically a completely new brand; still yet to be seen if it will catch on with the younger crowd.

- Launching a new brand at a time where the company’s stock price is down and having to let go of employees.

OPPORTUNITIES:

- Can position itself as the go-to destination for affordable, yet healthy and organic, foods. A low cost version of traditional Whole Foods stores.

- Can be used as an introductory point to the Whole Foods brand. Younger shoppers will begin shopping at 365 stores, become accustomed to the selection and quality of product they are afforded, and will most likely transition into traditional Whole Foods customers as they move up in their careers and can afford to spend more money at the grocery

Now, we understand that laying off such a large amount of its workforce takes a toll on any business, no matter how small or large, and that Whole Foods is no exception. Financially, these firings are somewhat of a double-edged sword. On one hand, Whole Foods has drastically reduced its overhead by letting go of excess employees. It no longer has to pay salaries or benefits for a large amount of people, saving the company millions of dollars per year. On the other hand, the company now has greatly reduced its ability to generate revenue since their workforce has taken a loss. Whole Foods most likely calculated the most profitable, most efficient amount of employees to let go where they save as much money as possible on salaries and benefits, without losing too much