Whole Foods Swot Analysis Paper

SWOT ANALYSIS

Strength:

• Healthy and Organic Food

The demand for organic food is thriving. Today’s societies are more concerned about the quality of food they are consuming. The factors that influence ones want for organic food includes health, weight control, and fitness (Lockie, Lyons, Lawrence & Mummery, 2002). Whole Foods Market has all the potential and merchandise which fulfills the needs of society and will do well in the future. The growth in the U.S. organic food market is expected to develop up to 14% by 2018 (Daniells, 2014). As a result, revenue of Whole Foods may exceed in the United States.

Weakness:

• Luxury Shopping Destination

Although Whole Foods Market is well known in the United States, unfortunately they have limited international operations (Annual Stakeholders Report, 2013, p. 7). Having quality products is important; however Whole Foods is viewed as a luxury shopping destination. Lower and middle class people cannot afford to shop there on a regular basis. They have no promotional offers or coupons which are offered regularly by other less

expensive supermarkets. The market also lacks loyal customers, similar to BJs and Costco, which charge a membership fee and have an initial customer base. The organic food market is still very underdeveloped and limited in the United States; there are some concerns that in the near future, it will not be able to meet the demand of the national food system.
Opportunity:
• Expand International Market
Whole Foods Market is a grocery chain store that specializes in providing high quality natural and organic foods.

Whole Foods is one of the top organic grocers in the world, but they have less than 20 store chains in foreign territory. Whole Foods only international locations are in Canada and the United Kingdom. Although Whole Foods is limited in the international market, one of the company priorities is unit development. With 38 new stores set to open this year, Whole Foods expect to add its 500 store in 2017, with a long term goal of 1,200 stores in the United States (Watrous, 2014). Whole Foods has the opportunity to expand their market in Europe, Asia, or Africa since people are more conscious about their health and well-being. Opening a few stores in the aforementioned markets will provide consumers the opportunity to lead healthier lives if high quality natural and organic foods are

available.
Threat:
• Competition
Whole Foods Market Inc. is a successful organic food supermarket. Therefore, they are a big target to competitors. The biggest threat, according to Lutz (2015) is that “Whole Foods is seen as being too expensive” (Para.5). The competition such as Trader Joe’s and Kroger sell the same products as Whole Foods Market for cheaper prices (2015, Para.8). In my opinion, I believe this could be a threat because people always prefer cheaper prices. Competitors have the advantage to reel consumers in, if they are aware of the same products being sold for discount prices elsewhere. This can cause customers to abandon the more expensive stores which can lead to a decline in revenue.
Terms and Concept Analysis
Chapter 2:
• Conscientiousness
Conscientiousness is the significant factor or personality trait for finding and maintaining employment. Conscientious people tend to be organized and accountable. They tend to face challenges and can control their instincts better (Baer, 2014). The National Institute on Aging also found that conscientiousness is linked to income and job satisfaction (Pers, 2009).
In my opinion, this personality will be successful for “Whole Foods Market” because as mentioned in the first paragraph, conscientious people tend to be more reliable and organized which a quality needed in the business world. A case study conducted in 2003, examined that people who started their own business over a 30 year period who have conscientiousness personality traits were most likely to succeed in business (Ciavarella & Stokes, 2000).
Chapter 3:
• Job satisfaction
According to Schermerhorn, Osborn, Hunt and Uhl-Bien (2012, p. 62), job satisfaction describes the degree to which person feels positive or negative about the job. This is clearly displayed in Whole Foods Market, as the company was ranked number eighteen in 2010 list of “100 Best Companies to Work For” in Fortune magazine. More and more people are willing to contribute to the Whole Foods Market success which allows the company to be selective while picking candidates. Anyone who is satisfied with their job would be a success in the management endeavor; it makes the job fun and exciting, instead of dreading of waking up in the morning, you are actually motivated to get up and finish your tasks. Feeling appreciated and important in the workplace contributes to one’s self esteem. The job is not a chore or means of financial stability anymore; a satisfying job leads to personal and emotional happiness. Such happiness will not only be displayed at the workplace, but will also extend to personal life.
Chapter 5:
• Expectancy theory
The term expectancy theory is the thought of getting something as an outcome of your effort at work. This can be either positive or negative. When a person expects and receives a reward for the effort dedicated to their work, an employee response can be positive. Happy workers usually lead to success and positive outcomes. The negative factors within expectancy theory can lead to failure for a business when an employer doesn’t compensate employees for their work. If employees believe they’re in line for a promotion and don’t get the position, this can lead to poor morale at work. The consequence for organizations with unhappy employees can result in a revolving door policy where workers look for better opportunities due to instability.
Chapter 6:
• Gain Sharing
According to (Uhl-Bien, Schermerhorn, & Osborn) gain sharing rewards employees in some proportion to productivity gains (2014, P. 123). This gives workers the opportunity to earn more by receiving shares of any productivity gains that they help to create at the team or work unit level (2014, P. 123). For example, a bonus may be paid to an employee working for Foot Locker who sells a certain amount of sneakers in a calendar month contingent upon the sales revenue. If the sales revenue exceeds productivity, the employee effort will be rewarded.
In my opinion, I believe gain sharing can lead to success for a business when a company offers an employee incentive for helping the organization exceed goals. Compensating employees for going beyond their job requirements shows appreciation from an employer on how much they value their workers. Gain sharing is a motivational factor which can enhance employee productivity. When employers treat their employees well by offering different perks and benefits, workers will be motivated to work harder which can enable a business to sustain success.
In my opinion, I believe gain sharing can lead to failure for a business when a company doesn’t offer an employee incentive for helping the organization exceed goals. Some gain sharing programs produce monthly reports showing some people are likely to earn a bonus based on gains the program is producing (Barrett & Greene. 2012). According to (Barrett & Greene. 2012), within the last month or two, the reports may show the gains, but bonuses will not be allotted to employees. When an employee goes beyond their job description with the expectation of getting a reward, low morale can develop and work productivity can decrease since that benefit dissipated. The result can be detrimental to a business since there’s no incentive, where workers might leave the company for other job opportunities where employees are offered gain sharing.