Analysis of Whole Foods
Whole Foods Market, Inc. is one of the admired organizations in the modern economy through implementation of quality strategies towards the achievement of its goals and objectives. The strategy of the organization focuses on the need to enhance quality and efficiency in the provision of products and services to the consumers. This strategy of the Whole Foods Market, Inc. is under the differentiation strategy in accordance with the Porter’s three generic competitive strategies. The inputs at Whole Foods Market consisting of , internal resource factors, and historical tradition factors are highly congruent with the company’s strategy.
Whole Foods Market’s Strategy
Whole Foods Market, Inc. is one of the admired organizations in the modern economy through implementation of quality strategies towards the achievement of its goals and objectives. In the process of executing its functions and obligations, the organization faces various challenges or obstacles. Some of the recent obstacles and challenges limiting the achievement of targets of the organization include increase rate of competition, complications in relation to acquisitions, and essence of economic recession. In order to curb these obstacles, the organization focuses on the implementation of various strategies such as devotion to the community, environmental responsiveness, quality standards, motivational or highly rated workforce practices, and healthy growth model (Whole Foods Market, Inc. SWOT Analysis, 2012).
The organization builds its reputation through ethical practices, quality, and standards in the provision of the products and services to the target audiences. The organization focuses at the provision of finest and organic food products such as seafood, meat and poultry, bakery, beer, wine, prepared food and catering, cheese and produce. The strategy of the organization focuses on the need to enhance quality and efficiency in the provision of products and services to the consumers. This is vital for the achievement of competitive advantage within the context of the competitive market and industry (Whole Foods Market, Inc. SWOT Analysis, 2012).
Classification according to Porter’s three generic Competitive Strategies
This strategy of the Whole Foods Market, Inc. is under the differentiation strategy in accordance with the Porter’s three generic competitive strategies (Ormanidhi & Stringa, 2008). Differentiation strategy focuses on the development of the products and services with unique elements or attributes thus reflection of value and quality to the consumers. In order to manage extensive competition in this industry, the consumers must value the elements as better than products and services from other business entities. This competitive strategy has the opportunity to facilitate pricing system by the organization in order to fight stiff competition in the market and relevant industry. Differentiation strategy also facilitates the ability of the organization to execute effective scientific research in order to provide valuable products and services to their valued consumers.
Another characteristic of the differentiation strategy is the ability to integrate highly skilled and motivated workforce to oversee quality development of the products and services. The organization in context implements its objectives through highly rated and creative employees thus the opportunity to fight competition in the market and industry (Gurau, 2007). There is also a reflection of quality and innovative reputation by the organization to gain competitive advantage. In the implementation of this strategy must focus on various risks such as imitation by competitors and diversity or changes in the tastes or preferences of the customers. This strategy allows the organization to set up quality prices to match the products and services in the market and industry.
Identification of critical inputs in each of the first three categories
Whole Foods Market, Inc. focuses on implementation of various inputs in relation to the three categories such as environment, resources, and history. In the analysis of these inputs, it is essential to focus on the organizational environment factors, internal resource factors, and historical tradition factors. Some of the critical organizational environment factors include technological inputs, culture, management systems, motivational tactics, financial management, and machinery/equipment. These factors are essential in the realization of the goals and objectives of the organization though implementation of the differentiation strategy in the achievement of competitive advantage in the market.
Some of the inputs in relation to internal resource factors include human capabilities, favorable environment, technological infrastructure, quality management and culture, capital inputs, and motivational or incentive inputs. In the context of historical tradition factor, there are various inputs such as mission, vision, culture, objectives, targets, image/reputation, and core values. These factors facilitate the achievement of the goals and objectives thus achievement of competitive advantage in the market and industry of operation (Whole Foods Market, Inc. SWOT Analysis, 2012).
Why are they critical inputs?
These inputs are vital or critical to the organization because of several reasons. One of the essential reasons for being critical is their application in the guidance of operations and production within different departments. Organization’s culture is vital for the achievement of competitive advantage. This is because of its ability guide implementation of the strategies thus the opportunity to achieve the mission and vision of the business entity. Organization’s culture is also vital in the development and implementation of the policies and principles guiding the performance of the company within the market. Technological factors are also essential in the collection and analysis of data with the aim of improving effectiveness and efficiency in the concepts of production and service delivery. Technological advancements also provide an opportunity to the organization to enhance the volume of production and distribution of its products and services.
This makes it easier due to the concept of automation of production and distribution sectors thus achievement of differentiation goals in a competitive market. Motivational inputs are also critical in improving quality and volume of outputs in the context of the organization. This is through improving performance of employees of the organization to work within the set principles in order to achieve the goals and targets in relation to the financial year. Human inputs are also vital in the execution of the strategies enabling the organization to achieve its goals and targets. This is through development and initiation of policies and strategies towards realization of the differentiation strategies. Favorable environment provides an accurate and motivational opportunity to enable human resources or workforce to execute variable goals and principles in the achievement of competitive advantage. Historical tradition inputs such as culture, mission, and vision facilitate development of the policies and principles towards the achievement of goals and objectives within the competitive market and industry.
Effect the inputs from one category have on inputs from the other categories
There is a positive and constant relationship among the three categories: environmental, internal resources, and historical tradition. Historical tradition inputs such as culture, mission, and vision are vital in influencing the development and implementation of technological inputs in relation to internal resources. These inputs also facilitate interaction between the organization and its human resources. This is through facilitation of the development of favorable working environment to enhance the performance of the employees towards the achievement of the goals of differentiation within the competitive market. This is an indication that historical tradition inputs facilitate realization of the development and application of environmental inputs in relation to the execution of the functions and obligations of the business entity.
Internal resources or inputs are vital in the development of an appropriate image and reputation of the organization thus facilitating quality interaction with the shareholders and stakeholders within the market. This indicates that internal resources or inputs influence the operation of the environment and historical tradition inputs. There is a triangular interaction between the three categories in order to facilitate quality implementation of management, production, and distribution strategies in the achievement of the goals and objectives.
How well does the strategy fit with the environmental, resource and historical inputs you identified?
Environmental, resource, and historical inputs fit effectively and appropriately with the differentiation strategy. This is because the three categories focus on the achievement of quality products and service delivery through elimination of error in manufacturing and distribution of organization’s outputs. The main objective of differentiation strategy is to integrate quality mechanisms thus provision of unique products despite their pricing systems. The three categories have the ability facilitate achievement of quality products and service thus the concept of differentiation strategy in the competitive market and industry. The organization has the opportunity to integrate organizational environment factors, internal resource factors, and historical tradition factors to achieve the objectives of the strategy of differentiation within the market. This is a reflection of perfect fit by the three categories and differentiation strategy.
Case for the Proposal
The inputs at Whole Foods Market consisting of organizational environment factors, internal resource factors, and historical tradition factors are highly congruent with the company’s strategy (Bezboruah, 2008). This is through implementation of the concept of Nadler-Tushman Congruence Model to evaluate the relationship among organizational environment factors, internal resource inputs, historical inputs, and differentiation strategy (Nadler & Tushman, 1980). The organization has the opportunity to maximize this highly congruent relationship among the four components to achieve competitive advantage within the market and industry of operation.
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