Mission/External Analysis
According to Whole Foods Market, Inc.s Form 10-K from 2002, the companys “goal is to
become an international brand synonymous with not just natural and organic foods, but
with being the best food retailer in every community in which we are located.” The vision
of Whole Foods goes deeper than just being a successful grocery store. The company is
dedicated to ultimately improving the world in general; it plans to do this by continuing to
focus on its immediate visions, which include offering the highest quality of all-natural
foods and nurturing a respectful, motivated workplace in which employees are treated
fairly. The companys philosophy also includes the declaration that “companies, like
individuals, must assume their share of responsibility as tenants of the Earth.”
Overall external factors with immediate effects on Whole Food Market Inc.s business
include economic, social, and ecological. Currently, consumers are overspending their
personal income limits, energy costs are remaining high as well as interest rates rising. All
of these economic issues result in a decreasing disposable personal income among
consumers, which could lead to cost saving and discount purchases efforts. For Whole
Foods, this can be seen as a possible threat to sales and earnings because of the companys
well-known high prices. The most influential social factor, which can be seen as a definite
opportunity for Whole Foods is Americas current Health Consciousness state. Many
consumers are taking a stake in improving their eating habits and overall health than ever
before. With the continued spread of the health conscious movement, stores like Whole
Foods can do nothing but gain.
Industrial Analysis
The natural and organic food retail industry has grown rapidly over the past 20 years. This
industry saw vast growth during the 1990s, but upon arrival of the 2000s, the growth has
steadied itself at 7-9 percent per year from the previous decades two-digit growth figures.
The natural and organic food retail industry to which Whole Foods belongs is only a small
segment of the large Grocery retail industry. Whole Foods sales account for less than 1%
of the US grocery market. However, this small segment is still a great influence on the
grocery/supermarket business. Natural food stores have become increasingly more
prosperous and popular over the past 20 years due to the demand for organic products by a
growing number of consumers. According to a survey by the Organic Trade Association,
the average US household will spend 14% of its budget on organic products by 2025.
