1. 1. 10/11/20121
2. 2. 06/07/20152 National Textile University Ali Zaib 11-NTU-1011
3. 3. Group Members 06/07/20153 Awais Ahmad 11-NTU-1018 Hamid Raza 11-NTU-1031 Furqaan Ahmad 11-NTU-1027 Asfand Noor 11-NTU-1016
4. 4. 10/11/20124 Picture
5. 5. 06/07/20155 Introduction Case No.7 Whole Foods Market Inc. National Textile University Worlds leading supermarket United States: 264 Canada: 06 United Kingdom: 05 Google, John Mackey & Website
6. 6. 6 Picture of headquarter
7. 7. 06/07/20157 Introduction Case No.7 Whole Foods Market Inc. National Textile University CEO: John Mackey QS Coordinator: Joe Dickson Rapid expansion driving revenue growth. Socially responsible retailer Award for the whole planet foundation.
8. 8. 06/07/20158 History Case No.7 Whole Foods Market Inc. National Textile University SaferWay store in 1978. SaferWay + Clarksville = Whole Foods Market 1980. Expansion in 1984 (Houston, Dallas, New Orleans & California). In 2004 United Kingdom. In 2007 acquisition of Wild Oats Market Inc.
9. 9. Fortune magazines annual list. John Mackey Overall National Ernst & Entrepreneur. Environmental issues & Community involvement. 06/07/20159 History Case No.7 Whole Foods Market Inc. National Textile University
10. 10. Started in boulder, Colorado in 1987. Acquisition due to competition. Opposition by FTC. $565 Millions for 110 stores and another $19 millions for settlement of issues. 06/07/201510 Wild Oats Market Inc. Case No.7 Whole Foods Market Inc. National Textile University
11. 11. 06/07/201511 National Textile University Asfand Noor 11-NTU-1016
12. 12. Coffee, tea Fresh fruits & vegetables, Frozen fruits & vegetables Nuts, seeds, trail mixer, seed butters Rice, grain, dry bean and spices Natural cosmetics Approximately 20,000 different food & non-food product types at each store location. 06/07/201512 The Organic Food Industry Case No.7 Whole Foods Market Inc. National Textile University
13. 13. 06/07/201513 Competitors Case No.7 Whole Foods Market Inc. National Textile University
14. 14. Our deepest purpose as an organization is helping support the health, well being and healing of both people, customers, team members and business organizations in general and the planet. 06/07/201514 Vision Case No.7 Whole Foods Market Inc. National Textile University
15. 15. To promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available. 06/07/201515 Mission Case No.7 Whole Foods Market Inc. National Textile University
16. 16. We bring health to the whole planet through well being of whole people by providing them wholesome of best foods. 06/07/201516 Proposed Vision Case No.7 Whole Foods Market Inc. National Textile University
17. 17. To serve customers with superior quality food, customer focused service and continuous innovation while generating long term profitable growth for shareholders and contribute for the welfare of society. 06/07/201517 Proposed Mission Case No.7 Whole Foods Market Inc. National Textile University
18. 18. SWOT Analysis STRENGTHS Brand Recognition Good Quality Huge selection/variety Positive Employee Environment Large, customized stores No. 16 on Fortunes Worlds Most Admired Companies list WEAKNESSES Concentrated just on US market Relative Slow Growth Limited number of suppliers Advertising Budget is very low OPPORTUNITIES Expansion Consumer Health Benefits through media Emphasis on organic farming THREATS Supermarkets introducing organic products Increasing inflation Low spend per trip due to higher prices
19. 19. 06/07/201519 National Textile University Awais Ahmad 11-NTU-1018
20. 20. 06/07/201520 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
21. 21. External Factor Evaluation Matrix (EFE) 06/07/201521 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
22. 22. EFE Matrix Key External factors Weight Rating Weighted Score Opportunity Expansion Consumer Health Benefits through media Emphasis on organic farming 0.25 0.20 0.15 4 2 3 1.0 0.40 0.45 Threat Supermarkets introducing organic products Increasing inflation Low spend per trip due to higher prices 0.15 0.15 0.10 4 3 2 0.60 0.45 0.20 Total 1.00 3.10
23. 23. Internal Factor Evaluation Matrix (IFE) 06/07/201523 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
24. 24. IFE Matrix Key Internal factors Weight Rating Weighted Score Strengths Brand Recognition Good Quality Huge selection/variety Positive Employee Environment Large, customized stores No. 16 on Fortunes Worlds Most Admired Companies list 0.12 0.15 0.10 0.08 0.10 0.05 4 4 4 3 4 3 0.48 0.60 0.40 0.24 0.40 0.15 Weaknesses Concentrated just on US market Relative Slow Growth Limited number of suppliers Advertising Budget is very low 0.15 0.05 0.10 0.10 1 2 1 2 0.15 0.10 0.10 0.20 Total 1.00 2.82
25. 25. Competitive Profile Matrix (CPM) 06/07/201525 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
26. 26. CPM Critical success factor weight Whole Foods Market Trader Joe's Rating Score Rating Score Brand Recognition 0.20 4 0.80 4 0.80 Product Quality 0.13 4 0.52 3 0.39 Management 0.10 3 0.30 3 0.30 Price Competitiveness 0.15 2 0.30 3 0.45 Financial Position 0.15 3 0.45 3 0.45 Customer Loyalty 0.15 2 0.30 4 0.60 Global Expansion 0.12 2 0.24 3 0.36 Total 1.0 2.91 3.35
27. 27. 06/07/201527 National Textile University Hamid Raza 11-NTU-1031
28. 28. 06/07/201528 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University SWOT Matrix SPACE Matrix IE Matrix Grand Strategy Matrix Stage 2: The Matching Stage
29. 29. SWOT Matrix 06/07/201529 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
30. 30. SWOT Matrix SWOT MATRIX Strengths - S 1. Brand Recognition 2. Good Quality 3. Huge selection/variety 4. Positive Employee Environment 5. Large customized stores 6. No. 16 on Fortunes Worlds Most Admired Companies list Weakness W 1. Concentrated in US 2. Relative Slow Growth 3. Limited number of suppliers 4. Advertising Budget is very low Opportunities O 1. Expansion 2. Emphasis on organic farming 3. Consumer Health Benefits through media SO strategies (S1,O1) (S2.O3) WO strategies (W2,O1) (W3,O2) Threats T 1. Supermarkets introducing organic products 2. Increasing inflation 3. Low spend per trip due to higher prices ST strategies (S1,S5,T1) WT strategies (W1,T1) (W3,T3)
31. 31. SPACE Matrix 06/07/201531 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
32. 32. SPACE Matrix Internal Strategic Position External Strategic position Financial Strengths (FS) Environmental Stability (ES) Return on Investment leverage Liquidity Earning per share Total Average +3 +2 +2 +3 +10 +2.5 Price range of Competing products Competitive pressure Price elasticity of demand Total Average -3 -4 -3 -10 -3.3 Competitive Advantage (CA) Industry Strength (IS) Market Share Product Quality Customer Loyalty Control over suppliers Total Average -2 -6 -2 -2 -12 -3 Growth Potential Profit Potential Financial Stability Productivity, capacity utilization Total Average +3 +3 +3 +4 +13 +3.25
33. 33. SPACE Matrix -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 +6 +5 +4 +3 +2 +1 -1 -2 -3 -4 -5 -6 AggressiveConservative CompetitiveDefensive ISCA X-axis =CA + IS = -3+(3.25) = 0.25 Y-axis = FS + ES = 2.5+(-3.3) =-0.8 FS ES
34. 34. 06/07/201534 National Textile University Furqaan Ahmed 11-NTU- 1027
35. 35. Internal-External Matrix 06/07/201535 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
36. 36. Internal-External Matrix i ii iii iv v vi vii viii ix Strong 3.0 4.0 Average 2.0 2.99 Weak 1.0 1.99 2.03.04.0 IFE Total Weighted Score 3.05 1.0 2.0 3.0 Low 1.0 1.99 Medium 2.0 2.99 High 3.0 4.0 EFETOTALWEIGHTEDSCORE2.75
37. 37. GRAND STRATEGY Matrix 06/07/201537 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
38. 38. GRAND STRATEGY Matrix Quadrant IV 1. Concentric diversification 2. Horizontal diversification 3. Conglomerate diversification 4. Joint ventures Quadrant III 1. Retrenchment 2. Concentric diversification 3. Horizontal diversification 4. Conglomerate diversification 5. Liquidation Quadrant I 1. Market development 2. Market penetration 3. Product development 4. Forward integration 5. Backward integration 6. Horizontal integration 7. Concentric diversification Quadrant II 1. Market development 2. Market penetration 3. Product development 4. Horizontal integration 5. Divestiture 6. Liquidation RAPID MARKET GROWTH SLOW MARKET GROWTH WEAK COMPETITIVE POSITION STRONG COMPETITIVE POSITION
39. 39. GRAND STRATEGY Matrix Weak Competitive Position Quadrant II Quadrant I Quadrant IVQuadrant III Strong Competitive Position Rapid Market Growth Slow Market Growth
40. 40. 06/07/201540 National Textile University Ali Zaib 11-NTU-1011
41. 41. 06/07/201541 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University Quantitative Strategic Planning Matrix (QSPM) Stage 3: The Decision Stage
42. 42. Quantitative Strategic Planning Matrix (QSPM) 06/07/201542 Whole Foods Market Case No.7 Whole Foods Market Inc. National Textile University
43. 43. QSPM Key Internal Factors Market Penetration Market Development Strengths Weight AS TAS AS TAS Strong marketing .12 4 .48 3 .36 Product Quality .15 4 .60 2 .30 Brand Recognition .10 2 .20 3 .30 Trademark Licensing .08 - - Supplier relationship .10 4 .40 3 .30 Designer Store Service .05 2 .10 2 .10 Weaknesses Concentrated just on US market .15 2 .30 4 .60 Slow Growth .10 1 .10 3 .30 Limited number of suppliers .15 2 .30 3 .45 - - Total 1.00 2.48 2.75
44. 44. QSPM Key External Factors Market Penetration Market Development Opportunities weight AS TAS AS TAS The international market is now larger than the U. S. .25 1 .25 4 1.0 Women and younger riders are increasing becoming interested in bikes. .20 3 .60 3 .60 Industry registrations of heavyweight motorcycles are increasing. .15 2 .30 3 .45 Threats Loss in domestic market share in recent years .15 3 .45 3 .45 Competitors of Harley Davidson .15 1 .15 2 .30 Higher production Costs .10 2 .20 2 .20 Total 1.00 1.95 3.0 Grand Total 4.43 5.75
45. 45. On the basis of QSPM, we make the decision to adopt the Market Development Recommendations
46. 46. Expand into Foreign Markets like Asia,Europe. Concentric Diversification with Other recreational vehicles and Expand HOG and BRAG owner member groups Product Development byExpanding Motorcycle line for younger market. 06/07/201546 Recommendations
47. 47. ????? 06/07/201547 Any Question Case No.7 Whole Foods Market Inc. National Textile University