Whole Foods Market Business Analysis

sales pay back doubled since then and 66% of the British adults now consume constitutional pabulum and drinks. Their weakness Is the circumstance they prevailnt expand Into the global market except for Canada and the ASK. There has also been several(prenominal) recalls on brands purchased by the company. The opportunities appear to be significant In this retail market. There Is an Increasing appetency for organic, healthy harvest-feasts which bodes well for the achievement of beginning new stores. The threat is competitor as the demand grows and more blotto regulation. Rental increases is also a concern.In making a decision on whether to invest in Whole Foods Market, the welfare and needs of the internal and immaterial stakeholders need to be considered. Growth depends on Bonds and Stockholders. The company must evidence consistent egress in order to be able to permit available borrowing outlets. The employees are instrumental in keeping the customer feel wanted and s atisfied with their shopping. The surrounding community wants to feel congruous with Whole Foods facilities, overlaps and service. And the distributors supplying the companys product need to know there Is a commitment from their customers.Whole Foods Market is a unique, organic aliment and natural product supermarket chain located in the US, Canada and ASK. As a wholly owned subsidiary, they are headquartered in Austin, Texas and employ approximately 64,200 people 13,300 are odd-job(prenominal) and 2,700 temporary employees (Denominator, 2012, p. 4). They have an increase in revenue in 2011 from the antecedent year of 12. 2%, an increase of 25% in operating returns and net profit increase of 42%. (Event Brief of IQ , 2012 Whole Foods Market Earnings, 2012).These figures are significant in recognizing the companys success in recovering from the recession which hit them In 2008. Presently, the organic food market Is fragmented with many small mom and pops which presents many o pportunities for growth by Whole Foods. Fred Meyer, a discount chain, carries an Increasing array of organic foods, but not the quality and quantity of their high end competitor. The companys authority is in its focused growth plan. The new store openings has enabled it to grow at a compounded and annual growth rate of 26% during 1991-2011. Denominator, 2012, p. 6). They have formalized their square footage for new and renovated stores by past analysis of their successes and allures. The elaborateness into the I-J market, in particular the 2007 acquisition of 80,000 square feet in London could be a major step into a market outside of the US. Sales have doubled and 66% of the British public consumes organic food and drink. (Live Business News, 2012, p. 3) Their weaknesses lay in lack of expansion into international operations, product recall of certain brands, and increasing rental costs.Recalls are an issue. They have had to pull Whole Foods Market Dairy Free bakery products beca use it contained milk which was not on the label. Texas had to call cheddar cheese products because of an e-coli contamination and there was a possible Salmonella contamination for the Whole Foods, Carob Energy Nuggets in 2009. They have not been able to successfully expand into markets other than a fewer stores in Canada and the I-J. They have not been able to obtain competitive prices from their distributors for these stores because of the humble volume.Whole Foods also has a weak advertising budget and relies heavily on Internet and word of mouth, a disadvantage when their competitors advertising strategies are expanded into other markets. (Live Business News, 2012, p. 7) Leases for space and equipment have increased significantly from 4. 8 million in 2004 to 201 million in 2007. Future growth could be impacted. The increasing demand for organic foods and the new emerging life styles of the American public appear as great opportunities for Whole Foods Market. According to indus triousness estimates, the sales of organic food increased three fold since 2000 to sink $28. Billion in 2010 (Denominator, 2012 p. 7) With this increase in sales, the company is still the completely chain catering and available to this market. They are continually expanding their product metrical foot to include such foods for customers with facial dietary needs. The trend of the American family is wretched towards eating at home and eating healthy. Competition in the food retailing market is intense. Currently, Whole Foods does not experience significant competition in the organic food, natural products, and vitamin supplement area. But, as the demand and desire grow, so will the competition.