Whole Foods Case Analysis

Whole Foods Case Analysis

1 - What is your opinion about John Mackey’s social mission at Whole Foods as a corporate strategy? Discuss the specific values in his “Declaration of Interdependence.”

John Mackey was a visionary who created a market for organic foods and whole business strategy based on the well-being of customers, employees, and social responsibility. The concern with the origin and production of the products sold at Whole Foods created a sense of community, always seeking the best for the environment. The actions to supply quality food to customers always sought sustainable solutions, demonstrating their concern for the planet that will be left for future generations. The Whole Foods is now much more than just a grocery store where you can find products for a healthy diet, but also a place where the general public can learn to eat to have a healthier life. Moreover, Mackey determined that 5% of Whole Foods net profit is donated to accredited charities, establishing a serious social commitment to the community.

To achieve success in his business strategy, Mackey sought untraditional ways to run your business, one of them was the "Declaration of Interdependence" among employees, which values are commitment to diversity, community and saving the planet. These specific values were directly connected to the business model created by him, where the diversity of products should be ensured by the designated team for a given product category. Each store features 10 different teams to ensure this diversity. The store is always standardized in accordance with the community where it operates, including providing opportunities for the suppliers of local food products, as well a store is never the same as another, nor repeats the exact same products. Staff at Whole Foods should work for the well-being of the community and the environment.

Of course the "Declaration of Interdependence" does not exclude the commitment of employees to make competitive business and for profit in their operations. The staff were constantly assessed and measured in order to create a reward system for everyone. These rewards ranging from economic values to stock option plan. All done in a transparent manner, with the company's results always publicly disclosed and rewards that each employee receives. This creates an incredibly positive effect on worker productivity and hence in profits.

2  - Will Mackey’s plan for how teams operate be effective? Do you agree with the idea of publicly shared performance data and its links to compensation?

A great Mackey’s idea was decentralizing the command of the operations of teams, making all employees being non-unionized, so each Whole Foods store could have a local identity. This greatly helps in the success of the company, because the eating habits of customers in Florida are different from Massachusetts, and also different from California. The idea of Whole Foods is to sell a healthy food for a healthy lifestyle and not standardize products across the country. For this work, Mackey has designated approximately 10 teams per store, and each team is responsible for a different product category. That's great because it effectively ensures the diversity of store products based on local habits and local consumers and sellers.