Whole foods market pioneered the industry of fresh produce and groceries before establishing a respectable market position that allows it consistent expansion. Given the company objectives targeting US$10 billion in gross revenue and an expansion program leading to more than 300 outlets in the US by the end of the second quarter of 2010, the company CEO John Mackey finds uncertainty in realizing these objectives in the volatile American economy and highly competitive fresh produce industry. Whole Food Market deals in the trade of both natural and organic foods. This, the company offers its customers a wide range of products from its present 174 branches in USA and UK.
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The Obama Health-care Policy
The health scheme proposes shared benefits for the insurance of employees with employers that the company. The level of the company transparency does not much electronic benefit cards. Other areas of conflict include poor sales, taxes, and regulation. The role of the Environmental Protection agency insists that greenhouse gas emission threaten human health and endanger the environment. The effect of the health policy on the rate of economic growth and development generally showed a general downward trend in the future. In particular, businesses in fluctuating market environments show more unpredictable operational environments (Grant 1991, 607).
The command and control way to market, regulation has a high likelihood of creating unpredictable circumstances in the market. In particular, the sale of organic products should be enhanced against natural foods. Mackey claims that implementing the scheme results in high energy prices besides additional costs to comply with the new regulation. Mr. Mackey asserted that the scheme would “lower the stand of living” of average Americans.
As the CEO of the company that has always practiced environmentally friendly policies, Mackey observe that imposing levies on energy and regulating GHG threshold have little effect on cooling the earth. Instead, the cost of enforcing the healthcare reforms would deter company profits resulting in economic retrogression hence curtailing the efforts of large scale businesses to face adverse effects of climate change (Feldman 2001, 87)
The competitive position of the company
The company’s present competitors include Trader Joe’s Co. and the famous Wild Oats market. Whole foods still enjoy a growing market from the American population that values natural foods. However, its position in this market is first threatened by rapidly growing populations that favor Obama’s health policy. While the policy advocates for the creation of more food from stem cell and tissue growth in artificial systems, Whole food market endeavors to promote the consumption of natural foods through its leading subsidiaries.
The company forecasts the rise in demand of organic foods and few suitable locations as some of the limiting factors to its success in the future. The company usually targets relatively affluent urbanites in most cities where high education combines with the net-worth of individuals to afford products from its groceries. Therefore, the impacts of the healthcare scheme on its customers would result in more effects on its customers (Hanson, Dowling, Hitt, Ireland & Hoskisson, 2008, 68).
This may reduce its revenue, lower investor confidence in the company and subject its operation to changes that it never intended before. Since the company depends mainly on other acquisition strategy for its expansion, it would be limited to acquiring companies in prime areas only, besides it would be bound to accommodate transformational change since its future operation would incline towards organic foods though with suppliers still conforming to its policies and codes of ethics.
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Due to the public remarks of Mr. Mackey, the company would be bound to work in liaison with EPA more than in the past in order to keep its public image. The reputation of the company would also depend in part on its contribution to charitable groups and other environmental activities in attempts to remain true to its goals as organic food dominate the industry, Whole Food Market is highly diversified; it uses mergers, joint ventures, partnerships and takeover strategies to expand M& S allegro coffee, Produce Field Inspection Office. The health-care scheme may strengthen the position of other company thereby increasing their bidding rates (Harasta & Hoffman 2005, 666).
The business’ commitment to sustainable agriculture gives its green programme a considerable level of authenticity. This coupled by its propensity to offer high quality products carefully selected to score the consumer’s confidence in the present dynamic market front. The case for Whole food market presents a company whose core values and operations culture relate closely to the human biophysical processes. The validity of the company’s greening policy remains true to its investors comprising of shareholders, debenture holders and a large pool of its partners who believe in the business consistence provision of high quality groceries with commensurate returns.
Health-care reform advocates for manufacture and use of organic food whenever it is necessary. However, the company CEO thinks this may cause people to act harshly to animals. Owing the fact those traders with Whole food must sign agreement that forces them to protect the animal rights; the policy may leave Whole foods, to a particular class of consumers while restricting the number of its traders. The greening policy aims at preserving the environment despite of dormant GMOs in the community ((Hanson, Dowling, Hitt, Ireland & Hoskisson, 2008, 88).
The company’s efforts to abreast with changing scenarios in the food market while still maintain its pursuit to preserve the environment presents a contemporary case, typical to large organization in their path to sustainable development. On the other hand the current of market demand driving emergence and evolution other traders compromises the position of the company to operate at high degree of organic foods output. However, all these occurrences may reinforce the position of the company in its environment because most organizations in the capitalist economy dislike the whole idea of regulations giving employee almost equal privileges as they have.
Environmental accounting of possible GHG emissions and solid wastes from whole foods perspective gives yields practical mechanisms replicable in other organizations. In fact, whole food alternative can form a baseline for corporate social responsibility initiatives with the potent to resolving the tax on energy advocated for in the health-care policy by reducing the cost of energy regulation charges (Riele & Heberber 2008, 67)
The approval of environmentalist becomes important in restoring the image of the company to speculative investors and key partners of the organization. Moreover, the company’s policies must appear consistence with universal environmental stands through its sustainable management system. Whole food market is one of the leading companies dealing in foodstuff, therefore support and approval of EPA may lead to less discrepancy between the policy and those opposing it. Instead, the company will even in the future.
Feldman. Roger. 2001, American health case: government, market process. California: The independent Institutd Oakland.
Grant Robet. 1991. Contemporary strategy analysis: concepts, technique application. Melborne: Blackwell Publshers.
Hanson, D, Dowling, P, Hitt, MA, Ireland, RD & Hoskisson, RE. 2008. Strategic management: Competitiveness and globalization. Melbourne: Cengage Learning.
Harasta, Patricia & Hoffman Alan. 2005” Whole foods market, will there be enough organic food to satisfy the growing demand?” New York: McGraw-Hill.
Riele ,Alison & Heberber. 2008. Adrian. Strategic management: Theory and application. New York: Oxford University Press.