Reference no: EM133238708

Read the "Whole Foods Market - The Deutsch Bank Report" case and answer the following questions:

1. How would you define Whole Foods' industry? Who are Whole Foods' competitors?

2. How would you describe Whole Foods' strategy? How attractive is Whole Foods' current market position? Is it sustainable?

3. What do the financial ratios in Exhibit 4 tell you about the past operating performance of Whole Foods? How informative are the historical ratios for Whole Foods' prospective performance?

4. Examine Exhibit 7 in detail. How important are each of the underlying financial assumptions in the "return on capital" forecast? What assumptions (i.e., margins, asset turnover, growth) play the biggest role in driving the anticipated improvements in "return on capital" (note: "capital" is typically defined as net debt plus equity)?

5. Do you agree with the existing financial assumptions in the Deutsche Bank forecast? If so, why? If not, what adjustments would you make to the model? Be prepared to defend the basis of your forecast for Whole Foods' performance.