Reference no: EM131119419
Case: Whole Foods Market is, in many aspects, an unusual corporation. As the base case illustrates, John Markey and his partners are not typical corporate leaders. Other noteworthy aspects include the Whole Foods’ highly decentralized organizational structure, their teamoriented decision making and leadership style, and their unique human resources processes. Whole Foods Market is known for its attractive workplace environment; it is one of only three food retailers that have frequently appeared on Fortune’s 100 Best Companies to Work For. The other two foods retailers on the list are Wegman’s Food Market and Publix Super Markets. Although Whole Foods Market has recently had to lay off 1500 employees, Walter Robb, a co-CEO, lamented “this is a very difficult position, and we are committed to treating affected team members in a caring and respectful manner.” Whole Foods Market is also known for its programs in sustainability and corporate social responsibility. It is ranked 3rd on the Environmental Protection Agency’s Top 25 Green Power Partners list. The company’s core values include “the advancement of environmental stewardship.” Co-CEO Walter Robb defended the company’s high prices for salmon by stating that “Sure we could sell cheaper farmed salmon, but it is terrible for the environment.” Whole Foods Market is also a major player in philanthropy with 3 active foundations: Whole Planet Foundation, Whole Kids Foundation, and Whole Cities Foundation. In addition, the company donates 5% of its earnings to charities.
Question 1: In light of Whole Foods’ distinctive management philosophy, structure and values (e.g. social responsibility), explain why it makes strategic sense for the company to introduce the 365 store chain, using a SWOT- style analysis (matrix) as the starting point for your discussion.
Question 2. Discuss: a) the advisability and potential impact of the employee layoffs on Whole Foods’ financial and physical operations and b) the challenges and/or benefits the reduction in force presents for the company as it prepares to staff and market the new line of stores.
Question 3. Which of the leadership styles covered in class do you think will be needed for the successful launch of the 365 store chain, and why? (You may argue for more than one.) Does current top leadership at Whole Foods exhibit that style or styles? Explain.
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