Research and Application 1-9 [LO1, LO3]

Answer 1: Whole Foods Market’s strategy primarily focuses on Customer Intimacy. In evidence to this, we can see in the Declaration of Interdependence which states:
“Our Customers are the most important stakeholder in our business. Therefore, we go the extraordinary lengths to satisfy and delight our customers. We want to meet or exceed their expectations on every shopping trip. We know that by doing so we turn customers into advocates for whole foods. We guarantee our customers 100% product satisfaction or their money will be refunded. They believe:
• Customers are the lifeblood of their business and they are interdependent on each other.
• Customers are the primary motivation for their work — they are not an interruption of our work.
• Customers are people who bring them their wants and desires and their primary objective is to satisfy them as best they can — they are not people to argue or match wits with.
• Customers are fellow human beings with feelings and emotions like their own; they are equals to be treated with courtesy and respect at all times.”

Answer 2: “Competition” is the main business risk that whole foods face that may threaten its ability to satisfy stockholder expectations. The main competitor of Whole Foods Market is Johnson & Johnson. Some of the other risks are as follows:
• Their growth is partially dependent on new store openings and acquisitions
• They may experience significant fluctuations in our quarterly operating results and comparable store sales.
• Increased competition may have an adverse effect on their profitability.
• Their business may be sensitive to economic conditions that impact consumer spending.
• They may be subject to product liability claims if people are harmed by the products they sell.
• The loss of key management could negatively affect their business.
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