Whole Foods And Amazon Company Business Management Case Study

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🔴 Part 1


Whole Foods. By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. However, sales growth has slowed. CEO John Mackey is highly committed to these values, however, the company needs to survive, and thus WF has agreed to a sale to Amazon for more than $13B.

1- What are the key issues that facing Whole Foods?

2- Evaluate the sale in terms of its likelihood to resolve these key issue.

3- What alternative courses of action could Whole Foods have taken?

4- 
Evaluate each course of action (pros and cons).


5- Recommend the best course of action.

🔴 Part 2

Amazon began a program in which they offered to pay employees up to $5,000 to leave. CEO Jeff Bezos explained the policy, called Pay to Quit, in his letter to shareholders. Amazon makes the offer once a year, but only to workers in the fulfillment centers where orders are boxed and shipped.

1- What might the effects be for Amazon's organizational culture?

2- What does it say about the culture?

3- Who is most likely to take the payout?

4- What are the positives and negatives of this policy?

5- What are the financial implications for Amazon's bottom line?

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Part 1
Question one
One of the key issues affecting the wholes foods market is competition. The company is
facing competition from Wal-Mart stores and the Kroger Co. The competitors’ offer similar
products which are sold by Whole Foods targeting the same market. Secondly, the company is
facing the challenge of product differentiation. The company offered products of high quality
with high prices. Some of the customers who make the decision depending on prices will have
their way in Wal-Mart and Kroger. The company also has a high number of employees. The
company spends more money on paying for the salaries. The stiff competition leads to low
profits ("Whole Foods UK", 2019).
Question 2
Selling the company at a price of more than $13 billion was not the best strategy. The
company needed to look at their weaknesses and try to solve the issues that were affecting them.
The competition they were facing could be handled by restructuring the organizational culture.
They had a big percentage of the market share and most of the customers trusted them due to
their quality.
Question 3
One of the courses of action that whole foods was...


Anonymous
Really useful study material!

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