International Aspirations of an Emerging Market Firm

International Aspirations of an Emerging Market Firm Arcadia, a Turkish appliance manufacturer controlled by Turkeys largest conglomerate company named Crock Group. From the beginning, Recall products more than half of Turkeys appliances, including air conditioners, dishwashers machines, cooking appliances, and refrigerators. But since trade barriers declined in sass and sass, many competitors such as SSH, Hairier, General Electronic, Whirlpool, and Electrocute were threatening Recalls market share.

In global household appliance industry, consumers tend to view home appliances as commodities, and often value low prices. Some applicants carry small profit and have long life p, using automated manufacturing plants and low-cost labor Is only help in short run for the manufacturers. In order to sell in premium price and increase profit margins, some appliance makers differentiate their product by Innovative, value-added technology and features. However, innovation is costly. Which caused most major appliance manufacturers began to globalize (Cassavas, Knight, & Rosenberg, 2008, up. 277-278).

Arcadia sees its best prospect In emerging, fast-growing markets in Eastern Europe, Asia, and Latin America. Perhaps Singapore could be one of those markets that allow Arcadia to be a lead player in the industry as its aims. Issues Economic in Singapore. Singapore economic is the first issue that attracts Arcadia to enter Into this emerging market. Singapore GAP shows Gingersnap’s buying power, which also affects Arsenic’s products. Analysis Economic in Singapore. According to Political Risk Yearbook: Singapore Country Report stated; “real GAP growth for the second quarter of 2010 surged to an

Increasable rate of nearly 19%, on top of registering nearly 1 7% growth in the first quarter, and that performance has now positioned Singapore to be one of the fastest growing economies in the world. ” (2010, p. 4). Singapore is one of the world’s leading business centers and a major destination for foreign Investment. The first reason Is monetary stability In Singapore Is good. Second, the legal and regulatory framework for the financial sector is transparent and efficient. The government influence in the sector is gradually being reduced.

Third, anti-corruption laws are strong and well enforced. Moreover, foreign and domestic Investors are treated equally, and openness to global commerce fosters competitiveness. With prudent and sound banking practices, the financial sector has weathered the global financial turbulence relatively well (Miller and Holmes, Para. 3). These should be good enough reasons to attract Arcadia entering Singapore market. Issues Singapore Consumer Lifestyle. The second Issue that Recall need to know before doing business in Singapore Is consumer lifestyle.

In order to know which products appropriate to consumer lifestyle in Singapore, Arcadia should be marketed precisely; ongoing research in Singapore consumer lifestyle will definitely help Arcadia reaching their goal. Analysis Singapore Consumer Lifestyle. According to Global Marketing Information Database (GIMP), point out that Singapore have their busy lifestyle. They spend more time on working, and spending less time in other thing else. As Gingersnaps become busier, the demand for convenience has been on the rise. Thus, the household appliances should sales something that help Singapore save time such as microwaves and freezers.

As Gingersnaps workers have less time for grocery hopping, having a freezer will help them to purchase more food. Likewise, microwaves will be great help to save time in cooking for Singapore busy worker. Moreover, Singapore is very attuned to high-technology lifestyles, and technology- based products and services are extremely popular. On the other hand, over the short-term the economic downturn will drive many consumers to be much more discerning, and they will search hard for the best deals (GIMP, 2011, Para. 1-13). Commercial risks in Singapore.

The last issue that Arcadia need to study carefully is attention risks in Singapore, including country risks or political risks, cross-cultural risks, commercial risks, and currency risks. Although Singapore has lower rate of corruption than other Asian countries and its Singapore Dollar (SAG) is quite strong, there is commercial risks that need to be considered. Analysis Commercial risks in Singapore. Although the Business Monitor International mentioned that the Singapore Dollar (SAG) is safe, there are commercial risks in Singapore.

From Smog’s information, Arcadia may adapt its products, prices, and promotions in order to minimize commercial risks while doing business in Singapore. In addition, there are several competitors who already have niches in Singapore should appliances market share such as, LEG Electronics, Panasonic, Samsung, and Careful. In order to compete with those strong competitors, Arcadia could apply its advantage, which is its knowledge of how to produce products for lower-income countries. “It operates 11 manufacturing plants in Turkey, Romania, Russia and China.

Arcadia is a member of the Koch Group of companies, which holds a majority stake in the company. ” (Denominator, 2010, p. 50). All those manufacturing plants allow Arcadia to produce appliances less expensively than some competitors. The retailers in Singapore are also important to Arcadias business. The main retail chains selling home appliances in Singapore are Harvey Norman, Best Dense, Courts and Gain City. Large department stores such as Tasmania and Siesta also carry a variety of major brands of home appliances.

Conclusion Arcadia should expect to be better in emerging market such as, Singapore because this county offers good opportunity to household appliance businesses. Singapore has strong position in economic and continuously growth in household occupants. Arcadia should be attracted by consumer demand by households. In order to maximize company performance, Arcadia could study Singapore consumer life style and adapts its products to meet Gingersnap’s demands. Reclaim has strong distribution network with close to 4,500 dealers in Turkey and 366 aboard.

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Breakfast Cereals Market – Global Industry Analysis

Developed nations already have breakfast cereals as part of their regular course of meals. Increasing per capita income in developing countries is further giving the breakfast cereal industry a new dimension to look for. Get Free Sample Report at http://www. transparencymarketresearch. Com/sample/sample. PH? Flag=S&rep_id=1802 The declining market in the U. S. Is compelling the companies in this industry to increase their markets in the emerging economies.

These companies eave been increasing their advertising spends in the emerging markets in Asia pacific region to make consumers aware about the breakfast cereals and the health benefits associated with them. Companies have also developed some brands according to the regional preferences, such as inclusion of saffron and raisin flavored cereals in India. Breakfast cereals are broadly marketed under two segments: Ready- to-eat (RET) cereals and Hot cereals. The market for RET cereals is much bigger as compared to Hot breakfast cereals. The RET cereal had the larger share in the breakfast cereal market and was valued at USED 27. 8 billion in 2012.

However, the Hot cereals is growing at more than double the CARR of RET cereals due to its increasing consumption in the Asian markets. Browse all Food & Beverages Market Research Reports @ http://www. transparencymarketresearch. Com/food-beverages-market-reports-4. HTML Geographically, North America, led by sales from the U. S. , accounted for the largest share in the breakfast cereals market and was valued at USED 13. 9 billion in 2012. Though China does not have a large market, 2 but the market in the country is growing at a brisk pace, therefore showing opportunities for the companies to increase investments in this region.

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Government Can Sometimes Improve Market Outcomes

Government’s involvement in the market can sometimes improve market outcomes because the invisible hand on its own may fail to allocate the resources efficiently. The government may intervene to promote efficiency and equity.

The market on its own may cause market failure through externalities and market power. An “externality (is) the impact of one person’s actions the wellbeing of the bystander” (Gans et al. (2009, p.11). An example is pollution. Market economies usually do not consider the impact of their activities for example a dry cleaning factory. It can cause water pollution when they dispose off used chemicals. Government has a task of regulating, auditing and monitoring the activities of the market. Thus they can introduce regulating policies to protect the environment.

Market power is another result of market failure. “Market power (is) the ability of a single economic factor (or a small group of factors) to have a substantial influence on the market prices” (Gans et al. (2009), p.11). These monopolists may charge very high prices or low prices to prevent other firms from entering the market. The government may regulate the prices that monopolists may charge and their activities. The market economy does not distribute income fairly; it rewards people according to their ability to exploit market opportunities. The government economy may introduce taxes or social welfare systems to distribute income equally.

I had a personal experience in late February in Zimbabwe, in tobacco farming. My family is involved in tobacco farming and it was the selling season. A problem arose whereby some people were selling tobacco on the black-market at a very low cost. These people either stole tobacco or sell it at a very low price or they did not have farming licenses. Without a farming license this was the only solution. This situation was demotivating because their crop was at two risks. One was losing the crop for nothing or selling it to get the original capital. Also, farmers were incurring extra costs of increasing security. The government therefore introduced a policy that did allow selling the cash crop unless they had a farming license.

The policy helped to promote equity and efficiency. Most farmers like my father were prepared to hold on to the crop because they not going to make a profit. Moreover the selling price of tobacco rose, the government set a price ceiling. In addition it helped promote the security of the crop. Stealing the crop would not help since there was no place to sell it.

Therefore, the government can improve market outcomes because all farmers got the chance to sell and protect their crop such that next year they are motivated to plant and sell more.

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How Has the High Point Furniture Market Uses Outsourcing

I am writing to request your permission to research the benefits to implement Job resources and Job training programs at the Carson Stout Community Center in High Point, North Carolina. The increasing unemployment rates in the community have greatly impacted the developmental needs of the community.

Majority of the immunity is unemployed individuals and families, whom are facing poverty issues. The need for Job resources and Job training programs presents a challenge for unemployed individuals of the community and the city of High Point. The city of High Point was formerly known as the, ‘World’s Furniture Capital. ” The furniture and textile organizations produced numerous Jobs for our community but today, these furniture and textile organizations have been placed in other parts of the world due to globalization. When the organizations left High Point, many members of the community were left with no Jobs and no meaner of Income.

The Carson Stout Community Center Is a perfect location because many unemployed individuals and families of the community use the services given by the center. Carson Stout Community Center offers a variety of services that help the community but do not offer programs that will allow Individuals to help themselves. Unemployed residents of our community have trouble seeking Jobs because they do not have knowledge about Job networking and/or they do not obtain required Job training. Failure to have no meaner of Income tends to make Individuals and families In the community rely heavily on government and community assistance.

Also, with no Job or no meaner of Income, there has been an Increase In crime In our community. This puts a lot of stress on the community. POTENTIAL SOLUTION lob resources and Job training programs at the Carson Stout Community Center will equipment unemployed members of the community with knowledge of Job skills, training, and Job networking. These programs will: evaluate the persons’ strengths and weakness to determine what Jobs they will be successful In, provide skills and training for Jobs that require a certain skill or trade, provide resume writing and Interview seminars, and provide Jobs for the unemployed of the community.

The community will benefit from providing Job resource and Job training programs at the Carson Stout Community for several reasons: It will decrease unemployment rates, lower the need for government and community assistance, the community will be more productive, bring barnacles and Individuals out of poverty levels, and lower crime rates in the communion TTY. This will create a win-win situation tort the community and the City of High point. To demonstrate how Job resources and Job training programs will benefit our community, I would to like to conduct research both internally and externally.

Internally, I would like to survey the unemployed members and families of the community to understand their hardships and needs. Externally, I will gather information from Community Development Block Grant (JDBC), Community Development Organizations (COD), and Community-Based Job Training Grant (CABOT) and other community based grants to sponsor the Job resources and Job training programs at the Carson Stout Community Center. My preliminary research indicates data is available to support this proposal idea and to provide Carson Stout Community Center with the information it needs to make an informed decision.

I have located organizations that have implemented Job resources and Job training programs to unemployed people and have gathered information from their experiences to apply to our situation. As a community leader, I sympathize with the members of the community who have lost their Jobs with the furniture and textile companies due globalization. Therefore, I am strongly committed to finding projects that will benefit the community and lessen the hardships of unemployment in the community. It is my pleasure, to search for ways to enhance and strengthen the community.

By conducting this research to implement Job resources and Job training programs at the Carson Stout Community Center will help the community become self-sufficient. I look forward to meet with you to discuss this proposal. WSDL it be possible to schedule a meeting in the next couple weeks? Once again, it is my pleasure to conduct the research and prepare required financial information, and the pros and cons of a Job resource and Job training programs before our fiscal year begins. You can reach me at 336-965-6636 or via email me sheqwanad@gmail. Com. Thank you for your time

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Complaint market

Table of contents

MARKETING PLAN

  • Cover Page
  • Preamble
  • The Marketing Planning Process
  • The Real Market Situation
  • Objectives of the Marketing Plan
  • Marketing Strategy
  • Evaluation the Performance of the Marketing Plan Conclusion
  • Conclusion
  • References

MARKETING PLAN

PREAMBLE

A marketing plan is a strategy used by a firm to ensure that it meets its market objectives; this may be part of the business plan or may be prepared to introduce a new product in to the market. It needs to be clearly defined without any ambiguity in order to meet its objectives. In our case the product is a medicament which is to be introduced to a new market in Australia by an international company which has international reputation. The plan shall be in the short run due to the continuing changes in the growing market of pharmaceuticals.

The plan consists of the macro and micro environment analysis, SWOT analysis, market research and means of evaluating the performance of the market plan of the pharmaceutical product. The plan needs to be evaluated severally to see if its meeting its objectives.

The marketing planing process

The plan need to have an objective, this objective should be drawn from the firm mission and vision. In our case since the product is a medicament being introduced into a foreign market, that in the Australia, the objective should be measurable, it can either be to break even, maximize the number of consumers or to recover the costs; all these should have a time limit, a year, months or many years.

The real market situation

The targeted customers of the medicament are the adults who are likely and continuously suffer indigestion heartburns and trap wind, this is because it works fast, does not require drug prescription. The firm also targets the people who suffer economy related stress, this is because the economy of Australia is growing and people are suffering a lot of stress. The firm should also target other groups in the market, like the school children and the younger ones; this will boost its sale and command a bigger market share.

The business environment for the Australian market is conducive for the pharmaceutical company; the economic growth and the political stability which is offering a conducive environment for the foreign investments. There is reasonable technological development and the emergent of the free market which makes the entrant of the new products in to the market though there are some disadvantages associated with this. The pharmaceutical industry is also growing in Australia.

The strengths of the medicaments are that the company has highly qualified personnel which make the probability of succeeding very high. The firm is also internationally recognized, this will boost the confidence of its users further more the firm has experience of entering different markets of different countries therefore increasing the chances of successful entry possible. The company has a very careful approach of entering new markets coupled with flexible policies meaning the company can adjust to the needs and specifications of the locals market. The above combination makes the future of the firm look blight in the new market.

The major weakness of the firm is that the product is new in the market and has not been introduced before in Australia therefore it’s expected to face stiff competition from the international firms which control the prescription of the drugs and the local firms which already are the early entrants of the market.

The major opportunity of the firm is that the firm has international reputation and the pharmaceutical industry in Australia is rapidly growing due to the demographic and economic growth. There are high chances of successful entry in the market since in the Australia market, the international pharmaceutical companies control the prescription of the of drugs while the local market is characterized by free forces of the market controlling setting the equilibrium prices, this means that there are no barriers of entry. The company can sell its drugs over the counter because the drugs are safe and accessible to the customers easily. There are also many targeted customers, that’s the adults population, this is because they are expected to continue suffering stress related sickness due to the change of their eating habits from the traditional foods to the fast foods together with the fact that the growth of the economy is causing stress too.

Another major opportunity of the company is its capability to make the drug available to all the customers in the five governorates in Australia. The firm should build a network to sell the drug through out the country even if it will involve the local companies involved is selling similar products. It should also cooperate with the supermarkets which are located even in the remote to enhance the introduction of the drug in the market, the firm can also cooperate with the pharmacies or even acquire or merge with the local companies in the pharmaceutical industry who have a well established network in the market.

The social-economic and political stability of Australia offers an encouraging environment of the firm introducing the product in the market. The company can also promote its products to create consumer awareness by use of the internet, television and press.

The main threat of the firm in the market is the price competition from the firms existing in the market; those include the local firms and the international pharmaceutical companies. There is also the probability of the existing firms producing similar product due to the high technological advancement especially the international companies.

Objectives of the marketing plan

The financial objectives must be turned into marketing objectives, the objectives might be:

  1.  Achieve a certain set sales volume
  2. Expand the customer awareness about the pharmaceutical products
  3. Expand the number of outlets the pharmaceutical company has
  4. Aim at achieving a certain average price
  5. To fully recover all the costs

The objective of the pharmaceutical company can be one of the above.

MARKETING STRATEGY

 The pharmaceutical company in question is feeling at a disadvantage because it’s a late entrant in the market because though there is free market, there are already international companies and local companies in the market, but in real situation, the early entrants also called the early mover can be overcame by those who enter the market late if the pharmaceutical company is marked by the following features.

  1. The market has similar products (homogeneous product) that are not highly differentiated therefore there are no products superior to the other.
  2. The customers may not be satisfied with the existing products and this can lead the introduction of the new drug to be favored by the real market situation whereby this will be an opportunity to exploit

The late pharmaceutical company should first accept the fact that it’s a late entrant and should face the challenge since with time it shall become a player in the market since the market is still growing fast since the firm is new in the Australian market; here are several strategies it can take to gain some market advantage.

Sales promotion, public relations and advertising.

Advertising is any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. In advertising the pharmaceutical product, the main objective should be informative advertising because it figures out mainly in the pioneering stage of the product. It should embrace five Ms of advertising; these are mission, money, media, message and measurement. T should focus on the target audience, product and be cost effectiveness.

Sales promotion consists of diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of the drug and it’s a key ingredient of the marketing campaign. It’s used because it yields faster and easily measurable than advertising. The pharmaceutical drug can apply a number of the promotional tools which include the coupons, samples, price packs, premiums and patronage awards.

Public is any group that has actual or potential interest in or impact on a company’s ability to achieve its objectives. Public relation involves a variety of programs designed to promote a company image or its individual product. The pharmaceutical company should adopt a public relations strategy to build awareness, build credibility and to stimulate the sales force and dealers.

Price advantage:

The firm should offer its products at a lower price than that of its competitors in the pharmaceutical industry in the short run. If the existing companies don’t have a strong customer loyalty, then they will shift to the product being offered at a lower price since the product is of high quality and it acts fast with no side effects.  If a company tactics is to battle on price they should support its self for reaction by competitors, since they will not be happy to see sales shifting to new firm who are further more trying to enter the market and arte therefore likely to introduce incentive to compete more effectively.

Add value to the product

Price battling is risky and the firm should adopt better strategies to be applied even in the long run, by offering benefits beyond the basic product. The pharmaceutical  company can introduce additional features that will add additional value such as attractive packaging with extended warranty plans or promote features that already exist but are not well exploited for example promoting new product’s compatibility with other products sold by the company. The company can as well direct attention to advantages in the manufacturing process like locally produced, state of art manufacturing process or dedicate workforce.

Non-Price Incentives

The pharmaceutical company should adopt other incentives not applied by the competitors to gain the confidence of the new buyers in the market because the price competition is likely to be in the short run and the competitors are likely. The firm should adopt financial incentives that are not directly linked to reducing prices but rather are likely to gain a market share this may be like offering free products additional to the products bought.

Other incentives include building clinics and money back guarantees to the customers who have complain against the new drug. Other incentive can include offering customer service to the adult customers who need special assistance, it can also include offering free check ups to the customer and this is likely to have some positive image in terms of public relations of the company.

Offer stiff competition to outdo the competitors

Instead of investing money in trying offer price competition or other incentives, the company can decide to dwell more on the opportunities and strengths while fighting hard to overcome the threats and the weaknesses so that the firm can win more customers in the market, The company should invest in the opportunities not exploited by the competitors so that it can gain a big market share

Other ways to market the product

The firm needs to define ways of managing the product in terms of relocating it, changing with the customer needs, more on packaging and design, and blending it to increase more benefits to increase consumer satisfaction. It has also to monitor its market distribution channel and where to offer the customer service where it’s necessary.

Pricing strategy should also be developed; this includes price discrimination to different consumers with different levels of disposable income. This may involve segmenting the market and to develop competitive market entry prices since there already firms which have first mover advantage. The promotion strategies need to be laid out, this includes strategies such as developing a strong sales force, offering free samples, selling at discounted prices and developing good public relations.

Evaluation the performance of the marketing plan

 The pharmaceutical company can evaluate the performance of the marketing plan by looking at the sales volume or by the number of customers they have won within a certain period, may be one month or a year.

 It can also be calculated by use of the variance of sales from the targeted sales. If the targets are not met, then the control measures are taken to ensure that the targets are met, first the root of the problem is identified then a plan a course of action is taken to sort out the problem.

Market share analysis

The pharmaceutical company should evaluate the market share of the drug, this is because the sales volume may be growing but the market share is decreasing, but since it’s a new product entering the market, the firm can evaluate its market share from time to time to know if it’s growing. In trying to tack the market share, there are a number of features in the market to be evaluated, these are:

  • Total market share

    Segment share – that in the specific, targeted segment
    Relative share -in relation to the market leaders

  • Expenditure analysis

This involves calculations of the marketing expenditure in relation to the sales volume. The expenditure could be broken into the promotional expenses and the administrative expenses and so on.

  • Financial Analysis

For the profit making firms, the financial analysis should be calculated to know if the marketing plan is meeting its target in terms of the sales, the financial analysis also check of the market plan is working within its set budget. There are a number of analyses which need to be calculated, these are:

  1.  Is the contribution margin less or greater than the net profit?
  2. Is the gross margin greater or less than the return on the investment?
  3. Is the net contribution less or greater than profit on the sales?

The pharmaceutical company can also compare the achieved results with those of other firms in the market.

The above measures of performance of the marketing plan concentrate on the short run features of the plan, but there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization’s performance in terms of its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are:

  1. Market research – including customer panels (which are used to track changes over time)
  2. Lost business – the orders which were lost because, for example, the stock was not available or the product did not meet the customer’s exact requirements.
  3. Customer complaints – how many customers complain about the products or services, or the organization itself, and about what?

CONCLUSION

A marketing plan needs to be evaluated more frequently so that it emphasizes more of what works and less of what it doesn’t work. The implementation team should be more result oriented than the work done. The marketing plan should be carried out with its sole objective to meet the firms goals within the given budget allocation.

REFERENCES

  1. Carol Ann Waugh (1999), web article, Outline of a Basic Marketing Plan. Available at:
  2. http://www.xcellentmarketing.com
  3. Philip Kotler (2002) Marketing Management: the Millennium Edition, Asoke K Ghosh, India

 

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China Recombinant Factor Market

Whet also make recombinant factor too. After entering China, recombinant factor develops fast with annual sales value rising from less than CCNY 6 million in 2009 to CCNY 93. 78 million in 2014 and CARR reaching up to 76. 8% dung 2009-2014. Currently, recombinant factor in the Chinese market are all imported drugs. They mainly come from the following three companies: Baxter Bioscience Manufacturing (SW), Whet Farm S. A. (SP) and Brayer (the US), among which Brayer (the US) has the largest market share of 57. 40% by sales value in 2014.

As hemophilia’s’ ability to pay for medical treatment keeps increasing due to economic development, the market size of recombinant factor in China is expected to keep expanding. Download Detail Report With Complete TCO at: http://www. Nonrepresentational. Biz/sample/sample/289172 Readers can get at least the following information from this report: sales status of recombinant factor in China price of recombinant factor in Chinese market major manufacturers of recombinant factor in Chinese market share of dosage forms of recombinant factor in China market outlook of recombinant factor in China

The author suggests the following groups of people purchase this report: manufacturers of blood products investors/ research institutions interested in China blood products market any interest in the Chinese medicine market, please contact CRIB for customized survey service Browse all latest Articles of Market Research Reports at:http://www. Nonrepresentational. Biz/articles About us Nonrepresentational. Is is the most comprehensive collection of market research reports. Nonrepresentational. Biz services are specially designed to save time and China Recombinant Factor Market By rasher_27 main offerings are syndicated research reports, custom research, subscription access and consulting services. We serve all sizes and types of companies pning across various industries.

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Whole Foods Market Case Questions

1. What are the chief elements of the strategy that Whole Foods Market is pursuing? Is Whole Foods’ strategy well matched to market conditions in the food retailing industry?

The chief element of the strategy that whole food is pursuing is providing the finest quality of products in the market that is free from preservative and other genetically engineered products that reduce the quality of being organic. They promote the vision of the whole food, whole people, and the whole planet.

Whole food market is focus to extend their market to get dominant position in both the local and the international market through increase the amount of stores itself and acquisition.

For high demand from customer and higher profit margin than normal food, Whole food’s expansion and quality control market strategy was well matched to recent developments and conditions in natural and organic goods segment of food retailing industry.

2. Do Whole Foods Market’s core values as presented in case Exhibit 3 really matter? Are they “real ” or just cosmetic window dressing? Have Whole Foods’ core values contributed to the company’s success? Explain/support.

The 7 core values are very important. It guides the company on how to achieve the company mission “bringing the highest quality products to satisfy the consumer”.

The core values are also real. Through these 7 core values, the company link their own profit and growth to customer benefit, bind their suppliers with win-win partnerships and try to create an interests community involving all their stakeholders.

For example, to implement the first core value “selling the highest quality natural and organic products available”, the company set “nutrition, freshness, appearance, and taste ” quality standard and abundant principal categories to supply thousands of organic food and gourmet products in their store. All these value can directly deliver to customer, better satisfy their needs and lead to success in product quality and variety.

3. Based on the financial statement data in case Exhibits 9, 10, and 11, how well is Whole Foods Market performing?

From E9 statement of operations, sales eventually increased 1 billion every year from 4.7 billion 2005 to 8.03 billion 2009. However, the net incomes were kept in the scale between 114 million to 203 million these years due to the increasing input of store contribution. This situation matches the expansion activities of their business operations.

Then, combine with the data from E10

Return on stockholders’ equity 9.02% 7.60%

Working capital(in thousand) 371356 -43571

Long term debt-to-equity ratio 0.65 0.80

Long term debt-to-capital ratio 0.28 0.36

The long-term debt largely decreased from 08 to 09 which is the main difference between the 2 years.

In E11, the cash provided by operation activities in 09 is more than 08 and 07. And outside the business Whole Food also have investment activities. The company was trying to earn extra profits from exchanging securities. In 07, it earned 198343 thousands; in 08 it didn’t earn anything, then in 09 the company didn’t have any investment activities on exchange securities.

4. How well is Whole Foods Market performing from a strategic perspective? Does Whole Foods enjoy a competitive advantage over its 3 chief rivals “Wild Oats, Fresh Market and Trader Joe’s?

Whole Foods Market is performing exceptionally well from strategic perspective. Whole Foods Market is performing well by increasing their locations and markets. The company has made strategies for its stores, their location, and Whole Food’s product line, the design of the stores, the product quality, and marketing and for providing their customer most satisfactory service. It follows the strategy of team based management for store operations. It also offers compensation and rewards to its employees.

It has also made strategies that are feasible for the purchasing and distribution of items. All these strategies are in accordance with the company’s requirement and thus the company maintains a competitive advantage over its rivals due to its sustainable implementation of strategies for achieving its goals and managing the company. It acquired one of its biggest rivals Wild Oats in 2007. The company’s strategy has helped it in gaining the d position in the market.

5. What recommendations would you make to John Mackey regarding the actions that Whole Foods’ management needs to take to sustain the company’s growth and financial performance?

Whole Food was very successes on decreasing their long-term debt level while keeping their profitability and increasing sales. However, through it kept expansion through opening new stores and acquisition, the net income is not enough for big change like enter into a new area.

So, I suggest Whole Food may extend their service, such as adding a fast food to go window or even a dining area in their store to better utilize their urban metropolitan store location and cooking ability. The costs of food service just need to develop the new recipe and change the store wouldn’t too much but can attractive more customers.

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