2. INDUSTRY DEFINITION
The Supermarket and Grocery Stores industry
makes up the largest food retail channel in the
United States.
Primarily engaged in
retailing general lines of
food
products, including
fresh and prepared
meats, poultry and
seafood, canned and
frozen foods, fresh
fruits and vegetables
and various dairy
products.
7. BARRIER TO ENTRY
Capital intensity----medium
Product differentiation----low
Distribution network and licenses----hard
to get
8. MARKET SHARE AND OTHER COMPANIES
The Kroger Co. 1.5% 1.0%
3.5% 3.5%
Supervalu Inc. 3.5%
15.5%
Others ( Walmart. Fresh &
Easy, Mom&Pop grocers)
8.0%
Safeway Inc. 6.5%
Publix Super Markets
Great Atlantic & Pacific Tea Co.
Delhaize America Inc
Whole Foods Market Inc.
57%
Aldi Group
9. INTRODUCTION
#1 organic retailer in the world
Established in
1980, Austin, Texas
Operates more than 300 stores
in the United States, Canada and
the United Kingdom with 54,000
global employees
In 2010, produced a 12%
increase in sales to $9.0
billion, and 84% increase in stock
market
On Fortune Magazine’s list of the
top 100 companies to work for
13 years in a row and currently
ranks number 24
10. SWOT ANALYSIS
• Strong revenue growth • “Weak” international
• Focused growth operations
strategy • Conservative
• Wide product international policy
portfolio • Word of mouth
• Local farming and advertising
fishing market ties
Weaknesse
Strengths
s
Opportunities Threats
• Higher demand for •Increasing competition:
organic products Traditional grocers
• Labeling and other
• Expansion in the UK regulations
• Growth in private label • Slowdown in the US
products economy
11. CORE VALUES
Selling the highest quality natural and organic
products
Satisfying and delighting customers
Supporting team happiness and excellence
Caring about the community and environment
Creating wealth through profits and goals
Creating ongoing win-win partnerships with
our suppliers
Promoting the health of our stakeholders
through healthy eating education
12. COMPETITIVE STRATEGY-DIFFERENTIATION
The Price Difference
Lowering Prices: The “Whole Deal”
Community and Environment
Human Resource Department
Team Members
Partnerships
14. STORE STRUCTURE
• Human Resources
Support • IT
Staff • Marketing
• Accounting
• Store Team Leader
Managers • Assoc. Store Team Leader
• 11 departments each
with :
• Leader
• Associate Team Leader
Staff • Team Members
15. RECRUITMENT OVERVIEW
Method: centralized and decentralized
Proposed: college recruiting, formal employee
referral program, structured interview, job
knowledge and intelligence tests
Goal: more applicants, higher quality
applicants, and lower costs resulting in a better
workforce
Evaluated: Retention rates, time for
promotion, number of qualified applicants per
position, cost of program relative to
benefit, performance of new team leaders
16. TRAINING & DEVELOPMENT
Mission
Believe employees are the most valuable resource
and do everything to ensure they are motivated and
successful
Provide a great work environment to give them the
best chance to develop and succeed as team
members in any part of the company
The knowledge is obtained through
classroom training
articles related to the field of organic foods
online through the Whole Foods University
mentoring program
17. TRAINING & DEVELOPMENT
New team member orientation
Department-specific training
Product knowledge training
Customer service training
18. TRAINING & DEVELOPMENT
"Green Mission" training
recycling and composting at Whole Foods
Market
Benefits training
preparation for enrollment
being a wise health care consumer
Whole Foods Market University
Career development programs
19. WHOLE FOODS MARKET UNIVERSITY
self-paced courses and video vignettes
Introduction to Organics
Dietary Supplements and the Law
Introduction to Quality Standards
Gain sharing for Team Members
20. CAREER DEVELOPMENT
Classes or trade shows, ESL
resources, books or magazine
subscriptions related to the business
Working with existing team leaders
Attending leadership development
classes
“Buddy” leadership training
22. PERFORMANCE MANAGEMENT
And How?
Team responsibility for failures and successes
The financials and all meeting notes open to employees
Regular team meetings for creative ideas development
On site HR
Rewards and recognition for successes:
Profit sharing for teams / store competitions
Employees who are actively involved in community service
Transferring/ “store opening” encouraged
Stores promote from within whenever possible
Transparent pay system
23. TEAM CONTROL
Orientation Period 30 – 90 days and
Team Vote
The criteria used :
positive job performance
adherence to policies and
procedures, excellent customer service skills
teamwork
24. COMPENSATION
All jobs in a class are paid the same rate.
Salary caps of 19X average Store team leaders
In-store 20-30% discounts
Stock options Associate store team leaders
Chosen benefits package
Seasonal sales bonuses Specialized store support
Department team leaders $20-25/hr
Associate team leaders
Specialized team members
Team members $10-15/hr
25. ON SITE HR
Conducts surveys:
salary and compensation surveys
interviewing and recruiting surveys
business outlook
employee workplace behavior surveys
26. SUCCESSION PLANNING
Career development programs targeted to: are team
members, associate team leaders, team leaders and
associate store team leaders who are interested in
promotion.
”Team Leaders" not traditional ”Managers.”
Rotational hands-on learning during training
Verbal, written, media materials to improve
leadership styles and skills.