From a very humble beginning with an investment of a mere $45,000 and one store in Austin Texas, Whole Foods Market Inc. has become a household name in the organic and natural foods retail industry throughout the country. Through acquisitions and mergers, Whole Foods Market has grown and currently has 434 stores in the U.S., Canada and the U.K. Its long- term goal is to own and operate 1,200 stores, although there is no specific time line. However, these growth plans are being threatened by the growing encroachment on the organic foods segment by mainstream food grocers such as Wal-mart, Kroger and Costco. These stores sell organic products at much lower prices, taking advantages of the high-prices reputation of Whole Foods Market ("the Whole pay check store''). In fact Whole Foods Market is no longer the leader in the industry. It is against this background that Whole Foods Market has decided to embark on an additional version of Whole Foods stores, a mild form of "related diversification". The new stores, to be known as "365 stores" will operate alongside traditional Whole Foods Market stores, often in the same geographical areas. However, they will serve a more price-conscious customer base, especially the millennials.   Product prices will be closer to those of mainstream food grocers. The 365 store adventure represents a major strategic change  and is a response to economic and social environmental forces. As a major strategic change, the 365 store idea will engender many additional changes at Whole Foods Market. Whole Foods Market may have to adjust its approaches to organizing, leading and controlling.   

The Whole Foods Market is in many aspects not a typical corporation. As the Whole Foods Market case and other sources that you have read indicate, John Markey, the founder and current co-CEO, is not a typical company CEO. You also read about the company's highly decentralized organizational structure, their team-oriented decision making and leadership style, and their unique human resources processes. Whole Foods Market is known for its attractive workplace environment, being one of only three food retailers that have frequently appeared on the Fortune 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.

ASSIGNMENT SPECIFICS

Given the background in the above paragraphs, address the questions listed below. To address the questions adequately you need to look up additional information from the Whole Foods Market case, Internet sources and other sources available to you.

1. Explain how the introduction of the 365 store chain represent a corporate strategic change.
2. What business challenges will Finance have to address following the introduction of the 365 store chain?
3. Whole Foods Market recently announced that they will be laying off 1,500 employees. How will this decision affect the Human Resources Management activities at the company?Also,how will this decision affect the Finance activities at the company?
4. Which leadership styles will most likely lead to a successful launch of the 365 store chain?Does the current top leadership at Whole Foods have these styles?