Whole Foods Market Output
Congruence model as postulated by Nadler and Tushman (1980) recognizes organization performance as an interaction of different elements within the organizational system. They identified inputs and output as being critical to organization performance. They described inputs as important components that enable the company achieve its goals. Environment, resources, strategy, and history are identified as the major inputs by this model. On the other hand, outputs are is what the organization produces from the organizational inputs. Organizational output is analyzed at three levels that is, organizational, group, and individual level. The following analysis uses the congruence model to analyze organizational performance of Whole Foods Market.
Whole Foods Market produces a wide range of product lines. These products include 365 Everyday Value, Whole kids organic, the Whole Brands family, Authentic Food Artisan, Whole Foods Market, Exclusive Products, Whole Trade, and Premium Body Care products. The company categorizes its products as food and non-food products. Under natural and organic food categories the business chain has produce, grocery, meat and poultry, seafood, bakery, and prepared food. For non-food category it has nutritional supplements, body care, pet products, floral, household products as well as alternative pharmacy (Whole Foods Market, 2012a; Harbin & Humphrey, n.d.).
Whole Foods Market is one of the leading natural food retailers in the U.S. the company measures its performance by focusing on the amount sales, profitability, returns on assets, and customer satisfaction. The company sales and profitability has been increasing in the last decade with the chain recording strong results in the last three years. The company recorded $9.0 sales in the year 2010 despite turbulent economic times at the time. The company recorded net sales earnings of $117.7 in the second quarter of the financial year which was a historical performance for the food store. During the same time gross profit to about 36.4 percent of the total same in the second quarter (Springer, 2012). High quality brands to satisfy customer demands have are offered by the company. This has seen the company attract new customer on basis of product quality and customer satisfaction.
Increasing number of new customers and acquisition of new stores has continuously pushed the sale since the year 2006. The organization recorded sales of $5,607,376,000 in the years. The total volume of sales increased since then with total sales volume of $6,591,773, $7,953,912, $8,031,620, and $9,005,794 in the year 2007 to 2010 respectively. Whole Foods Market return on assets has also been increasing steadily depicting strong performance in of the food store. The quarterly return on assets release from the year 2010 has increased from as low as 7.02 percent in the December 2010 to 9.35 percent in June 2012 (Business Week, 2012; Harbin & Humphrey, n.d.).
Whole Foods Market vision captures a number of goals that focuses on quality products. The company promises to socially responsible food products for the satisfaction of the customer at the same time creating wealth for its stakeholders. Besides this core goal, Whole Foods Market has number specific goals. Firstly, the company aims at providing rewards to the working environment. At the same time, it is focused on commitment to provide high quality organic products to its clientele. Finally, the company also aims at dedicating itself to communities and the environment.
Whole Foods Market identifies a number of groups in its achievement of its objectives. It operates through chains of stores to deliver well products to its customers. The stores are geographically distributed in the United States, Canada, and United Kingdom. It has over 288 stores the United States, six in Canada, and five in United Kingdom. The stores sell perishable products which account for large proportion of the stores total sales. The stores contribute significantly to the organizational level performance of Whole Foods Market. The stores are of different sizes but have over the years helped in improvement financial profitability of the company in more recent times. For this reason the management has targeted to open approximately twenty-six new stores at the end of the year (Springer, 2012).
In the United States, Whole Foods Market stores are distributed geographical in thirty-eight states and District of Columbia. Each store has a number of departments that interact to ensure effective performance of the store. The stores departments include bakery, beer, bulk, cheese, coffee and tea, floral, grocery, meat and poultry, pets, prepared foods, seafood, whole body, and wine. For the food departments appreciates the importance of natural and organic products by ensuring that it produces and sell highest quality products. They departments are also charges with responsibility of ensuring that all food products meet health and safety standards. This is done by evaluating ingredients, freshness, safety, nutritive value, taste, and appearance of the products. At the same time these departments also ensure that food purchased meet good agricultural practices. At the end, the departments ensure strong product brands are offered to the customer by making sure that only highest quality natural and organic products are always available for sale at all time in the stores (Whole Foods Market, 2012b).
The non-food department like the pet ensures that pet food is carefully selected and packaged as well as being offered in a variety of choices to the pet owners. The department put animal health first by ensuring transparent manufacturing practices for pet food. Besides providing the products, the department provides pet services such as flea and tick prevention and control. At the same time it gives dietary advice. The performance of the stores and the stores departments can be measured by their contribution to the total Whole Foods Market sales volume and profitability at the organizational level (Whole Foods Market, 2012b).
With reference to congruence model, organizational output is influenced by individual behavior (Nadler & Tushman, 1980). At this level, organization employees come into play. The success of the group level which in this context is the stores and stores departments, completely rely on the knowledge, experiences, skills, and behavior of its employees. The key employee jobs in the Whole Foods Market stores include sales, administration, human resource, procurement, customer service, accounting, and legal issues. Employee output at store level is efficient job performance. Another major output of employees at store level is that the crucial decision they make regarding benefit products packaging. On top of these employee suggestions that turn out to be incredible helpful is another important output for employees in the organization. The performance of individuals is measured by target achievement within a specified period of time. Most importantly, employee output in the stores can also be measured by the gleaming, perfectly arranged, and neatly packaged products in the stores. It is important to recognize that these performance indicators perfectly contribute to the excellent performance at group level which is individual stores which eventually translates to organizational level performance.
The interaction of between the three levels of the Whole Foods Market output is high. This is attributed to good performance in terms of sales and profitability that the company has recorded in the recent past. it should recognized that an organization that has dysfunction among the system component will register dismal results.
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