BUS599 Rework Mod 3 SLP Congruence Model Of Organizational Behavior

Congruence Model
Name:
Instructor:
Institution:
Date:
Background
Whole Food Market(WFM) has grown tremendously since its inception in 1980 ,to be one of the market leaders when it comes to grocery. It is among the best performing in this segment, on a global scale.. The organization is currently very expansive, boasting more than 200 outlets in numerous other nations other than the U.S, such as U.K and Canada (Hamstra, 2008). Its performance has been quite exemplary, that it got into the Forbes list at one time, as one of the best companies to work for.
All these achievements have been down to the organization’s improved practices in terms of its human resource department. This has made it focus more on its goals, mission and vision, as well as the benefits for the workforce thereof. There are still a number of this that need to be looked at and improved by the organization, even though it has shown much improvement based on its adherence to Nadler-Tushman Congruence Module.
The graph above shows the growth of the company amid contributing factors. Soruce: /news/articles/2015-05-14/whole-foods-walmart-costco-steal-growth-in-organic-groceries
Analysis of Whole Food Market Strategy
The aim of any company or business is to generate profits by ensuring that it expands its markets, adds more value to its products, and generally ticks all the boxes that would make customers stick to its products. The same is the case with WFM and these have also been its major targets. There has however been a number of challenges that have plagues the company in its pursuit of achieving these goals. These factors include the general public perception among the customers that the products from the company cost very high. The other challenge is the ever-present threat of competition from very able substitutes, such as Safeway and Wal-Mart that also competes in the same market (Whole Foods Market, 2009). Subsequently, WF main strategy of ensuring that it attains its objective of recording a sales increase has been based on the following actions that have so far been undertaken by the organization.
The graph above shows the market size of organic foods over the years. Source: /private/12.13/catastrophy.html
The company’s strategy according to Porter’s three generic competitive strategies is the strategy of differentiation. The strategy of differentiation mainly focuses on the making of the company’s products more attractive than those of their competitors. This is done according to the nature of the goods and services that the company offers to the market or even the line of industry. The features that contribute to the success of this strategy include the following functionality, durability, assistance and the already established company brand which the customers recognize. For the success of the differentiation strategy to take place there vital steps that should be followed, first the Whole food market company is supposed to conduct thorough research on what the market wants from them, once they understand this they will be able to come up with a product that competes fairly in the market.
Secondly, they should be able to produce goods of high quality even if the consumers want lower price the quality of the products should not be compromised. The third and final thing is that they should apply the best marketing and sales strategies which are exceptional when compared to their competitors. The success of the company will solely depend on those three factors and if they are well implemented the company will experience significant growth and profits.
The graph shows the market price of WFM over the years, since 2008. Source: https://ycharts.com/analysis/story/why_whole_foods_doubters_have_gotten_crushed_chart_by_chart
Perhaps one of the most important and crucial moves made by the company as part of its business strategy has been implemented so far is the expansion of the company’s market share through establishment of more outlets or new stores in various locations. A chief illustration of this has been through the extra 110 stores that the company acquired from its rival natural grocer organization the wild oats in 2007 and the 21 new stores that it built in the U.S (Gregory et al, 2007). Finally, WF has been forced to lower its stock price, which has fallen since 2008 as a way of reacting to the consumers’ perception of the higher WF prices.
This has also been compounded by the reduction in prices of similar products by the competitors, which has indirectly pushed it to lower its prices, as part of survival strategies in a market that has stiff competition. As per the earlier discussions on Porter’s strategies, the company has therefore embraced these measures as part of its efforts to gain competitive advantage over the rest. It can be summarized as, first is the cost leadership, the second being differentiation and finally the Focus. Whole Foods Market has incorporated the cost leadership strategy by reducing their stock prices as a way of luring more customers, who in return ensures that the company maximizes its profits from the potential consumers.
The company has fully embraced Potters differentiation strategy through the preparation of foods that are both natural and also ones that can be offered within the restaurant. This is in an effort by the company to get hold of its current market while also trying to break into new consumer markets. These examples therefore affirm that Whole Food Market strategy best fits differentiation and Cost focus strategies of porter’s generic model.
Review Whole Food Market Input
Environment Category Input
Stiff competition from other players in the market has been one of the biggest challenge affecting the company at the moment. It is however a typical occurrence for any business. As initially mentioned, the company faces a major hurdle when it comes to competition with other companies in the same industry, like the Safeway and Wal-Mart among other companies producing the same products at a very competitive price and the key input that the company has put in place is the product differentiation strategy (Whole Foods Market Benefits, 2009). This has simply meant that the organization needs to change tact in one way or the other.
Competition from rival companies is critical since it poses a threat to a company’s monotonous control of a specific market. Among th3 various efforts made by the competitor to maintain and attract even more clients, is the after sale services, such as giving a free fruit for every purchase made by a customer at the outlets. As insignificant as it might seem, such services are usually very attractive to clients, and play a crucial role in holding them to the business.
Resource Category Input
The company has garnered much acclamation and fame as a result of its appreciation and focus on its employees, through measures that have made it have a culture of motivation and appraisal. These are values inculcated in the employees. Resources may include the money, information, human resources and sometimes the tangible resources such as being recognized in the market. For Whole Market Foods to get recognition in the largely dominated markets having enough resources is a factor to be considered. Whole food has indicated that it values employees input by offering training to new employees and their fellow employees determine their performance (Whole Foods Market, 2009). Information is also one paramount support this is because having the right information will enable the company to have their priorities right. They will be able to know the requirements of the customers through the factual information they have.
It is certainly one of the most important elements in the company’s business strategy, as it gives it an edge over the others. It gives it the competitive advantage over the other competitors. The organization needs to continue investing in its workforce by continuously training its employees, as it ensures that continuity is restored in the production system of a specific company thus ensuring production of best quality is consistent regardless of shifting and shuffling of employees. Finances also play a great role in the development of the company. They are the power behind the great performance any company experiences. Availability of funds will even enable the company to buy the organic and natural products and sale at a profit.
History category input
The company has a long held heritage of diversity amongst its ranks. Since its founding, the company has always had a neutral stand on its employees, thereby encouraging diversity and non-bias. Measures against discrimination in the workplace have been the company’s driving force, something that ga...