In this two-part assignment, students will examine the capabilities your company

Question

In this two-part assignment, students will examine the capabilities your company needs to develop to deliver its strategy. An important aspect here is to determine the measures that you want to use to determine the success of your efforts. We assume that your team is about to have a meeting to set long range priorities around performance measures. This assignment is pre-work for that meeting.

Part One: Competencies and Competitive Advantage

At this point you have a vision, and you have a strategic direction. For example, you might be saying, “We plan to be a high technology company. We will concentrate our resources upon the High End, Performance, and Size products and the regional markets that make up these segments. We will compete based upon differentiation to respond to the specific market needs in these regional locations (a multi-domestic strategy).” Or you might have decided to be in every segment and compete on price, or any of a dozen other combinations of vision and strategy.

But what capabilities do you need to develop to execute your strategy? For example, it is one thing to say, “We will compete on price” (using an international or global strategy), and another to build a company that can effectively compete on price and still produce a solid return for stakeholders.

Let’s relate two popular ideas, “Core Competence” and “Competitive Advantage”, to your situation. You could develop competencies in awareness, accessibility, product redesign, product invention, automation, plant utilization, human resources, cash flow management, and forecasting. All of these competencies take several years to develop.

You would use these competencies to develop competitive advantages. For example, competencies in automation and human resources could lead to a competitive advantage in cost leadership. Competencies in awareness, accessibility, and design could lead to a competitive advantage built upon differentiation.

With this as background, present a 1-page written argument to turn in to the instructor and to present to your teammates that addresses the following:

1)    What are the top three competencies you believe necessary to execute your vision and strategy in the marketplace?

2)    What decisions do you need to make to develop these competencies?

3)    How will they produce competitive advantage?

Part Two: Performance Measures

What performance measures should be used by your stakeholders to assess your company’s performance? What is their relative importance to each other?

The simulation offers 8 performance measures:

Cumulative Profit

Ending Market Share

Average ROS (return on sale)

Average Asset Turnover

Average ROA (return on asset)

Average ROE (return on equity)

Ending Stock Price

Ending Market Capitalization

You will find a brief explanation for each measure on the Capsim website under “Homework”, “Success Measures”, “Criteria Definition” links. Also read the Overview. Prioritize these measures by applying a weight between 0% and 100%. (I don’t recommend that you choose just one success measure but you can if you want!) I recommend about four but you can have from one to eight. The percentages across all measures must add up to 100%. For example, you might set Cumulative Profit to 30%, Market share to 20%, ROS to 10%, ROE to 10%, Stock price to 10%, and Market Capitalization to 20%. Given your measures, the simulation will score all teams to develop a winner based on each team’s criteria.

The Capsim report “Final Score Relative” tells you how you are doing to your success measures. The report uses a three-step process:

1.     The system determines a raw score for each category by dividing the team’s score (“Team's Value”) by the highest scoring team in that category (“Highest Value”). For example, if the “Team’s Value” for Profit is $5,000,000 and the “Highest Value” is $10,000,000, the team receives a raw score of .5 ($5,000,000 ÷ $10,000,000 = 0.5).

2.     Next, the system multiplies the raw score by the success measure entry. Continuing with the previous example, if the team’s success measure (“Team Weighting”) is 12.0, multiplying 12 by 0.5 will derive a “Score” of 6.

3.     The scores for each category are added, and the resulting sum appears in the Total row.

Write a 1-page explanation for your choices for each performance measure. Be sure to relate your explanation to the concepts introduced in the text. For example:

1.     Is this measure appropriate for evaluating your strategy? For example, if you are in every regional segment, market share is appropriate. If you are in only two regional segments, it is not appropriate, even if you have highest overall market share at the moment.

2.     Why did you prioritize it with the value you gave it? In particular, if you think it is an appropriate measure, why? Likewise, if you think it is marginally appropriate, why?

Explanation / Answer

Whole food market is one of the America's biggest organic and natural food retailers, world food market was not only America but the world's biggest organic and natural food retailer. World food market is basically an employee oriented organisation which focuses on growth of their employees that reflects in their working platform as well as the system. Organisation culture of the plant is very strong and contributes to the brand strength.

Whole Foods Market’s organisational culture is considered as one of the best work culture for an organisation and is a fine example of an employee oriented workplace and culture in an organisation. This specific organisational culture attract the customer to their products and their store which results in increased profits and sales.

Basic features of whole foods market's organisational cultures are as follows

·         Team focus

Whole Foods Market’s basic strategy includes focusing on the teams. Most of the task of the company are designed to be done by 18 which improve their overall efficiency as well as the productivity of the human resource. By optimising the employee morale and reducing the turnover company has successfully implemented the team system into its and work structure. The core value of Whole Foods Market is “Supporting team member happiness and excellence.” when the culture of the organisation contribution we human resource management.

·         Active participation

Company also introduced the active participation system into its organisation and supports the extensive employee participation in each and every job provided inside the company. For example employees select the team members according to their choices and mutual understanding for a better and productive work environment.

·         Interactions out of work environment

Whole foods market also very well known for interactions other than formal inside it stores. Employees are in touch with each other and always keep discussing about random things inside the plane as well as discussing things with the customers as well. The specific practice reduces the gap between the customer and the employees which is directly related to the growth of the business. Whole foods market also focuses on creating social relationships within the Company organisation and culturally support the workers as well as the customers.

·         Trasparency in workplace

Wholw food market is one of the most transparent work environment available in the USA. By creating transparent report which has to inform the stakeholders is a key thing of transparency within the organisation. Not only the stakeholders but whole foods market also provide this financial report to their employees. Financial report provision to the Employees make them understand the form situation in a better manner. By introducing transparency in the workplace company also helps in the human resource management which is done in resilience.

Whole foods market culture is one of the best culture in the business. This specific culture is based on high ethics and morals of employees as well as the working environment. Using their work culture as a tool company uses this specific culture to improve their Human Resource Management hence organisational culture of whole foods market is one of the strongest points of its key success

According to VRIO framework whole food market can be divided into following categories.

Value

Whole food markets have successfully compete with its competitor and created its own brand value by imposing their cultural activities as well as ethical working environment. Whole food market 2nd standard by maintaining ethical environment of their work places as well as the organisational system.

Rarity

Whole food market has imposed a totally new idea to the market by implementing the green strategies towards the work so far system.

In terms of priority whole food market is not there resourced but their organisational culture in the rear and it is very hard to find a standard of this level in any organisation culture other than whole food market.

Imitability

Ability of whole food markets is not that hard but imitation of their organisational culture is again very tough as they have done it so deeply that from the very beginning company has always work as a green and ethical company. By providing ethical advantages to its customers and implementing the system into the core strategies of the organisation they made it very hard to Limited.

Organisation

Whole foods has organised to create the ethical values .Rather than focusing on profits, company always focuses on the employee employer relationship and the customer employee relationship which makes it one of the best working environment for an employee. Add a base of organisation whole food markets has successfully integrated all of its path into one place by creating a more and legal environment for business.

Whole food market has always been a Pioneer in the industry in maintaining the relationship between the employees as well as in its organisation.

Whole food market has always done its business with a clear vision towards a society. They have always maintain a balance between the cultural as well as social stand of the company. By providing one of the best working environment in the United States of America food market has become an icon of ethical business. Correct decisions and ethical thinking leadership made its working structure, the structure of employee.

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