1. In light of Whole Foods’ distinctive management philosophy, structure and val
ID: 447298 • Letter: 1
Question
1. In light of Whole Foods’ distinctive management philosophy, structure and values (e.g. social responsibility), explain why it makes strategic sense for the company to introduce the 365 store chain, using a SWOT- style analysis (matrix) as the starting point for your discussion.2. Discuss: a) the advisability and potential impact of the employee layoffs on Whole Foods’ financial and physical operations and b) the challenges and/or benefits the reduction in force presents for the company as it prepares to staff and market the new line of stores. 3. Which of the leadership styles covered in class do you think will be needed for the successful launch of the 365 store chain, and why? (You may argue for more than one.) Does current top leadership at Whole Foods exhibit that style or styles? Explain.
Explanation / Answer
1. SWOT analysis for introducing 365 store chain are as follows:
Strengths:
Weakness:
Opportunities:
Threat:
These are some of the key thoughts which need to be thought of before opening up of 365.
2(a). Employees are the key strengths of Whole Foods. In Whole Foods they organization is highly decentralized with very degree of self empowerment for each individual and team member. When the company plans to lay off its employees it should give it a double thought. As very high focus in given for teams, the organization should ensure that the absence of the employee who is being laid off does not create a major impact in the organization. In certain teams, there might be one key member who might take the leadership responsibility and take the team ahead, and unfortunately if that member is laid off, then the whole team will collapse.
Hence the company should be very careful before laying-off an employee since it might cause disturbance to both financial and physical operations.
2(b). Reduction in work force will only result in increased in challenges for the company since if they afford to lose an experienced work force then they have to invest a lot again in recruiting and training a fresh candidate. In a scenario where the company is planning to open new stores it should only try to retain the existing employees and consider them as assets instead of laying them off.
3. Participative style of leadership will help the company to be successful in the launch of 365 store chain. Since the company already has this kind leadership in its organization, it will be very risky for the organization to suddenly adopt a new style of leadership. At certain instances, the organization will have to think autocratic mode and be authoritative but most of the times, the leadership will have to be participative.
Yes, current leadership at Whole Foods is of participative type. As teams are highly empowered with decision making authority, this explicitly explains the mode of leadership that is evident with Whole Foods. Teams are responsible for Innovation, recruitment and progress of the company; In short all the line authorities are given high degree of leadership which is clearly participative.
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