In this paper, we are going to looking at Whole Foods Markets in comparison with the Nadler Tushman Congruence Model. This will be achieved through studying what the company produces / sells, the goals, its performance, the different groups, individuals' and how these variables are measured. Once this occurs, is when we will show how these areas are impacting a variety of stakeholders in the process.
¶ … Diagnosis
Whole Foods has become a retailer that is known for the quality of products they are selling and the experience the customer has at their locations. This has resulted in the firm transforming these experiences into something which is copied among various competitors. To fully understand what is happening requires carefully examining the outputs of the corporation through the Nadler Tushman Congruence Model. This will be accomplished by analyzing what the company produces / sells, the goals, its performance, the different groups, individuals' and how these variables are measured. Together, these elements will highlight the way outputs are having an impact on the firm and the strategies they are utilizing. (Schmidt, 2012)
The Nadler Tushman Congruence Model
The Nadler Tushman Congruence Model is focused on evaluating and improving a firm's ability to respond to critical challenges through objectively analyzing different outputs. This is achieved by concentrating on a number of areas to include: the culture, work, structure and people. These factors will determine a company's ability to meet various performance standards and how quickly they can adjust with different challenges they are facing inside the marketplace. ("The Congruence Model," 2013)
The Organizational Level - Identify the Outputs
What does it produce and sell? What are its goals? How has it been performing?
On the organizational level, Whole Foods sells a number of different products to include: grocery, meat, poultry, seafood, bakery, prepared foods, coffee, tea, nutritional supplements, vitamins, beer, wine, cheese, body care merchandise, books, floral items, pet and household goods. It produces these services through working with whole sellers and distributors. That is focused on offering quality and embracing sustainable standards for safety / environmental practices. The company's goals are embracing these areas, to create a change in the way other firms are doing business and the impact it is having on society. ("Our Mission and Culture," 2013) ("Whole Foods," 2013)
Whole Foods Markets has been performing very well from embracing this kind of strategy. Evidence of this can be seen by comparing the earnings per share with the Wall Street estimate over the last year (which is illustrated in the below table). In three quarters, the firm has been surpassing these projects. This is because they are focused on offering customers and the community with something more. ("Our Mission and Culture," 2013) ("Whole Foods," 2013)
Whole Foods Earnings per Share vs. The Wall Street Consensus
Category
Wall Street Estimate
$.30
$.30
$.38
$.36
Actual Earnings per Share
$.32
$.30
$.39
$.38
("Whole Foods," 2013)
These figures are illustrating how the firm is able to realize better than expected earnings. This is based upon the practices they are embracing and their commitment towards reaching different goals. ("Our Mission and Culture," 2013) ("Whole Foods," 2013)
The Group Level
What are some groups that Whole Foods Market identifies, and the goals / performance of these groups?
The groups that Whole Foods Markets identifies with are: individuals who want to live a healthy lifestyle, they are concerned about the environment, looking for foods that are organically grown and people which care about the practices of farmers / producers. The goals / performance of these individuals are to make a difference in the world around them. This is based upon the traditions they are embracing. At the same time, they are concentrating on supporting entities that can enhance the quality of life for everyone and improve the practices of different segments of society of utilizing. (Schmidt, 2012)
A good example of this can be seen with Whole Foods discussing how they are meeting these long-term objectives with the firm stating, "We believe that companies, like individuals, must assume their share of responsibility as tenants of Planet Earth. We actively support organic farming, the best methods for promoting sustainable agriculture and protecting farm workers / the environment. We also aim to protect the environment by supporting alternative sources of energy and recycling or compositing our waste. We are actively involved in our communities by supporting food banks, sponsoring neighborhood events and contributing at least 5% of the total net profits to charities. Our vision of a sustainable future means our children and grandchildren will be living in a world that values human creativity, diversity and individual choice." This is illustrating how Whole Foods Markets is dedicated towards specific groups that share similar performance goals and standards. ("Our Mission and Culture," 2013)
The Individual Level
Identify five to seven key jobs and their outputs. How can the performance of these jobs be measured? Determine the congruence of the outputs and make a strong argument for your case.
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