Nadler-Tushman Congruence Model And Whole Foods Market Essay

Length: 5 pages Sources: 5 Subject: Business Type: Essay Paper: #43386472 Related Topics: Whole Foods, Target Market, Healthy Food, Stock Market

Excerpt from Essay :

Business Studies

Assessment of Whole Foods Market Outputs with the Nadler-Tushman Congruence Model

The Nadler-Tushman Congruence Model may be used to analyze the performance of an organization, looking at the output across three different levels; the organizational level, the group level and individual level. XCG been undertaken an analysis of Whole Foods Market, and after determining that this model may provide them with the most useful information for an analysis of the company, the analysis needs to be undertaken, using the information that is a ready been collected.

Outputs at the Organizational Level

The firm is a retailer of healthy, organic food, therefore the first output achieved through all of the stores, with the sale of food to its target market. This output is achieved through the company's role as a middleman intermediary in the supply chain. The firm identifies and purchases products from upstream suppliers, including local organic farmers as well as manufacturers provide own brand goods, which are then distributed across the stores, and are then sold to the customers who visit the stores. The company has in excess of 2,400 product lines which are sold in the Whole Foods Market shops.

The sale of the goods, which is also supported by the input from employees, creates another type of output, the financial outputs. The financial outputs can be quantified by looking at the annual accounts, with the company achieving a total revenue sales of $12,917 million for the financial year that ended in 2013, and a before tax net profit of $894 million (Whole Foods Market, 2013). This revenue is used to create inputs into other systems, much of the money is reinvested in the business, but the shareholders will also benefit from the outputs. In 2013 this amounted to a direct output of 0.48 per share, equating to a dividend yield of 0.90%, the dividend reflects the good performance and a high level of profit to the company's achieved, with the revenue growth in 2013, compared to the previous year being 10.41%, and the net revenue increasing by 18.76% (MSN Money, 2014).

The performance of the organization, especially with 2013 providing a record year also creates another output in terms of the impact the performance. The performance of the organization, as well as the forward-looking statements made by management, will impact on the share price as a result of the influence on market expectations. Where the market expects the company to do well, demand for the shares increases, and the shareholders benefit as a result of an increase share price. This may be seen as an indirect financial output, but it is still one which impacts on shareholders. A stated goal of the organization was an aggressive growth strategy in order to increase revenues, this has certainly been achieved.

The primary purpose of an organization may be defined by its most apparent operations, in this case the retailing of food, and a primary purpose of its existence, which are the financial outputs. However, there are also other types of outputs, one of which is the communication message. The organization is an organization with a message, not only communicating marketing messages to attract customers to the company, but also with the content of the messages which include elements of education for the target market, which may provide increase knowledge and empower consumers to make better eating decisions, and support healthy lifestyles (Whole Foods Market, 2013). The same healthy communications are also targeted at the employees. The communication takes place at an organizational level, with the mission and values encompassing all elements of the company, but it is also an output can be observed at the group level. The company has been able to successfully differentiate itself, as seen with the high level of loyalty demonstrated by many of his customers.

The creation of stores may also be seen as another type of output. In 2012 it was stated that the organization was targeting a total of 1000 stores in the U.S., and at that time had 340 stores. By 2013, the organization had a total 362 stores, including presence in the United Kingdom and Canada. The company is growing; however the goal of 1,000 stores across the U.S. is not given within a specific timeframe. Therefore, the organization is moving towards this goal, and may be seen as successful, but there is still a significant gap between the current position and the desired position.

Outputs may also be seen as benefiting external...


The company has contracts with large suppliers, but it also undertakes contracts with local farmers and producers, this is seen in the way that each store has local forages, whose job is to try and find local produce for the stores. Therefore, one output may be supported is provided for smaller local producers, which find it more difficult to compete with larger companies. The impact on communities can also be seen with the corporate social responsibility (CSR), including the company making charitable donations of approximately 5% of the after-tax profits, in addition to other CSR measures, which have included making loans available to producers to support fair trade, and the setting up of a number of different foundations and supporting healthy lifestyles.


Outputs at a Group Level

The group level outputs are reflective of the organizational systemic outputs, across many of the same areas. As an organizational level the company can be considered as in international organization, with operations not only in the U.S., but also in Canada and the UK. As a group level the organization can be considered at a micro rather than macro level, with the way in which each store operates, especially as the policies to provide managers are stores with a high level of empowerment in order to make decisions regarding what they stock, the way they market, and marketing with local communities. The group level output is very important to the organization as a company prides itself on a low level of corporate marketing budget, which in 2013 was less than 1% of revenues (Whole Foods Market, 2013). The output of the marketing efforts, including a public relations effort is each store are key to the success of the organization. This can be seen in the way that the individual group level communications efforts have included not only local marketing efforts, but also social marketing, with many of the individual stores starting up their own social networking strategies, such as Facebook. For example, the whole foods market in Colorado has in excess of 9,000 fans on Facebook, and the London branch has in excess of 22,000 fans, both of which have highly active Facebook with bilateral communication taking place (Facebook, 2014).

Just as individual stores may be seen as groups within the organization, departments that operate within the organization also groups. For example, the group outputs at store level concerning marketing may be seen as emulating the marketing department, which is highly active on social networking media, not only Facebook where they have accumulated more than 1.5 million fans, but also Twitter and Flickr. The human resources department also has a number of outputs, including effective training strategies and methods for ensuring that the have the skills that are needed. The human resource department has also developed a number of programs that provide benefits to employees, including the "total health immersion program" and the healthy discount incentive program," the outputs are direct help provided for the employees to maintain healthy lifestyles, and may also result in output of healthier employees. More than 16,000 employees are participating in these programs by the end of 2012 (Whole Foods Market, 2013). A significant benefit, and an output the benefits the company has been the result of these measures and the way they have increased health of the employees, reducing the level of absenteeism when measured on a year by year basis, as well as a notable reduction in the costs of medical care for inpatient stays (Whole Foods Market, 2013). General motivation theory indicates that where employees feel that they are important their employer, and that the employer cares, there will also be a higher level of motivation, which will increase the overall productivity per employee, so a group output as a result of the work of a single department has supported productivity (Armstrong, 2012).

At a community level there is also the ability to observe group outputs; a community level program saw the creation of the Whole Kids Foundation, which has the aim of supporting schools and inspiring families to better the nutrition and general health of children. Some specific outcomes have included grants given to school to establish salad bars to help with healthy eating; in 2010 alone 564 grants were given (Whole Foods Market, 2013). The funding for these was raised mostly at store level, collected from customers who shopped. This social cause may also create another output; the emotional feelings of satisfaction and beneficence…

Sources Used in Documents:


Carter, M, (2014, Feb 22), Why Whole Foods Market May Have a Big Problem, Motley Fool, accessed 22nd Feb at

Lambert, T, A, (2008), Four Lessons from the Whole Foods Case, CATO Institute, accessed 22nd Feb at

MacKey, J; Robb, W, (2013). Letter to Stakeholders, accessed 22nd Feb 2014 at

Meador, Don; Britton, Mike; Phillips, Paige; Howery, Andrew, (2007), Case Analysis -- Whole Foods Market, accessed 22nd Feb 2014 at
MSN Money, (2014), While Food Market, accessed 22nd Feb 2014 at
Reuters, (2014), Whole Foods Market Inc. (WFM.O), retrieved 22nd Feb 2014 at
Tuttle, B, (2013, Sept 12), The Next Whole Foods? Three Emerging Healthy Supermarket Challengers, Time, accessed 22nd Feb 2014 at
Whole Foods Market, (2013), Form 10-k, accessed 22nd Feb 2014 at
Whole Foods Market, (2014), Home Page, accessed 22nd Feb 2014 at

Cite this Document:

"Nadler-Tushman Congruence Model And Whole Foods Market" (2014, March 17) Retrieved March 24, 2023, from

"Nadler-Tushman Congruence Model And Whole Foods Market" 17 March 2014. Web.24 March. 2023. <>

"Nadler-Tushman Congruence Model And Whole Foods Market", 17 March 2014, Accessed.24 March. 2023,

Related Documents
Nadler Tushman Congruence Model Analysis of Whole Foods
Words: 1587 Length: 5 Pages Topic: Business - Management Paper #: 15411347

Nadler-Tushman Congruence Model Analysis of Whole Foods Whole Foods Market, Inc. is one of the admired organizations in the modern economy through implementation of quality strategies towards the achievement of its goals and objectives. The strategy of the organization focuses on the need to enhance quality and efficiency in the provision of products and services to the consumers. This strategy of the Whole Foods Market, Inc. is under the differentiation strategy

Nadler-Tushman Congruence Model Applied to Whole Foods Market
Words: 1990 Length: 5 Pages Topic: Business - Advertising Paper #: 18962452

Business Outputs at Whole Foods Market Organizational Level Outputs Group Level Outputs Individual Level Outputs Is There Congruence? Whole Foods Market is one of the preeminent organic food retailers in the U.S. The Nadler-Tushman Congruence Model provides an effective framework for The Excellence Consulting Group (XCG) to analyze the organization, and assess the outputs to determine how the performance of the firm stacks up against the goals. The Nadler-Tushman Congruence Model examines outputs by looking at

Nadler Tushman Congruence Model
Words: 1504 Length: 5 Pages Topic: Business Paper #: 47793502

Input Diagnosis The Nadler-Tushman Congruence Model evolved out of open systems theory as a tool for organizational diagnosis (Falletta, 2005), and is arguably the most complete tool available, in that while complex it has the ability to capture the subtlety and nuance real world corporations. Performance in this model is dictated by strategy, culture, structure, work and people. The key is that these different variables should all be aligned towards a

Nadler-Tushman Congruence Model
Words: 775 Length: 2 Pages Topic: Business Paper #: 4574959

Business Selecting an OD Model Determining which OD model should be used to examine a firm will require consideration of the different available OD models and assessment of which is most likely to meet the needs of the analyst. Invariably, whichever model is chosen, the quality the analysis will be based on the quality of the input information and skills of the analyst, rather than simply reliant on the tool itself (Mintzberg

Which Organizational Diagnosis Model Is Best to Use at Whole Foods...
Words: 1676 Length: 5 Pages Topic: Business - Management Paper #: 54512187

Whole Foods Market Which Organizational Diagnosis Model Is Best to Use at Whole Foods Market Open Systems Theory Weisbord's Six-Box Model McKinsey 7S Framework Likert System Analysis (1967) High-Performance Programming Nadler-Tushman Congruence Model Methods to use this Tool Analyze each key element separately People Recognize the people that can help to get the work done and help in accomplishing the goals of the organization Organizational Structure Culture Analyze how these Elements Interrelate in the Organization Plan to Create and Maintain Congruence Issues of Whole Foods Market Poor

Whole Foods Markets Is All About Congruence
Words: 1036 Length: 4 Pages Topic: Agriculture Paper #: 67642906

Whole Foods Market Strategy Whole Food Market Strategy Congruence in a powerful measure of the overall health and functioning of an organization -- a key to understanding the organization in a static snapshot and to forecasting how well the organization can execute change strategy and adapt to a competitive landscape that is in a constant state of flux. Organizational congruence is pivotal to effective strategy implementation and to successful organizational change. The