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Outputs of Whole Foods MarketCapstone Project

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¶ … Diagnosis: SLP, Time Warp

Outputs are basically defined as the products and services that are offered to customers at the organization level. In some cases, outputs refer to the value provided to the owners of an organization throughout its operations. Generally, an organization evaluates is performance and outputs financially i.e. profit, sales, market share, return on assets and return on sales. Organizations are basically made up of several groups in attempts to generate outputs including the functional area that entails operations, marketing, and purchasing. Whole Foods Market is a good example for analysis of organizational outputs through the use of the Nadler-Tushman Congruence Module. This process entails evaluating the outputs of the organization at each of three levels and identifying the goals it has established and its present performance.

Whole Foods Market's Outputs

Whole Foods Market is one of the most admired organizations in today's economy because of the considerable success it has achieved in terms of organizational performance in the natural food industry. Generally, the company has achieved tremendous success and performance because of its differentiation strategy in the natural food industry that enables it to gain competitive advantages over its competitors. The organization is renowned for high quality standards, high quality foods and sourcing, product choice, ethical behavior, and premium services and premium information.

One of the most important factors that have contributed to the success and profitability of the organization is its outputs to customers as well as value to its owners. The Congruence Model, which was initially developed by Nadler and Tushman provides a mechanism for examining an organization's outputs and determining its performance ("The Congruence Model," n.d.). There are four major elements in the Congruence Model that are used to examine and determine an organization's performance or output in relation to strategy and performance. These important elements in this process include people, tasks, structure, and culture since they are considered as the drivers of organizational performance. The analysis of Whole Foods Market's outputs will focus on each of these levels and how they interact with each other.

Whole Foods Market produces and sells high quality organic and natural foods and food items since these foods establish the standard for top-quality flavor, freshness, texture, and variety. The organization produces and sells these foods since their production processes are not associated with the wide range of potentially harmful, environmentally long-term agricultural chemicals that are usually used in production of conventional foods ("Organic Foods FAQs," n.d.). The organization produces and sells natural and organic foods because of the numerous health benefits associated with these products and the environmental benefits. Whole Foods Market is not only concerned with ensuring the health of the population through producing and marketing healthy foods but also focuses on promoting the well-being of the community and the environment. Therefore, the goals of Whole Foods Market include providing top quality natural and organic foods, promoting the health of the population, caring about the community and environment, ensuing customer satisfaction, and delight, and generating wealth through profits and growth. Whole Foods Markets has been performing very well since its inception to an extent that it is far more superior to conventional food stores. The organization has contributed to the growth of organic foods market, which is expected to double in the next few years.

Whole Foods Market evaluates its performance based on various components including sales, customer satisfaction, net profit, and market share. With regards to sales and net profit, the organization's stores obtain comprehensive information on profitability every month. The profitability report examines product costs, operating profits, sales, and wages and salaries for all the 43 stores of Whole Foods Market. After receiving the report, the store managers regularly review it with their team leaders in order to make effective decisions regarding pricing, labor spending, and ordering, which are important factors in determination of profitability. While the information in the report is sensitive and not publicized, it is available to every individual in every location and includes information regarding team sales, salaries, profit margins, and store sales (Fishman, n.d.). The company also measures performance on the basis of customer satisfaction and market share since one of its primary core values is to delight and satisfy customers while generating wealth through profit and growth. This is evaluated on the basis of customer feedback regarding the organization's products and evaluation of its position in the natural food industry or market.

Whole Food Market's Groups

Whole Foods Market identifies groups through functional areas and geographic divisions given the nature of its operations and spread of its stores respectively. Actually, the organization's business model and management functions based upon various principles including self-directed teams, which in turn operate on the basis of competition and collaboration. Some of the major functional areas in Whole Foods Market include operations, marketing, and purchasing. In addition, every store is made of self-directed teams that are led by store leaders and subdivided further into a wide array of sub-teams.

The organization evaluates the performance of its functional areas and division groups based on their contribution to its profitability and success. The functional areas have specific established goals and objectives in relation to production and sales. These specific goals are the basis with which Whole Foods Market assess the performance of the functional area groups. For the division groups, store leaders have specific performance goals that they are required to meet within a specified period of time. These leaders conduct store meetings every month to discuss the operations of the store and any necessary improvements to be implemented. They are also provided with comprehensive information regarding the company's performance in terms of costs and productivity. The reports act the basis through which the divisional groups are evaluated in relation to performance and expectations.

Individual Functions

The various geographic or divisional groups in Whole Foods Market have certain individual functions that contribute to group outputs and organizational performance. Based on Nadler-Tushman approach in evaluating output, the organization's is made of four major components i.e. task, people, formal organizational arrangements, and the informal organization (Nadler & Tushman, 1980, p.43). Task basically refers to the activity the organization is involved in throughout its operations and subunits. Under tasks, Whole Foods Market is involved a wide range of activities that act as the core of its performance. As a result of the array of activities it's involved in, the organization produces various outputs relating to top quality products that are sold in local and overseas markets. The organization requires its various members to utilize the available modern technology to help in the production of quality, reliable, and quantity products across the various manufacturing divisions. The outputs of these individuals are evaluated on the basis of their contribution to the organization's workflow.

Secondly, the people component refers to the various individuals who carry out the different organizational tasks. The organization selects its people based on their competence, skills, and experience and gives them varying responsibility towards the achievement of its productivity and success. These individuals are required to utilize their expertise to help their respective groups or teams achieve sales, growth, and profit goals. Whole Foods market's executive managers and store leaders develop cordial working relationships with these individuals, whose performance is measured based on their contribution to achievement of the specific goals for their group or team (Cuenllas, 2013).

Third, the formal organizational arrangements are crucial in outputs since they incorporate various structures, methods, processes, and procedures to enable people to carry out their tasks in line with the organizational strategy. For Whole Foods Market, the formal organizational arrangements include division of smaller units or teams that focus on the production of unique products. Each team has a specific function depending on its specific product it's expected to manufacture. These teams work in collaboration with each other to ensure and promote the seamless production of organic and natural foods. The performance of these teams is evaluated on the basis of their input in the overall production process and the quality and quantity of products manufactured.

Interaction of Outputs at the Different Levels

The profitability and success of Whole Foods Market is influenced by the interaction between these different levels of outputs. While these different levels have specific goals and objectives, none of them functions independent of another. The outputs of the different levels interact with each other on the basis of enabling the organization to produce high quality organic and natural foods, which helps in generating sales and productivity as well as organizational growth. The tasks, people, and formal organizational arrangements work together in the production process to enable the company achieve its respective business goals.

The congruence of the outputs at the different levels is high because of their contribution to success and profitability of Whole Foods Market in the natural food industry. This high congruence of outputs is evident in the fact that these various levels have enabled the organization to remain committed and dedicated to quality standards, which in turn become the industry standard… [END OF PREVIEW]

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