Outputs Diagnosis (Term Paper Sample)
THE EXCELLENT CONSULTING GROUP
COMMUNICATION FROM ART:
Onward to the next project: Outputs of Whole Foods Market. As I indicated before, this is a follow-up using the Nadler-Tushman Congruence Model.
We need to analyze how Whole Foods Market has been doing in terms of its performance and how it stacks up against its goals. We will do this at three levels: the overall organizational level, the group level, and the individual level. The Congruence Model explains this well. You should be up to speed on this model.
The executives want to know how congruent the outputs are across the three levels. Given your analysis of performance at each of the three levels, are the interactions of these outputs congruent - highly, somewhat, or very little? Make this determination and support it with a logical argument using the information that you obtain about Whole Foods Market's goals and performance.
Nadler, D. A. & Tushman, M. L. (1980) A Model for Diagnosing Organizational Behavior. Organizational Dynamics, 9 (2), 35-51. Retrieved on November 7, 2012 from EBSCO.
Use the Nadler-Tushman Congruence Module to analyze Whole Foods Market's outputs. Start with the Organizational Level. Identify the Outputs - what does it produce and sell? What are its goals? How has it been performing? Then go the group level. What are some groups that Whole Foods Market identifies, and the goals and performance of these groups. Finally, discuss the Individual level. Here you will find it difficult to get much detailed information, so identify five to seven key jobs and their outputs. How can the performance of these jobs be measured? Finally determine the congruence of the outputs and make a strong argument for your case.
Be sure to include references. Turn in the 5- to 7-page paper by the end of the module.
KEYS TO THE ASSIGNMENT:
In order to make your case you need to identify the outputs of the organization at each of three levels. Also identify the goals that it has set and its current performance. Include the following:
- Outputs at the organizational level are the products and/or services that it provides to its customers. What are these and how does the company categorize them? How does it measure its organizational performance (e.g., sales, net profit, return on sales, return on assets, market share, customer satisfaction, etc.). Provide some specific performance data.
- What are some ways the company identifies groups? For example, are there geographic groups (or divisions), functional groups, etc. What are the outputs of these groups? How does it (or how might it) measure performance of these groups?
- What are some of the key individual functions, and what are their outputs? How do these outputs contribute to the group outputs? How do they measure individual performance?
- Evaluate how the outputs at the different levels interact with each other. Determine if you think the congruence of the outputs is high, medium, or low. Then make a strong case. It is very important that you support your position with evidence and information that you have discussed earlier in the report.
Case: Outputs Diagnosis, SLP: Time Warp 3
The organizational congruence model highlights the transformation of inputs to outputs at the individual, unit (group) and systems level. The expected organization output is that there is improved effectiveness and performance for the three level outcomes. The people, processes, strategy and environmental factors all influence the coordination of activities and congruence. In order to improve performance an organization needs to have congruence in the tasks, culture, people and the structure. The four elements in turn influence an organization’s strategy towards improving performance, with high congruence resulting in higher performance. There will be an analysis of output and performance at the organization, group and the individual level for Whole Foods Market.
Whole Foods Market deals with natural and organic food, while also adhering to high-quality standards in the foods industry (Reuters, 2015). The company is further committed to sustainable agriculture, allowing customers to shop for fresh groceries as much as possible. The company primarily operates in the U.S, Canada and the UK with 399 stores across the three countries (Whole Foods Market, Inc, 2015). The most valuable brand for the company is the Organic Every Day Value, but other brands are equally important for continued growth in different segments. This includes Whole Foods Market, Whole Catch Whole fields, Whole Living, Whole Paws, Whole Pantry. Additionally, there are other brands Nature’s Rancher Allegro Coffee, Engine 2 and Wellshire Farms (Reuters, 2015).
Even though, the company has both natural and organic foods, there are the perishable foods. There are also prepared foods, bakery and the non-perishables. However, there are other product portfolios including body care, vitamins, cheese, tea, coffee and wine lifestyle products, nutrition supplements and pet products (Whole Foods Market, Inc, 2015). Having distribution facilities in the three countries of operation is essential to availing the perishable products to the customers quickly. In the financial year 2014, 96.7% of the revenues were derived from the U.S. (Whole Foods Market, Inc, 2015).
Whole Foods Market improved their revenue by 9.9% for the year ended September 2014 reporting $ 14,194 million (Whole Foods Market, Inc, 2015). Equally, the operating profit increased by 5.8% to $ 934 million and net profit increased by 5.1% to $579 million (Whole Foods Market, Inc, 2015). A focused growth strategy has resulted in opening of new stores over time to improve operations in America and the international locations. This includes store acquisitions as well as new store openings, with identical store sales the most important for sales growth. The acquisition of other stores is necessary given that the retail food sector is fragmented, and the company is better placed to diversify income streams through this strategy (Whole Foods Market, Inc, 2015).
The company’s primary target market is the wealthy customers who are more conscious about natural and organic foods. Their products are more likely premium products, but there is a shift in focus to capture more customers. Hence, offering affordable organic food products has made it necessary to broaden their appeal as customers seek to save money (Anonymous, 2011). Price, quality, customer service and convenience have some o the factors that differentiate the company from the competitors at the local, national and international markets. Increased competition will erode the company’s market share, highlighting diversification and broadened appeal is vital to improve the company’s margin.
Marketing is an important department that promotes the company’s products to the...
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