Course Outcomes:
1. Identify cultural differences between other countries and social institutions that are transacting business internationally.
2. Describe the strategies necessary to become a participant in global business.
3. Examine the organizational structures of international companies.
4. Compare domestic and international business ethics and social responsibility.
Program Outcomes:
1. Apply contemporary knowledge and skill sets to work effectively in the business community.
2. Display a working knowledge of strategic business applications, evaluative techniques, and management processes as well as the role business plays in a global economy.
3. Demonstrate sensitivity to and appreciation for ethical issues and deport themselves in ethical manner at all times.
Institutional Outcomes:
1. Information Literacy and Communication - Utilize appropriate current technology and resources to locate and evaluate information needed to accomplish a goal, and then communicate findings in visual, written and/or oral formats.
2. Relational Learning - Transfer knowledge, skills and behaviors acquired through formal and informal learning and life experiences to new situations.
3. Thinking Abilities - Employ strategies for reflection on learning and practice in order to adjust learning processes for continual improvement.
Read the following Case Study and respond to the items below.
Case Study: Whole Foods Market
Customers entering a Whole Foods store are greeted with a visual feast: bright red peppers and glossy green avocados in a colorful collage. "Beauty is an important part of pleasure and how we interpret the food experience," says Whole Foods Market founder and CEO John Mackey. "We seduce the customer with produce."
Offering beautiful produce and other fresh, natural, and often organic foods is the foundation of Whole Foods. The health food store Mackey started in Austin, Texas in 1978 has grown into a leading natural foods supermarket chain, with nearly 900 stores and $9 billion in yearly sales. It has helped create a $15 billion industry.
Throughout its growth, Whole Foods has honed and retained its culture, which is based on a commitment to simple, healthy food and environmental sustainability. The company values and strives to satisfy all its stakeholders: customers, employees, community members, suppliers, and the shareholders who have invested in its stock. Whole Foods views itself as an alternative to the usual business model and follows the principle that "the purpose of business is not primarily to maximize shareholder value," says CEO Mackey. He believes his company's philosophy will be the dominant business philosophy in the 21st century.
Focusing on customers first, Whole Foods provides consumer education as well as fresh, healthful products. After customers, the emphasis is on happy employees. As the second largest non-union U.S. retailer, Whole Foods has ranked fifth among Fortune Magazine's list of the 100 best companies to work for. Its "team members" earn an average $15 an hour, receive full health benefits, are given the company financial data, and have a say in a store's operations. The chain buys as much as possible from local, organic farmers and promotes them through store displays. Whole Foods donates 5% of its profits to community projects and shows its responsibility to the environment by promoting "green" brands, purchasing renewable energy, building energy efficient stores, and leading the reusable shopping bags movement. The company takes its concern so far as to seek poultry and meat from animals raised as naturally as possible and treated compassionately.
Mackey inspires his company's culture. Even though Whole Foods executives have their salaries capped at 19 times the average worker's pay, he cut his own pay to $1 a year. He says he has enough money.
Industry analysts and stockholders have questioned whether Whole Foods can maintain both its culture and profitability as competition increases. Traditional grocery chains now offer many organic products, often at lower prices than those at Whole Foods (nicknamed "whole paycheck"). Lowering prices to compete would lower Whole Foods' profits and perhaps reduce the service that marks the Whole Foods experience. Another concern is that as more supermarkets carry organic products, the limited number of organic farmers may not be able to meet the demand.
References (do not use these for your own references):
Fox, J. (2008). Employees first! Time, P. 45.
York, E. B. (2008, June 9). Whole Foods. Advertising Age, S6 Zuckerman, G. (2008). Look closely before biting: Whole Foods needs to focus on costs, slow store openings. Wall Street Journal, p. C8.
Respond to each of following items in 150 to 300 words with support from at least two scholarly sources (include APA citations):
• Analyze and describe the organizational culture that you would say is dominant at Whole Foods Market, and assess if the organizational culture been an effective or non-effective aspect of Whole Foods' success.
• Propose and explain at least two strategies that Whole Foods could use to become a participant in global business. Suggest a country into which Whole Foods can enter. Justify your reasoning.
• Based on the country you feel Whole Foods can enter, compare and contrast the country of your choice with Whole Foods in terms of cultural differences. Evaluate whether the differences could affect Whole Foods' entrance into that country.
• Compare and contrast Whole Foods' philosophy and practices with international business ethics and social responsibility. Evaluate and explain how ethics and social responsibility aid organizational success domestically, internationally, or both.