1- Whole Food's strategy is well matched to the industry situation in which of the following ways?
A-The new USDA standards for labeling organic food products should help Whole Foods
B-Conventional supermarkets are not standing idly by and are increasingly entering the organic foods market.
C-Several other chains are also focusing on the organic market and entering the market at increasing rates.
D-Entry barriers in the organic foods industry are declining.
2- Which of the following best describes how well Whole Foods is performing from a strategic perspective?
A-Whole Foods has been growing quickly because it has a strong brand name, and is in a fast growing industry, but as the industry growth slows, so will Whole Foods because it has little other advantages within the industry.
B-Whole Foods has developed a competitive advantage based on its price competitiveness, relative cost-efficiencies and slightly smaller stores than its natural foods competitors (e.g., Trader Joe's and Fresh Market)
C-While Whole Foods has grown with the market over the last decade, it has little sustainable competitive advantage over firms with similar strategies like Trader Joe's, Fresh Market, and Fresh & Easy.
D-Whole Foods has developed a strong competitive advantage based on large stores, broad selection, geographic coverage and store appeal.
3- In 2007 what is Whole Food's financial condition?
A-continued growth and strengthened financial position in all major areas
B-strong revenue and income growth but higher debt and a weaker capital position
C-a substantially weakened financial position, including arrested (stop in) growth in revenue and income combined with increased debt and a weakened current ratio.
D-high revenue growth, but lowered income, higher debt, and weaker capital position
4- Which of the following was not one of John Mackey's questionable internet actions
A-He used the internet to secretly invest in his company's stock
B-Mackey anonymously typed out more than 1,100 entries on Yahoo touting his company's stock.
C-He authored a blog attacking the FTC, which had threatened to block Whole Food's acquisition of Wild Oats.
D-He used an alias to make uncomplimentary remarks about a rival company.
5- Which of the following is not an appropriate recommendation for Whole Foods at the time of the case.
A-Continue to expand the number of new store openings and take advantage of the rapid growth of the market.
B-Shift some of the merchandising emphasis away from luxury items.
C-Vigorously contest the FTC's attempts to undo the acquisition of Wild Oats.
D-Maintain the suspension of dividend payments for the foreseeable future.