Whole Foods or Design Disaster

Respinse1 (Nickoase(

Define the Problem

The problem I found while reading the case was when Amazon purchased Whole Foods in 2017 they took a profitable business that empowered local stores and brought them into there corporate structure.  While in most cases being brought under the Amazon umbrella could be a good thing it appears to have the opposite effect on Whole Foods. Whole Foods was focused on employee satisfaction which resulted in 20 consecutive years on Fortunes Best Places to Work list.  The acquisition was felt quickly with employees as it dropped from the list in 2018.

 

Identify the Causes 

The causes could be attributed to Amazon's data analysis and rigorous performance management.  As we learned last week Amazon can be a very challenging company to work for when it comes to there demanding performance metrics, as evident by there high turnover rate.  Your employees and customers are the lifeblood of your company and when you change there habits and products it could have a negative effect on both.

 

Recommendations 

I would advise Amazon to run Whole Foods as a separate entity.  I know that seems like a very vague answer but I think its the most logical.  Amazon can still help with keeping the grocery chains prices down, Which was a major complaint before the sale.  A food retailer needs to let regional stores make decisions on products to carry that best suites there local customers.  The decisions on what to carry should not be based on data analytics from a corporate level.

 

References

Michael Blanding, “Amazon vs. Whole Foods: When Cultures Collide,” Harvard Business School Working Knowledge, May 14, 2018, https://hbswk.hbs.edu/item/amazon-vs-whole-foodswhen-cultures-collide.

Response 2 (Ajotony)

Define the problem

Amazon bought the organic grocery chain Whole Foods for $13.7 billion thus valuing Whole Foods at $42 a share (Monica & Isidore, 2017). In hope to elevate Amazon and introduce it to a brick and mortar this merger was supposed to do great things. However, Amazon wasted no time introducing its presence by adding its logo inside the buildings (Kinicki). Whole Foods began to take a hit when the new changes that employees and customers were not used to got thrown at them fast.

 Removing the employee-centric focus that Whole Foods stores were used to change the dynamic of business operation. Amazon decided to implement its usual demanding performance practices along with rigorous analysis and controls (Blanding, 2018). The new direction of business operations caused negative and stressful reactions from some employees. The overall, problem was now Whole Foods performance caused it to drop on Fortune’s best places to work list. The key players in this situation are Amazon vs Whole Foods previous employees.

Identify the causes

The issue within Whole Foods and Amazons merger has three identifiable causes. Amazon’s fast pace integration, pushing change quickly within an already established business. Another cause was the very different value propositions between the two companies. Lastly, the high demanding performance management practices. Romans 12:6 having gifts that differ according to the grace given to us, let us use them: if prophecy, in the proportion to our faith (Stephen, 2021). Both companies have good business standards already, but have not found the best ways to incorporate both identities, causes problems.

Recommendations

            Although Amazon is a fast emerging company that has taken the world by storm, founder Bezos is constantly making additions to the company. A great merge for Amazon was acquiring Whole Foods, however the fast pace change caused difficulties. The drive for change within the grocery and ecommerce is fueled by customer’s needs. It would be best to reduce the clash between to the two companies, by recreating a strategy that fits the needs of Amazon as well as the needs of Whole Foods. Amato et al. (2016) the most important activities for businesses are selecting the most appropriate and potentially profitable opportunities. Retraining employees to handle the new changes and conducting surveys to assess what benefits the customers have received from the merger. Another recommendation for the company is to conduct an assessment for the needs of the employees so they can feel valued.

References

 

Amato,Clara., Baron, Robert A., Barbieri, Barbara., et al. (2016). Regulatory Modes and Entrepreneurship: The Mediational  Role of Alertness in Small Business Success. Journal of Small Business Management.  Vol 55.  Regulatory Modes and Entrepreneurship: The Mediational Role of Alertness in Small Business Success - Amato - 2017 - Journal of Small Business Management - Wiley Online Library (liberty.edu)

Blanding, Michael. (2018). Amazon vs. Whole Foods: When Cultures Collide. Harvard Business School Working Knowledge.  

Kinicki, Angelo. (2021). Organizational Behavior: a practical, problem- solving approach. McGraw Hill.  3rd Edition.

La Monica, Paul., & Isidore, Chris.(2017). Amazon is Buying Whole Foods for 13.7 Billion. CNN business.  Amazon is buying Whole Foods for $13.7 billion (cnn.com)

Smith, Stephen. (2021). Open Bible. OpenBible Info.  What Does the Bible Say About Different? (openbible.info)