Solution
Robert answered on
Dec 21 2021
Output Analysis of Whole Foods Market 1
Running Head: NADLER-TUSHMAN CONGRUENCE MODEL
Output Analysis of Whole Foods Market
Output Analysis of Whole Foods Market 2
Introduction
Within the organization structure, interaction among the members occurs at three
different levels, such as organizational, group and individual levels. Organizational outputs are
elated to the performance and efficiency of the organization, which can be evaluated through
Nadler Tushman Congruence Model. This model enables the firms to make effective
measurement of organizational performance at all the three levels. Additionally, this model use
different approaches to measure the factors, which influences success of the change process in an
organization.
Nadler-Tushman is also significant to determine the change in outputs, due to changes in
organizational process. In an organization, this model of Nadler-Tushman assesses the
inte
elationship among all the variables and determines the competence and effectiveness of the
firm in the industry (Nadler & Tushman, 1980). In the assignment, output of Whole Foods
Market Inc. at organizational, group and individual level is identified. Along with this,
inte
elation of outputs at the different levels has also been evaluated.
About Whole Foods Market
Whole Foods Market is one of the leading chains of supermarkets, which is based in
Austin. It is one of the main contributes in natural and organic foods supermarket (Whole Foods
Market, 2013). With long series of acquisitions, Whole Foods Market has created itself as a
niche retailer that enjoys elevated profits in a very price-competitive industry classically
distinguished by low profit margins (Ha
in & Humphrey, 2009).
Whole Foods Market has remained committed to organic certification throughout its
eginning, and serves a wide range of products with high quality ingredients. Moreover, the firm
has gained immense success because of its stringent cost controls practices. Reduced capital
Output Analysis of Whole Foods Market 3
expenditures of the firm assist it in serving effectively to large customer database (Whole Foods
Market: 2012 Annual Report, 2013).
Organizational Level Outputs
The organization level outputs of Whole Foods Market Inc. can be measured in terms of
goods and services that are provided by the firm to its customers and in terms of sales, net profit,
market shares, customer satisfaction, etc. customer satisfaction, etc. (Whole Foods Market,
2013).
At the organizational level, Whole Foods Market serves the customer with wide range of
organic and natural food with high quality. Cu
ently, organic food has become very popular
among consumers. The main goal of the firm is to provide those food products to the consumers,
which are high quality and astonishing in taste. The firm evaluates the quality in terms of
nutrition available in the products and freshness. The products offered by the company are free
from hydrogenated fats and sweeteners. Apart from this, according to the quality standard of the
firm, these products should not have any kind of colors and food preservatives (Ha
in &
Humphrey, 2009).
The organic food offered by Whole Foods market is also beneficial for consumer’s
health, as no added preservation, artificial ingredients and neutrality of the food product make
them fresh and pure, which has low risk of any kind of health issues (Whole Foods Market: 2012
Annual Report, 2013). Organic foods are free from chemicals and bacteria, thus the extent of
having severe disease such as cancer, obesity, etc, are also low (Whole Foods Market, 2013). In
addition, USD certified organic products are also sold by the firm, as its aim is to become an
environmental and social responsible firm (Whole Foods Market, 2013). As, firm focuses on
Output Analysis of Whole Foods Market 4
organic ingredient, which are produced from healthy plant and well balanced soils, in natural
way, the taste of these products are also natural and amazing for consumers.
With its innovative products and service range, company has also achieved huge growth
in the market and its sale is continuously increasing. According the graph shown Appendix 1, the
net sales of the firm at the end of 2012 is $11.7 billion, which is high in comparison to 2011,
$10.1 billion.
The income statement of the firm presented in Appendix 2 indicated that gross profit of
the firm in 2012 is 4,155,774 (Yahoo Finance, 2013). Moreover, as per the Appendix 3, Balance
sheet of Whole Foods Market, net tangible asset of the firm is 3,077,132 (Yahoo Finance, 2013).
Thus, it can be evaluated that in terms of organizational output and market performance,
company is very strong and profitable.
On the other hand, in term of customer satisfaction, performance of the firm is also
satisfactory. The most prominent external factor influencing the overall trends and desirability of
organic food industry is socio-cultural trends related with increasing concern of people for their
health and wellness. High quality organic food and products are prefe
ed by the customers, who
are health conscious and they are highly satisfied with the practices and quality procedure of the
firm (Whole Foods Market: 2012 Annual Report, 2013). An appropriate consideration of this
trend facilitates Whole Foods Market to grow on the path of success. Company has a healthy and
loyal relationship with its all customers.
Group Level Outputs
Organization is made up of various groups based on its functions and specialization. One
of the assumptions of Congruence model is also supported that organization is a social system
and made through various groups (Nadler & Tushman, 1980). The group in the organization can
Output Analysis of Whole Foods Market 5
e identified by the analysis of the organizational structure. The organizational structure of
Whole Foods Market is divisional and there are 12 geographic divisions and each division has its...