In business, planning is everything. It is what ensures that you are successful at the end of the day. Lack of a plan means you are preparing to fail miserably. As a manager, it is compulsory to make current and plans. That is the only way you are sure that the organizational is working towards achieving the goals of the organization. To pursue a company’s goals, managers consider three types of plans which include tactical, operational and strategic plans. All the three plans are related. Operational plans are a stepping stone to tactical plans while tactical plans help achieve strategic plans. In case these methods fail, a backup must always be present. It is known as a contingency plan. According to Steiner (2010), s trategic plans are designed by the top level managers, tactical plans by the middle-level managers, and operational by the lower level managers. SWOT analysis help managers to make workable strategic plans since they know the advantages and vulnerabilities.
Whole Foods has conducted SWOT analyses that have helped them to come up with effective strategies that will ensure that their organic food business will prosper. After much analysis on the business market, Whole Foods has made individual strategies to help the company move forward. The plans can be seen on their list of opportunities. Their commodity is unique, and in high demand hence they plan to obtain as well as maintain market leadership in years to come. They also plan to expand their private label brands as asserted by Hill and Westbrook (1997). They are strategically positioned , thereby, enabling them to distribute the organic food to the nearby stores within the region. They also have a plan to increase the demand for their organic food. Increasing the demand will help them improve their financial profits. They also plan to introduce a new range of products to enhance the number of commodities that they are selling.
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To achieve the strategic goals, Whole Foods has ensured quality customer service to increase the demand for their products. They produce food that is of high quality, sell cheaper foods while maintaining quality, create an environment that is friendly to the employees, pay their workers fairly and maintain high standards to ensure that their customers get the best. They are likely to achieve their strategic goals if the law continues to favor them.
Whole Foods should target to widen their market internationally so as to make sure that there is always a market to sell their products in case they experience problems in the U.S. They should also change the perspective that people have about organic foods. They have to make them see that organic foods are not expensive foods. Making people believe that the food will be worth every coin is something they should prioritize. They should also increase the popularity of the organic foods. To reach international markets, they should employ agents in other countries to market and sell their products. According to Houben, Lenie, and Vanhoof (1999), t hey should do this for about three months. To change the perspective that people have about organic food being expensive, they have to reduce their cost of production by obtaining locally available raw materials to lower the prices of the foods. They should then advertise their products stating that you lead a healthier life at the same price. Through insisting about the betterment of health by taking organic foods, they will make their product to be preferred by many customers.
For an operational tactic, Whole Foods should employ and manage salespersons to market their products both locally and internationally. The sales persons have to be encouraged to sell the products through awarding of commissions for the sales increase in their particular regions. Each marketer should be given a particular region. The accounting department should ensure that the money given to the marketers is used economically without wastage. They can achieve this by making sure that they calculate transport costs and other expenses that the sales agent may encounter before the finance department gives the sales agents the money. The finance department must keep good records of sales made so that the method is effective.
References
Hill, T., & Westbrook, R. (1997). SWOT analysis: it's time for a product recall. Long range planning , 30 (1), 46-52.
Houben, G., Lenie, K., & Vanhoof, K. (1999). A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises. Decision support systems , 26 (2), 125-135.
Steiner, G. A. (2010). Strategic planning . Simon and Schuster.
