Question

Whole food sales

6) In 2007, Whole Foods acquired Wild Oats Market. What was the average store size (square feet) of the acquired Wild Oats stores compared to the average store size of new Whole Foods stores in development at that time?

a) App. half (1/2) smaller in size of a new Whole Foods store in development

7) When analyzing companies, Warren Buffet would often say that he focuses on free cash flow (operating cash flow less capital expenditures). What was happening to the free cash flow of Whole Foods during the time of our case study (2009 to 2013)?

a) Decreased

b) Stayed the same

c) Increased

8) The U.S. Department of Agriculture (USDA) established labeling standards for organic products. Which products could display the green USDA organic certification seal? (Check all that apply).

a) Fresh fruits, vegetables, etc. (100% organic)

b) Processed foods (95% organic)

c) Processed foods (70% organic)

9)  In the 2010-2012 time frame, the average cost (capital expenses, pre-opening expenses and inventory) to open a new Whole Foods store was how much?

a) App. $1 million

b) App. $11 million

c) App. $110 million

10) In 2014, the average sales per square foot of Whole Foods stores were how much compared to the average sales per square foot of the independent stores of natural and organic foods?

a) Less than half (1/2) of the sales of independent stores

b) About the same

c) More than double (2x) the sales of independent stores

d) Processed foods (less than 70% organic)

b) Same size

c) App. twice (2x) larger in size of a new Whole Foods store in development

11) Describe what aspects of their Mission and Values web site demonstrate effective elements and what aspects present shortcomings.

Finally, based on your personal experience of Whole Foods and/or outside research, provide an assessment on whether Whole Foods practices what they preach when it comes to their professed values.

Answer 1

ONLY First 4 questions are been addressed here since there are 6 questions

Ans-6

Average store size of Wild Oats stores was 24000 sqft as compared to average store size of Whole Foods of 50000 sqft.Wild Oats stores were approximately half the size of Whole Foods stores.

Ans-7

The FCF of Whole Foods for the years 2009 to 2013 increased from $ 273 MIllion to $ 472 Million.The table hereunder shows the FCF for these years

Ans-8

USDA organic certification seal can be used for any product that has minimum of 95% organic ingredients (excluding salt and water).THerefore following can have the seal -

a) Fresh fruits, vegetables, etc. (100% organic)

b) Processed foods (95% organic)

Ans-9

Average cost of a store was in range of aaproximate $ 11 Million