Question

Whole Foods is trimming its cost structure. Does the firm risk being “stuck in the middle? Why or why not?

Answer 1

Trimming cost structure for any organisation is a continuous process. If possible, it needs to be done on a daily basis. There is no question of whole foods getting 'stuck in the middle'. All firms need to be constantly on the lookout for lesser costs, be it raw material purchase, contract labour, interest and other capital costs or miscellaneous costs. The use of technology will really help reducing costs on a real time basis. With a lot of new products and services being disruptive of the earlier ones, there is tremendous scope to not only reduce costs but also simplify processes.