The questions in this exercise are based on one of the fastest growing food retailers in the United States—Whole Foods Market, Inc. To answer the questions, you will need to download Whole Foods Market’s 2004 annual report at www.wholefoodsmarket.com/company/annualreports.php and its 10-K/A for the fiscal year ended September 26, 2004 by going to www.sec.gov/edgar/searchedgar/companysearch.html. Input CIK code 865436 and hit enter. In the gray box on the right-hand side of your computer screen define the scope of your search by inputting 10-K and then pressing enter. Select the 10-K/A with a fi ling date of May 18, 2005. In addition, you’ll need to download the company’s mission statement (which it refers to as a Declaration of Interdependence) at www.wholefoodsmarket.com/company/declaration.php and its code of business conduct at www.wholefoodsmarket.com/company/pdfs/codeofconduct.pdf . You do not need to print these documents to answer the questions.

Required:
1. What is Whole Foods Market’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?
2. What business risks does Whole Foods Market face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 11–15 of the 10-K/A.)
3. Create an excerpt of an organization chart for Whole Foods Market. Do not try to create an organization chart for the entire company—it would be overwhelming! Pick a portion of the company and depict how the company organizes itself. (Hint: Study the 2004 Global All-Stars mentioned in the annual report and refer to page 16 of the 10-K/A.) Mention by name three employees that occupy line positions and three employees that occupy staff positions.
4. Compare and contrast Whole Foods Market’s mission statement with the Johnson & Johnson Credo shown on page 16.
5. Compare and contrast Whole Foods Market’s mission statement and its code of business conduct.