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 and 10-K/A at www.wholefoodsmarket.com/investor/annualreports.html. 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.html and its code of conduct and ethics at www.wholefoodsmarket.com/investor/codeofconduct.pdf. You do not need to print these documents in order 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?

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. 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 24.

5. Compare and contrast Whole Foods Market’s mission statement and its code of conduct and ethics.

6. Is Whole Foods Market’s Annual Report and 10-K/A primarily a financial accounting document or a managerial accounting document? What evidence supports your conclusion?