Weaknesses internal some of whole foods weaknesses

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Weaknesses (Internal): Some of Whole Foods weaknesses are weak employee efficiency. This means that Whole Foods makes less revenue per employee when compared to other organizations in the same or similar industry. A second weakness is that Whole Foods has both a small niche target market and a small concentration in the United States. Out of the total 342 stores only 7 are located in Canada and 5 are located in the United Kingdom. This can be a disadvantage to whole foods because not enough expansion is allocated to international locations. By concentrating stores domestically the organization risk losing sales if economic condition, unique to the United States, take a downward turn. Large stock valuations are also a company weakness. Whole Foods carries a price to earnings ratio of 36.31. This percentage ratio is way higher than the S&P 500
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average. Although some of the premium being paid on this stock can be associated with fast company growth the valuation level is still very high. Even though Whole Foods’ earnings have been growing tremendously over the past year the projected store opening did not take place. Whole foods planned on opening between 32 to 34 new stores in that given year but the amount of new stores was less than projected. Investors were not satisfied with the report and retracted investments as a form of punishment for slow company growth. Opportunities (External): Opportunities that Whole Foods should consider include expanding more into different international markets and also expand more domestically. Instead of expanding more domestically Whole Foods should look into expanding more internationally in regions such as South American and Asia. Whole Foods has achieved growth over the last couple decades through mergers and acquisitions. Doubling growth size every four years. Continued growth would be an opportunity for future growth and expansion. Whole Foods can also take advantage of its current partner relations and supplier network to continue expanding into different possible markets such as natural cleaning products made without chemicals. Another option would be to being selling naturally made clothing made with less organizational resources and less environmental pollution. Threats (External): There are also several organizational external threats that can dictate how well Whole Foods operates and how much revenues are made. Competitors are one of the most prominent types of threat. Whole Foods competitors have grown in number over the years and are employing more aggressive strategies. Whole Foods need to stay ahead of the competition in
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order to maintain its competitive advantages. Aside from external competition, internal competition among suppliers also exists. This can threaten the supply of organic foods and other supplier activities.
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