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Posted on April 13th, 2014, by

Case. ABC Compay and Whole Foods Market have chosen to use the Nadler-Tushman Congruence model to analyze Whole Foods Market’s strategy and Inputs. Identify key inputs and determine how they interact and support strategy.

Whole Foods Market’s strategy

Current strategic objectives of Whole Foods Market are: tripling the number of stores in urban areas where there are few organic foods stores, opening stores in less urbanized areas where it is difficult to find natural and organic food, and the development of the store of chains in the UK and Canada. Whole Foods Market specializes in organic and natural food, and the strategy of this organization can be classified as differentiation, according to Porter’s framework of competitive strategies.

Inputs in Nadler-Tushman Congruence Model

In Nadler-Tushman Congruence Model, the organization is viewed as a dynamic system interacting with the external environment. The model specifies inputs into organizational system (environment, resources and history, with strategy outlined as the most important input, which is shaped by three other input factors), throughputs (individual, task, informal organization and formal organizational agreements) and outputs (individual, group and organizational outputs) (Nadler & Tushman, 1980). The purpose of this case analysis is to consider inputs for the Whole Foods Market, and to analyze their alignment with organizational strategy.

Whole Foods Market Inputs Analysis

With regard to environmental factors, it is possible to identify such factors as customers who prefer organic food, government as regulatory body, suppliers of organic food, financial institutions, employees and labor unions, and competitors. Resource inputs for Whole Foods Market include market recognition of the company, popularity of organic food, human resources, capital and information technology. History inputs include organizational mission, vision and values, previous acquisitions of Whole Foods Market, and rather isolated position on the market (lack of collaboration). The company’s strategy is strongly driven by its history and resources, and environmental factors such as market saturation currently define short-term strategic objectives of Whole Foods Market. From the short-term perspective, the company’s strategy is well aligned with organizational factors, and from the long-term perspective, the strategy should be reconsidered towards partnership with key retailers and collaboration with potential competitors.

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