Whole Foods or Design Disaster

Read the below business case from
the module textbook Learn items. Once completed, you will respond in the proper discussion
to the case using the problem-solving framework. Each thread must be
500–750 words.
The
following 4 sources must be included in your thread:
· Use
citations from both of these textbooks:
Kinicki,
A. (2021). Organizational behavior: A practical, problem-solving approach
plus Connect. McGraw-Hill
Kroeger,
O., Thuesen, J. M., & Rutledge, H. (2002). Type talk at work: How the
16 personality types determine your success on the job (Revised and
Updated ed.). New York, NY: Dell Publishing.
· The
chosen case study,
· At
least 1 peer-reviewed journal article,
· 1
passage of Scripture
All
sources must be used in current APA format, the aforementioned is a minimum
list.
Problem-Solving Application—Whole
Foods vs. Whole Amazon

Amazon acquired grocery giant Whole
Foods in 2017 in a blockbuster deal, but one consequence of this acquisition is
that Amazon’s highly centralized and data-driven approach to business decisions
has clashed with that of Whole Foods. This has frustrated both employees and
Whole Foods customers. This activity is important because mergers and
acquisitions are not guaranteed to have universally positive results,
particularly if the two companies involved have significantly different
strategies or cultures.

The goal of this exercise is for you
to consider the nature of the culture clash between Whole Foods and Amazon, as
well as how both companies can overcome these issues.

Read about Amazon’s acquisition of
Whole Foods and its organizational behavior-related implications. Then, using
the three-step problem-solving approach, answer the questions that follow.

Investigative journalist Michael
Blanding put it best, “Amazon’s acquisition of Whole Foods… was the corporate
equivalent of mixing tap water with organic extra virgin olive oil. You’d be
hard-pressed to find two companies with more different value propositions.1
Stories quickly emerged about Whole Foods customers unhappy about the changes
at their favorite organic retailer, and they weren’t the only ones complaining.
Similar negative stories emerged from employees regarding the new performance
driven expectations imposed by Amazon.

Immediate Impact
After the acquisition, Amazon’s
presence was immediately felt. In addition to plastering its logo everywhere in
Whole Foods stores, it also used its strengths in data and data analysis to
determine appropriate product mixes and bring efficiencies to many processes.
After all, Amazon is known for its efficiencies, low costs, and low prices.

Clash
This is a stark contrast to Whole
Foods’ highly empowered approach to doing business, wherein individual stores
and their employees had autonomy regarding decisions about product selection,
inventory, and how best to serve customers. This employee-centric focus is what
earned the company a spot-on Fortune’s Best Places to Work list for 20
consecutive years, and the reason its customers enjoyed personalized intensive,
hands-on service. Although this decentralized, high-touch approach had real
benefits, it also had considerable inefficiencies that Amazon was keen to
address.

Amazon and its employees utilized
data, rigorous analysis and controls, and demanding performance management
practices. In the eyes of Amazon, customers were faceless digital profiles of
purchasing history and preferences. This environment was a good fit for some
employees but incredibly stressful and negative for others. Evidence for this
was Whole Foods dropping from Fortune’s list in 2018 (it didn’t make the list
in 2019 either).

Unrealized Potential?
These differences have the potential
to undermine the hopes and goals of the merger, which were to bring Amazon’s
efficiencies and operating prowess to Whole Foods’ unique approach and loyal
customers, enabling it to scale up and make an even larger impact in the
market. Leaders at Amazon, and to a lesser extent at Whole Foods, now have
decisions to make. Problems exist, and the success of the marriage depends on
solving them.

Assume you’re a consultant, what
would you recommend to Amazon’s leadership?

Apply the 3-Step Problem-Solving
Approach
Step 1:
Define the problem as described in the case.
Step 2:
Identify the causes of the problem. Which inputs and processes from the
Organizing Framework are evident?
Step 3:
Make recommendations to Amazon’s leadership regarding how to realize the
potential of the merger.

Footnotes
Michael Blanding, “Amazon vs. Whole
Foods: When Cultures Collide,” Harvard Business School Working Knowledge, May
14, 2018, https://hbswk.hbs.edu/item/amazon-vs-whole-foodswhen-cultures-collide.

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