Required: What best describes the benefits Whole Foods likely hoped to receive by having local managers source food and make operational decisions?
Required: What best describes the benefits Whole Foods likely hoped to receive by having local managers source food and make operational decisions?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
!["We want to evolve the structure in such a way that we take out redundancy and waste, and at the same time though, we're
diminishing the culture, the empowerment efforts that make Whole Foods Market special," he [John Mackey, CEO] told analy
November.
As of early 2018, the expected benefits have failed to materialize. As an example, items were sometimes out of stock after the
began using an inventory system as directed by corporate management.
This is an example of how difficult it can be to implement new policies that run counter to established corporate cultures.
Required:
What best describes the benefits Whole Foods likely hoped to receive by having local managers source food and make operat
decisions?
O Wiser use of management's time and Training, evaluation, and motivation of local managers
O Wiser use of management's time
Better use local knowledge and Faster response
O Faster response
Better use local knowledge
O Training, evaluation, and motivation of local managers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa98788f-1c4d-4336-b8fa-c2785bdec8e1%2Fe27e71e4-19b8-466a-897f-e5e009f8b8da%2Fc2r6sj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:"We want to evolve the structure in such a way that we take out redundancy and waste, and at the same time though, we're
diminishing the culture, the empowerment efforts that make Whole Foods Market special," he [John Mackey, CEO] told analy
November.
As of early 2018, the expected benefits have failed to materialize. As an example, items were sometimes out of stock after the
began using an inventory system as directed by corporate management.
This is an example of how difficult it can be to implement new policies that run counter to established corporate cultures.
Required:
What best describes the benefits Whole Foods likely hoped to receive by having local managers source food and make operat
decisions?
O Wiser use of management's time and Training, evaluation, and motivation of local managers
O Wiser use of management's time
Better use local knowledge and Faster response
O Faster response
Better use local knowledge
O Training, evaluation, and motivation of local managers
![The Benefits and Costs of Decentralized Decision Making.
Whole Foods Market, Inc. (now a part of Amazon.com, Inc.) is a chain of grocery stores emphasizing natural and organic products.
Starting out with a single store in 1980, the company has grown to over 400 stores in North America and the United Kingdom. As a
part of the corporate culture, local and regional managers had wide discretion on sourcing and operations. Such discretion can lead to
increased costs in the form of administrative duplication.
Recently, Whole Foods "is whittling away at some of that autonomy in an effort to reduce costs and boost its clout with suppliers." One
way the company will do this "is shifting more responsibility for buying packaged foods, detergents and other nonperishable items for
the more than 430 stores to its Austin, Texas, headquarters."
At the same time, the company recognizes the benefits to decentralized authority. While taking duplication out of the system, the
company wants to retain the elements that are important to the company.
"We want to evolve the structure in such a way that we take out redundancy and waste, and at the same time though, we're not
diminishing the culture, the empowerment efforts that make Whole Foods Market special," he [John Mackey, CEO] told analysts in
November.
As of early 2018, the expected benefits have failed to materialize. As an example, items were sometimes out of stock after the store
began using an inventory system as directed by corporate management.
This is an example of how difficult it can be to implement new policies that run counter to established corporate cultures.
Required:
What best describes the benefits Whole Foods likely hoped to receive by having local managers source food and make operational
decisions?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa98788f-1c4d-4336-b8fa-c2785bdec8e1%2Fe27e71e4-19b8-466a-897f-e5e009f8b8da%2Fcsiup2n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Benefits and Costs of Decentralized Decision Making.
Whole Foods Market, Inc. (now a part of Amazon.com, Inc.) is a chain of grocery stores emphasizing natural and organic products.
Starting out with a single store in 1980, the company has grown to over 400 stores in North America and the United Kingdom. As a
part of the corporate culture, local and regional managers had wide discretion on sourcing and operations. Such discretion can lead to
increased costs in the form of administrative duplication.
Recently, Whole Foods "is whittling away at some of that autonomy in an effort to reduce costs and boost its clout with suppliers." One
way the company will do this "is shifting more responsibility for buying packaged foods, detergents and other nonperishable items for
the more than 430 stores to its Austin, Texas, headquarters."
At the same time, the company recognizes the benefits to decentralized authority. While taking duplication out of the system, the
company wants to retain the elements that are important to the company.
"We want to evolve the structure in such a way that we take out redundancy and waste, and at the same time though, we're not
diminishing the culture, the empowerment efforts that make Whole Foods Market special," he [John Mackey, CEO] told analysts in
November.
As of early 2018, the expected benefits have failed to materialize. As an example, items were sometimes out of stock after the store
began using an inventory system as directed by corporate management.
This is an example of how difficult it can be to implement new policies that run counter to established corporate cultures.
Required:
What best describes the benefits Whole Foods likely hoped to receive by having local managers source food and make operational
decisions?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON