In August 2017, Amazon acquired Whole Foods Market for $13.7 billion. Whole Foods was struggling with high costs and faced growing competition from traditional supermarkets offering more organic products. Prior to the acquisition, Whole Foods began rolling out a new order-to-shelf (OTS) inventory management system that many observers believed had led to shortages. For years, store team leaders at Whole Foods were empowered to make inventory decisions and tailor their stores to meet local needs, but the OTS system, and an increasing number of strict rules for purchasing and displaying goods upset many employees. Should Amazon push Whole Foods to improve performance by emphasizing efficiency and standardization? Or should it aim to maintain a sense of empowerment among employees?
Keywords: Performance Efficiency; Performance Improvement; Employee Relationship Management; Acquisition; Change Management; Food and Beverage Industry; Retail Industry;
Citation:
Campbell, Dennis, Tatiana Sandino, James Barnett, and Christine Snively. "Whole Foods under Amazon." Harvard Business School Case 118-074, March 2018. (Revised June 2018.) View Details
