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John Mackey: Founder of Whole Foods

This is our LDR 6100 group project. Dan McCarthy Julie Hershkowitz Jennifer Haggard

Dan McCarthy

on 30 November 2012

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Transcript of John Mackey: Founder of Whole Foods

Before Whole Foods co-CEO and Founder of Whole Foods Early Life and Impacting Factors John Mackey "Business social responsibility should not be coerced; it is a voluntary decision that the entrepreneurial leadership of every company must make on its own." - John Mackey Transformational Leader What does it take? Conventional middle-class home in suburban Houston, TX How Did Life Prepare Him? Leaders Followers How John Mackey Transformed the Health Food Market Innovation in Food Services Emotions Values Ethics Standards Long-Term Goals Transformational Leadership Animal passionate production standards Create value for all stakeholders Devotion to "service to others" is a deeply motivating purpose, one that provides emotional fulfillment to individuals who truly embrace this True excellence expresses beauty in unique and inspiring ways that make our lives more enjoyable Father was CEO of a Healthcare company
motivated to succeed for father External Competitive Environment Internal/Organizational Challenges Environmental Factors 1970s: Austin was a cheap, groovy little town. Countercultural Contribution was the "cosmic" cowboy 1978: $45,000 Mackey decides to start his own natural foods store "SaferWay" Merger with Clarksville Natural Grocery 1980: Opened First Whole Foods Market
10,000 square feet
Stocked with not just lentils and granola but with meat, beer and wine. - Company Salary Cap for CEOs Business has the fundamental responsibility to create prosperity for our society and the world Philanthropy is consistent with citizenship and should be managed prudently and efficiently Founded the Whole Planet Foundation
effort to create economicpartnerships with the poor and developing world communities that supply the stores Decadence with natural foods and past the "tofu" movement. Cultural Shift Created a new method for food production to stock stores with - primarily local products - Applies clean energy uses to stores nationwide 1981: Flood wiped out the store's inventory and equipment.

$400,000 worth of damage
No insurance. Believes that through a voluntary exchange people acting in their own self interest create value for the greater society Key Decisions The highest ideals that humans aspire to should be the same as organizations
The Good
The True
The Beautiful
The Heroic
Divided into a dozen regions: Operate as separate businesses to encourage creativity and a sense of ownership
Stores have high degree of autonomy: teams participate in selecting their bosses
Regional Oddities:
Venice, CA: Kombucha Bar
Portland, ME: Carries Live Lobsters
Dallas, TX: Visit the "Spa by Whole Foods Market" while a team member shops for you Reputation/Self Image- Progressive Business Interlocking Team Structure Customers, Volunteers and Employees rallied and worked to clean up the store.

Creditors gave them breathing room and they reopened 28 days later. Attentive Supportive Company Structure Expansion 1981 Built 1st Store in Austin, TX Raise levels of Consciousness Create worthy goals for the company that followers can rally behind 1984 Healthy AND Pleasurable eating Built stores in Houston & Dallas, TX Move Followers - Charisma 1988 Passionate about his business ideals Bought Whole Foods Company in New Orleans, LA Address Higher Level Needs 1989 Maintain the Highest Quality Headed out West: Built a store in Palo Alto, CA Held his company above typical production norms 1990s Inspirational Motivation Intellectual Stimulation Individualized Consideration Individualized Influence Acquired the following natural food stores:
Wellspring Grocery, NC
Bread & Circus, MA/RI
Mrs. Gooch's Natural Foods, Los Angeles
Bread of Life, Northern CA
Fresh Fields Markets, East Coast/Midwest/Florida
Merchant of Vino, Detroit, MI
Nature's Heartland, Boston 2001 Acquired Food for Thought, Northern CA.

Harry's Farmers Market, Atlanta, GA 2002 Moved into Canada 2004 Entered the UK:
Acquistion of
7 Fresh & Wild Stores Results 287 stores
8 Billion a year in sales Less than half a dozen natural food stores in the US. ????? Question and Challenge the Norm High School Indifference Important life lessons Vegetarian Collective Developed interest and motivation Less than 1% of the American Grocery Market What if this is a career? Growth through acquisition Began to understand health foods Questions? College Apathy Two Schools
Dropout Jennifer Haggard

Julie Hershkowitz

Daniel McCarthy
Full transcript