Current Issues

Length: 763 words

The organic industry is one industry that is growing at a fast phase. The Department of Agriculture must be attuned with the growth that is happening presently. USDA accreditation of products still has a lot of development needed as many issues regarding products that are supposed to be labeled organic and those that are not. There is a growing focus on safety of the food and environmental sustainability of organic products. There has been issues raised regarding some products that have been proven to use organic labels but have failed the test when do so.

There is a need for more rigid rules and test to be implemented to make sure that the consumers is getting their money’s worth. In the United States, it is the Department of Agriculture who gives the rule on the handling of products and what not to include in the list of those that can be called as “organic”. This would mean that the fate of the organic industry lies more on the hand of the USDA regarding what rules and regulations they will be promulgating. Executive Summary Industry Analysis The growth of the organic food industry was said to have started in the year 2000.

It was

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in this year when the sales in went up and almost a stunning eight million dollars of the profit was purchased form retail stores. The organic industry is widening their market to reach more consumers. Medicine is costly thus some are opting in preventing the onset or by curing sickness with the aid of organics. Seventy-five percent of grocery shoppers in America thinks that buying organic foods instead of the process ones is better for them due to environmental issues that are being raised now (Sides, 1999). Competition Analysis

Whole Foods started in Austin Texas in 1980. They have a total of one hundred eighty-seven stores stationed in Canada, United Kingdom and thirty states in the United States of America. The oldest organic company is said to be GNC because it has been founded in 1935. Currently there are 5,853 stores worldwide with 12640 employees running the business. The net income of the company has reach thirty four million pesos for the last twelve months. Trader’s Joe started as a convenient store in 1958. The first store was located in Los Angeles.

Nowadays, there are more than two hundred fifty stores located in twenty states around America. They have recorded a revenue growth of sixty percent in 2004 with an income of 4000 million dollars. S. W. O. T. Analysis Strength • They have a very god connection with the consumers with the community projects that they take part into • Have released more of their own line of products making the profit more centered. Weakness • Still have a few stores as compared to that of its competitive stores in the market • Wild Oats is still young in the business as compared to its counterpart’s experiences

Opportunities • Invests in information technology to create better products and to reach more consumers • Distribution system and marketing strategies are being centralized Threats • Organic products shelf life is shorter than that of processed ones. • Economic fluctuations of the industry of organic products Financial Analysis Wild Oats has been showing a very good improvement in the income that they have generated since the day they started the business of organic products. Five hundred forty-three stockholders have held common stocks as of February of this year.

Sales for Wild Oats have recorded an increase of 7. 2% in the year 2005 Strategic Recommendations There is also a need for development emphasizing on greater saturation in our existing markets; Stores efficiency should also be handled well by investing in IT systems and centralized purchasing fro all stores. The capital is one important factor that determines the future of one industry that is why it is important that the amount invested in any given company or business is carefully monitored if it is being use to the fullest and if it will augment to all the needs needed to make it.

Current Issues The organic industry is one industry that is growing at a fast phase. The Department of Agriculture must be attuned with the growth that is happening presently. USDA accreditation of products still has a lot of development needed as many issues regarding products that are supposed to be labeled organic and those that are not. There is a growing focus on safety of the food and environmental sustainability of organic products.

Reference

Sides, Anne Goodwin. “Green Horizons – natural-foods markets”. Mothering. March 1999. FindArticles. com. 06 Oct. 2006. http://www.findarticles.com/p/articles/mi_m0838/is_1999_March/ai_54308902

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