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Introduction
The Whole foods was first established in the city of Austin, Texas in the year 1978.
Whole foods was Co-founded by john Mackey who is the Chairman, and CEO of the company.
Whole foods are the worlds leading natural and organic food company with their admirable
dedication to maintain the finest and strictest quality standards of natural and organic food products
they offer.
Whole foods have around 300 stores in USA which includes 4 in Hawaii, 6 Stores in UK and
Canada.
Whole foods was ranked on the US environmental protection Agencys list of top 25 green power
partners.
Mission Statement
With the name Whole foods comes a dynamic leader in the food businesses who aims to
serve with a set of high standards in quality and excellence to provide a variety of organic
food products and commitment to protect and sustain natural agriculture to create a healthy
and nutritious environment and also to make socially responsible business.
Since 1980, Whole foods has pioneered the organic and natural food market.
The Whole foods offers and also produces food products in grocery, meat, seafood,
poultry products and produces bakery foods and catering specialty items like beer, wine
and cheese, Whole body nutritional supplements like vitamins, body care and also
educational products, floral, pet products and also some household products.
To design every store so that it fits in the community they are located.
Whole foods is a company to have a policy which gives them an opportunity to commit and donate 5% of
their annual net profits to charitable trusts.
Whole foods also contributes to overcome the global problems and for this they established two different
foundations one of them known as Animal Compassion foundation who strives to improve the life of farm
animals or cattle's and the second one Whole planet foundation to fight against the poverty in backward
class and rural communities around the world through the process of micro lending.
Whole foods provides loans and subsidies to farmers that meets whole foods organic and quality standards,
and also they do a lot of social activities too.
Considerations
Mutual benefits, reputation of Patagonia, their results and relationship with previous bonding.
Partnership is considered For long term benefits rather than Short term Gains.
BATNA: If partnership with organic clothing is beneficial, Consider new line of organic clothing from
whole foods.
To be a successful business
Possible Future Need - To increase the total number of stores by collaborating with other
companies
What is the firm's primary reason to join whole food market? Increasing profits, and
expanding services or geographic coverage are common reasons.
How will the merger help the firm achieve its strategic vision?
What are the office space considerations? They include when the firms will physically merge
and how. Consider lease or real estate ownership issues, as well as how you will physically
"blend" the staffs of two firms.
Will the merger affect earnings and profitability? Although an important reason to merge is to
increase earnings, know that the first year normally brings an earnings drain, as people work
to become familiar with new systems and leaders and productivity tends to drop.
Negotiation Part
Whole foods have negotiated on profit share, insurance, parking space , transfer of technology,
remodeling structure improvement, space and maintenance.
Whole foods have negotiated on profit percentage on every item sold by Patagonia in each store agreed
up both.
Parking space is being allotted to Patagonia, but both of them agreed to share the maintenance charges.
Transfer of technology was agreed between Whole Foods and Patagonia. Patagonia will pay for the
new technology and maintenance of devices will be taken care by them.
Remodeling structure improvement being negotiated and Patagonia has agreed to pay for the
structure improvement.
Patagonia has agreed upon to pay for the space allocated to them and share the profit percentage on
each goods they sell.
The Deal
Whole foods have agreed to share 4,000 Square foot Floor space in the store located in Waugh
DR. Houston Texas 77019. Which is 11% of the total floor space available.
Property insurance and Liability insurance are mandatory and each will be $200,000 Each.
Personal taxes are also paid by the Whole foods and the share of Patagonia will be charged in
each term lease payments.
Lease Payments are Due Quarterly and all late payments will be charged a surcharge of 10%
of the payment.
Terms of Transfer of Technology are accepted and the expenses for the upgrades are bared by
the Patagonia.
There is No Employee Sharing and Patagonia will be appointing their own staff to take care
of the inventory and floor assistance to the customers.
Patagonia shall promptly comply with all laws, ordinances, requirements and regulations of the
federal, state, county, municipal and other authorities, and the fire insurance underwriters.
However, Patagonia shall not by this provision be required to make alterations to the exterior of
the building or alterations of a structural nature.
This Lease shall be construed in accordance with the laws of the State of Texas.
Lease Document shall be reviewed and Signed by the Vice President of Marketing of Patagonia.
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