Yesenia Gonzalez

We Are Market Basket

South Texas College

Dr. Ruben Flores

Market Basket was a New England based supermarket that was being run by Arthur T.

Demoulas. Arthur T starting running the family business after his cousin George

died. Market Basket became super successful supermarket in the hands of Arthur T.

Arthur T had a successful business model where he took pride in putting customers

first. After conflicts between shareholders Arthur T was fired and that created a downfall

for the company. After the complete disaster that followed this the shareholders and

new CEO put Arthur back into his position.

Market Basket was a super market that was one of the top selling stores with revenues

in the billions. They developed a business model completely different then anyone else.

They set themselves apart from everybody by carrying out three important rules. "No.1

is it's the people." "No 2 is our low price offering that we have". "No 3 is that we've got

no debt". ( We are Market, 2015 pg 4 ) s. They did not believe in high costs they

wanted to have very low prices and sells lots for less then sell less for more money.

They believed in volume which in return was amazing for returning customers looking

for cheap prices. They also took care of their employees needs and wants giving

several bonuses a year and pay raises. They also worked around every employees

needs and work schedules. They made sure to create a healthy happy environment

within the organization.

Also Market Basket created strong ties to the locals. They made sure to get as much as

they could from local vendors purchasing fresh products from around towns. Not only

did Arthur T believe in this but also in helping them by allowing them to

deliever whenever they wanted and not making them wait for a appointment to be

unloaded. Arthur T was a very generous person working for everyone not just his

company but others also. He was very kindhearted man. He was appreciated so much

by everyone for his genoraity. He also made extreme decisons that he didn't have too.

For example, their was a boy who needed the store to provide a seasonal product

all year due to a condition he had to dairy and without question Arthur made it

happen. He was so close to customers he made his employees stock the

shleves during the day that way people would always go to them incase they had

questions. He was a very invloved leader always making sure to be avaible and around

his stores for his customers. Although with his inspiring and successful efforts not

everyone was happy and in results task conflicts starting appearing.

Even after so much success came some backlash the shareholders were not agreeing

with Arthur T decisions. Creating a intragroup conflict between members of the board.

All parties were not agreeing on Arthur T decisions on spending and potential conflicts

of interest and self dealing. After investigation and talks about selling their shares they

came to the conclusion of firing Arthur T. Right after this decision immediate backlash

occurred. Arthur T received support from everyone to get his job back. Everyone

believed that without Arthur T running the business it would not be successful. He got

supporters boycotting and doing petitions even longtime employees quit after hearing

the news. This was a personal conflict everyone was facing. They faced not getting paid
for weeks, loosing theirs jobs just to bring Arthur T back. Arthur T spent years and years

creating personal and strong ties to the community. Who didn't know him how could

they not support him after everything he had done for them. People cared for him as

much as he cared for them. Everyone worked together to bring him back it was so

important to everyone. The firing of Arthur T bought everyone together to do

something.

Their constant efforts of demands to bring him back started having real effect on the

company. Alot of the employees refused to attend work which resulted in the shut down

of the company. This process conflict was getting out of hand not everyone was on task

and therefor resulted in the board firing alot of people. After this the customers started

getting invloved by no longer shopping there resulting in 90% decrease in sales. Of

course these problems could no longer stay like this and the shareholders came to a

agreement for Arthur T to purchase the company back and regain his position. Finally

Arthur T was bought back but now facing serious debt there had to be new changes and

a new plan structure to get out of debt. With this huge debt on their hands it did not

change one thing to their core values. Employees knew that they were also going to

help as much as they could to get out of debt. They all were glad to help out and involve

themselves in a new plan.

Arthur T did everything he believed possible to set himself and his company aside from

competitors. Creating a wonderful work enviroment between his customers and

employees. I agree with much of his decisions. Although I would of tried to avoid such a

giant conflict outcome. I would of tried involving the shareholders in my decions and

acknowledging them as business partners and shareholders. As bussiness partners we

must learn to respect everyone personal views and opions this helps avoiding

relationship conflict. If there is more then one business owner shouldn't both parties be

involved in such important company decisons ? I believe there could of been dyadic

conflict instead of intergroup conflicts because maybe if one or two people don't agree

it's easier to fix them alot of people. Yes Arthur T did an outstanding job making Market

Basket great and top selling but also as a leader we must learn to lead and make

decions for the best of the company. ALot of this could of been avoided by holding

meetings and discussing important decions amoung the groups.

Referneces

Ton, Z. Kochan, T.A. Reavis, C (2015 , March 13) We Are Market Basket MIT Sloan

Management