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Juan Garcia

ORGL-4342

11/23/2020
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Market Basket

Market Basket is a supermarket chain in New England, and by assortment factors, it

stands different from its competitors. First, its customers have an uncomplicated shopping

environment and no cards for loyalty, officials’ websites, or personal-checkout lines. They are

famous for their relative average prices, and in explicitly between 9-20 cheaper than shop and

Stop and 23% less expensive than Wal-Mart alongside Shaw. They use uniform prices across all

other branches at every location. The business makes use of a shopping environment that

fascinates with its saving simplicity and potential. Market Basket, regardless of customizing its

prices, targets mostly on demographic areas. For example, before they initiate a new store,

directors and buyers will investigate the region for what customers have tastes and their

background ethnically. If there is something exceptional such as the type of the commodity, the

Market Basket will search for an avenue to begin carrying it to attract customers. Through its

customer's attendance, Market Basket can outweigh its customers.

The Market Basket has faced conflict which hinders it from achieving its set goals and

objectives. The three types of conflict that might interfere with smooth operation of this

supermarket are relationship conflict as it there is good relationship between t Arthur T the CEO

and the workers (Hussein & Al-Mamary, n.d.). If the CEO of the company is not in good

relationship with the workers, then a conflict might occur. Relationship conflict might occur

between the employer and employees. Relationship conflict can negatively affect the company

(Hussein & Al-Mamary, n.d.). The can be a task conflict whereby the employee might be in

conflict with the task assigned within the business enterprise. The last type of conflict is the

process conflict. The process conflict involves disagreement over the procedures or methods the

group should apply in order to finish certain tasks in company such as in Market Basket
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supermarket. Loci conflict in organization might include intergroup and intra group conflict.

These conflicts together are dyadic conflict. Therefore, an organization should come up with

measures on how to tackle such issues affecting the smooth operation of the company.

Moreover, Market Basket for its employees rewards their employees amazingly well,

with part-time and full-time cashiers at Market starting salary above $10/hr and $7hr,

respectively. Part-time was paid half on holiday and time and attained an increase of 0.25 after

every six months until they attain $12/. Hr (Ton et al., 2015). Since 1963, the Market Basket has

been applying a profit-sharing strategy, which is currently worth above $600 million. Market

Basket provides all workers bonuses all over the year that are based on how workers have

operated with the company to assist in identifying their hard work. There is a massive target in

ensuring that every person in the company puts a lot of effort to improve the outcome and

maintain teamwork to ensure chemistry is correct.

Market Basket customer service wise argues they store their shelves all over the day, and

not correct at night, which implies there was frequently someone on the floor to assist customers.

They suggest a single-line-system during snowstorms as declared on page six, making the

customers' lives easier. Market Basket also in 2004 recognized the 10-foot-policy which

connotes "that every customer in 10 feet of a worker should be admitted with smile or greeting.”

Market Basket has incredible service culture and superb customer service, adequate to get 5-star

reviews on numerous rating websites (Ton et al., 2015). Therefore, its competitors' Market

Basket differences enable it to offer superior value to customers and employees at an affordable

price.

Various factors make the Market Basket business model successful. Arthur T. expelled

CEO gave a statement saying, "the success of Market Basket occurs as an impact of a business
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model that operates and the implementation of it by a dynamic and dedicated team of associates

(Labes et al., 2017). Further, there should be fierce loyalty to the enterprise, and its customers

often valued deeply. The business model can also be made successful by strong commitment and

compensation practices to promoting from within offering the low enterprise rates of turnover

and a deep memory of the institution that has assisted them in changing higher profits than their

competitors regardless of relatively low prices (Labes et al., 2017). Market Basket tries to make

its business model successful by determining which commodities to pursue and completing its

business plan. It also defies its customers, establishes business processes, determines a strong

value proposition, determines its primary business partners, leaves room for innovation, and

finally creates a demand generation policy.

Firing Arthur T. created such a reaction from vendors, customers, and employees

because he was a servant leader. From the support of many stakeholder categories and the

unheard-of situation where workers walk out on their obligations to demand Arthur T., their

CEO rehired (Ton et al., 2015). It appears that the CEO was a servant leader bearing all the

necessary qualities. The stakeholder created such reactions because, as a servant leader, he was

Selfless, Emphatic, Resolute, Virtuous, Authentic, Nascent, and Thorough (SERVANT). The

stakeholder reacted in such a manner because Arthur T. tried his level best to execute profit

sharing in the company, frequently appeared at stores, interacted with employees in front-line,

and visited customers. It is Arthur T. who workers argue instituted a plan for profit sharing

enabled retirees to go away with an impressive retirement plan, who provided bonuses in

holiday, who motivated grocery baggers to operate their way up the business ladder to an office

in the corner (Ton et al., 2015). Arthur T. maintained prices fair for customers, and handled

suppliers fairly, and frequently had a kind word for each customer, supplier, employer he met.
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The stakeholders rallied because Arthur stands with their welfare compared to the new

management, which had already started to change everything to maltreat customers. Therefore,

employees, vendors, and employees, among other stakeholders, demonstrated after the firing of

Arthur T. because he was a servant leader.

Collective action means the step taken together by a team of people whose goal is to

promote their situation and attain a universal objective. It is a term that has theories and

formulations in numerous areas of the social sciences, including anthropology, sociology,

economics, and political science (McCaffery & Cohen, 2005). The collective action of the

Market Basket employees worked because they worked in Unity. The employees understood the

importance of fighting for their CEO in collective action. Collective action is a famous tool to

assist settles in some of the more systemic aspects and challenging aspects affecting

stakeholders' operation in the company. The joint effort for employees in Market Basket raised

the benefits and wages more for workers.

The Market Basket business model sustainable is given its new structure to ensure the

company works towards attaining its set goals and objectives. In Market Basket, it was an

unforgettable warning story for all enterprises (McCaffery & Cohen, 2005). They applied the

available capital to the business to form profit and value today while still building and preserving

wealth for tomorrow. Therefore, the Market Basket was given its new structure to ensure the

company keeps targeting its set goals and opportunities.

In conclusion, Market Basket was the supermarket chain in New England, and for

assortment factors, it stands different from its competitors. They treated their customer and

stakeholders fairly, and they outweighed their competitors. After Arthur T. was fired, the

stakeholders in the company demonstrated for his dismissal. They wanted their CEO to be retired
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because, as a servant leader, he knew how to associate with workers. Additionally, stakeholders

demonstrated that the new management had already begunto change the structure to mistreat the

employees. Collective action in the company enabled the stakeholder to operate in harmony.
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References

Hussein, A. F. F., & Al-Mamary, Y. H. S. Conflicts: Their Types, And Their Negative And

Positive Effects On Organizations.

Labes, S., Hanner, N., & Zarnekow, R. (2017). Successful business model types of cloud

providers. Business & Information Systems Engineering, 59(4), 223-233.

McCaffery, E. J., & Cohen, L. R. (2005). Shakedown at Gucci Gulch: The New Logic of

Collective Action. NCL, Rev., 84, 1159.

Ton, Z., Kochan, T. A., & Reavis, C. (2015). We are Market Basket. Case. In: MIT Sloan

Management Case Collection.