Market Basket Leadsership

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The Differences in Market Basket’s Leadership Market Basket opened the first store in Lowell, Massachusetts in 1916, and almost one hundred years later, the family owned and operated company has expanded its chain to seventy one supermarkets across Massachusetts, New Hampshire, and Maine. By all accounts, the grocery store chain has been very successful, generating four billion dollars in revenue in 2012, and making a profit of over 200 million. (Kohn, S. 8/1/2014 Market Basket Workers are Right; Retrieved from: www.wcvb.com) However, a change in leadership has brought on a temporary demise of the company, providing evidence that a great leader is the backbone upon which an organization thrives. Arthur T. Demoulas was…show more content…
Quality and service were never sacrificed regardless of how busy the store may have become. Shelves were always fully stocked and employees available to assist in any aspect deemed necessary. On July 11, 2013, a new leader was introduced in the Market Basket organization, Arthur S. Demoulas. The Market Basket community was informed that ASD gained control of the board of directors and had set an agenda. His agenda, alone, indicates what type of leader ASD would turn out to be. Arthur S. Demoulas set out with an agenda to fire Arthur T Demoulas, slow growth, take on debt and increase profits through price increases while increasing the wealth of the shareholders by stripping cash reserves. (Admin, 12/31/2013 Good Riddance 2013; retrieved: www.wearemarketbasket.com). As new CEO, the very first act was to distribute $250 million in profits to the nine family shareholders. The Boston Globe stated it best when they stated “it was an uncharacteristic act of greed for a firm known for its generous treatment of its workers and concern for price-conscious shoppers” (8/27/2013 Market Basket’s Decent into Greed; Retrieved: www.bostonglobe.com). ASD’s leadership style differs vastly from that of his predecessor. In fact, I’m not even sure how I would categorize ASD aside from greedy and self-centered. He does not

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