1. WE ARE MARKET BASKET
CASE STUDY ANALYSIS BY
TEAM: PR2B08-2124
2. GROUPMEMBERS
SOUVIK RUHI DAS (12021003005109)
SRINJOY PAL (12021003005110)
SUBHOMOYSEN (12021003005111)
SUBHRAJYOTI CHAKRAVORTY (12021003005112)
SUMANA ROY (12021003005113)
3. INTRODUCTION
• Market Basket is a privately owned grocery store company with a billion dollars
valuations.
• It was established in Lowell, Massachusetts by Anthanasios “Arthur” Demoulas in
1917.
• His two sons Mike & George bought the company in 1956.
• After the death of George in 1971, Mike took over the business.
• Then Mike grew up the business from 14 stores in 1971 to 51 stores in 1994.
4. OBSERVATIONS
• Arthur T. Demoulas was appointed chief executive officer of the business in 2008.
• Many local vendors had a strong relationships with the company.
• In 2014 the board of directors, headed by Arthur T.’s cousin Arthur S. Demoulas fired
the company’s CEO, Arthur T. Demoulas.
• Customer and vendors didn’t accept it and fought against the company so as to force
the board of directors to re-hire Arthur T Demoulas.
5. OBSERVATIONS
• Due to this conflict, three associates quit their jobs the same day.
• This was followed by both strikes and boycotts which hurt the company’s
profits.
• On August 27, 2017 a deal was struck between Arthur T. and Arthur S.’s side of the
family to resolve the conflict.
• In accordance to the deal Arthur T. and his three sisters would buy the remaining 50.5
shares of the company for more than one and a half-billion dollars.
6. CONCLUSION
• Arthur T.’s cousin Arthur S Demoulas was trying to take over the company.
• Arthur T. cousin Evan’s wife sided with Arthur S. allowing him to stay in control of the company.
• Arthur T. always encouraged familial work culture with good sense of bonding between
customers, vendors, employees and other Stakeholders.
• Stakeholders were fiercely loyal to Arthur T. so they did not accept the change in leadership
which led to strike of vendors and boycott of customers.
• On August 2017 deal struck between Arthur T. and Arthur S. to resolve the issue.
7. SUGGESTIONS
• There should be 50-50% split of company’s share.
• The Demoulas family should have solved the family issue regarding the company
privately.
• The company should have aimed for harmony between the shareholders and
stakeholders.
• The negative publicity should have been better handled so as not to hamper company
image and lose valuable customers and vendors.
