Chapter 8, Problem 2VC

Summary Introduction

Case summary:

W Market is a supermarket chain specializing in fresh, organic produce from local sources. It has a large operation across the world to watch over and the mission to sell the highest-quality natural and organic products available. It depends on an organizational structure that combines aspects of a mom-and-pop operation with a traditional corporate hierarchy.

The company got its start when JM and RL borrowed money from friends and family to open a small natural food store in Austin. Their business began to boom and soon merged with another store. However, they faced a huge setback when a destructive flood struck the city. W Market lost its building and all of its produce and inventory. Fortunately, it was soon back in business. Initially, the staff was small enough with everyone doing any sort of job.

Gradually, the business grew and it opened many stores. Labor was divided between four partners, with each specializing in one or more of the tasks critical to the business. The partners decided to depend on separate and local suppliers in each regions they had stores. A decentralized structure gives the company the flexibility to adapt to changes without involving needless bureaucracy.

Characters in the case:

The important characters and factors discussed in this case are W Market, its owners JM, RL and partners, and the decentralized structure of W Market.

Adequate information:

W Market is a supermarket chain specializing in fresh, organic produce from local sources. The business grew with time and it opened many stores. In the business, labor is divided between four partners, with each specializing in one or more of the tasks critical to the business. They depend on separate and local suppliers in each regions they had stores. A decentralized structure gives the company the flexibility to adapt to changes without involving needless bureaucracy

To explain: The importance of decentralized structure in the operations of W Market.