The Story of the Unlikely Grassroots Movement That Saved a Beloved Business


In many ways, the story of Market Basket, a regional grocery chain in the northeast, is a familiar one: The heirs to a family business engage in a tug-of-war for control of the company. In this case, however, the community, including employees, managers and customers, responds with massive action in favor of one faction of the family over the other. They mobilize with protests, petitions (organizers of one last-minute petition hoped for a few hundred signatures; they received 40,000) and widespread boycotts by customers — not to hurt the company but to save it — making the battles of Market Basket unique in the annals of family-business history. As told engagingly in We Are Market Basket, written by marketing professor Daniel Korschun and newspaper reporter Grant Welker (who covered the contentious saga for the local Lowell Sun daily), the battle of Market Basket was not just a war between cousins but a fight between two opposing views of the purpose of business.

On one side is Arthur T. Demoulas, the son of Telemachus Demoulas, son of founders Athanasios and Efrosine Demoulas. On the other side is his cousin, Arthur S. Demoulas, son of George Demoulas, who is another son of the founders. At one point, brothers Telemachus and George ran the chain in harmony. There is no such harmony between their sons.

There are years of recriminations, lawsuits and board battles too complex to review here. However, for the authors, the core of the conflict is in two opposing business philosophies.

Serve the Stakeholders

For CEO Arthur T. Demoulas, the purpose of the company, write Korschun and Welker, was to serve the needs of the loyal low- to middle-income customers at the low-priced store. Following what is now known as a “stakeholder” view of business, Arthur T. ensured that the company fulfilled the needs and desires of its employees, served the communities in which its stores were located and even went the extra mile for its loyal vendors.

We Are Market Basket offers numerous stories of Arthur T.’s stakeholder philosophy. For example, Arthur T. not only empowered his employees but also took a personal interest in every employee: He once offered to pay to move a store director’s severely injured daughter to a better hospital. Instead of cutting off a vendor that had fallen on hard times, he helped the vendor restore his business.

The company also considers itself a corporate citizen and contributes millions to charities.

Or Serve the Shareholders

Arthur S. and his supporters, according to the authors, had a completely different view of the business: A company existed to make money for shareholders. Arthur S. disagreed with the large employee profit-sharing bonuses and other spending that didn’t benefit shareholders. When he gained control of the board, he and his supporters set out to fire Arthur T. and succeeded in June 2014.

The firing led to huge protests in the street, walkouts by employees and most managers and a wholesale boycott of the stores by customers — a revolt that grabbed the attention of the northeast media. In essence, all of the stakeholders that Arthur T. had supported for so many years united and shut down the company. The board finally relented; Arthur T. was restored.

Neither Arthur T. nor Arthur S. agreed to be interviewed for the book, but in some ways this only adds to the authenticity of the narrative. Many company books are written by the CEO, giving a perhaps overly simple and positive view of the company’s efforts. We Are Market Basket is written from the point of view of employees (known as “associates”), managers, vendors and customers. It is written by the “we” of the title and, for that reason, deserves to be carefully read by all managers who want to learn the secrets of a successful stakeholder strategy.

The New Economics of Matchmaking and Market Design


A patient with kidney disease goes to his doctor with good news: He found a donor who would be willing to give up one of her kidneys. A series of tests, however, shows that the donor-recipient match is incompatible. This scenario occurred at Rhode Island hospital with two pairs of donors and recipients. Then the Rhode Island surgeons realized that the donor of one pair was compatible with the recipient of the other pair, and vice-versa. With the permission of both donors and both patients, the surgeons did a kidney “exchange.”

Those operations planted the seed of what would become the New England Program for Kidney Exchange (NEPKE), a “matching market” for kidneys based on algorithms developed by Nobel Prize-winning economist Alvin E. Roth. (As opposed to commodity markets, matching markets allow buyers and/or sellers a choice in what they buy or whom they sell to.)

In his new book, Who Gets What — and Why, an engaging exploration of the different types and different roles of matching markets that underpin how our world operates, Roth devotes a full chapter to the creation and expansion of NEPKE — a market that does not involve money since the sale of kidneys is illegal and has been expanding thanks to the continued evolution of its rules.

Rules Are Necessary for Markets

Rules are at the heart of market design, the discipline for which Roth is perhaps the world’s most pre-eminent expert. Politicians talk of free markets as if no rules are necessary, as if self-interest and self-control will ensure the efficiency of markets. But as Roth shows through his many examples, rules are necessary because markets only work under the right conditions. For example, markets need to be thick — there must be a sufficient number of buyers and sellers all active at the same time for the market to work. The kidney exchange works because a sufficiently large database of donors and patients was created.

At the same time, markets cannot be too congested. Buyers need to be able to find what they want in the market in a timely manner. Travelers using Airbnb, which created a market of rooms in personal homes acting as hotel rooms, were hampered by the response time from hosts using personal computers. Smartphones (hosts no longer had to wait to check their computers at home at night) relieved the congestion. Markets also need to be safe: Both buyers and sellers must be assured that they will not be cheated. One of the challenges of Uber was convincing travelers that the car would show up and convincing Uber drivers that passengers would wait. Markets that are not thick, uncongested or safe will unravel and no longer fulfill their functions.

In Who Gets What — and Why, Roth’s clear jargon-free writing helps readers navigate the nuances and implications of market design. Roth’s wit and the variety of case studies he describes in detail also help. For example, Roth describes how the market for gastroenterology fellowships (the educational step after internal-medicine residency) “unraveled.” The section is titled, “Finding the Guts to Wait.”

Packed with fascinating stories, from the history behind the nickname Oklahoma Sooners to the role that repugnance plays in market design, Who Gets What –– and Why is at once supremely insightful and entertaining — a rare combination for an economics text.

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Turning Uncertainty into Breakthrough Opportunities

attackersadvantageThe forces driving today’s world of structural change create sharp bends in the road that can lead to major explosions in your existing market space. But exponential change also offers exponential opportunities. How do you leverage change to go on the offense? The Attacker’s Advantage is the game plan for winning in an era of ambiguity, volatility and complexity, when every leader and every business is being challenged in new and unexpected ways.

Ram Charan, harnessing an unequalled depth and breadth of experience working with leaders and companies around the globe, provides tested, practical tools to help you:

• Build the perceptual acuity to see around corners and detect, ahead of others, those forces — especially people, who are the catalysts of change — that could radically reshape a company or industry.

• Commit to a new path forward despite the unknowns, positioning your business to make the next move ahead of competitors.

• Make your organization agile and steerable by aligning people, priorities, decision-making power, budgeting and capital allocation and key performance indicators to the new realities of the marketplace.

The Attacker’s Advantage provides a stark and simple challenge: Stay in a legacy world of incremental gains or defensiveness, or be an attacker by creating a new world, scaling it up quickly, ahead of the traditional players.

Not a Soundview Executive Book Summaries subscriber? Then click on the title to purchase and download it right now to begin learning these critical business skills.


Customers Buy. Fans Buy In.

Our guest blogger is Lee Elias, co-author of Think Like A Fan.

What do you call the people that do business with you? Are they consumers, patrons, customers, etc? I have become fond of referring to these people as fans. In reality, anyone who does business with you, whether it is monetarily or through trade, is making an investment into your brand and company. The physical transaction between a person and business may make them a literal consumer, however the choice to put their trust and faith in what you are providing is what makes them a fan.

Fans come in many forms; casual, fair weather and die-hard. Simply taking money from these people is no longer the most effective business model. With today’s limitless connectivity and ability to communicate, cultivating relationships and making these fans feel like part of your organization can be infinitely more beneficial, both monetarily and mentally, than ever before.

In a time when challenging the status quo has become the status quo, consumers have placed a responsibility on all organizations to stand out in order to gain their loyalty, not just their money. In order to find continued success moving forward, organizational leaders will all need to gain an understanding of how digital technology is reshaping the consumption of media.  Our entire market is integrating deeper and deeper into wireless, mobile, and digital solutions that consumers crave. These innovations are a major opportunity for revenue and brand building if implemented and integrated correctly. Proper planning and preparation for a digital migration effort is essential, and business leaders will find they cannot sit back and “see how it plays out” for as long as they may have been used to with earlier, more traditional marketing methods.

Today’s connectivity has opened the door for organizations to touch an audience 24/7/365.  Fans are constantly calling for a better overall experience – how are you answering the call?

There are several opportunities to transform from “merchandise” people buy to a “mission” they believe in. For example, organizations can

– “Broadcast” uniformed information across multiple platforms

– Speak with their audience, not at their audience

– Enable current customers and followers to promote your brand

– Stay constantly visible to supporters in order to stay relevant

– Continually “tap” their audience to engage and incite interaction

– Understand how to respond to both positive and negative reviews

– Substantiate internal sales forces to increase creativity and productivity

– Establish trust and authenticity as a keystone of the brand

– Create a digital community in which followers want to visit

– Utilize social media platforms to their maximum potential

– Work with (not against) competitors to maximize profits

– Create a culture of confidence in their brand

There is no doubt that a digital migration is happening. The question most of the elite are looking to have answered is when to make the change…the answer is now, as in right now.

Join us on September 29th at 12 PM ET for our Soundview Live webinar titled “Think Like A Fan”.

Selling A Business For An Outrageous Price: Fact or Fiction?

Today’s guest blogger, Kevin Short, is the author of Sell Your Business For An Outrageous Price (AMACOM Books, 2014), and the Managing Partner and CEO of Clayton Capital Partners, a St. Louis-based investment banking firm specializing in the sale and purchase of mid-size companies.

Have you ever wondered why similar, mid-market[1] companies sell at wildly divergent prices?  I noticed the discrepancy between ordinary and outrageous prices years ago and decided to find the answer.

First, I defined “outrageous price” as one that is at least two times the EBITDA multiple of an average company in its industry. Second, I looked at leverage; the leverage that drives prices up when sellers have it and holds prices in check when buyers have it. Finally, I looked at the transaction process: could we use it to produce an outrageous price?

I started with a four-step Proactive Sale Strategy™ to transform good prices into great ones and to maximize a seller’s probability of closing.

Step One assesses readiness of the company and its owner for sale and addresses any areas that are not sale-ready.

During Step Two we dissect all of the information that we collect in preparation for a buyer’s due diligence to save time later and reduce the risk of a failure to close.

In Step Three we identify a company’s competitive advantage and search for an existing or potential fit between the seller’s competitive advantage and a buyer’s need. We then determine how a seller’s company: (1) can (or could, if given time and preparation) meet a buyer’s immediate need, or (2) could pose an imminent threat to a buyer.

Step Four focuses on potential buyers: which ones can use their significantly greater resources (such as access to capital or more efficient processes) to make more money from a company than can its current owner?

At the end of this process, owners decide if they want to go for an outrageous price. If so, we look for the following four items that I learned (after analyzing numerous outrageous price sales) must be present:

[1] $10M – $250M of value

  1. A competitive advantage that can be leveraged to cause a buyer pain or create gain.
  2. An “outrageous buyer” active in the marketplace who has deep pockets, is motivated to eliminate pain or create gain and has an internal champion pushing to make the deal.

III.        A seller who can trust their advisor enough to follow his or her lead, is self-disciplined enough to resist the temptation to talk to buyers or jump ship when the seas get rough, and has an ability to act.

  1. A transaction advisor who knows how to orchestrate the Outrageous Price Process™. That advisor must understand why a company is successful and be able to communicate to buyers how the acquisition will bring it gain or relieve pain.

The success of this process is dependent on the presence of each of these elements but not necessarily on a strong M&A market. I’ve used it under varying marketing conditions and in all types of industries. Check out my book to learn whether your company could sell for an outrageous price.

To learn more about selling a business, join Kevin Short at our Soundview Live webinar on September 3rd: An Insider’s Guide to Getting More for Your Business.

The Four Global Forces Breaking All the Trends


Once upon a time, a company such as Toyota used to have strict retirement requirements tied to age. Employees knew that once they reached the cut-off age, they would be asked to retire. No exceptions.

The situation is a little more fluid today. Toyota has a “reemployment” program for retiring workers. As they leave their current positions, retiring employees have the opportunity to apply for other positions at Toyota or its affiliates. The reason for Toyota’s efforts is their desire to keep the experience and knowledge of older employees in the company. “Employers have long focused on youth,” explain McKinsey Global Institute directors Richard Dobbs, James Manyika and Jonathan Woetzel, the authors of a new book, No Ordinary Disruption. “But in a graying world, employers have to reset their intuition. Rather than seeing older employees as legacy costs, they must view them as assets and resources.”

The Four Disruptive Forces

A graying world is just one of four disruptive forces that the authors believe will dramatically alter the landscape of the world more than any previous disruption in history. The other three forces are:

  • The shifting locus to emerging markets and specifically the cities within those markets. Half of the global GDP between 2010 and 2025 will come from 440 cities in emerging markets. Some of them will be well known, such as Shanghai, but most will be small- and medium-sized cities most have never heard of.
  • The acceleration of the scope, scale and economic impact of technology. It’s hard to believe that technology could accelerate even more than what we’ve seen in the past 25 years (a paltry 3 percent of people in the world had a mobile phone 20 years ago). However, companies such as Alibaba and Uber show how quickly technology can redefine industries.
  • The global interconnectivity through movements (or “flows”) of capital, people and information. The original lines of connectivity between Europe and America have evolved into a “complex, intricate, sprawling web,” the authors write.

These four global forces are breaking all the trends, according to the authors. As a result, people and companies are going to need what they call “intuition resets.” The old assumptions, habits and priorities have to be replaced with new ones. Thus, Toyota starts a reemployment initiative for older workers, as described above.

Companies are discovering the power and reach of the exploding technology to “create difficult-to-replicate capabilities,” the authors write. One example is Medtronic’s remote heart monitoring network connecting implanted heart monitoring devices to physicians at remote locations.

Given the shift to cities, companies that used to avoid the costs of downtowns are now recognizing that locating in urban areas is vital to attract the best and the brightest. The success of Uber, Zipcar and Lyft reveal the potential for companies that focus on urban consumers. Finally, in a super-interconnected world, establishing a presence in a major hub, depending on industry and domain, is key.

This is just a tiny sample of the intuition resets that the authors offer in a book that is as sprawling, complex and fascinating as the world it describes.

Executing the Right Company Strategy

How to Choose and Execute the Right Approach

Which strategy is the right strategy for your company? How to make the choice is brilliantly addressed in a new book from three Boston Consulting Group senior partners: Martin Reeves in BCG’s New York office, Knut Haanaes in Geneva and Janmejaya Sinha in Mumbai. In their book, Your Strategy Needs a Strategy: How to Choose and Execute the Right Approach, Reeves, Haanaes and Sinha identify just five different types of competitive environments, and the corresponding strategy that works for each. The story of Novo Nordisk in China illuminates how a company can take advantage by pursuing a strategy that perfectly fits the environment.

Danish pharmaceutical giant Novo Nordisk controls 60 percent of the insulin market in China, which means that nearly 60 million diabetes patients are taking Novo products. Novo’s market share is twice that of its nearest competitor.

How did Novo establish such a strong and lucrative stronghold in China? According to the authors, Novo was the key player in shaping the market. When Novo came to China in the early 1990s, diabetes awareness was very low. Novo worked with the medical community, the Chinese Ministry of Health and the World Diabetes Foundation to educate the country about diabetes. It reached out to patients as well, established its first production site in China in 1995 and an R&D center in China in 2002.

Novo recognized the untapped potential of the insulin market in China and working with the major stakeholders in the country was able to shape the market to its advantage.

The Five Strategies

Novo Nordisk was successful because its orchestration strategy, in the authors’ terms, matched the shaping environment of China’s insulin market. According to the authors, companies can differentiate between competitive environments by focusing on three variables: predictability (can you forecast it?); malleability (can you, working with others, shape it?); and harshness (can you survive it?). These three variables lead to five types of strategy environments, they write, which in turn defines which strategy work best for those environments:

Classical: I can predict it, but I can’t change it. The best strategy for the classical environment, the authors write, can be summarized as be big. The competitive environment is stable and predictable. Competitive advantage is built by the company’s positioning in the environment. This is achieved, write the authors, by “superior size, differentiation, or capabilities.” This strategy calls for companies to analyze the environment, plan the best positioning strategy, and execute it.

Adaptive: I can’t predict it and I can’t change it. In this environment, the most effective strategy, according to the authors, is to be fast. The rules change quickly, and the most successful companies are those who can vary their approach to create several strategic options, select the best option at the right tie and scale it up.

Visionary: I can predict it, and I can change it. The strategic imperative for the visionary environment, write the authors, is to be first. Successful companies envisage the possibility of the market, are the first to build that possibility, and persist in executing and scaling the vision.

Shaping: I can’t predict but I can change it. The key to success in the shaping environment is to be the orchestrator. Novo succeeded in the shaping environment, the authors explain, by engaging stakeholders to create a vision of the future, building a platform through which it could orchestrate the collaboration of all stakeholders, then evolving that platform by scaling and maintaining the flexibility of the platform’s stakeholder ecosystem.

Renewal: My resources are severely constrained. Finally, the only strategy that will work in a renewal environment is to be viable. The key, write the authors, is for the company to react to a deteriorating environment, economize as much as possible, and then choose among the other four strategies to grow.

Insightful, well written and filled with examples, Your Strategy Needs a Strategy is a crystal clear roadmap — actually five roadmaps in one — that can guide companies through the most challenging of competitive environments.

The Start-Up Plan for Starting Now


“If you want to sell a product, just make it. If you want to sell a service, just deliver it. If you want to create a company, just create one.” The opening words to the first chapter of Fail Fast or Win Big encapsulate author Bernhard Schroeder’s “just do it” philosophy. Entrepreneurs should stop planning and instead get into the market as quickly as possible. Schroeder, the Director of the Lavin Entrepreneurship Center at San Diego State University, is especially dismissive of business plans, “an anachronistic waste of time,” he writes. “However long you think it will take you to write a solid business plan, you have to double or triple that time and effort to include the myriad details and the research data you need to provide.”

While acknowledging some of the value of a business plan in terms of making entrepreneurs think about their markets or budgeting and cash flow, Schroeder argues that much of the research and scenarios developed in business plans become obsolete by the time the plan is finished. Markets move, and the only way to know what works is to be in the marketplace — not squirreled away creating projections. Once in the marketplace, you not only see what works, but you also make the corrections necessary to succeed.

To help entrepreneurs go “as fast as you need to go,” Schroeder offers in Fail Fast or Win Big a new “LeanModel Framework” composed of four elements:

  1. Lean Resources. “Lean resources” is a mentality of launching the company with the fewest resources possible. “Less is more,” Schroeder writes. “Look to get your company started in the leanest way possible by leveraging everything you can.” Today’s technology helps. It’s now possible to build a prototype for very little using 3-D printers; crowdfunding (to which Schroeder dedicates a full chapter) is a truly revolutionary way to get funding for any venture.
  2. Business Model. While rejecting the major writing project of a business plan, Schroeder urges entrepreneurs to “take the time to understand your marketplace, current trends and your target customer segment, then craft a business model that not only makes common sense but it makes money.”
  3. Rapid Prototyping. The core of Schroeder’s philosophy is to stop talking or planning and start doing, and doing means creating a product or service to sell in the marketplace. This product can be minimally viable — it is in essence a test product for sale. There are Internet tools, online platforms and new technologies that make rapid prototyping more feasible than ever before. There are even “rent by the hour” manufacturing and engineering facilities available. It all starts with a mentality, however, that is not only focused on speed but also focused on success, not failure. “Most people fear failure, and therefore they move too slowly when they should be creating a rapid prototype of their product or service,” Schroeder writes.
  4. Customer Truth. Speed to market is only a first step. The goal is to get to the market fast so that you can start to receive customer feedback as quickly as possible and make the necessary changes sooner rather than later.

Schroeder, who for several years led Amazon’s marketing efforts and has helped numerous small companies succeed in the marketplace, offers an inspirational guide designed for a world in which nothing is too fast — and failure is a positive sign of action.

How Coca-Cola Learned to Combine Scale & Agility


In today’s ever-changing marketplace, every company is at risk of having a “Kodak Moment”— watching its industry and the competitive advantages it has developed over years, even decades, vanish overnight. The reason? An inability to adapt quickly to new business realities. Established companies are at risk, but it’s no easier being an agile startup, because most of those fail due to their inability to scale. Tomorrow’s business winners — regardless of size or industry — will be the ones that know how to combine scale with agility.

In Design to Grow, a Coca-Cola senior executive shares both the successes and failures of one of the world’s largest companies as it learns to use design to be both agile and big. In this rare and unprecedented behind-the-scenes look, David Butler and Fast Company senior editor Linda Tischler use plain language and easy-to-understand case studies to show how this works at Coca-Cola — and how other companies can use the same approach to grow their business.

Design to Grow is a must-read for managers inside large corporations as well as entrepreneurs just getting started.


• Key differences between scale and agility.

• What it means to design on purpose.

• The three realities underlying the new normal of today’s marketplace.

• The power of modular design for creating agility.

• How open systems can help you create a leaner organization.

Not a Soundview Executive Book Summaries subscriber? Then click on the title to purchase and download it right now to begin learning these critical business skills.


Brand Your Brand Through Actions Not Advertising

Today’s guest blogger is Denise Lee Yohn, a leading authority on building and positioning exceptional brands. Denise is the author of the bestselling book What Great Brands Do:  The Seven Brand-Building Principles that Separate the Best from the Rest.  Read more by Denise at

If you’re investing time and money into branding strategies that don’t seem to be making a difference, you’re not alone. Most business leaders are frustrated by the lack of return they’re seeing on their advertising dollars. And yet some companies enjoy rapid growth and success with minuscule marketing budgets.  What are the leaders at these organizations doing that so you should also do?

Great brands consider their brands as verbs, not nouns. They don’t use their brands simply as external images promoted through advertising and communications. Instead, they use their brands to shape:

  • the internal culture they cultivate — using a purpose and values to inspire employees and customers alike
  • the core operations they run — creating customer relationships that are meaningful, valuable, and sustainable
  • the customer experiences they deliver — making differentiating and emotional connections with customers

They conceive of and use their brands as what they do and how they do it.

This means that the stewards of the brand don’t reside in the marketing or advertising department; they’re at the highest levels of the organization.  These leaders ensure their organization delivers the brand identity and core values through everything they do, every day, all day. They recognize that brands are built through actions, not advertising.

When you use your brand as the central organizing and operating idea of your company, it makes it easy for everyone who works on your brand — from your executive team to frontline employees to business partners — to know how to nurture and reinforce it because everyone shares a common understanding of the value you’re creating.  It makes it clear what to do and what not to do, so no one wastes time, money, and resources on things that don’t align with and contribute to that value.

By shifting your concept of brand from noun to verb, you also allow for constant evolution. When you think of your brand not as an identity to promote but as an instrument that you fuels, aligns, and guides everything your company does, your brand values and attributes serve as inspiration for innovation into new markets, new offerings, and new categories.

In this day and age where nearly perfect, ubiquitous information allows buyers to predict quite accurately the experienced quality of products and services, people today rely less on advertising and promises of quality and more on the opinions of experts and other consumers.  People no longer need a creative campaign or an attractive message to help them decide which product to buy.  The influence of brands on purchase decisions seems to have diminished.

But this doesn’t mean that brands have become less important.  Ask the executives at Starbucks, IBM, Apple, or IKEA.  The brands at these companies remain integral to their success because they develop and use their brands as more than mere messages.

You can build your brand the way great brands when if embrace the concept of operating your business based on your brand.

To learn more about building a great brand, join us for our Soundview Live webinar with Denise Lee Yohn: What Great Brands Do.