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Martin’s Takeover Of Ukrop’s: A Change In Organizational Culture

1528 words - 6 pages

In this paper, the organizational cultures of Ukrops and Martins Grocery Store. The purposes of this paper are to discuss the similarities as well as the differences in culture between the two organizations such as the employee/customer satisfaction, policies, as well as the benefits each company gave their employees. Also in the paper, the reason why Martins felt a need to buy out Ukrops will be discussed.
The reason this topic was chosen was because the Martins chain as well as the Ukrops chain had specific characteristics/ symbols that could be used to define each chain. The concepts that the Martins takeover exemplified were prime examples of the topics we discussed in class. In class, we discussed the organizational culture and how it affects an organization. The Martins takeover is an excellent example of the ways organizational culture affects an organization. In this case, the Ukrops dominant culture just couldn’t compete with Martins. Even though Ukrops had an outstanding positive culture, this is one example of how the national culture had a tremendous effect on the local culture within the Ukrops chain. When the Ukrops managers thought about how their organization was being affected globally, they made the conscientious decision to sell to Martins. Because organizations depend heavily on foreign markets, the managers of Ukrops decided that Martins would be a much better fit to the community.
Ukrops and Martins are two companies that differ dramatically when it comes to their culture. Ukrops is a company that was founded by Joseph and Jacquelin Ukrop in 1937. When The Ukrops opened the 1st Ukrops location on Hull Street in Richmond, Virginia, they never expected that the Ukrops franchise would even have more than one store. The Ukrops were content on just keeping their family life intact and enjoying life raising their kids. The Ukrops kept their Christian values when it came to running the store. Ukrops was closed on Sundays, and sold no alcohol. Jacquelin cooked lunch for the employees, and Joe frequently lent a hand to neighboring farmers, closing the store when the demands of harvest season required his help. (Funding Universe, 2000) In 1960, James Ukrop joined his father in the Ukrops franchise. Under James Ukrop, the franchise grew by a whopping 19 stores and he also added a bakery to the stores. In 1989, the Ukrops family decided to add a full service kitchen to the stores. These kitchens were to be used to prepare cold food items that customers could later warm up.
With the expansion of the stores, the Ukrops franchise was bringing in the big bucks. By 1994, with the prepared foods business a confirmed success, Ukrops began to show signs of a more aggressive approach to expanding the chain. There were 22 stores in operation, generating an estimated $420 million in sales. (Funding Universe, 2000) In November 1999, the company opened its first full-blown health-focused store, which featured a store-within-a-store format....

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