Abstract

This case describes the store operations and work culture at Nugget Markets, Inc. (Nugget), a US-based family-owned grocery retail chain. It also focuses on the employee empowerment initiatives and human resource management practices of the company. Since its inception in 1926, Nugget had created a niche for itself with its focus on providing high quality and specialty products in stores that were famous for their ambience and interiors. Nugget thrived for generations and attracted a loyal customer following, which enabled it to maintain a niche for itself in a market crowded with aggressive competitors. Over the years, the company also focused on creating an employee-friendly work culture. After taking over as the president and CEO of the company in 1996, Eric Stille (Eric) built on the strengths of the company and brought about further changes in the operations. Many of these changes attracted the attention of the industry observers. The company gained recognition for its retail operations and also featured for three consecutive years (2006-2008) on the Fortune Magazine’s ‘100 Best Companies to Work for’ in the USA. The case examines the elements of Nugget’s store operations and work culture and how these have contributed to its business success and toward making it a great place to work. The case concludes with the future prospects of Nugget and the issues and challenges faced by Eric as he planned to grow further by expanding across new locations.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study the key aspects of the retail operations of Nugget Markets and analyze the reasons for the company’s success
• Analyze the factors that contributed to a strong work culture at Nugget
• Understand issues related to work organization such as employee empowerment, team-working, flexible working, control versus commitment, etc., and how these contribute to the success of a firm
• Examine the steps taken by Nugget to ensure employee satisfaction
• Understand the issues and challenges involved in running a family-owned business.

Keywords

operations, team, Work culture, Organizational culture, Nugget Market, Grocery retailer, Retail Industry, Price Challenge Scoreboard, 100 Best Companies to Work For, 'Fresh to Market', Food 4Less