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Case Study Team Paper-Roundy’s
Katie Schulz, Austin Maddix, McKenna Roubal, Amanda Duncan, Travis Leitermann
University of Wisconsin-Green Bay
Organizational Culture and Change (BUS ADM 489)
Thomas Caldie
May 3, 2017
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Table of Contents
Executive Summary & Recommendations ……………………………………………………………………….Page 3
Organizational Theory Analysis
i. Chapters 1…………………………………………………………………………………..…………..………. Page 6
ii. Chapter 2……………………………………………………………………………………………………….. Page 9
iii. Chapter 3……………………………………………………………………………………………….……… Page 11
iv. Chapters 4……………………………………………………………………………………………………… Page 13
v. Chapters 5.……………………………………………………………………………………………………… Page 15
vi. Chapter 6…………………………………………………………………………………………………………Page 16
vii. Chapters 7..………………………………………………………………………………………………….. Page 17
viii. Chapters 8……………………………………………………………………………………………………. Page 20
ix. Chapters 9………….…………………………………………………………………………………………… N/A
x. Chapters 10 …..…………………………………………….………………………………………………… Page 22
xi. Chapters 11……………………………………………………………………………………………………. Page 25
xii. Chapter 14………………………………………………………………………………….……….………. Page 29
Work Cited…………………………………………………..………………………………………………………………… Page 31
Appendices……………………………………………………………………………………………………………………. Page 34
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Executive Summary:
Roundy’s is a grocery chain that has had much success and undergone numerous
changes since its birth in 1872. The Milwaukee wholesale grocery company was found by
Judson Roundy and two partners, Sidney Hauxhurst and William Smith. Roundy’s started to
grow quickly in the early 2000s when it purchased the Ultra Mart and Mega Mart, Inc stores.
These purchases added 24 Pick ‘n save stores to the company’s ownership. A few years later
Roundy’s was bought out by an equity investment firm in Chicago. They decided to appoint a
new CEO with lots of food industry experience and the chain began to flourish. In the mid–
2000s the chain was named the world’s “Fastest Growing Retailer” by many magazines.
Roundy’s became a subsidiary of Kroger Company in December of 2015. Roundy’s sets core
values and objectives for their employees to help achieve high customer service and product
quality. Their core values consist of: Trust, open communication, teamwork, passion for
customers, and mutual respect. Roundy’s has been forced to deal with different problems
throughout the years. In 2014 Roundy’s had to find a way to adapt to customer demands of
fresh produce. Customers began to eat more carefully and requested fresh produce. Roundy’s
achieved this demand by creating a partnership with local farms and is now able to meet the
customer demands of fresh produce. Roundy’s top management team consists of numerous
vice presidents. They have vice presidents for many departments including: merchandising
retail operations, human resources, manufacturing, new business development and many
more. This allows each VP to focus on their individual department and make it as successful as
possible. Roundy’s understands the importance of ethics in their business and has created a
manual explaining the guidelines and suggestions for their employees. The management staff
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understands that they must lead by example for this booklet to be successful. Roundy’s
provides competitive wages and insurance to their employees to avoid their employees from go
to competitors.
Every store is known for something different. There are many ways for a grocery store
to compete with its competitors. One of the things that stands out most about Roundy’s is they
are well known for their freshness and are trying to make it a point so their customers know
how hard they are working on it. Roundy’s most popular areas throughout their stores
happens to be the deli, bakery and produce. With these at the top of the list, Roundy’s has an
even greater chance to prove how fresh their items are. The complexity of this kind of
environment is extremely high, knowing what their customers are expecting. Since there are
many different departments, Roundy’s has managers and workers who specialize in each, so
their customers can get the most of the products available to them. With that being said,
Roundy’s has more of a mechanistic organizational structure. This is because there are many
different areas to work in, specializing in something specific, causing them to have a more well
organized, larger hierarchy for specific order.
In my section I talk about Roundy’s and Kroger tends to have a revolutionary approach
because of the speed in which it makes its decisions. Then I go on to talk about the
consolidation under one banner and remodel efforts. I then talk about how Roundy’s is
reengineering to improve effectiveness with implantation of huddles. I highlight how Kroger is
now offering a new home delivery service. I then go into what are Roundy’s main forces of
change.
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Later in design module 11 I go into some background about Roundy’s beginnings. I go on
to explain Roundy’s journey through the different stages if growth and what sort of problem
that Roundy’s is dealing with. I show that Roundy’s is in the stage of decline based on the
information that I found. Lastly, I end with a conversation about conflict and what that conflict
looks like and where it is likely to come from and the degree to which they are effected.
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Organizational Theory Analysis Chapters 1
Roundy’s is a grocery chain that has had much success and has significantly grown since
its birth in 1872. The Milwaukee wholesale grocery company was found by Judson Roundy and
two partners, Sidney Hauxhurst and William Smith and the company became known as Smith,
Roundy & Co. By 1922 the company began to offer its own private Round’s brand and by 1953
the firm recognized as a grocery cooperative. This allowed only independent retailers to hold
Roundy’s stock. It was not until the very beginning of the 2000s that Roundy’s started making
progress in retail expansion. In 2000 Roundy’s purchased the Ultra Mart and Mega Mart, Inc.
stores which became the start of Roundy’s retail expansion. With this purchase, Roundy’s
added 24 Pick ‘n save stores to the total company ownership. In 2002 Roundy’s was acquired
by Willis Stein and partners. Willis Stein and partners is an equity investment firm based in
Chicago. With Robert Mariano being appointed as the new CEO of Roundy’s and bringing his 28
years of food industry experience Roundy’s began to flourish. Over the course of the next few
years Roundy’s acquired and or opened several more stores like Pick ‘n save, Rainbow stores,
and Copps. In 2005 Roundy’s decided to change its company name to Roundy’s Supermarkets,
Inc. The purpose of this change was to change Roundy’s from a long-time wholesale grocery
supplier to a premier grocery retailer. In 2006 the grocery store chain continued to add many
more stores and hit the mark of 140 stores and earned the distinction of being named the
world’s “Fastest Growing Retailer” by many different magazines. Roundy’s is one of the top 40
largest grocery store chains and is in the top 100 largest retailers in the United States. Within
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the last two years Roundy’s became a subsidiary of The Kroger Company based in Cincinnati,
Ohio. Roundy’s began trading in the NYSE in February 2012 but has since ceased trading when
it became a subsidiary of the Kroger Company in December 2015.
Roundy’s understands the lifestyle needs of their customers and they deliver products
and services in neighborhood stores that offer interactive experiences. This is extremely
important for a grocery store chain because they need to attract and maintain customers and
the best ways to do that is with high quality products and tremendous customer service.
Roundy’s sets core values and objectives for their employees to help achieve high customer
service and product quality. Roundy’s core values include: Trust, open communication,
teamwork, passion for customers, and mutual respect. The core value of trust is a core value
