Group Title: corporate image as it reflects firm self-conception and affects patronage motives
Title: The Corporate image as it reflects firm self-conception and affects patronage motives
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Title: The Corporate image as it reflects firm self-conception and affects patronage motives
Physical Description: xiv, 243 leaves. : ; 28 cm.
Language: English
Creator: Carter, Robert Newton, 1935-
Publication Date: 1965
Copyright Date: 1965
 Subjects
Subject: Public relations   ( lcsh )
Economics and Business Administration thesis Ph. D
Dissertations, Academic -- Economics and Business Administration -- UF
Genre: bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Thesis: Thesis--University of Florida, 1965.
Bibliography: Bibliography: leaves 235-242.
Additional Physical Form: Also available on World Wide Web
General Note: Manuscript copy.
General Note: Vita.
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Bibliographic ID: UF00097893
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: alephbibnum - 000559238
oclc - 13448694
notis - ACY4687

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THE CORPORATE IMAGE AS IT REFLECTS

FIRM SELF-CONCEPTION AND AFFECTS

PATRONAGE MOTIVES

















By

ROBERT NEWTON CARTER


A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF
THE UNIVERSITY OF FLORIDA
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF DOCTOR OF PHILOSOPHY











UNIVERSITY OF FLORIDA


June, 1965













ACKNOWLEDGMENTS


The author wishes to express his sincere gratitude

to the members of his supervisory committee. The committee

was composed of Dr. R. B. Thompson, Dr. Frank Goodwin, Dr.

R. H. Blodgett, Dr. C. W. Fristoe and Dr. John H. James. A

special word of appreciation is extended to Dr. Thompson,

who gave generously of his time and guidance, and to Dr.

Frank Goodwin who considerably lightened the author's load

through helpful counsel and encouragement.

The Publix executives as well as many Publix managers

and employees have cooperated in every respect with the

author. However, the conclusions, opinions, and other

statements in this publication are strictly those of the

author. Thanks go to Mr. George Jenkins and Mr. William

Schroeter and especially to Mr. Mark Hollis for their

assistance and encouragement.

Undoubtedly the study would never have been completed

without the influence of the author's wife, Sylvia. To her

goes much credit for both technical assistance and moral as

well as financial support.

Use of the Computing Laboratory of the College of

Business Administration of the University of Florida was

granted by the Bureau of Business and Economic Research.

ii











Mr. Scottie Davis and Mr. Dale Moody rendered advice and

services in connection with the use of these facilities

without which the author would have had much more difficulty

in completing his task.

The typing of many preliminary pages was provided by

Mrs. Suzanne Degni and by the author's wife. Mrs. Thyra

Johnston deserves special thanks for the care with which

she prepared the final copy.

The time and skills of many people including students,

faculty, and non-faculty were kindly given in the prepara-

tion of this document. For this and the spirit in which

they were given the author is grateful.


iii












TABLE OF CONTENTS

Page

ACKNOWLEDGMENTS . . . . . . .. . . ii

LIST OF TABLES. . . . . . . . .... ..vii

LIST OF EXHIBITS. . . . . . . . . ... xii

Chapter

I. INTRODUCTION. . . . . . . . I

II. CONTEMPORARY MANAGEMENT PHILOSOPHY. ... 7

Introduction ........... . 7
The Emergence of Management. . . . 8
Technological Advance . . . . ... 11
The Profession of Management . . . 17
Responsibilities of Management . . .. 20
SConclusion . . . . . . . . 25

III. IMAGERY, THE CONSUMER, AND THE INSTITUTION. 25

SIntroduction .......... . . 25
Organization Informational Concept . 26
Human Imagery and Cognition. . . ... 29
Economic Behavior. . . . . . 35
Imagery and Institutional Success. . . 37
The Institution and Feedback . . .. 42
Authoritarian Management . . . .. 43
-Conclusion . . . . . . . . 46

IV. PUBLIC SUPERMARKETS, INC: CONCEPTION,
PHILOSOPHY, GROWTH . . . . . .. 48

Introduction ......... . . 48
Origin of the Publix Corporation . .. 49
A Management Philosophy Develops . 51
Growth of Publix Food Stores Corporation 56
Conclusion ....... . . . . 60

V. PUBLIC SUPERMARKETS INC: SELF-CONCEPT . . 62

Introduction . ... .. . . . 62










Chapter


Policies Relating to Employee Treatment. 63
The Publix Personality . . . . . 71
Publix' Active Image Creation. . . .. 80
"The Happy Difference" Series. . . .. 82
Conclusion . . . . . . . .. 85

VI. RESEARCH DESIGN . . . . . . .. 86

Introduction . . . . . . ... .86
Selected Stores ............ 86
Individual Survey Designs. ....... 87
Survey of Publix managers. . . . ... 88
Survey of Publix Employees . . . . 89
Survey of Publix Customers . . .. 92
Survey of Gainesville Household Shoppers 95
Conclusion . . . . . . ... 97

VII. ANALYSIS OF ATTITUDES OF SELECTED PUBLIC
STORE MANAGERS . . . . . . . 107

Introduction . . . . . . . 107
Manager Survey Analysis. . . . . 108
Conclusion . . . . . . . . 117

VIII. ANALYSIS OF ATTITUDES OF SELECTED PUBLIC
STORE EMPLOYEES. . . . . . ... 120

Introduction . . . . . ... 120
Analysis of Employee Responses . . .. 121
Conclusion . . . . . . . . 132

IX. ANALYSIS OF ATTITUDES OF SELECTED PUBLIC'
CUSTOMERS. . . . . . . . . 134

Introduction . . . . . . 134
Sample Composition . . . . . . 135
Analysis of Publix' Customer Responses . 140
Cross Tabulations. . . . . . . 149
Conclusion. . . . . . . 155

X. ANALYSIS OF ATTITUDES OF GAINESVILLE HOUSE-
HOLD RESPONDENTS . . . . . .. 155

Introduction . . . . . . . 155
Response Analysis. . . . . . .. 155
Conclusion . . . . . . . .. 174


Page










Chapter Page

XI. SUMMARY AND CONCLUSIONS . . . . ... .181

Summary: Basic Concepts. . . . .. .181
Conclusions. . . . . . . .. .188
General Conclusions. . . . . . 194

APPENDICES . . . . . . . . . ... 200

Appendix I Tables
Appendix II Statistical Computations

BIBLIOGRAPHY. . . . . . . . . ... . 235

BIOGRAPHICAL SKETCH . . . . . .. . .. 243












LIST OF TABLES


Table Page

1. Personal Likes and Dislikes of Publix Managers
Classified by Selected Statements . . .. 118

2. Personal Likes of Publix Employees Classified
by Selected Statements. . . . . . . 130

3. Personal Dislikes of Publix Employees
Classified by Selected Statements . . . 131

4. Percentages of Publix Respondents Classified on
the Basis of Personal Characteristics . . 136

5. Percentages of Publix Respondents Classified on
the Basis of Occupations. . . . . . 138

6. Percentages of Publix Respondents Classified by
Percentage of Total Grocery Shopping Done at
Publix . . . . . . . . . 139

7. Percentages of Publix Respondents Who Agreed
With Statements at the Left Pertaining to Store
Personality . . . . . . . . . 141

8. Percentages of Publix Respondents Who Agreed
With Statements at the Left Pertaining to Store
Sales Efforts . . . . . . . . 143

9. Percentages of Publix Respondents Who Agreed
With Statements at the Left Pertaining to Past
Transaction Satisfaction. .. . . . . 145

10. Percentages of Publix Respondents' Likes
Classified by Most Common Responses . . . 147

11. Percentages of Publix Respondents' Dislikes
Classified by Most Common Responses . . . 148

12. Percentages of Publix Respondents' Attitudes
Favoring Stores Sales Efforts and Favoring Past
Transaction Satisfaction: Classified by Sex of
Respondents . . . ..... . ... . 150


vii












13. Percentages of Publix Respondents' Attitudes
Favoring Stores Sales Efforts and Favoring Past
Transaction Satisfaction: Classified by
Occupational Group . . . . . . ... 151

14. Percentages of Publix Respondents' Attitudes
Favoring Store Sales Efforts and Favoring Past
Transaction Satisfaction: Classified by
Percentage of Total Grocery Shopping Done at
Publix . . . . . . . . . . 152

15. Gainesville Household Survey: All Respondents'
Impressions of Supermarkets' Appeal to a
Particular Income Group. . . . . .. .. 175

16. Gainesville Household Survey: Respondents Who
Said They Had Never Shopped at Publix,
Classified by Reasons Given for Not Shopping
There. . . . . . . . . . 176

17. All Respondents Classified by Personal
Characteristics and Number of Persons Residing
in the Household . . . . . . . . 177

18. Extra High Volume Stores' (Gainesville)
Respondents' Attitudes Toward Selected Store
and Management Characteristics . . . . 202

19. Extra High Volume Stores' (Gainesville)
Respondents' Attitudes Toward Other Publix
Customers. . . . . . . . . .. 202

20. Extra High Volume Stores' (Gainesville)
Respondents' Attitudes Toward the Publix
Employee-Customer Service Relationship . . 203

21. Extra High Volume Stores' (Gainesville)
Respondents' Attitudes Toward the Quality and
Price of Publix Merchandise . .. . . 204

22. Extra High Volume Stores' (Gainesville)
Respondents' Likes and Dislikes Classified on
the Basis of Most Common Responses . . . 205

23. Extra High Volume Stores' (Gainesville)
Respondents' Percentage of Total Grocery
Shopping Done at Publix . . . . . ... 206


viii


Table


Page











24. Extra High Volume Stores' (Gainesville)
Respondents Classified on the Basis of
Selected Personal Characteristics . . . 206

25. Extra High Volume Stores' (Gainesville)
Respondents Classified on the Basis of
Occupation. . . . . . . . . ... 207

26. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents' Attitudes
Toward Selected Store and Management
Characteristics . . . . . . ... 208

27. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents' Attitudes
Toward Other Publix Customers . . . ... 208

28. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents' Attitudes
Toward the Publix Employee-Customer Service
Relationship. . . . . . . . ... 209

29. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents' Attitudes
Toward the Quality and Price of Publix
Merchandise . . . . . . . . . 210

30. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents' Likes and
Dislikes Classified on the Basis of Most
Common Responses. . . . . . . . 211

51. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents' Percentage
of Total Grocery Shopping Done at Publix. . 212

32. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents Classified
on the Basis of Selected Personal
Characteristics . . . . . . ... 212

33. High Volume Stores' (Holly Hill, Lakeland,
Orlando, Winter Park) Respondents Classified
on the Basis of Occupation. . . . . ... 215

34. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents' Attitudes Toward Selected
Store and Management Characteristics. . . 214


Table


Page











55. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents' Attitudes Toward Other
Publix Customers . . . . . . .. 214

36. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents' Attitudes Toward the
Publix Employee-Customer Service Relationship. 215

37. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents' Attitudes Toward the
Quality and Price of Publix Merchandise. . 216

38. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents' Likes and Dislikes
Classified on the Basis of Most Common
Responses. . . . . . . . . ... 217

39. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents' Percentage of Total Grocery
Shopping Done at Publix. . . . . ... 218

40. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents Classified on the Basis of
Selected Personal Characteristics. . . ... 218

41. Medium Volume Stores' (Bartow, Leesburg, Plant
City) Respondents Classified on the Basis of
Occupation . . . . . . . ... .219

42. Low Volume Stores' (Brooksville, Clermont)
Respondents' Attitudes Toward Selected Store
and Management Characteristics . . . .. 220

43. Low Volume Stores' (Brooksville, Clermont)
Respondents' Attitudes Toward Other Publix
Customers. . . . . . . . . .. 220

44. Low Volume Stores' (Brooksville, Clermont)
Respondents' Attitudes Toward the Publix
Employee-Customer Service Relationship . . 221

45. Low Volume Stores' (Brooksville, Clermont)
Respondents' Attitudes Toward the Quality and
Price of Publix Merchandise. . . . ... 222

46. Low Volume Stores' Brooksville, Clermont)
Respondents' Likes and Dislikes Classified on
the Basis of Most Common Responses . . .. 223


Table


Page










Table Page

47. Low Volume Stores' (Brooksville, Clermont)
Respondents' Percentage of Total Grocery
Shopping Done at Publix . . . . .... 224

48. Low Volume Stores' (Brooksville, Clermont)
Respondents Classified on the Basis of
Selected Personal Characteristics . . ... .224

49. Low Volume Stores' (Brooksville, Clermont)
Respondents Classified on the Basis of
Occupation. . . . . . . . ... 225

50. Total Respondents' Attitudes Toward Selected
Store and Management Characteristics. .... 226

51. All Stores' Respondents' Attitudes Toward Other
Publix Customers . . . ... . .226

52. All Stores' Respondents' Attitudes Toward the
Publix Employee-Customer Service Relationship 227

53. All Selected Stores' Respondents' Attitudes
Toward the Quality and Price of Publix
Merchandise . . . . . . . . 228

54. All Selected Stores' Respondents' Likes and
Dislikes Classified on the Basis of Most
Common Responses. ............. . 229

55. All Selected Stores' Respondents' Percentage of
Total Grocery Shopping Done at Publix . .. 230

56. All Selected Stores' Respondents Classified on
the Basis of Selected Personal Characteristics. 230

57. All Stores' Respondents Classified According
to Occupation . . . . .. . . 231














LIST OF EXHIBITS


Exhibit Page

1. Facsimile of questionnaire used to gather
information in the survey of selected
Publix managers . . . . . . . 98

2. Facsimile of questionnaire used to gather
information in the survey of selected
Publix employees . . . . . . ... 100

5. Facsimile of questionnaire used to gather
information in the survey of selected
Publix customers. . . . . . . ... 102

4. Facsimile of questionnaire used to gather
information in the survey of selected
Gainesville household respondents . . .. 104

5. Responses of selected Publix managers to
statements at left which refer to Publix
store personality . . . . .. .. ... 109

6. Responses of selected Publix managers to
statements at left which refer to the
cooperativeness of supervisors. . . ... 1-11

7. Responses of selected Publix managers to
statements at left which refer to the
character of Publix management. . . ... 112

8. Responses of selected Publix managers to
statements at left which refer to the
Publix business philosophy . . . ... 114

9. Responses of selected Publix managers to
statements at left which refer to the
dynamic nature of Publix management ... 115

10. Responses of selected Publix managers to
statements at left which refer to the
business-wise nature of Publix management .. 116


xii











Exhibit


11. Responses of selected Publix employees to
statements at left which refer to Publix
store personality. .. . . . ... . 122

12. Responses of selected Publix employees to
statements at left which refer to immediate
management practice . . . . . .. 124

13. Responses of selected Publix employees to
statements at left which refer to the Publix
work environment. . . . . . . .. 125

14. Responses of selected Publix employees to
statements at left which refer to the
character of Publix management. . . . .127

15. Responses of selected Publix employees to
statements at left which refer to the
business practices of Publix. . . ... 128

16. Gainesville household survey: all shoppers'
attitudes toward Publix and Winn-Dixie
location and parking facilities . . .. 157

17. Gainesville household survey: non-Publix
shoppers: attitudes toward Publix and Winn-
Dixie location and parking facilities . . 158

18. Gainesville household survey: Publix
shoppers' attitudes toward Publix and Winn-
Dixie location and parking facilities . . 159

19. Gainesville household survey: all shoppers'
attitudes toward Publix and Winn-Dixie store
personality . . . . . . . . 163

20. Gainesville household survey: non-Publix
shoppers' attitudes toward Publix and Winn-
Dixie store personality . . . . . 164

21. Gainesville household survey: Publix shoppers'
attitudes toward Publix and Winn-Dixie store
personality . . . . . . . . 165

22. Gainesville household survey: all shoppers'
attitudes toward Publix and Winn-Dixie store
sales efforts . . . . . . . 167


xiii


Page











Exhibit


23. Gainesville household survey: non-Publix
shoppers' attitudes toward Publix and
Winn-Dixie store sales efforts . . . 168

24. Gainesville household survey: Publix
shoppers' attitudes toward Publix and Winn-
Dixie store sales efforts. . . . . 169

25. Gainesville household survey: all shoppers'
attitudes toward Publix and Winn-Dixie past
transaction satisfaction . . . . . 170

26. Gainesville household survey: non-Publix
shoppers' attitudes toward Publix and Winn-
Dixie past transaction satisfaction. . . 171

27. Gainesville household survey: Publix shoppers'
attitudes toward Publix and Winn-Dixie past
transaction satisfaction . . . . . 172


xiv


Page













CHAPTER I


INTRODUCTION


Theory, research, and evolving concepts which have

practical applications for the businessman are dealt with

in this dissertation. This businessman, particularly the

professional manager, may be and probably is part social

scientist, psychologist, anthropologist, economist; and

above all he is profit oriented. Therefore, the implica-

tions to be drawn from this dissertation are both logical-

and useful. In this pragmatic frame of reference, the

attitude which is fundamental to this study recognizes

positive image creation as one of the essential functions

in the operation of corporations, if they are to compete

effectively in the American economy.

Rapidly changing conditions occurring in the American

corporate society are bringing with them stringent new de-

mands for increasing competitive effectiveness. These

changes and demands have given active image creation a

unique position in recent years.

The development of the corporation has paralleled

industrialization in the United States, and it is not un-

usual to find the corporation having absentee ownership and











professional management. When business firms remain small,

and when social communities remain stable, compact and close-

knit, the strong business leader is able to project himself

to members of the community. The projection of himself or

of his personality represents in effect the perception that

the community members have of the individual's business firm

as well as of the individual. (11, p. 15)

However, when businesses become larger and when the

owners are required to employ professional managers to aid

in the direction of the firm, it is likely that the close

community contact will be lost. The loss of the close

association may create a void in the competitive position

of the firm. The void is essentially one of communication,

and as the firm undertakes to fill the empty space, it may

do so by actively projecting an image, its corporate image.

S' Even though much attention has been devoted to the

topic of the corporate image in recent years, still many

business executives fail to understand the significance of

imagery and they tend to give it only superficial treatment.

(11, p. 2) Each company has a "personality" that is unique

to that organization, and this "personality" tends to

"...reflect management's hopes, attitudes and biases."

(18, p. 5)

Project conception

The increasing recognition and emphasis being placed

on the social sciences as they are related to the field of










marketing, has resulted in much study and attention being

devoted to the corporate image concept in the past few years.

This writerr has developed a keen interest in this concept;

consequently, he proposed to devote the dissertation study

to this general area of the corporate image concept.

Initially, the dissertation proposal was to study

the comparative images of supermarkets in a given geo-

graphical area. This proposal was pursued until one of the

companies selected refused permission to allow the author

to work on the store premises. Only "lip-service" coopera-

tion was obtained from a second organization and even that

subsequently died. However, executives of the Publix

Company, including Mr. George Jenkins, the President, Mr.

Mark Hollis, the Personnel Director, and Mr. William Schroeter,

the Director of Advertising, were enthusiastic and optimistic

concerning a corporate image study. It was then proposed

that an image study be undertaken with the Publix Corporation

serving as a case study.

Organization

The author of this dissertation assumes that the

corporate image is the result of the total activities of the

firm. In so far as this assumption is valid, the study of

a corporate image must be bread. It must properly define

the setting in which the image will be studied. Therefore,

the evolution and current status of management philosophy is

analyzed in the first phase of this dissertation. Imagery











is also investigated in this initial facet of the study.

Phase two serves to present significant information related

to the history, management philosophy and self-concept of

the Publix Company. Depicted in the third part of the

dissertation are the results of field surveys. The surveys

were designed to allow an evaluation of the degree of

effectiveness with which the Publix self-concept has been

communicated to consumers.

Objectives

The objectives for this dissertation are quite modest.

One aim is to order, with clarity, some of the concepts

about imagery that have emerged from research, theory and

practice. A second aim is to analyze the company personality

of Publix Super Markets, Incorporated, in such a way as to

bring together in a usable framework a model for further

study of the corporate image.

Hypothesis

The author asks the question: Does the Publix Company

actively engage in image projection and, if so, is the

activity successful and to what degree? Stated positively,

Publix does have an image, the company is actively attempting

to project the dimensions of its conceived image and Publix

managers, employees and customers, as well as general super-

market shoppers are aware of that image.








5

Assumptions

Any expression of ideas involves making certain

assumptions. The writer approaches the study of imagery

and image creation with certain assumptions which need to

be explicit. He assumes that: 1) the corporation exists

primarily for the purpose of earning a profit and only

secondarily for other purposes; 2) the American business

society is dynamic and competitive; 5) there is a need for

competitive change to meet the challenge of a changing

business society; 4) consumer patronage motives are in-

fluenced by a conceived image; 5) the conceived image is

intangible; and 6) human behavior is amenable to scientific

study.

These assumptions are implicit in much that is writ-

ten about the American competitive situation. They are an

explicit basis for the rationale of this paper.

General limitations

Some general limitations are recognized here which

affect the entire study. Others are treated throughout the

dissertation. Few studies proceed with unlimited time and

resources. This one was not an exception; therefore, a

limitation is present to the extent that various deadlines

were met with general accuracy, and financial as well as

human resources were expended only as were necessary and

available. Another general limitation in this dissertation











relates to the methodology, descriptive analysis. Inherent

in descriptive analysis and the use of questionnaires and

interviews are the potential limitations of sample adequacy

and predisposition of respondents. A weakness may be

present to the degree that, in part, information was

gathered by indirect observation.

Perhaps the findings and ideas presented here will

serve best if, by providing a slightly different view of

competition or a more comprehensive one of image study, they

stimulate readers to think in a synthesizing manner. No

effort has been exerted to make these ideas especially

acceptable. It is hoped that they will at least prove to

be more than academic exercise and at best productive of

reactions.













CHAPTER II

CONTEMPORARY MANAGEMENT PHILOSOPHY

Introduction


Illumination can further be directed to any one

particular management philosophy by investigating its

broader environment and that environment's heritage. The

purpose of this chapter, therefore, is to investigate the

practice of management as it is conceived in America today;

George Jenkins and Publix are a part of the American

environment, and the Jenkins' philosophy can perhaps be

better understood within the framework of contemporary

management.

Attempting to implement the title of this chapter

"Contemporary Management Philosophy," has proven to be a

challenging task; maybe it is even impossible to synthesize

within such a short treatise as this chapter, the funda-

mental factors incidental to the title. The attempt is

made, however, even though a myriad of defenses is necessary.

A clear understanding of philosophy as it is used here is

basic; a brief discussion of the birth of management aids in

focusing and illuminating "contemporary philosophy"; also,

the analysis must proceed in generalities in order to avoid

the trap of non-conforming individualities.

7










The philosophy of business management, or of any

other discipline for that matter, can apparently be best

determined by an investigation of the principles or objec-

tives underlying that discipline. For after all is said,

the philosophy is simply a reflection of fundamental

beliefs, laws, or rules of action which in effect are the

principles. So, clearly stating the meaning of a principle,

one can conclude that it is a "rule of action, a primary or

basic law or doctrine, a fundamental truth." The collective

rules of action or basic doctrines are the philosophy. This

chapter, then, is the culmination of a survey of general

basic principles that underly the practice of _- in

the Armerican corporate community today.

The Emergence of Nanagement

Management: a recent phenomenon

One can rightly say that the study of management is

a recent phenomenon; one can also conclude, after a brief

investigation of historical thought in economic writings,

that there existed not even a remote opportunity for manage-

ment as it is known today to be studied earlier than in

recent history. This is true because the writers and

scientists who influenced the thinking prior to modern times

did not conceive current management. The ideas, beliefs,

and writings of the classical economists discouraged










management and its practice as it is now commonly known as

so did the theory of evolution and the Poor Law of Great

Britain.

The twentieth century brought about the advent of

attitudes and conditions which allowed and condoned socially

responsible management practices. Even though the time of

this occurrence may seem to be astounding, it is really not,

because the behavior of businessmen was entirely consistent

with the basic philosophy dominating business activity. The

dominant philosophy prior to this century was grounded in

"natural laws," and entrepreneurs practiced economic

activity accordingly.

Smith. Malthus, Ricardo

At the beginning of the twentieth century, the busi-

ness practice code was strongly grc__ied in traditional

thought. (13, p. 8) Adam Smith c-poused a laissez-faire

type of economy with self-interest acting as the "invisible

hand" to best guide social and personal policy. Smith be-

lieved that if everyone were motivated to gain as much as

possible for himself, both in production and in the market-

place, that these actions would enhance the wealth of

nations. This theory held labor as a commodity and that it

should be treated as such, commanding no greater price than

that necessary for maintaining just simple existence.










Malthua' pop-.latico theory and David Ricardo's "iron

law of .as"T gave additional support to early business

ideology. The workingman was doomed tc live close to a

subsistence level, -althus maintained, because population

increase would far outstrip production increase and wages;

therefore, wages could not possibly rise much beyond a

maintenance level. The "iron law"': further proposed that

wages could never go beyond the amount required for sub-

sistence.

Social Darwinisn

Employers and businessmen were economically educated

in these beliefs. The natural order of the universe and the

world was dominant; one should strive to gain the maximum,

giving little r ~_rd to other factors. Add to these basic

beliefs Social Darwinism, -hat only the fittest survive

whether it be animal or man, and what appears to have been

despicable business attitude becomes the only logical one.

The Poor Law

Preceding twIentieth-century management practice was

another factor giving impetus to the traditional philosophy:

the Poor Law. (13, P. 10) As the Law existed in I-gland

from 1854 to the early 1900's, helping the poor was inter-

preted as cdgrading rad an act that tended to pauperize

them; the La-: hold that public relief was demoralizing and

simply encouraged "shifulessnoss and indolence." IJny aid











that was given the deprived had to be in the form of insti-

tutionalism or relief that came from private agencies;

moreover, all aid emphasized "character," and only those

individuals who appeared rehabilitable could be helped, the

others being left to survive as best they could.

'Dismal science"

Revolution was apparent from the close of the middle-

ages in both social and economic realms. Agriculture w:as

giving way to manufacturing and commerce, and the self-

sustaining feudal system was breaking down in favor of

national loyalty and power through the development of new

nation-states. However, popular teachings were constant

reminders that the "natural" principles necessitated maximum

gain, self-interest and "survival of the fittest." It is

hardly surprising that critics referred to the nineteenth-

century economics as the "dismal science"; indeed, this

philosophy was dismal, and it was from such thinking that

modern-day business operation emerged.

Technological Advance

Routine and survival

The theories of the classical economists, Smith,

Malthus and Ricardo, and the theory of Darw-n reflected the

apparent notion that God, through His majestic creation of

the universe and its ihabitants, had also created a natural

cause-effect relationship that would insure stability and











survival through routine. It seemed that the result of

practicing routine would be balance, Population would

automatically adjust, the meck would be eliminated, and

only the strong would be rewarded.

It is true as the nhilosopher Alfred north Whitehead

has recognized, that routine may propagate success so far

as survival-power is concerned. Low-grade intelligence has

not inhibited the survival-powec of some insect societies.

Perhaps some of them have existed for millions of years,

each succeeding generation following the pervading pattern

o' routine ...whose purposes they ca-nnot possibly under-

stand, which yet are essential either for their own

individual survival or for race-survival." (5, p. 26)

Progressiveness

But the insect societies have one common character-

istic which differentiates then from the societies of man-

kind: the insects are not progressive. Progressiveness has

been the hallmark of western civilization and in modern

times, the rate of change, particularly technological

advance, challenges the imagination.

Centuries were required for new technological

inventions before the scientific age, and little significant

technological progress was accomplished from 100 A.D. to

the close of the middle Ages. (5, p. 27) The following 300

years witnessed great strides in the utiliza-ion of gunpowder,











the development of the art of navigation, and the practice

of commerce. (5, p, 27) From 1700 to 1900, the number of

inventions that rushed into effective operation was rela-

tively astounding. Those who have and are living in the

twentieth century have continued to see the evolution of

great technological gains. As mighty and as progressive

as Western civilization was in the first 1,94-0 years since

Christ, a glimpse of the American industrial community's

recent cuarter-century, 25 years, spectacularly eclipses

all that occurred prior to 1940.

The American competitive system and the second world

war propelled this economy into a fantastic era cf revo-

lutions among revolutions. As with the insect societies,

historically the men of one generation have spent much of

their efforts in preparing for the next generation. As

with the insect societies also, a historical observation is

that succeeding generations have lived substantially among

the conditions that governed the lives of their fathers.

For the young generations of today this assumption is no

longer true.

World War II: economic transition

Prior to the second world war, the American economy

was characterized by a company-oriented philosophy; aeavy

emphasis was placed on production. mhe most popular idea

in management thought even as late as 1950, was to make the











same or a limited number of .products at less cost. Companies

were workingg tuoard increased profit by selling more of the

same and producing it more economically when business

activity turned sharply downward in 1929.

Unemployment was at a high rate throughout the decade

of the 1930's; there exists much doubt as to whether re-

covery had occurred by the beginning of the war. Perfhans w-.:hat

the American society was able to accomplish during the war

period was underestimated in the w'ar strategy of the aggres-

sors. A staggering economy characterized by low incomes,

unemployment and idle capacity became a booming economy very

rapidly at the onset of the war. A shortage of labor

quickly developed, and wages rose correspondingLy. Incomes

increased so rapidly that public measures were necessary

along with private cooperation to halt potential financial

crisis. Public and private financing allowed capital out-

lays for plant and equipment never before paralleled in

history, and government supported research was responsible

for the development of many innovations in products and

productive techniques.

In retrospect, one sees that the war effort not only

sunplied American men with modern -cuicment and supplies but

also can be credited with giving allies gre-t bul:s of

physical goods to support their war participation. In addi-

-ion, by 1945 as the __d of the conflict approached, the

American consumer was able to some lu.a'ry items that had











been unavailable since the beginng of the war. Sur-

prisingly enough, the economy has faltered only briefly

since the culmination of ,.World War II, and prosperity has

been continuously present in Lmerica

Consumer r~ealth

This dynamic grou'th and co:spansion has caused the

American people to be aptly characterized as affluent. The

average family income has climbed to $6,000; the value of

the annual gross national product now exceeds $600 billion;

Irericans acr producinS eight million auto woiles a year.

Typically, the Aomrican home is equipped wiith work: elini-

nators such as automatic washin3 nach ines, clothes dryers,

vacuum cleaners, dish washers and electric can openers.

Radios, television sets, air conditioners and telephones

add to the comfort of living; thro bedrocns, t.o bathrooms,

a living room, study and playroom are furnished with an

array of supposedly practical equipment to add to life's

pleasures.

Research and development

Hany of America's consumer goods have been developed

only in the last 20 years. Government, institutional and

private spending for research and development of ne- and

better products is now:. approaching 21 billion a year.

This is 25 times greater than the amount spent for research












and development in 1940, and it is predicted t-at the figre

will reach 28 million by 1970. (28, p. 1)

Maanraenmn iandisncns-bl

The operation of an _conomy of such pro:0-,-tion, one

w:hos- esscnco of coptition is inz-ovation and invention,

has required. th ~dcvelopmen-t of a group of unique managers.

Those people have been referred to as a class, an elite, an

economic resource; they have been called professionals, both

as service renderors and tyrants. Regardless of how. he is

referred to, the .nerican corporate manager has successfully

net and coped ith a variety of problems and responsibilities

in his new undertaking. These challenges serve to point out

the dema-nd for the o erSing ground of managers

Since the turn of the century, management has been in

great demand in this country but over the years, reasons for

his demand have changed. The economic man nyth has given

way to a society that recognizes that Western modern-age

spirit is one of organized economic advance. As these ad-

vances have taken place, --anag-mnt has been charged with

the responsibility of directing the progress, therefore it

may be true to conclude that professional management in

today:s economy is in fact indispensable.

Ability and courage

-he pace of technology is the fundamental factor

making the emergence of management so essential. business










can no longer be operated as ucncncC .d parts but must form

an integrated system, and oven though great stress is still

put upon prccton principles, the creation new markets

raks above all in -he requiremcnt- of the new -anagcnent.

1he business must be internally flexible so as to adapt to

neu processes and circumstances and to adjust to environ-

mental changes, but it mst also maintain structure to allow

and support the maintenance of a going concern. thesee

conditions among others such as increased competition, rale

it conmulsory for the ,anagoont to make decisions reaching

into the future that -ill ultinatCly result in failure or

success of the fir3.

So the mana-gent in this new society, in this age of

explosive technological revolution must be, individually and

collectively, :n= equipped to accomplish the goals set out

before there They must be armed .with tools -which give the

the ability and the courage to live profitably in the

present and to forecast adequately in the future; to view

the business situation as a meaningful :hole but respect

each part, and to demonstrate the integrity to keep nerica

moving in the direction of the revolutionary society that

it is.

The Profession of Hana.geent

One can see -hat in less than two centuries, society

as it is kno:n in n erica has evolveL from beir- an estab-

lished one to an adaptive society. "H can also recognze










that the rate of change'has become enormously accelerated

in the past 25 years. As this rate of change has become

increasingly accelerated, businessmen have commanded more

and more attention as being instrumental in the fundamental

growth of America.

Family management demise

Typically, the leading firms in the early stages of

an industrial society are family owned, controlled and

managed. However, as the business environment becomes big-

ger and as the management of the firm becomes more complex,

a greater degree of technical competence may be required to

operate the business, and professional managers are employed.

In addition to the decline of family management, technical

professionals are in greater demand due to the public nature

of corporate ownership.

The professional manager's job

The professional manager is employed on the basis of

demonstrated ability or on the basis of specific training

which indicates that he can accomplish the management tasks

in a highly industrialized setting. As has already been

suggested, the professional manager must participate in

planning and innovation, he must coordinate and control, he

must accept risks and handle uncertainties, he must admin-

ister routine supervision. The professional manager may

hold the pinnacle position of director or other top








19

administrative officer or he may be a first line supervisor;

he may be a specialist in such areas as personnel, research

or training, or he may be a member of middle management.

As the need for professional management has become

more widely understood and as economic development has

continued to advance, many companies have outlined the pro-

fessional manager's job. Perhaps it is of interest to see

one company's conception of the duties of the management.

General Electric has stated that managing is a distinct

function and that the professional manager must be conscious

of many facets simultaneously: (7, p. 76)

1. He must be able to persuade, blending thought and
action in decision making.

2. He must be able to plan, organize, integrate and
measure.

3. He is required to effectively utilize all human
and natural resources.

4. The manager must understand and be able to apply
the specific skills required to manage his particu-
lar activity or operation.

5. Professional management must see each component
part as it enhances the whole being managed.


America: a pluralistic society

This writer believes that management as a group is a

powerful and dynamic and leading force in shaping and di-

recting the future of American society. The author also

recognizes that managers, both individually and collectively,










seek power and freedom of operation; however, these propo-

sitions are not to say that professional managers will

dominate the American industrial society.

Management can be only one leading group among many

in America because this is a pluralistic society composed

primarily of political and social interest groups in addi-

tion to the economic segment. (7, p. 84) Even though

there are many examples of business organizations violating

established laws and social ethics, professional management

strongly tends to be serviceable in nature as apposed to

tyrannical. American firms are guided by existing imperfect

competition and public opinion and when they are in oppo-

sition to accepted practices, they may be investigated and

rebuffed legally.

Responsibilities of Management


The American management community is charged with

responsibilities from many directions. It is expected to

conform to the legal framework; it is expected to meet varied

social demands; it is expected, above all perhaps, to avoid

financial loss and to prolongate itself into the future

successfully. One can further visualize the philosophy of

business management by analyzing the major activities of

the organizations in relation to their so-called responsi-

bilities.











Customer-oriented philosophy

It is a plausible suggestion to think that the most

important responsibility of management guiding and deter-

mining its philosophy is that of operating in such a way as

to make profit or to avoid loss. In a dynamic economy as

has been herein envisioned, the accomplishment of this

function for the corporation requires that it undertake to

create customers and to satisfy its market. Therefore

firms today practice as a part of their philosophy, the

marketing or customer-oriented concept.

Productivity

Production should not be thought of as having been

displaced. Indeed, the process of producing goods is more

efficient than ever before in history with emphasis on

efficiency continuing to command great attention. The

process of production, however, is not currently analyzed

in the strict sense of simply making more goods for less

money but is seen as only a part of the whole. As Peter

Drucker suggests, maybe a more fitting term to describe the

practice of management in the production realm is produc-

tivity. This term, productivity, is more useful; it is more

inclusive and refers to increasing profit as a percentage

related to some other element such as sales volume or

investment rather than practicing the philosophy of simply

increasing the production rate.










Innovation

A fundamental principle readily discernible in

corporate outlook today seems to be the recognition that if

one is to grow and expand, it must invest and innovate.

Actually, this recognition applies to the stationary or non-

expanding firm also, for if that company aspires to simply

hold the status quo in industry standing it sees that to

cease innovating and investing will cause it to fall behind

its competitors. New product development, in part or in

total, cannot be over-emphasized as fundamental to success

in this highly industrialized society where practice of the

marketing concept is the focal point of activity.

As the company achieves growth or stability, as the

company creates customers and satisfies markets, as the

company avoids loss, as it practices productivity, it will

also concurrently attempt to utilize its physical and

financial resources to the greatest possible degree. Under-

taking these measurable functions has become a major part of

management philosophy today.

Qualitative philosophy

There has been and is being much said and written

concerning areas of management operation which cannot be

measured as easily as those above. There seems little doubt

that the current professional management is following a

trend of developing management talent for replacement or











growth or both. In addition, management has found it

profitable to recognize the worker and to reward him for his

contribution to the growth of industry. Public responsi-

bility also has found favor with management, and management

practices are not generally against public sentiment but

with it.

It is important to remember that generally the

management group is still comprised of employees and that

although the welfare of the manager rests with the results

of his efforts, his social responsibilities as a manager

are essentially the same as his social responsibilities as

an individual. Management and firms operate for profit;

any substitute reasoning would be silly, but they, in

addition to working for the owners, are also working for

the labor force, communities, and for society as a whole,

as well as for themselves.

Conclusion

Social responsibility

Undoubtedly, much of the contemporary business

practice philosophy is a result of necessity. Certainly

such powers as the federal and local governments, the labor

unions and competition are strong influences. Stockholders

surely motivate professional managers, too. All these

factors on top of self-interests are necessary if this











industrial society is to survive, but management has gone

further. Management is also, in America today, practicing

a philosophy that is socially responsible.

That social responsibility can be said to influence

every decision that is made by the contemporary manager.

He must keep his own enterprise successful and profitable

in the present and at the same time, he must make decisions

that bring about growth and prosperity or failure in the

future. Mr. Drucker maintains that if the manager of today

fails to accomplish the above that capital is destroyed and

that resources have been impaired and utilized unproduc-

tively. Regardless of the position of the manager, his

philosophy today is achieving greater productivity while

simultaneously assuring the future. In achieving these

goals, professional management practices methods of manage-

ment which are in keeping with the technological revolution

progress and the needs and demands of the American society.













CHAPTER III


IMAGERY, THE CONSUMER, AND THE INSTITUTION

Introduction


The image is considered here not as a property of

the human but an extension of the organization. Environ-

mental information, human thinking and imagery, and the

institution and its image are the basic ideas presented in

this chapter. These areas have been investigated with the

intention of commercial application, and the presentation

has been designed with this objective claiming foremost

recognition.

Society is basically composed of three distinct

areas: individuals, groups to which individuals belong,

and organizations or institutions. The organizations seem

to be reflections of the individuals who compose them, and

groups appear to attract people who, although being dis-

tinct individuals, also are characterized by some homo-

geneous traits.

Groups and organizations develop characteristics

which tend to identify them as "individuals" also; in addi-

tion, groups and organizations, as well as individuals,

develop and can be identified by "personality" traits.

These assumptions allow one to proceed with the analysis

25








26

on a humanized basis which in essence is the premise of the

thesis: that organizations as well as groups and individuals

are perceived as being "alive."

The association between and the understanding of the

existence and activity of these various entities is often

misunderstood by other bodies. Perhaps a part of this mis-

understanding is due to poor communication between the

components. Therefore, the writer undertakes in this

chapter to analyze and evaluate the image, which seems to

be a fundamental concept involved in the communication

process.

Organization Informational Concept


Static structures

Organizations, structures, and institutions vary from

the extremely simple in movement, guidance and perception,

to the extremely complex. The brain, especially that of the

human, is probably the most difficult structural body to

understand; relatively simple structures of organization are

envisioned in the jig-saw puzzle and the clock. The jig-saw

puzzle and the clock represent structures that are static

or stationary formations; the individual parts of such

structures are connected and organized in such a way that

identical patterns of activity are followed each time a full

cycle is accomplished. The clock parts move in repeated

sequences due to individual parts being interrelated in











unique patterns, and the puzzle "fits" as a result of dis-

tinct connectedness. There is no information concept

involved in the static organization of the puzzle or clock

mechanism.1

As the analysis progresses beyond the level of

static organizations, the concept of organizational infor-

mation assumes great importance. The thermostat can serve

to represent what can be considered to be the most rudi-

mentary level of organization which is sensitive to

environmental information. The thermostat is a mechanism

that has the ability to react to certain stimuli that may

be present in its environment. The thermostat is capable

of operating due to the combination of several factors.

"Facts," the receptor, the control and the effector act in

combination with information as communication or feedback

to cause the mechanism to be effective. The receptor upon

being exposed to environmental conditions receives informa-

tion or "facts" which it in turn relays to a control system;

the control then acts to send the message on to the effector,

here a furnace; the effector then initiates action in

response to the message. (2, p. 20)


The origin of many thoughts in this chapter is
difficult to determine, for identical or similar ideas may
be read in several sources. However, where material is
directly transferred, the attempt is made to give proper
recognition.










"Feedback": environmental information

It is pertinent to recognize and to emphasize that

conditions in the environment exercise ultimate control

over the action that is taken by the effector, and that as

a result of feedback, the receptor essentially becomes aware

that the effector has received the proper message and is

acting upon that information. Another example of reaction

to environmental information can be taken from the biologi-

cal level of activity. The paramecium, obviously a simple

form of animal life, appears to be unaware of its environ-

ment. But this unconscious, tiny bit of substance is not

completely unresponsive to stimuli. When a dark colored

liquid is splashed or sprayed in the direction of the small

organism, it does react. The reaction is one of recoiling

or withdrawing; this action indicates response to a

situational stimulus. (2, p. 39)

Mechanisms can be made by human ingenuity to have and

to conform to an "image"; botanical and biological levels

of life have been observed reacting to stimuli on an apparent

"instinct" basis; higher forms of animal life seem to avoid

danger and pain,thus indicating the possession of precon-

ceived expectations of results of given behavior. The human

being possesses every capability which characterizes lower

levels of life; however, the human is classed alone as a

result of his having the ability to think rationally and

to make use of logic.











Human Imagery and Cognition


The task of searching out and presenting structured

definitions is tedious and technical but is necessary to

substantiate that the human is the only organism capable of

such mental activity. The presentation also serves to

support image theory that is to be subsequently discussed.

Cognition

Cognition has been defined by psychologists as "the

means whereby organisms achieve, retain and transform

information." (6, p. 92) Cognition is the term used to

summarize certain conscious mental activities; it is "a

generic term for any process whereby an organism becomes

aware or obtains knowledge of an object. . .It includes

perceiving, recognizing, conceiving, judging, reasoning."

(6, P. 92) Webster's Dictionary states that cognition is:

1. Act or faculty of knowing; knowledge, perception.

2. a. The process of knowing; any mental operation by
which we become aware of objects of thought or per-
ception; knowledge or the capacity for it.

b. A product of this process, as a perception or
notion; as a priori cognitions.

Factors in thinking

Cognition is but one of the functions of thinking,

but in relation to human imagery, perhaps it is the most

influential function which affects the image process. One











dictionary of psychological terms states that, "In most

systems, cognition, affection, and conation are the three

categories under which all mental processes are classified.

(6, P. 93) David Russell proposes a general theory of the
thinking process and says that when thinking is studied as

a whole, it should include four main factors:

1. The materials of thinking such as sensations, per-
ceptions, memories, images, and concepts.

2. Motives for thinking: the feelings, needs, attitudes,
and habits of thought acquired earlier which help
initiate and determine the direction of thinking.

3. Processes in thinking: patterns of activity such as
selecting, eliminating, searching, manipulating and
organizing, which vary from relatively undirected
thinking through inductive thinking to problem
solving, critical thinking and discovery.

4. Abilities in thinking: the habits, techniques, and
guides to thinking which can be acquired and de-
veloped by children and by others who desire to
improve their thinking. (12, p. 8)

Lower animals and the human

The cognitive processes and the "factors" in thinking

differentiate the human from other forms of animal life.

In addition to being differentiated by cognitive and

thinking characteristics, the dimensions of animal and human

environmental awareness differ substantially. Man's think-

ing and mental processes are greatly influenced by intima-

tions and emotions; he finds himself in differing moods of

varying degrees. Man is frequently elated, depressed,

happy, inspired, sad. Do other animals experience similar










moods? Undoubtedly some do. The dog frequently demon-

strates happiness when his master appears, and as the master

approaches and touches the dog, one might conclude that the

usual surging movement of the dog's tail indicates even

strong elatedness. Surely most animals do not experience

all of the emotional moods of man and certainly not to as

broad a degree. Dimensions of man's environment are further

complicated by observing that the human is also aware of his

location in "space, time, personal relations and nature."

(2, p. 4)

Brain functions

Many theories have been put forth which may be useful

for demonstrating significant differences in instinctive and

rational behavior. Specifically suited for this illustra-

tion are analogies between the brain and a "map control

room" and a "cognitive map" can be beneficially analyzed to

demonstrate the complexity and superiority of the brain

organization. Messages received in the mentality of some

animals elicit behavior which appears to result instinct-

ively. One might assume that the brain activity of such

animals is similar to a simple switchboard concept. Thus,

the results of incoming stimuli are connected by simple one-

to-one plug-ins to outgoing responses. The human brain

activity, the process of logic and rationality, can be

thought of as resembling a central control room. In this










control room, incoming impulses are analyzed and elaborated

into a "tentative, cognitive-like map" of the outer environ-

ment. This tentative "map" is ultimately responsible for

determining what responses, if any, will finally be released.

(9, p. 8)

The creative aspect of the "cognitive map" can be

further illustrated through an analysis of the animal

passing through a maze. The animal, once it has been ex-

posed to the obstacles and has overcome them successfully,

can safely negotiate the maze even under different circum-

stances. The conclusion is that the animal has learned as

a result of his having perceived spatial relationships in

the maze rather than having learned a series of movements.

(14, p. 13)

Human imagery

Conceptually, one is aware that higher levels of

intelligence in living organisms culminate in the mental

ability of the human mind and being. The general superiority

of the human thinking process seems to be greatly influenced

by the fact that he cognitively perceives, that his mind

embodies and can recapture perceptual experiences, and that

the accumulation of continued association with certain per-

ceptions allows logic and rationality to occur. This

superior mental process is characterized by man's retaining,

organizing and manipulating mental representations; the










mental representations occur to the individual as pictures

or as images or concepts. (1, p. 188)

The image or mental thought process is an internal

conglomeration of things and events, of relationships and

classifications and here, in one's image or "mind's eye,"

is represented one's experiences, including goal-objects,

overt responses to the goals, and the resulting reinforce-

ment impressions. Thus it can be said that human behavior

is dependent on the image and that the image is his total

world or the knowledge of the world; the image appears to

be the intermediary factor between motivating messages and

behavioral responses./

The value system

Technical mechanisms such as the thermostat are

regulated by a value control, and the value is some ideal

condition. The automatic machine like the thermostat is a

machine which cannot in and of itself be altered. The

human, however, learns as a result of the information taken

in from his environment, and the human alone possesses the

ability to arrange and organize information into complex

abstract images. Concepts are the basis for the creation

and maintenance of the image, and together, concepts and

images serve to create within the individual a system of

hierarchial values. Goal-objects seem to be interpreted in

light of features of past experience which are brought to










bear on the current stimulus through the process of manipu-

lating concepts and perceptions.

Messages or facts

\From the many dimensions of existence, man is

constantly flooded with facts or messages which influence

his behavior or which are merely designed to influence his

behavior. The information received is consequently filtered

through his system of hierarchial values; this process,

depending on the degree and extent of prior experiences,

may have occurred many times previously in this same

individual. The messages are linked to concurrent behavior

of the person and that behavior represents the conclusion

of the systematic and consistent image manipulation of the

organism. It should be emphasized that so-called "facts"

and simple messages deserve no differentiation in relation

to one's image of an environmental situation. The two can

and should be used interchangeably and synonymously because

to one's image, either simply constitutes information.

Significance can be attached exclusively to the resulting

behavior and this behavior occurs only after the messages

have been filtered through the hierarchy of values and

interpreted within the framework of a complex structure of

concepts.

Apparently most of the multi-variety of messages to

which the human is exposed do not affect his image. When the








35

messages do bring about changes in the image, most of the"

changes seem to take the form of simple additions to the

already existing compound of concepts. Although some

messages may bring about revolutionary changes in the image,

it seems that most messages serve to substantiate the image,

making it less certain or more certain, clearer or inducing

skepticism. (2, p. 8) IWhen changes in the image do occur,

external behavior can be expected jo change similarly.

With the analysis and acceptance of the value system

proposition, it is clear that the image acts as a field

governing one's behavior; this conclusion leads to the

belief that the individual self then continually gravitates

toward its most highly valued part of the field and that

this gravitation results in predictable behavior.

Economic Behavior

Habitual behavior

It has been stated that possibly as much as 80 per

cent of human activity may be considered to be habitual.

This suggestion is significant in that habitual activities

are difficult to change because they are the result of

strongly imprinted patterns of reinforcement; habitual be-

havior flows from one's image with little active value

analysis. Man is engrossed in the cyclical phenomenon of

time, and he tends to follow a pervading pattern. Perhaps

these recognition partially explain why frequently a










majority of many retail stores' sales represent repeat

business. Images persist and people resist change as a

result of other factors also. For instance, society and the

commercial organization constantly reiterate messages which

may encourage the individual to resist change.

"Laws" of economic behavior

The image held by individuals bears heavily on be-

havior, and this factor is of extreme importance to the

commercial organization. In attempting to understand the

relationship that exists between human imagery and the

organization, one can look to Boulding for further support

in the area of humans resisting change. He gives two "laws"

of economic behavior:

1. One does what he did yesterday unless there are very
good reasons for doing otherwise.

2. Good reasons which are necessary if one does not do
today what he did yesterday are derived mainly from
dissatisfaction with what he did yesterday or with
what happened to him yesterday. (2, pp. 186-187)

Bruce Weale continues Boulding's suggestion in

pointing out that future business with the same customer is

dependent on the continuous satisfaction of the relationship

of her image to price, quality, and service.

Image: a human perception

I It is entirely necessary for an understanding of this

analysis of the individual, his imagery, and its relation to










the institution, that one be fully cognizant that the image

is a human perception. Organizations are quite simply re-

flections of those people who influence their growth and

existence. However, caution must be exercised when broach-

ing the subject of organizational image, for even though

the organization does possess a sort of self-consciousness

through its influential "agents," the image is never the

property of the organization. The image is an exclusive

property of the individual. Organizations may propound

highly esteemed ideological goals, and organizations may

constantly purport to maintain a false image; however,

people show little interest in abstract commercial ideology.

Pragmatism and logic based on believable messages, positive

association and creative feedback interpretation lead to

the development of the organization image in the mind of

the individual. (23, pp. 40-41)

Imagery and Institutional Success

Personality and self-expression

(Although the organization does not possess an image

of its own, there does seem to exist somehow in the field

of organization an analogy to the phenomenon of self-

consciousness. This self-consciousness is related to the

image of the organization and when the self-consciousness

and the public image are identical, then one might say that

''66 ^/T lLA &^n/










those who participate in it or are related to the organi-

zation share the conscious awareness of the institution./

One definition of an organization maintains that the

organization is simply "a structure of roles tied together

by lines of communication." (2, p. 27) Following this

definition it can be recognized that it is essential for

every individual in any organization to fit and to play a

certain role. As the numerous roles which are played by

various individuals become combined and synthesized, the

self-consciousness or image of each role must be consistent

with the total image of the organization. 2 ,

Consumer association and attraction

The very livelihood of the organization is dependent

on how well the roles are played; consumer behavior demands

that every role be played distinctively and significantly.

Upon analysis, one becomes aware that the individual must

also have an image of himself, and surely it is true that

overt behavior is conditioned in many ways. Social forces

and group associations may be the two most powerful moti-

vating factors which underlie goal-object behavior. In

addition, many think that the individual tends to associate

with others who appear to possess similar characteristics

to those held in the image of one's self. ''

The individual is also governed by many fears and

anxieties. (19, p. 9) He has a high degree of sensitivity










to what seems to be logically appropriate. As one is ex-

posed to experiences, he creates inner ideals; he then

strives to uphold these measures for he does not want to be

untrue to himself although he probably is afraid that he

will be. The individual apparently strives to appear loyal,

to identify, and to avoid seeming foolish or strange. There

seems to be little question that society often penalizes

those who appear to be "out of character"; therefore,

individuals find it necessary to act in a "fitting" manner;

a manner that must not only be appropriate to the image

that one holds of himself, but a manner that is also fitting

to others in his social environment. (19, p. 9)

Mirrored image

The final expression of roles that create an organi-

zation is in the services, brands, and products which are

produced by that organization. The products and brands

seem to have personalities of their own, while all of the

facets together create a company or organization personality.

In personal relations similar personalities often are

attracted to each other, and perhaps a like conclusion can

be drawn from organization and human relationships:

organization, product and brand personalities attract. people

of similar personalities. The person seems to be seeking

self-expression in every act; in the commercial setting,

Bruce Weale says that consumer desires and ambitions are










expressed in "every selection" as well as in the "total

patronage motive." (25, p. 40) Although it cannot be con-

cluded that the image is the sole determinant of consumer

patronage, it seems that one can safely say that the

consumer does tend to patronize the organization that cor-

responds to her own self-conception or self-image. 0

Logical appropriateness

The appropriateness of consumer activities is derived

by the individual from a complexity of factors. It has

already been stated that people who appear "out of char-

acter" or out of place in their activity or interaction may

be penalized; reprimands may come from within themselves,

from their peers or from employees or individuals of the

organization. When the individual maintains associations

that are expected of him, however, and when his actions

bring positive reinforcement of expectations based on his

image, the image will probably continue to persist. rO

Image persistence

Even strong images, however, can be damaged or des-

troyed if the person is disappointed in the results of his

patronage behavior. Dorothy Diamond studied women shoppers

to discover some of their feelings toward commercial

organizations. (16, p. 93) She found that women want the

store management and employees to treat them with respect

and to recognize them as individuals; that the American










woman prefers a progressive yet pragmatic company, and that

women want the company to have a distinctive personality.

No difference was attached to various ethnic, race, income

or class groups in the Diamond study, so the conclusions

above are stated under this consideration. It is maintained

here that, in general, women have relatively the same basic

desires regardless of the class or prestige of the store

which they usually patronize. i

Commercial organizations are strongly aware of the

spending that is accounted for in America by women. To

this end, the progressive organization constantly attempts

to substantiate and reiterate the desired image in the mind

of the public. The Diamond study found, however, that many

of the messages directed at women shoppers were often con-

sidered by the shoppers to be insulting. Advertisements

often mislead the consumer by advertising "specials that

are not specials," by presenting advertisement sketches

which prove to be deceiving, and by claiming that clerks

are warmhearted, helpful friends when actually they appear

to be tired-footed grouches being persecuted by having to

"work" for a living. Many companies fail to achieve the

distinctive personality with American women by failing to

present practical identification symbols. Criticism has

been leveled at companies who expect the average American

woman to identify with "models, movie stars, and cooing,

gurgling babies." (16, p. 93)










The Institution and Feedback


"Central Agents"

Superior communication skills and highly intellectual

utilization of feedback have enabled man to extend the image

process much further than lower animal societies. Not only

have these factors made possible orderly growth and develop-

ment within the individual and in his personal relationships,

they have also led to the development of large and complex

commercial organizations.

As has been suggested previously, each of these

organizationsdiffers not only in complexity but also in

type, size and character. The character and behavior of

the organization are determined by one "most important

person" or a small group, and the decisions of the "central

agents" are the basic factors upon which the character of

the company is established. "Central agents" may of course

fail to determine the behavior of the organization, and

it is completely plausible to think that the "agents" or

executives achieve various degrees of success in controlling

organizational behavior. Nevertheless, it appears valid to

conclude that the chief executive or small group is able to

determine the organization's behavior to the extent that

the central group is capable of entering into the imagina-

tion and lives of others. (2, p. 27)











Leadership styles

Common styles of leadership that appear where

authority is present within a group have been called authori-

tarian, laissez-faire, and democratic. Rather than under-

taking a detailed discussion of the advantages and disad-

vantages of each style as applied in the commercial setting,

the objective here is to analyze and to caution against the

utilization of the authoritarian style of management or

leadership in the corporation. The importance of environ-

mental information or feedback to the initiator of messages

that lead to activity has already been emphasized. This

idea, however, deserves strong re-emphasis, particularly

in light of commercial activity. Sound decisions must be

considered those decisions that result in economic ex-

changes which allow satisfactory profit to the company and

ample satisfaction and positive reinforcement to the patron.

The danger in the authoritarian type management is that

decisions may be made that prove to be erroneous based on

the above criteria of company profit and customer satis-

faction. Possibly these decisions would have been different,

therefore, more sound, had they been made within a different

type of management orientation.

Authoritarian Management

When the adult individual is in such a mental state

that he is incapable of and does not possess the skill to










communicate his image into some other individual's mental

imagination, the psychologist says that he is insane. There

exist many types and various degrees of insanity; it may be

the result of one's having false perceptions or seeing

pictures or images in the mind's eye of things which do not

exist in reality. In people this particular sickness is

only a mild form of insanity, and the false perceptions are

referred to as hallucinations. However, people are not

alone in suffering hallucinations, and it is not infrequent

that organizations may demonstrate this type of insanity

also.

Feedback

With a democratic perspective, individuals who ful-

fill the higher roles act in behalf of those individuals

who staff the lower positions. However, authoritarian

structures tend to ignore the lower level staff as well as

customer reaction. Where the democratic structure not only

allows but encourages agreement or decision adjustment and

modification, the authoritarian tyrant may make little

satisfactory and probably no constructive criticism. Self-

orientation has been the doom of many commercial organiza-

tions and where feedback is controlled, indeed, discouraged,

nothing appears to be more damaging or defeating. The

customer-employee oriented corporation, most likely the

democratic one, thrives on feedback while the authoritarian

firm is likely to deplore it.










Wroe Alderson has stated: "The greatest value of

motivation research is to get people to try a product (or

service or brand) but they'd surely better be able to

continue to buy it on a rational basis." (22, p. 68) A

consumer buying behavior study in 1961 ranked the factors

which most frequently caused customers to refuse to buy:

(21,p.30)

1. Unsatisfactory goods.
2. False and misleading advertising.
3. Lack of salesmen's attention.
4. Unsatisfactory product
5. Store reputation.

Four of these five noted factors exist possibly as examples

of Mr. Alderson's contention.

Deterioration

The spoils of autocratic leadership tend to saturate

the entire organization and to breed dissatisfaction with

consumers. Employees become "yes men," and consequently

their information may be unreliable; therefore, it is likely

that higher level authority suffers from the hallucination

of an unreal image. It perhaps sees loyalty where there is

none or it may interpret customer satisfaction when in

actuality the company's market climate is deteriorating.

Organization insanity may take the form of espousing

customer orientation, customer satisfaction, and market

oriented concepts when in fact the "central agent" may think

and act on a company oriented policy and follow a










self-centered course. Kenneth Boulding maintains that such

an organization is eventually incapable of self-support and

will "disintegrate."

Conclusion

When Columbus sailed toward America in search of a

new sea route to the West Indies, his thinking was in

opposition to the majority of perceptions concerning the

shape of the world. Only so-called heretics believed as

Columbus did, that the world was round instead of flat, but

regardless of differences of opinion, the images or percep-

tions that the people held were clear; the concept or

symbol representing the earth in the individuals' conscious

activity was vivid.

Characteristically this seems to be true of images.

They are clear perceptions to their perceivers; however,

the result of behavior based on an image, even though the

expectation may be clear, may be surprising. It is the

anticipated result of economic behavior with which the com-

mercial organization should be vitally concerned.

Man has always lived in a perplexing state, and

perhaps the complexities of living in a highly industrialized,

relatively affluent society tend to increase his anxiety and

frustration. Unresolved internal conflict seems to abound

freely; therefore, apparently causing all consumer decisions

to be of an interim nature. Probably all consumer decisions











are interim to the extent that alternative opportunities

for behavior are present, and one can conclude, as does

Advertising Age magazine, that these alternatives will always

be present in this society because commercial advertising

accompanies or is concomitant to a highly industrialized

state. (26, p. 3) Elaborating on this concept, Advertising

Age states that, indeed, advertising has as its objective

the creation within an individual of a tension system; a

tension complex which can be solved only by the purchase

and use of the advertised benefit.

Dynamics of behavior analyzed in terms of mental

imagery present many difficulties; attempting to analyze an

abstraction is always rigorous. Images seemingly can be

compared only with other images but regardless of the

apparent obstacles, the implications of such an analysis

are significant to the commercial organization.

The profit oriented institution should recognize that

consumers predict results of their behavior and that the

image is confirmed or modified by actual results of behavior.

Of course only positive reinforcement or modification is

desired, but many firms elicit negative image modifications,

reaping as a consequence, lost or dissatisfied customers

who tend to communicate their images to other people.

Surely it behooves the commercial organization to consider

the significance of imagery as it affects the individual,

the group, and the firm.












CHAPTER IV


PUBLIC SUPERMARKETS, INC: CONCEPTION, PHILOSOPHY, GROWTH

Introduction


America has long been characterized as a country

possessing an abundance of opportunity. A tradition was

established by those men at Plymouth Rock which has been

sustained through the years of American growth and develop-

ment. Numerous statesmen have exemplified the American

spirit; business and industrial moguls have not been less

important in demonstrating the achievement of the fabled

"American Pioneer." Carnegie, Rockefeller, Strauss, Penney,

Du Pont, Westinghouse are some of the names associated with

commercial success. The pioneer in American industry has

truly broken new ground. He has led the world in taking

advantage of and contributing to technological developments.

His contribution in techniques and concepts have also been

recognized. Contemporary economics and social protocol

subtly demand of American citizens that tradition be upheld;

that continuation of the pioneering spirit be ever present

as a continuation of the American path to success. One man

appearing in the face of this challenge was George Jenkins.

-1
Information in this chapter has been gleaned from
published company reports and from interviews with execu-
tives. Needless duplication is eliminated by this recog-
nition. Copies of the reports, interviews, and correspon-
dence are on file.
48











Origin of the Publix Corporation

Land speculation was a phenomenon which attracted

great wealth to the state of Florida in the early twentieth

century. This land boom also beckoned many people; they

came with the hope of riches and wealth, and they often

came with meager or no resources except themselves. George

Jenkins was one of those who came to Florida seeking

affluence; he began his career with only nine dollars.

Jenkins: store clerk to manager

Within a week after arriving in Tampa,Florida, George

Jenkins had taken advantage of his previous work experience,

and had secured a job as a clerk in a Tampa grocery store.

His father had operated a general store in Georgia, and

Jenkins had worked in the store prior to his coming to

Florida. After one month of employment as a clerk, Mr.

Jenkins was promoted to store manager and shortly thereafter

was transferred to manage another store in Winter Haven,

Florida.

George Jenkins continued to work and in the passing

weeks and months accumulated a savings account. After two

years had elapsed, he had saved five hundred dollars. During

the year 1930, when Jenkins was nineteen years old, the

grocery chain which employed him was sold. The new manage-

ment, as Mr. Jenkins says today, was "more interested in

playing golf than in satisfying customers" so Jenkins

decided to open his own store.











Jenkins' early management philosophy

The primary driving force which encouraged the opening

of a competing store and which led to the formation of the

Publix Corporation, was Jenkins' displeasure with the manage-

ment methods imposed upon him by the new owners. When his

employer insisted that Jenkins, as store manager, employ

tactics and policies smacking of dishonesty and low ethics,

George Jenkins espoused complete honesty and fairness to

both employees and customers. He wanted to reward employees

with growth, and fair compensation, and to allow the

customer complete satisfaction.

Jenkins opens own store

With his total savings of five hundred dollars, and

as a result of a decision not to purchase an automobile,

George Jenkins opened a small grocery store in 1950. The

store, known as "George's," was located in the storebuilding

adjoining that of his former employer. Having been in

Winter Haven two years, Jenkins was well known; "George's"

volume of sales was heavy from the store's inception, and

success was immediate. Sales volume in the first full year

of operation was approximately $105,000. In 1932, a second

store was opened by Jenkins; it was the beginning of a new

corporation. The company was formally entitled Publix Food

Stores Corporation and became known as the Publix Corporation

or simply as Publix.











A Management Philosoohy Develops


Jenkins' original employees

Throughout the decade of the 1930's, three and some-

times four men constituted the work force of Jenkins and

Publix. The original employees remained in their jobs and

in close association with Jenkins for the eight to ten years

following their employment. Mr. Jenkins now believes that

the close working relationship of these men with himself

during the early years of the Publix Corporation was basic

to the success that the company has experienced. As a

result of group decisions present in the management policies

of Jenkins, the original group eventually thought alike and

held common principles. The employees became instilled

with the Jenkins' attitudes toward customers and subordi-

nates.

Publix' original customers

The original store "George's," continued to produce

a satisfactory sales volume throughout the 1930's. Gross

sales ranged between $100,000 and $110,000 annually during

the period. Jenkins had approached the opening of his store

with customer satisfaction as a major concern; the impor-

tance of this period in the history of Publix is emphasized

again in the customer-employee-manager relationship that

existed during the decade.











Mr. Jenkins associated closely with his customers

in his original store. His continuous contact with customers

allowed Jenkins to observe problems encountered by the

customers; the close contact also showed to Jenkins and his

employees the attitudes possessed by customers. Being able

to discuss and observe shopping habits and customer problems

and attitudes helped George Jenkins to further formulate

and define his beliefs concerning the operation of grocery

stores; his management philosophy became refined.

Objectives restated

By the late 1930's Mr. Jenkins believed more strongly

than ever that the success or failure of the corporation lay

in the customer and personnel policies. His original think-

ing in terms of fairness and service was strongly reinforced

during this period, and the fundamental elements of his

philosophy became clearly defined during the decade of the

1930's. Perhaps one can conclude that those years spent

managing "George's" were the most important years in George

Jenkins' business experience, for apparently those were the

years when he was able to develop and nurture his management

philosophy.

Fundamentally, the Publix Corporation was built on

the basis of fair treatment to people. Jenkins concluded

that people and personal relationships were more important

in his industry than was even food. He believed that Publix











could grow and prosper as long as the consumer could com-

pletely trust and have faith in the store and the management.

Growth and prosperity would result as long as the consumer

was given the satisfaction for which she paid; as long as

she experienced satisfactory benefits from the total trans-

action.

Personnel management constituted the second major

element in Mr. Jenkins' philosophy. Workers should also

get the best possible result from their experience with

Jenkins and Publix. Remuneration would take the form of

autonomous supervision, growth and security in the form of

internal promotion and profit sharing, and an amount of

direct income limited only by the revenue and profit reali-

zations of the company.

Mass merchandising popularized

Volatile economic activity resulted in depressed

business conditions in the early 1930's. Incomes of con-

suming units dwindled and in many instances disappeared.

Consumers became extremely price conscious and merchants

became increasingly cost conscious. One apparent outgrowth

of the price and cost conscious attitudes was mass merchan-

dising; particularly attracted to zhe mass merchandising

method were businesses distributing food items to the con-

suming public. The most attractive locations for low price,

mass distribution of food items were areas of heavy











population; consequently, the advent and growth of mass-

merchandised food occurred primarily in the Northeastern

United States. Cities such as New York and Philadelphia

were attractive market areas. Mr. Jenkins was interested

in observing the method of mass merchandising food items,

so in the late 1930's he toured some large northern cities

for the express purpose of a personal view and evaluation

of mass food distribution.

Mass merchandised food

George Jenkins' observations were both exciting and

disappointing to him. He saw that merchants had large

supplies of individual items in stock and that the number

of clerks had been significantly reduced. In the place of

many employees, customers were invited to and did make their

personal selections from open counters. Self-service left

a positive impression on Jenkins. But in order to observe

the customers shopping for mass-merchandised food items,

the Publix originator found that he had to travel to loca-

tions which were usually in hard to reach areas. Besides

being located inconveniently, Mr. Jenkins was also disap-

pointed to find that the physical plants were nothing more

than old rundown, ill-kept buildings, usually deserted

factory or warehouse buildings.

The buildings were dimly lighted and often dirty;

they were usually uncomfortable due to poor ventilation and











inadequate heating and cooling conditions. Equipment inside

the buildings was not better. At best shelves were con-

structed of old boards attached on cans or boxes; frequently,

the crate or box in which the product was shipped served

to dispense it. Neither the buildings nor the equipment

paralleled the Jenkins' philosophy of giving the customer

the most possible satisfaction in her shopping experience.

Jenkins' first supermarket

George Jenkins' conception of the ideal supermarket

building differed significantly from the physical food

distribution centers which he observed in the large cities.

Upon his return to Winter Haven, Jenkins called in archi-

tects and together they finalized plans for the first Publix

supermarket. When the plans were presented to bankers, some

of the financiers referred lightly to the plans as "George's

marble, glass and stucco food palaces." (29, p. 4 )

Subsequently Jenkins' concept of the building became known

as the :..arble Palace." Mr. Jenkins was confident that the

housewife desired a pleasant atmosphere in which to buy

groceries. By selling both of the original stores and

mortgaging an orange grove that he had purchased during the

depression, Jenkins had his first "food palace" constructed

in Winter Haven in 1940.











The "Marble Palace"

The building was suited to carrying out Jenkins'

policy of providing a pleasant atmosphere and of providing

satisfaction to the consumer by experiencing benefits

offered by Publix. The building was characterized by large

areas of glass and block, and there were numerous lighting

fixtures installed to compliment a bright, airy atmosphere.

The building was air-conditioned and equipped with self-

opening, automatic doors; only the most modern equipment

furnished the building, and it included a frozen food

cabinet and piped music. Jenkins believed that each of

these factors contributed to enhancing the comfort and

pleasure of the customer. Cleanliness, neatness, comfort,

customer pleasure: these features highlighted the Jenkins'

innovation in supermarketing.

Growth of Publix Food Stores CorDoration

A nucleus for expansion

The Publix Food Stores Corporation had begun to form

a nucleus of management in the two original stores operating

in Winter Haven between 1930 and 1940. Also developed by

19L40 was a distinct operating philosophy which was put into

practice in the first Publix supermarket. The sale of the

two original stores and the construction of the Winter Haven

"Marble Palace" signaled the beginning of corporate growth

for Publix and of personal growth for George Jenkins.











Original expansion for the company was a slow process.

Most materials were being used in the war effort until after

1945, and, as a result, plans for expansion remained only

plans, but the future for Publix brightened significantly

in 1945. The purchase of two food distributing firms enhanced

the development of the corporation. In order for Publix to

enlarge, three assets were immediately necessary: a wholesale

distribution facility for grocery items, an additional number

of retail outlets, and a moro experienced management team to

staff the organization. All three additions were accom-

plished through acquisition in 1945.

The Lakeland Wholesale Company provided the basic

physical link between retail outlet and supplier; the All

American Grocery Company added a chain of stores to the

Public organization, and the two purchases together resulted

in the inclusion of "several good men" with grocery experi-

ence. With addition of this group and in cooperation with

the original group of Jenkins' workers, a sound management

nucleus was formed. Now growth and expansion were at hand.

Decade of decision

The retail outlets acquired as the All American Grocery

Company were gradually replaced by "Marble Palace" model

buildings as materials became more plentiful and available

after the second world war. By 1951, the Publix Corporation

was employing 700 people, was operating 24 supermarkets; it








58


had attained a. sal2~- volcu., "i. eo:'ccz of .'jL n_1!icn. y

this time conclusion uas tha the busing:

methods and philosophy of the P bli.:: .icc --z grc.p .::i.

sound. However, the conoapy, .ith its Cher cu-re- facili-

ties arnd --arket, roachedo a lateau of operation. -lajor

decisions had to be --de concer-cc-in the Growth an: d c:oan-

sion of the ccopany.

detailed analysis of "he I-.hej potential in the

state of Florida revealed that many now idustries Uore

moving into the state; these industries supplemented the

ideal retireonct conditLios of the sta- It :.-as also di.s-

covered that -- 1951' there .::.rc ,;75C0 e-zaet- residents

moving ri-o Plo-rida each aoltho (29., p. ) I::panding the

facilities to support a grc:inz super-arlket chaia presented

no special probe deal. a dcisi cs :crc that thZe Publix

Food Stores Cororration could and woula gro.:.

"Fifty by Sixt?"

rhe goal established for the t-n years of e: mansion

frc 1951 to 1961 was to have fifty stores in operation by

1960, 'he Goal .was put into the slogan "fift' y by sixty";

by the beginning of 1961 the goal had boen far -urpassed~

as is demonstrated by the following figures (29 pp. 6-7)

Year unbber of uber c: Gro. S a
Stores r-or -ecs
1951 24 672 :>, ,22S,55::
1961 75 2,65C 156 33-., 63











The Publix Corporation has continued to increase the

number of supermarket outlets, to employ a greater number

of people, and to realize more sales revenue. In addition,

the central distribution center located in Lakeland has

undergone changes toward increased and more efficient service.

Publix CorDoration today

The corporation continues to expand today. The

company now has in excess of 100 supermarkets in operation,

employs over 5,400 employees, and realizes in excess of

$250 million in annual sales volume. The company is now

divided into two divisions in Florida the Southern and

Northern divisions. The Southern division is served from

central warehouses located in Miami while the Northern

division continues to be served by central supply houses

located at the company headquarters in Lakeland. In addi-

tion to creating warehouse facilities in Niami, warehouse

facilities in Lakeland have undergone five major construction

projects in the last twelve years increasing the facility to

the size of four hundred and fifty thousand square feet.

Other changes in the organization have occurred, too.

Architects have redesigned and enlarged individual

buildings, attempting to insure the most pleasant atmosphere

for grocery shopping as well as the most efficient working

conditions for employees. A fleet of more than 50 truck

tractors and 90 trailers servesthe chain of widely scattered











supermarkets. At least 150 railroad cars and trucks arrive

at the Lakeland warehouse each week bringing products to

Publix from all over the country.

Many people are required to store, ship, prepare and

control this flow of products. Consequently, the work force

at Publix headquarters exceeds 400 people. Modern machinery

has been installed at the central offices to aid in proper

inventory control and record keeping. Recognizing the

amount and variety of products that come to the warehouse

each week and recognizing the fact that each Publix store

maintains an inventory of over 7,000 items quickly illumi-

nates the necessity of the company's maintaining specialized

personnel and modern equipment to accomplish a smooth flow

of goods. Printing and advertising shops are also at the

Lakeland location; they prepare in-store displays to be

coordinated and sent to individual stores.

Conclusion

Publix Food Stores Corporation was conceived and born

of the American spirit; it was bred by a true American

pioneer, George W. Jenkins. The man lives on today pursuing

activities that will probably continue to push the company

forward in economic attainments. Those same activities are

undertaken to prolong the thirty-four-year age of the Publix

Corporation business; the business based on the philosophy

"...that the person who purchases groceries appreciates a











friendly smile and the service that goes with it ...

appreciates a clean, bright, neatly arranged store offering

a wide variety of name brand products and properly cared

for perishables of unquestionable quality, all at fair

prices." (29, p. 30) The belief continues in.the policy

of fair treatment to all employees through profit sharing,

internal promotion, and the best wages that can be paid

within the Publix profit structure.

Born as the organization was, managed as it is,

seemingly by one man, the future of Publix perhaps appears

precarious. However, possibilities appear unlimited;

actually, so rapid have been new store planning and con-

struction that conventional methods of location research

have been outdated at Publix. The company now makes ex-

tensive use of aerial photography to better study and

evaluate apparent mushrooming development opportunity.

Although George Jenkins seems to exert strong, de-

pendable leadership in the entire company, and although the

management is his conception of supermarketing in origin,

the managing executives firmly believe that the corporation

will continue to operate successfully after Mr. Jenkins has

left the helm. Management executives believe that the

Jenkins' philosophy will be mirrored by the men who operate

the company. Hence, the executives do not fear that Jenkins'

eventual leaving will drastically affect the future of the

Publix Food Stores Corporation.













CHAPTER V


PUBLIC SUPERMARKETS, INC: SELF-CONCEPT

Introduction


Competition and differential advantage

Entrepreneurs and would-be entrepreneurs discover

that the competitive American business society presents

significant opportunity for one to enter into private

business. Statistics quickly remind business hopefuls,

however, that failure is easier in the business community

than is success. The firm that profitably endures over a

long period seems to accomplish at least the following: it

recognizes and can identify the segment of the people or

the part of the market to which the firm can appeal; the

firm can contact and be in association with this market

group; a product or service and money are exchanged which

allows individual benefit and satisfaction to a strong

enough degree so as to cause the user to be able to

rationally undertake similar transactions at future times.

When the firm that exists with either product or service

being individually capable of accomplishing a repeat sale,

one might logically conclude that the competitive position

of this firm is sufficiently strong to propagate its suc-

cessful existence. Publix Food Stores Corporation believes

it is one of these strong firms.
62










Market segmentation

Enduring food stores and grocery chain stores may

excel in one of three areas to account for their longevity.

The feature attraction of food stores may be merchandising

ability, food or service. Service through people and

personal relationships are conceived by Publix management as

the company's major feature of attraction. In addition, the

management also thinks that the best quality food possible

is offered at Publix, and with concern devoted to these

areas primarily, Publix Corporation has succeeded in meeting

the previously stated conditions.

Policies Relating to Employee Treatment


General personnel philosophy

The company personality is thought by its executives

to be strongly supported by the policies relating to the

guidance, direction and supervision of Publix employees.

Publix' management philosophy in application and practice is

reflected by the recognition by management of the dignity,

individuality, and self-esteem of the employee; it can be

seen in the emphasis that is placed on informal structure

or status lines and in the effort that is put forth to

create teamwork in the organization. Management believes

that employees at Publix are recognized for accomplishments,

are provided incentive for accomplishing, and are therefore

motivated to higher accomplishments. When one works for the











corporation he apparently receives the concern and benefits

that an employee-oriented management philosophy proposes.

This philosophy treats employees and their attitudes as

fundamental factors determining the degree of success of

the firm; employee concern and benefits are expressed

accordingly. Another strong motivating factor advocated by

the management group of the Publix Corporation is personal

relationships: relationships of workers to workers, workers

to superiors, and workers and superiors to customers.

Recognition of the individual

Employees at Publix are directly charged with the

responsibility of achieving established goals as required

by their particular job requirements. This attitude toward

the worker is part of the management function as practiced

in the company. Expectations and duties are made clear;

then the worker is free from close supervision to accomplish

his tasks. Autonomy is a major concern of the superior-

worker relationship, and the company believes that this

policy has been closely adhered to and has contributed to

the organization's success. This autonomous relationship

of task accomplishment is supported by the de-emphasis

placed on structure or status lines present internally.

Status lines

From department manager, store manager, area manager

to the company president, the indication is that superiors











have been able to substantially de-emphasize distinct

_herarchial breaLs in authority. Publix employees seem to

consider President Jenkins as one of threm. It is generally

accepted that Jenkins, when visiting stores during opera-ing

hours, may and does frequently lend himself to aiding the

workers if his helo is needed. One senses this to be true

when visiting with Mr. Jenkins.

Upon knowing Kr. Jenkins, observing him, and talking

with him, one can understand why he has been successful in

de-emphasizing organizational status lines. A clean man

wearing a slight moustache clipped to perfection. But, a

working man, too. Missing are the symbolic "grey flannel"

suit and the smartly shined shoes. In their places appear

a light short-sleeved shirt held at the collar by a loosely

wrapped tie and a pair of creased trousers showing obvious

wear from active treatment and shoes bearing marks of

activity.

Central employees quickly elaborate on the activity

of the executive force, maintaining that frequent activity

includes executives loading or unloading trucks or otherwise

aiding the warehouse force during "tight" situations. These

factors strongly support Publix management beliefs that the

group, working as individual units and as one unit as a

whole, is responsible for the endurance and place of the

copan-y in the food industry. Group behavioral studies have

recognized and reaffirmed the soundness of such management

philosophy. (10, pp. 46-64)











Structure and consideration bear heavily in group

dynamics. Where individual recognition is present in the

group and where the follower respects the leader's goal

direction, cohesiveness and group loyalty are observable

results. The Publix management claims that these factors,

cohesiveness and group loyalty, are strong parts of the

company. There is reason to accept the proposition as

exemplified by the current attitude of Publix workers toward

the future growth of the company. The responsibilities of

continued expansion have been shifted to the employees.

Employees concern

When, by 1960, the company had achieved its goal of

fifty stores, Mr. Jenkins proposed the following ideas con-

cerning the future of the company. (30, p. 5) He was a

wealthy man and had achieved enough; he was, personally,

prepared to maintain the "status quo" as it existed in 1960;

however, if the employees wanted to see the company continue

to grow, if the employees wanted this growth for themselves,

he would continue to support a growth and expansion program.

Indicative of the subsequent attitude that seemingly perme-

ates the entire organization is a slogan which was adopted

by the Southern division with the opening of store number

one-hundred. The slogan, "one-hundred plus," recognizes

no slowdown in expansion possibilities.










Employee benefits

Publix employees participate significantly in the

profits that are realized by the company's operations. In

total, 35 per cent of gross profits each year is returned

to employees either directly or indirectly. Twenty per

cent of gross profits are returned to employees each year

directly as cash bonus; 15 per cent of yearly gross profits

is placed in an employee trust which accrues funds to be

allocated to retiring employees through the employees'

retirement plan. The trust funds are invested by the ad-

ministrators of the fund for the employees. The employees

of Publix, through the fund, now own several Publix super-

market sites and buildings and four shopping centers, each

containing a Publix market. (29, p. 42)

Other benefits include medical, major medical expense,

life, and accidental death and dismemberment insurance; a

credit union, paid sick leaves, and paid vacations. The

full-time employee can accrue as much as four full weeks

annual vacation. For each quarter worked in a calendar

year on a full-time basis, the employee earns an extra week'.s

pay; by working the full calendar year, he earns four weeks'

pay; the employee may choose how he wants to receive this

accrual, and he may receive up to three weeks' pay as a

bonus or he may take the entire accrued time of four weeks

as his vacation.










Employee motivation

The Jenkins' philosophy is believed to have prolife-

rated down to the individual employee, thus having saturated

the entire organization. Through the awareness and apparent

faith in the employee and customer philosophies, and as a

result of employee benefits from successful store operations,

management thinks that each individual employee is motivated

toward efficiency and is alertly conscious of his store's

profit ability and his role in contributing to it. The

suggested strong conviction that each and every employee is

an important part of the company progress perhaps may be

singled out as one of the strongest reasons for the success

of the chain.

Management is convinced that employees make Publix

go. Personnel Director, Mark C. Hollis, says that other

chains have improved facilities and products as has Publix,

but he maintains that "the achievement of management goals

is unlikely" if the people in an organization fail to

"convey the desired image" to the public. (30, p. 5)

Mr. Hollis believes that the employees, from check-out

girl to vice president, are motivated because "...they've

got the spirit of the company; because they believe in what

we are trying to do." (30, p. 7)

Customer satisfaction concept

From the inception of the Publix Corporation, the

management philosophy has been grounded in the fair treatment











policy. Fair treatment to employees; fair treatment to

customers. Above all, management feels that the customer

should be given full value. Personal relationships, store

design, quality and variety of food, all at fair prices are

basic factors in the Publix concept of full value.

Mark Hollis says that the Publix belief is that "the

customer is paying for people to be nice to her." (30, P.10)

Helpful service, friendliness and courtesy are the funda-

mentals practiced by employees in their relationships with

Publix customers. The design of Publix stores is created

with the accomplishment of the particular concept of full

value in mind. The stores are built to be comfortable;

they are supposed to be clean and to have themselves, a

warm, friendly personality. In some respects the plans for

the buildings have been unconventional, but the differences

serve to point out that the planners of Publix stores have

"a customer point of view." In-store placement of the

produce department serves to illustrate.

Commonly, because produce typically contains a high

profit and is an attractive product, it is placed in an

area which is one of the first the customer must pass

through upon entering a supermarket. By placing the pro-

duce early in the shopper's tour, the strategy is that she

may purchase more of it. Planners of Publix stores have

done the opposite; they have placed the produce areas as











near the end of the shopper's store tour as is feasible.

The management and planners reason that the produce is

likely to be crushed and damaged by placing it in the

basket first. By placing the produce as the final major

department the customer will pass through, the fresh pro-

duce is automatically on top of the basket rather than on

the bottom perhaps being crushed and damaged. (30, p. 11)

This plan supports the belief of Publix management that

the transaction is not complete until the food has been

prepared and eaten and enjoyed. Obviously, maximum pro-

tection of perishables enhances the accomplishment of this

end.

Satisfaction, trust, benefit

The management believes that there is a high degree

of mobility present in the Florida market. New people are

arriving each day and many visitors are constantly entering

and leaving the market area. As a consequence of this

recognition, Publix has practiced a policy of minimizing

the development, introduction, and use of local brands of

merchandise. By carrying in stock regional and national

brands almost exclusively, the belief is that the continu-

ously changing market is being given a product that can be

trusted to meet given expectations. Mr. Hollis expresses

that this is a "major method" of insuring that the customer

gets the best for her money when shopping at Publix (30,










p. 2) This aspect of customer satisfaction is very impor-

tant to the people at Publix. They feel that if the

customer has confidence in the store, that she will be a

lasting customer; in addition to being a lasting customer

herself, it is believed that she will bring new customers

to shop at Publix. (30, p. 10)

Although well known brands are stocked in the Publix

stores, the policy is to allow the customer a variety of

products and brands from which to choose. All of these

benefits provided by the company are believed to be priced

fairly. Excessive markups is a policy which is not a part

of the Publix philosophy; rather, a distinct part of the

Publix full value concept is that the products and other

factors be offered to the customer at a "fair price."

The Publix Personality

From the foregoing discussion of the Publix Food

Stores Corporation operating philosophy and management

policies, it perhaps will be beneficial to attempt a brief

summary of the factors apparently involved in the manage-

ment's concept of the organization. A following discussion

of the ingredients presented to the public in active image

creating messages will further illuminate the image per-

ceived by the company of itself.










Image dimensions

People, both externally and internally, are the focus

of the entire personality of the company. The customer is

expected to be greeted by completely modern facilities upon

entering a Publix market. The entire physical plant as

seen by management is characterized by being spacious, very

clean and bright, and comfortable. In the store the cus-

tomer is expected to find only the best quality merchandise

presented at fair prices; the management sees Publix

employees as being helpful, friendly and courteous and pro-

viding a satisfying personal experience to the customer

upon contact. The service and products offered can be

completely trusted, and confidence can be placed in the

total shopping experience at Publix. This belief is empha-

sized by management in the guarantee that the transaction

is completed when the product has been used and enjoyed.

Other investigators' evaluations and findings

Other studies and articles concerning the Publix

Corporation have been undertaken and published. It will be

of interest to briefly present some findings and conclusions

of these writers. This chapter so far has attempted to

interpret the concepts that the Publix management has of

itself; this analysis will further serve to cast light on

the self-concept held by the management of the company.










Saint Petersburg Magazine

The Saint Petersburg Magazine published an article

in the March, 1964, issue which brought attention to Publix.

"Status Among the Celery Stalks" depicts the company as

providing the community with a service and quotes President

Jenkins as saying upon the company's reaching the number of

one hundred stores: "We are here to serve the people and

grow we must to serve their needs." (20, p. 35) The

article also concluded that there is a certain degree of

status attached to shopping at Publix, and that the public

image of the company is one of high priced merchandise.

This article says that Publix is mentioned most

frequently in Florida as the shopper's favorite market.

This recognition, however, may not be indicative of a com-

pletely valid implication for the article goes on to quote

the head of Zemp Advertising Agency: "'If the figures are

to be believed, even the ladies who don't shop regularly

at Publix say they do!'" (20, p. 35) The interpretation

is not all good. The connection of the shopper's pride

and the image or status of Publix has led, at least ap-

parently in some areas, to the belief by the public that it

costs more to shop at Publix.

The statement had become so common among shoppers

that even the check-out girls were "almost convinced" that

this was true. Since this discovery, the Publix management










has carried on an internal campaign "...designed to remind

employees that comparison shoppers are constantly checking,

to make sure that Publix prices on comparable merchandise

are equal to, or lower than, competition." (20, p. 55)

Food Business Magazine

The article "George W. Jenkins ... A Man for National

Brands" allows a closer insight into the operations of the

Publix Corporation. It emphasizes that Jenkins' chain is

the leading supermarket chain in sales volume in Florida,

averaging two million dollars a year per store; it empha-

sizes that net profit at Publix has been above the industry

average; it emphasizes that human relations have paid divi-

dends at Publix. (15, pp. 19-20)

A 1957 breakdown of Publix sales' figures percentage-

wise showed the following: (15, p. 20)

Cost of Merchandise 81.7%
Salaries and Employee Benefits 8.05%
Federal, State, Local Taxes 2.46%
General Expenses 1.22%
Rent and Utilities 1.17%
Depreciation 1.10%
Advertising 2.41%
Profit (re-invested in business) 1.91%

Although profit figures are not published, budgeted

volume in the post war years has been: (15, p. 20)

1945 $ 2,857,000
1947 4,881,000
1949 7,449,000
1951 18,228,000
1955 28,241,000
1955 49,001,000










1957 $ 77,012,000
1959 112,765,000
1960 140,957,000
1961 155,000,000
1964 250,000,000 (estimate)

A January 1, 1962, report on revenue breakdown per
dollar of sales volume and changes from 1957 are: (29, P.7)


1962 1957 Change
Cost of Merchandise 80.25% 81.70% -1.45
Salaries and Employee Benefits 8.89% 8.03% + .86
Federal, State and Local Taxes 1.81% 2.46% .65
General Expenses 1.40% 1.22% + .18
Rent and Utilities 2.14% 1.17% + .97
Depreciation 1.02% 1.10% .08
Advertising 3.18% 2.41% + .77
Profit 1.31% 1.91% .60

If one can assume that each year's volume net re-

ported has been at least that of the preceding reported

year, the total sales' volume for the 1945-1964 period of
twenty years would have been $1,349,000,000 or $67,453,000

per year. Further assuming that profit averaged at least

1.50% of gross sales, one sees profit figures in total,
$20,235,900 or $1,011,795 per year.
Food Business states that Publix workers experience

a "moral imperative" to produce; this "moral imperative" is
illustrated by the inscription on a plaque presented to
George Jenkins in 1961, by the warehouse employees in Lake-
land. It read, "To Mr. Publix ... In appreciation for all

the things you have done for us through the years ... The
warehouse employees and their families in Publix ... 1961."










(15, P. 20) Food Business further emphasizes the apparent
worker satisfaction at Publix in the statement that, "People

work for Publix because they seem to want to ..." (15, p. 20)

"The Publix Story"

Daniel Yankelovich is the president of his own firm

in New York City; the firm specializes in applying psycho-

logical approaches to market research; his observations and

conclusions concerning the Publix Corporation perhaps are

of interest in this study of the company. (27, pp. 6-10)

"The Publix Story" features comments revolving around the

topics of the applied management in the company, employee

attitudes and company potential.

Mr. Yankelovich found that the Publix management

practices a combination of common and unique management

fundamentals. Factors in Publix also common to other organi-

zations include: (27, p. 7)

1. decentralized authority and responsibility
2. local store manager decision-making
3. clean, attractive store environments
4. success resulting in motivating more success.

Factors active in the management beliefs that in

combination apparently enhance the individualism of the

philosophy were found to be:

1. autonomy
2. tolerance of mistakes
3. true management concern for the individual
4. group goal orientation
5. blurred status lines.










Yankelovich believes that personnel motivation at

Publix is unique and that due to highly motivated people,

the company has achieved success. In support of his con-

clusions, Mr. Yankelovich describes some of his interviews

with Publix employees. (27, p. 6) Pride was expressed by

a woman grocery checker when she said that she would be

ashamed to wear a competitor's uniform in public but that

she was pleased when people associated her with Publix.

One person said that he was "glad" the company had retire-

ment and bonus plans; however, he continued, "I work here

just because I love it so much." Other typical comments

held that everyone, including customers, was very friendly

and that there was much satisfaction in the discharging of

work duties.

The article maintains that the workers at Publix are

fully aware of the Jenkins' management philosophy and that

they are in sympathy with the Jenkins' beliefs regarding the

customer and the employee. The opportunity, incentive and

responsibility are clear-cut at Publix and as a result of

rapid growth and promotion exclusively from within, many

opportunities are available to the ambitious and competent

workers.

The management practice of autonomy accepts that a

natural human condition is to make mistakes. Yankelovich

explains the employee reaction to this management practice










in stating that a worker told him he oas ".. working hard.

doing :y best; when I meke a mistake it is explained; I am

not chewed out." (27, p. 9) "The Publix Story" relates

that it found that employees believed that the company Lad

a true concern for each individual employee.

Employees frequently mentioned the profit sharing

plan of bonus and retirement benefits but of more impor-

tance seemed to be the explicit individual attention given

to employees. A bag boy told Mr. Yankelovich that after

"only" six months of employment he received an "unexpected

Christmas bonus." (27, p. 9) Another employee said that

he had been employed by Publix three months when a member

of his family underwent surgery; his store manager went to

the hospital and remained there throughout the entire

operation. Many employees hold cards inviting them to use

a Publix golf course free of cost; for those workers at

the Lakeland offices and warehouse, a company cafeteria

prepares free lunch each day; some store managers give

Christmas parties on their own. Mr. Yankelovich says that

the most recurrent phrase by the eLployees at Publix in

describing the managemen- attitude was: "You are treated

like a person, not like a number." (27., p. 9)

The article goes on to say that a warm, congenial

atmosphere in Publix stores is a source of pride for the

people at Publix. Management, customer and personnel re-

lationships account for the atmosphere, and "The Publix










Story" c nciauds h at person7-a are motivated, not only by

managemnt and work:er relationships, bu' also as a result

of the customer's returning time after time.

Possibly the most interesting of Daniel Yankelovich~s

conclusions concerns the potential marl:et area for Publix~

He maintains that Publix can appeal to the mass of people

satisfactorily, not having to depend on reaching any one

segment of a stratified market: they do not "conform to a

socio-economic group, an income level, nor are they

ethnically homogeneous," (27, 3) It is proposed by the

motivation consultant that Publix reaches and services

people uho have a basic, psychological ne.ed for warm human

contact; "this is a basic human need which exists uni-

versally" is the conclusion of Yankelovich, and this need

is satisfied by th- corresponding attitude of both the

customers and employees who shop and work at Publix. (27,

pC 8)

Results of Daniel Yanlovich s study led hi.2 to

conclude that some distinct areas of motivation appear to

bring about the degree of enthusiasm that exists at Publix.

T'ey are:

1. the recognition of individual dignity
2, che customer motivation of personnel
3. the co-pa-ability of friendliness and efficiency
,. a unique market appeal.











Publix' Active Image Creation


Discovery of the need

William R. Schroeter is the executive who directs

advertising campaigns undertaken by Publix; until 1963, there

had been no explicit plan at the company headquarters to

emphasize a definite image to the customers and potential

customers of Publix. Prior to 1963, members of the manage-

ment team had "assumed" that Publix had a public image a

corporate personality; however, the dimensions of the image

were vague, and the typical comments of the company execu-

tives indicated that they believed "some" type'image

existed. (32, p. 9)

Upon the recognition that the company needed to

clearly state and undertake a definite reaffirmation of the

company policies toward the public, Mr. Schroeter pursued

the development of an active image-creating program. Dis-

cussions among management personnel were undertaken to this

end. These sessions further supported the apparent need for

a concise program; individual opinions differed substantially,

thus illuminating the proposition that the leaders of the

company did not know what the Publix personality was.

(32, p. 1)
The efforts resulted in the decision to clearly state

the intent and policies of the corporation and to undertake

an advertising campaign to present these ideas to the public










in parts of Florida. A search was undertaken to determine

the elements and characteristics of the personality that

should be portrayed to the public. In addition, there

needed to be created a simple theme around which the image-

creating advertising could be constructed.

The image factors

Under the direction of Mr. Schroeter and in coopera-

tion with an advertising agency, the dimensions of the

desired image evolved. Two comments received in letters

written by Publix customers set the stage for the campaign.

One letter came from a former customer who was then in

Pakistan; it requested pictures of Publix supermarkets so

the traveler could show other people "... the cleanest,

brightest supermarkets in the whole world." Another letter

stated: "I like to shop at Publix because of the clean odor."

(32, p. 1)
To the elements of cleanliness were added spacious,

completely modern markets. In keeping with the company

philosophy, messages should also include that only the very

best quality foods were available at Publix and that the

products offered there were priced fairly. The aspects to

be promoted became clear, and the institutional theme would

be pleasure; the actual phrase: "Where Shopping is a

Pleasure."







82


"The Happy Difference" Series

An advertising campaign evolved which would be pre-

sented to the public. It was entitled "The Happy Difference"

series and was designed to convey a definite image to the

grocery consuming public. Mr. Schroeter, Publix' Director

of Advertising, believes that every corporation should have

a planned image and a slogan that can be remembered by the

customer. (31, p. 1) He maintains that success of image

advertising is dependent primarily upon two basic factors:

the concepts promoted and the words utilized in the pro-

motional activity. (33, p. 1) Simple words used consis-

tently to propound the concepts of "truth and consumer

benefit" made the foundation for the Publix policy re-

affirmation and image creation campaign.

The advertisements

The entire series is comprised of twelve installments.

Each installment layout was prepared on a common basis. A

picture covers the top half of the advertisement; bold

letters placed across the lower part of each picture ask,

after the first installment, "Is this the Happy Difference?"

referring to the picture. The initial copy asks "Where does

the Happy Difference Begin?" Immediately following the

picture and question is an explanation of the concept pre-

sented in the picture. This explanation is brief and is

placed in black print against white background; each











explanation and copy layout ends with: "We invite you to

try it soon ... at Publix." The series was originally placed

in selected media including newspapers, radio broadcasts and

television broadcasts. Radio and television were utilized

to supplement newspaper advertising, and the installments

were placed one week apart.

Installments one through six

The first advertisement of the twelve-week series

serves to introduce the advertising program. It summarizes

the shopping tour from newspaper advertisement reading to

post-meal enjoyment and emphasizes the Publix guarantee.

Cleanliness and atmosphere are the themes of the following

copy. The third advertisement emphasizes the meat depart-

ment: quality of the meat and helpful attitude of the

department employees. The policy of carrying only well

known brands is presented the fourth week, and pre-packaged

produce serves as the subject the following week. The

explanation is that produce is packaged for the convenience

of the "average family," but it carries the message that

there is no hesitation whatsoever in breaking a carton for

more or less of the product. Making a joy out of a chore,

emphasizing Publix' wall directories and "customer comrade-

ship" are the messages in the sixth installment.











Installments seven through twelve

Service, treatment, confidence and ease of shopping

are highlighted in the concluding six weekly presentations.

Numbers seven and eight show a check-out girl and a bag boy.

They represent "efficient, friendly, helpful service, extra

smiles," and "royal treatment" that are parts of the "happy

difference." A blindfolded shopper and the Publix seal are

topics presented to support trust and confidence; the

eleventh advertisement continues to build customer confi-

dence by showing and telling how and why periodic testing

of products occurs. Finally, ease of shopping is emphasized.

Wide and spacious aisles prevent "traffic jams" and shopper

"frustration."

The series served, in addition to stating and re-

affirming the Publix objectives, as an internal training

program. Store managers and store personnel were made

completely aware of and were exposed to the presentations

before they went before the public. Not only were the

employees informed of what was to be shown to shoppers,

they also received the benefit of gaining a fuller under-

standing of the management philosophy. The program was

designed and is intended to be used at succeeding intervals

in order to maintain consumer awareness.











Conclusion

By analyzing the competitive differentiation and

market segmentation of the Publix Corporation, by investi-

gating their policies toward employees and consumers, by

interpreting what other researchers have discovered about

the company, and by summarizing Publix' active personality

creation activities, perhaps one can gain a general under-

standing of how the company actually perceives itself.

This chapter has been organized and presented with this

objective as the goal, and although the intangibles are

often difficult to synthesize, one is able to recognize

consistency in the total company activity. It might be con-

cluded that this discovery of consistent effort, both in

depth and breadth in the overall concept, is sufficient to

warrant the belief that the company is not a victim of

"organization insanity."




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