Wednesday, May 6, 2020

Total Quality Management Mercadona

Question: Discuss about theTotal Quality Managementfor Mercadona. Answer: Introduction Quality management is a necessary tool that helps the companies to improve the technique of managing the future outcomes. It not only ensures product and service quality but also shows the technique of the people running the business and the business process that will satisfy the customers at every stage (Dale, 2015). Total quality management is the collective process that integrates all the organizational function such as marketing, finance, design, supply chain management and customer service in order to meet customer needs and organizational objectives. Total quality management in the organization helps to meet customer requirements, improvement of teams, and productivity improvement of employees, enhancing recognition of the organization in national or global market. Quality management process improves the internal process and increases customer satisfaction (Goetsch Davis, 2014). The essay focuses on the quality management processes of Mercadona. Mercadona is a Spanish family owned supermarket, which runs the distribution of food and hygiene products commercially. Mercadona emphasizes five components while considering quality management of the company such as customer, employee, supplier, society and the capital. The company places its priority in satisfying the needs of the customers in the total Quality Management Model. The company places the customers at a privileged position and they take the responsibility in caring for the customers, which helps in generating loyalty (Lopez-Gonzalez, Lois-Gonzalez Fernandez-Casal, 2013). The company conducts blind tests, provides them with free customer service hotline and provides suggestion boxes to collect information, opinions and needs from the customers. The firm considers this an appropriate way to know their customers rather than investing in advertising media, which are expensive, and does not provide any help in collecting information from the customers. The company gets to know about the tastes and preferences of the customers and tries to improve their products through innovations in the RD department (Garcia-Arca, Prado-Prado Gonzalez-Portela Garrido, 2014). Mercadona keeps price low to enhance customer base and to increase revenue. Cost control mechanism is taken by the company to ensure profitability. Product innovation is another aspect to meet customer satisfaction goal. Division of stores in six sections such as fish, bakery, vegetables, butcher, cosmetics and deli are strategy of the company to enhance product line. Time and convenience of shoppin g is another aspect that is ensured by the company for the customers. The company also focuses on the quality of its 63,500 employees of which 67 percent is women. The human resource policy of the company provides the employees with good working environment, training them by conducting workshops and increases the quality of life by giving them the opportunity to grow within the organization ((Ivanov, Tsipoulanidis Schonberger, 2017). The company takes initiative to close the stores, which has no proper productive working condition. Mercadona recruits its employees through a rigorous selection process that includes cultural knowledge and tests the psycho-technical part of the employees. Productivity of the skilled labour is high so they are assets for the company (Dale, 2015). Therefore, selection of right candidates is crucial criteria for the quality management of the business process. The company has a complete compensation policy that strengthens the bond between the employees and the company. The remuneration of the employees is above average in the supermarket sector and in exchange, the firm stresses more assurance from its workers. The immediate superiors of the company carry out the evaluation of the employees with respect to the performance and quality of work. This process helps in determining the bonuses, pay scales and promotions of the employees. The firm provides kindergartens in the logistics center of the organization for the employees and provides payment for a maternity leave of one month. The supermarkets are closed on Sundays so that the employees can spend quality time with their families and gives them an option to work in the supermarket that is closest from their home (Rubio, Oubina Villasenor, 2014). Suppliers are the important stakeholders of the company and intensively associated with the business process. The firm believes that to maximize its management process it is necessary for them to maintain a mutual trust with the suppliers. Mercadona provides a business environment, which facilitates the supply chain of the company. Suppliers in this company help by investing funds, creating jobs, opening new factories and new product lines. Strong supply chain also facilitates in product packaging, reduction in distribution cost, providing healthy products that are helpful for strengthening customer base (Gonzalez-Benito, Martos-Partal Fustinoni-Venturini, 2014). They must possess the economic resources that are needed to carry out the business goals of the organization. The firm ensures that the suppliers have stability in the stock market, as it is essential to secure their relationship with the organization (Rubio, Oubina Villasenor, 2014). Mercadona also contributes towards the development of the society by communicating with the customers through the business organizations and municipalities. The strategy taken up by the firm is to run many initiatives such as promoting education and research, improvement of the environment and creating jobs in the agro-food sector. The firm is involved in programs like recycling of wastes, efficient use of energy in the community and helps in optimizing the distribution system both nationally and in the other places (Tan, Wong Chong, 2015). Improvement of social impact, contributing neighborhood development and enhancing environmental productivity are aspects of quality management regarding corporate social responsibilities. Capital is the main input of business. This company has focused on long-term profitability as a part of quality management of the business process. Return to capital of this company has improved significantly after implementing total quality management. Productivity of assets, labor and profit margin has improved. The management of the company aims in offering the stockholders valuable advantages such as profitability, stability and minimum risks with their investment capital. The profits of the firm are re-invested in the organization to ensure its growth by opening new supermarkets, warehouses and logistics centers in the whole country over the years (Rubio, Oubina Villasenor, 2014). Reference List Dale, B. (2015).Total quality management. John Wiley Sons, Ltd. Garca-Arca, J., Prado-Prado, J. C., Gonzalez-Portela Garrido, A. T. (2014). Packaging logistics: promoting sustainable efficiency in supply chains.International Journal of Physical Distribution Logistics Management,44(4), 325-346. Goetsch, D. L., Davis, S. B. (2014).Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Gonzlez?Benito, ., Martos?Partal, M., Fustinoni?Venturini, M. (2014). Retailers Price Positioning and the Motivational Profiling of Store?Brand Shoppers: The Case of Spain.Psychology Marketing,31(2), 115-125. Ivanov, D., Tsipoulanidis, A., Schnberger, J. (2017). Operations and Supply Chain Strategy. InGlobal Supply Chain and Operations Management(pp. 69-96). Springer International Publishing. Lpez-Gonzlez, A., Lois-Gonzlez, R. C., Fernndez-Casal, R. (2013). Mercadona (Spain): a retail model in expansion.International Journal of Retail Distribution Management,41(1), 6-26. Rubio, N., Oubia, J., Villaseor, N. (2014). Brand awarenessBrand quality inference and consumers risk perception in store brands of food products.Food quality and preference,32, 289-298. Tan, B. I., Wong, K. L., Choong, C. K. (2015). Can TQM improve the sustainability of family owned business?.International Journal of Innovation and Learning,17(2), 174-186.

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