A Total Quality Business Model

Group 2

BUSTILLO, Shannon Rose A.

DELA FUENTE, Lance Marco SD.

IBAÑEZ, Kim Nicole G.

MANALO, Ann Marie Isabelle L.

PEJO, Andrew O.

4M4

Case: A Total Quality Business Model

1. Statement of the Problem

Rod and Diane were two young entrepreneurs who wanted to develop a new type of take-out restaurant that has limited dining facilities but could still provide a wide variety of home cooked cuisines. And also they wanted to know how the strategy TQ-focused management infrastructure would help succeed with their concept project.

1. Background of the Case

Rob and Diane were two young entrepreneurs who liked to develop a new type of business. They wanted to develop a small dining that would provide a wide variety of home cooked cuisines. Their main objective is to be the consumer’s choice for all varieties of fresh convenience meals. In order for this to be effective, Rob and Diane realized that they should focus on the customer’s perceived quality both product and service, wherein they know that customer would have big expectations with this matter. Another idea by the entrepreneurs is by assigning right people according to their specialty and placing responsible ones. All these ideas were from the influence of TQ-focused management infrastructure since they think that it will be a big help for their business’ success.

1. Key Relevant Case Facts

Rob and Diane realized that TQ-focused management infrastructure would be a vital for the success of the company. The key relevant case facts are as follows:

• First is customer engagement. They value customer satisfaction and they would like to provide unexpected value to their customers and go beyond expectations to create lifetime customers. They give employees the authority to accommodate reasonable request of customers. To evaluate customer's experience, the company requires shift managers to be the first customer on each shift. They use technology to track service times and complaints, and use mystery shoppers to secretly evaluate employees.
• Second, they have a leadership, strategic planning, and well-organized company structure to ensure that proper work is in place. Rob and Diane realized that every employee should understand the company strategy in order to absorb and comply with its strategy.
• Third, workforce management employees were trained in different positions to know their duties and responsibilities and gain credibility with them.
• Fourth, all production processes are carefully documented for employees to be aware of what specifications must be met. Also, managers are responsible for their relationships with food suppliers.
• Lastly, all key data and information such as inventories, financial reports and projections, customer feedback, employee and operational performance, would be collected and displayed in the kitchen area.

1. Case Analysis

1. Principles applied in the case

• Customer-driven organization – The business idea of Rob and Diane is an example of a customer-driven organization. One of the first ideas they have implied is customer engagement. As they welcome the customers in the restaurant, the etiquette of greeting, recognizing repeat customers, offering samples, answering questions, serving the products, and a genuine thank-you can lead the business to success.
• Leadership – This is also applied in the context of the case because Rob and Diane conceptualized the plan of having a restaurant. Through their leadership, they assigned managers of different kind (store, regional, shift) to monitor the business.
• Involvement of People – Through the cooperation of the staff, the business concept will develop to be a success in the industry. They are also trained and compensated well to keep the business operating.
• Continuous Improvement – Since customers’ demands keep on changing, the strategy that they implemented is to focus also on evaluating customers to keep track of their needs and demands and also to evaluate their business as a whole.
• Mutually beneficial supplier relationships – As mentioned in the case, managers will be responsible for their relationships with food suppliers. This can help the business function excellently.
• Process Approach – Every employee is assigned to do a certain task. Since it is a process, one can be affected if the others face a problem.

Management must also do the following:

1. Perform service expectations dependably and accurately.
2. Provide prompt response to customers.
3. Distinguish differences with competitors.
4. Evaluate service through customer satisfaction surveys.
5. Utilize online means to monitor the management.

1. Analysis of the Problem

1. What advice might you give Rob and Diane about the management practices they are proposing within each element of the TQ infrastructure? What additional practices might you suggest?

- Based from the management practices proposed by Rob and Diane, both of them should not only depend all the work to their employees and top managers. Their presence must be seen by their employees to guide them with what they do and motivate them to do their best in the in the business.  Nowadays, technologies are emerging due to innovations and change of trends in the market. Therefore, the company must make use of it for their business to further reach its market and keep constant relationship with its consumers.