An Investigation into Links between Quality Management and Strategic Operations Management: A Case Study on Amazon
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This investigation explores the link between quality management and strategic operations management in multinational organizations, using Amazon as a case study. It examines the characteristics, significance, and challenges of quality management, and analyzes strategies for achieving better strategic operations management.
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Unit 03 Leading a Strategic Management Project
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Contents Title:Aninvestigationintolinksbetweenqualitymanagementandstrategicoperations management. A case study on Amazon...........................................................................................1 INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 A.C 1.1. Determine a strategic topic to investigate that has significant implications for the organisation............................................................................................................................1 A.C 1.2. Discuss the aim, scope and objectives of the project...............................................1 A.C 1.3. Take responsibility for and justify the topic of investigation and its aim, scope and objectives................................................................................................................................2 A.C 1.4. Formulate the project research methodology, including the project structure and research base...........................................................................................................................3 TASK 2............................................................................................................................................5 A.C 2.1. Assess sources of data and information that will support the aim of the project.....5 A.C 2.2. Synthesise the data and information for options or alternatives that support the project aims............................................................................................................................6 A.C 2.3. - Critically evaluate and determine an option that supports the project’s strategic aims.......................................................................................................................................17 TASK 3..........................................................................................................................................17 A.C 3.1. Critically evaluate the research to enable conclusions to be made........................17 A.C 3.2. Recommend a course of action that achieves the strategic aims of the project.....17 A.C 3.3. Critically analyse the impact of the recommendations..........................................17 TASK 4..........................................................................................................................................18 A.C 4.1. Determine the medium to present the result of the project and its contribution to strategic objectives...............................................................................................................18 A.C 4.2. Take responsibility for the results of the investigative project and the substantial changes and developments it brings about...........................................................................18 A.C 4.3. Critically evaluate the impact and success of the investigative project.................19 REFERENCES..............................................................................................................................19
Title: An investigation into links between quality management and strategic operations management. A case study on Amazon INTRODUCTION Multinationalbusinesseshavecomplicatedoperationalrequirementsbecausetheir business is expanded to different countries with huge workforce and wide product or service portfolio(Brown, Bessant and Jia, 2018). In addition to this they also face high intensity competitionbecausedomesticandinternationalorganizationscompetewithmultinational organizations. This makes strategic operational management complicated as the complicated as the company has to maintain quality of business operations in different countries while ensuring that overall strategic goals of the company are attained. This investigative investigation is focused on Amazon which is one of the largest and profitable multinational organization in the world. This investigative report provides the aim, objective, scope, rationale, research base and methodology in clear structure. After this the data collection and synthesis is also completed in this investigation. Finally conclusion, justified recommendation and review of the results of the investigative project are also provided in this report. TASK 1 A.C 1.1. Determine a strategic topic to investigate that has significant implications for the organisation The topic of this investigative report is “An investigation into the relation and impact of between quality management and strategic operations management of an organization” A case study on Amazon. A.C 1.2. Discuss the aim, scope and objectives of the project Aim: To analyse the relation and impact of quality management on strategic operation management of the organization. A case study on Amazon. Objectives: To examine the characteristics of quality management in context strategic business operations management. A case study on Amazon. 1
To identify the significance of quality management in relation to strategic business operations of businesses. A case study on Amazon. To determine the challenges of quality management for improving strategic business operations management at an organisation. A case study on Amazon. Toanalysequalitymanagementstrategiesforachievingbetterstrategicbusiness operations management. A case study on Amazon. Scope: The scope of this investigation is huge because it focuses on the concept of multinational organizations and their strategic operations management. Quality management includes different frameworks, theories, principles and practices(Lim, 2019). The scope of this investigation is huge because it also deals with the link between quality management and strategic operations management because both of the concepts have organization wide impact and are related with different theories, best practices and plan of action. A.C 1.3. Take responsibility for and justify the topic of investigation and its aim, scope and objectives The justification behind selecting the topic of relation and impact of quality management and strategic operations management is because of the personal interest in quality management and understanding its connection with strategic operations management. In addition to this, the topic of quality management plays an importantrole in attaining organizational goals. Quality management is common managerial area in multinational organizations because they have to reach the expectations of different consumer segments across the world (Ali, Hilman and Gorondutse, 2020). This research can help businesses improve strategic operations management byunderstandingthecharacteristics,importanceandchallengesassociatedwithquality management and adopting the best quality management strategies in context of improving strategic operations management. In context of the respective research the aim and objectives are also justified because they help investigate the various aspects of quality management in a profound manner. The aim and objective directly focus on the link between quality management and strategic operations management along with understand the different areas of quality management in context of strategic operations management. They are useful completing the study because they clearly help understand the barriers and significance of quality management 2
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along with useful actions of quality management which can support better strategic operations management. In this way the aim and objectives lead the investigation in the right direction and help draw a detailed conclusion. This will support better knowledge of quality management in an organization and the ways in which it can be used by multinational businesses for improving their strategic operations management. This is justified investigative aim because it will help multinational businesses such as Amazon to deliver better quality and services to its consumers in a way which leads to improvement off its strategic operations management resulting in attainment of strategic objectives. Finally the scope of this investigation is also justified because it covers the important areas of quality management so that a better understanding of the positive impactandchallengingaspectofqualitymanagementincontextofstrategicoperations management can be understood. The focus on multinational company like Amazon also provides a justified scope for the investigation because it is one of the largest multinational organization in the world. A.C 1.4. Formulate the project research methodology, including the project structure and research base Research Methodology Research Philosophy Theresearchphilosophyincludesthetwooptionsofresearchpositivismand interpretivism(Brister and Frodeman, 2020). In context of this investigation the positivism philosophy is selected because it supports usage of quantitative data in the investigation and also provides generalizable results. Research Approach The research approach for an investigation can be selected by choosing between the alternatives of inductive and deductive research. The deductive research approach is selected for this present investigation because it helps identify casual relationships between variables which is useful for attaining the aim of this investigation. Research Strategy There are plenty of options from which an appropriate research strategy can be selected such as survey, experimental research, interview ad focus group. Under the present investigation 3
the chosen research strategy is survey questionnaire. The rationale behind using the strategy of survey questionnaire is that it helps collect data quickly in an expensive way. Data Collection Primary data which is gathered from first hand sources and secondary data which is gathered from existing sources is collected for completing research (Rezapour Nasrabad, 2018). In context of this research the primary data collection is utilized in which first-hand information is gained to fulfil the aims and objectives of the research. Data Analysis There are various methods through which data gathered for an investigation can be analysedincludingfrequencyanalysisandthematicanalysis.Thepresentresearchuses frequency analysis as the choice of data collection method. The justification of frequency data analysis is that it provides results in quantified values which can be easily presented and helps interpret the data effectively. Research Sampling Selectingthemethodoffcollectingresearchsampleincludingoptingbetween probabilistic and non-probabilistic sampling methods (Knechel, 2019). In context of the present investigation, the non-probabilistic sampling method has been selected as it supports randomized sampling leading to unbiased research sample. SAMPLE SIZE: 20 Time Horizon Longitudinal time horizon or cross sectional time horizon can be opted for completing an investigation in a specific time frae. In context of the present investigation the cross-sectional time horizon has been selected for ensuring that the research is finished in a quick manner. Project Structure On e we ek Two- week Thr ee- we ek Four week Fiv e- we ek Six week Seve n- week Eight week Nine week Ten - we ek 11 week Choosing the research 4
topic Creating research aimand objectives Data collection Data analysis Conclusion and Recommen dations Critical Evaluation of investigatio n TASK 2 A.C 2.1. Assess sources of data and information that will support the aim of the project The firs source of information for completing the research is secondary data available through books and online articles . Theadvantageof this source of information is that it supports improving knowledge about existing data available on the topic(Largan and Morris, 2019). Thedisadvantageof the source of information is that it does not provided updated information on the topic. On the other hand the other source of information available is first hand data gathered through online questionnaire. Theadvantageof this data is that it provides updated information on the topic of research while thedisadvantageis that it can provide incorrect feedback if the respondents are confused or misunderstand the questions. 5
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A.C 2.2. Synthesise the data and information for options or alternatives that support the project aims Literature Review Components of Quality management in multinational establishments As per the view ofBouranta and et. al., (2019), quality management includes the areas of quality assurance, quality control, quality planning and quality improvement. These components of quality management support both large and small businesses in delivering high quality products and services so that their strategic aims are attained. Quality planning involves preparing course of action for building quality focused environment. Quality improvement requires implementation of strategies to make purposeful changes in quality, quality assurance ensures that quality standards are being met at the company and quality control requires continuous efforts at control high quality at the firm.. All these components continuousgrowth of the company making it more responsive to consumers, more resilient towards threats and more capable of delivering better results to stakeholders. Role of quality management in strategic operations management As per the view of Picincu, (2018), The role of quality management in modern day conglomerates is to support the company in delivering better products and maintaining constancy of high quality deliverance. Multinational organizations require quality management because it helps them keep consumer satisfied. Quality management supports better strategic operations management because it helps the company improve processes, activities and systems being implemented in various operational area of the organization. This has positive impact on the growth and consistency of strategic operations management in context from multinational organizations because they are able to deliver between quality results at foundational, regional, national and international levels(Five Contemporary Quality Management Issues, 2018). Barriers associated with implementing quality management in multinational establishments According to Rodrigues (2018) there are several factors which affect quality management in multinational organizations. It is important for businesses to create better organizational wide qualitymanagementstrategiestoensurethatthreatsandchallengesaffectingquality management are eliminated. The over reliance on theory is one of the main challenges affecting quality management because it reduces the specific nature and impact of quality management for the needs of the organization. In addition to this Tight bureaucracy and Supply chain complexity 6
aresomeotherfactorswhichaffectqualitymanagementinlargescalemultinational organizations (The Importance of Quality Management, 2018). Best Quality management strategies According toZhou and Li, (2020), Kaizen is a commonly used quality management strategy which involves improving organizational functions through the inclusion of every member of the workforce to create between quality processes, products, services and culture,. Just in time is another suitable quality management strategy which helps the company improve product quality by meeting consumer demand and reducing surplus. Similarly six sigma can also help businesses in delivering quality results by emphasizing cycle-time improvements while reducing manufacturing defects to no more than 3.4 occurrences per million units or events. Primary Research Question- Q-1 Are you aware of the concept of quality management? a)Yes b)No Q-2Isqualitymanagementessentialforstrategicoperationsmanagementina multinational business? a)Yes b)No Q-3 What is the main benefit of quality management? a)Increased efficiency of workforce b)Better quality output for consumers c)Better results for all stakeholders d)All of the above Q-4 According to you, what is the best practice for managing quality in a multinational company? a)Continuous improvement b)Implementing quality management policies c)Fact Based Decision Making d)All of the above Q-5Whatisthemainfactorsupportingqualitymanagementinmultinational 7
businesses? a)Integrated system b)High employee involvement c)Strategic and systematic approach to quality management d)All of the above Q-6Does quality management impact and influence strategic operations management in a multinational organization? a)Yes b)No Q-7What is the most important role of quality management in strategic operations management? a)Meet consumer and regulatory requirements b)Ensure collaboration of stakeholders c)Attain strategic objectives in a timely manner d)Improve effectiveness and efficiency Q-8 What is the main challenge of quality management in context of strategic operations management? a)Lack of commitment by workforce b)Rigidity c)Ineffective organizational culture d)Complex supply chain Q-9 Which strategy is most effective in improving quality management of multinational organizations? a)Six Sigma b)Kaizen c)Zero Defect Program d)Just In time Q-10What is the essential area of quality management for multinational organization? a)Quality Assurance b)Quality Planning c)Quality Control 8
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Data Analysis Q-1 Are you aware of the concept of quality managementFrequency a)Yes17 b)No3 Interpretation: From the above graph it is determined that out of 20 respondents 17 have the knowledge of quality management while three don not have idea about the conceptof quality management. Q-2 Is quality management essential for strategic operations management in a multinational business? Frequency a)Yes15 b)No5 9
Interpretation: On the basis of the above graphical information it is concluded that out of 20 respondents 15 have agreed with the statement that quality management is essential for strategicoperationsmanagementinamultinationalorganizationwhile5havestated disagreement with the statement. Q-3 What is the main benefit of quality management?Frequency a)Increased efficiency of workforce7 b)Better quality output for consumers4 c)Better results for all stakeholders5 d)All of the above4 10
Interpretation: From the above graph it is interpreted that out of20 respondents main benefit of quality management according to 7 respondents is increased efficiency of workforce. 4 respondents have stated the main benefit to be better quality output for the consumers, according to 5 respondents it is better results for all stakeholders and 4 have chosen the option of all of the above for selecting the main benefit of quality management. Q-4 According to you, what is the best practice for managing quality in a multinational company? Frequency a)Continuous improvement9 b)Implementing quality management policies2 c)Fact Based Decision Making7 d)All of the above2 Interpretation: According to the above graphical information it is determined that out of 20respondents9havestatedcontinuousimprovementtothebestpracticeforquality management in multinational company and 2 believe it to be implementing quality management policies. As per 17 respondents fact based decision making is the best practice for managing quality in a multinational company while 2 have chosen all of the above option in response to the question of best practice for quality management in multinational workplaces. Q-5What is the main factor supporting quality management in multinational businesses? Frequency 11
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a)Integrated system1 b)High employee involvement12 c)Strategicandsystematicapproachtoquality management 4 d)All of the above3 Interpretation: According to the above graphical information it is determined that out of 20 respondents 1 respondent agreed with the option of integrated system in response to question about main factor supporting quality management in multinational organizations. According to 2 respondents the answerfor main factor supporting quality management in multinational establishment is high employee involvement. 4 respondents have stated that the main factor supporting quality management in multinational conglomerates is strategic and systematic approach to quality management while 3 have chosen the all of the above option for the question. Q-6Does quality management impact and influence strategic operations management in a multinational organization? Frequency a)Yes14 b)No6 12
Interpretation: On the basis of the above graphical information it is concluded that out of 20 respondents 14 have agreed with the statement that quality management impacts and influences strategic operations management in a multinational organization while 6 have stated disagreement with the statement. Q-7What is the most important role of quality management in strategic operations management? Frequency a)Meet consumer and regulatory requirements5 b)Ensure collaboration of stakeholders1 c)Attain strategic objectives in a timely manner9 d)Improve effectiveness and efficiency3 13
Interpretation: From the above graph it is interpreted that out of 20 respondents 5 have selected meeting consumer and regulatory requirements as the most important role of quality management while a single respondent has chosen the option of ensuring collaboration of stakeholders. 9 respondents have agreed with the option of attaining strategic objectives in a timely manner while 3 respondents have stated improved effectiveness and efficiency. Q-8What is the main challenge of quality management in context of strategic operations management? Frequency a)Lack of commitment by workforce7 b)Rigidity7 c)Ineffective organizational culture1 d)Complex supply chain5 14
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Interpretation: As per the above provided graphical data it is interpreted that out of the 20 respondents 7 have stated lack of commitment by workforce to be the main challenge affecting quality management in context of strategic operations management, according to 7 it is rigidity, single respondents has stated t to be ineffective organizational culture and the remaining 5 respondents have chosen the option of complex supply chain. Q-9 Which strategy is most effective in improving quality management of multinational organizations? Frequency a)Six Sigma5 b)Kaizen3 c)Zero Defect Program6 d)Just In time6 15
Interpretation: As per the above provided graphical data it is interpreted that out of the 20 respondents 5 have the selected six sigma as the most effective strategy for improving quality management, according to 3 it is Kaizen, 6 respondents have chosen zero defect program as their answer, and the remaining 6 respondents have chosen the option of Just in time. Q-10What is the essential area of quality management for multinational organization? Frequency a)Quality Assurance5 b)Quality Planning7 c)Quality Control8 16
Interpretation: As per the above provided graphical data it is interpreted that out of the 20 respondents 5 have the selected quality assurance as the essential area of quality management, according to 7 it is quality planning and the remaining 8 respondents have chosen the option of quality control. A.C 2.3. - Critically evaluate and determine an option that supports the project’s strategic aims The most effective source of data for completing the aims and objectives of the present investigation is the data gained through primary research. This is because it provides first hand information which can be quantified to get a credible outlook on the data and interpreted to draw accurate research conclusions. TASK 3 A.C 3.1. Critically evaluate the research to enable conclusions to be made From the above research it is concluded that different aspects of quality management including quality control and quality assurance play an important role in strategic management of a multinational company. It is important for multinational businesses to adopt suitable quality management practices because it helps them develop better strategic operations management capabilitiesbyincreasingefficiency,betteroutputandresultsforstakeholders.Quality management impacts strategic operations management and there needs to be fact based decision making as well as systematic quality management to support multinational organizations in improving strategic operations management. Strategies such as just in time and Kaizen can be used to improve quality management in multinational firms so that their strategic operations management is positively impacted. A.C 3.2. Recommend a course of action that achieves the strategic aims of the project It is recommended to expand on the primary research through an extensive secondary research on the topic. Interpretivism philosophy and interview research strategy can be used with deductive approach to gather much more detailed information on the link between quality management and strategic operations management. It can lead to generation of better results as the detailed data will help identify the main themes for specific results. A.C 3.3. Critically analyse the impact of the recommendations The positive aspect of these recommendations is that it will support further expansion of the research to focus on specific impact of quality management elements of strategic operations 17
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management. This can include focusing on the impact of quality control and quality assurance practices on strategic operations management. In this way the research will help determine the detailed ways of implementing quality management to get desired results in terms of strategic operations management. On the other hand the negative impact of this recommendation is that secondary research using interpretivist philosophy and interview strategy requires huge time investment. In addition to this it also requires more financial investment as interviewing different respondent is complicated than simply using questionnaire to get quantified data (Nasri, Nasri and Abd Talib, 2020). In this way the recommended course of action will be challenging which is its main negative aspect. It will be financially draining and will require high effort. TASK 4 A.C 4.1. Determine the medium to present the result of the project and its contribution to strategic objectives The medium to present the result of the investigation was through frequency analysis in the form of pie chart graphs. The justification behind choosing the medium was that it supported better depiction of quantified data and helped the viewer easily understand the results of the investigation. It is simplistic and quick way to showcase numerical data effectively and also depict completion of aims and objectives of the present investigation (Bloomfield and Fisher, 2019). A.C 4.2. Take responsibility for the results of the investigative project and the substantial changes and developments it brings about I take full accountability of the investigation and believe that it will support development of knowledge in field of strategic operations management. Quality management is another prioritized area when it comes to multinational organizations because they have to maintain high quality in order to face domestic and international rivals. Thus it is important to complete the researchandunderstandtherelationbetweenqualitymanagementstrategicoperations management of multinational organization because it can help managers maintain high quality and provide assistance in attaining strategic objectives. 18
A.C 4.3. Critically evaluate the impact and success of the investigative project The topic of quality management in context of strategic operations management is an important topic for investigative report because strategic operations management are complicated when it comes to multinational organizations. I believe that the research was a success as quantified first had data was gathered analysed and interpreted to draw research conclusion in a systematic and ethical manner. It helped understand the positive relation between quality management and strategic operations management in context of multinational organizations. REFERENCES Books and Journals Ali, G. A., Hilman, H. and Gorondutse, A. H., 2020. Effect of entrepreneurial orientation, market orientationandtotalqualitymanagementonperformance:EvidencefromSaudi SMEs.Benchmarking: An International Journal,27(4). pp.1503-1531. Bloomfield, J. and Fisher, M.J., 2019. Quantitative research design.Journal of the Australasian Rehabilitation Nurses Association,22(2). pp.27-30. Bouranta and et. al., 2019. The key factors of total quality management in the service sector: a cross-cultural study.Benchmarking: An International Journal. Brister, E. and Frodeman, R. eds., 2020.A guide to field philosophy: Case studies and practical strategies. Routledge. Brown, S., Bessant, J. and Jia, F., 2018.Strategic operations management. Routledge. Knechel,N.,2019.What’sinasample?Whyselectingtherightresearchparticipants matters.Journal of Emergency Nursing,45(3). pp.332-334. Largan, C. and Morris, T., 2019.Qualitative secondary research: A step-by-step guide. Sage. Lim, J. S., 2019.Quality management in engineering: A scientific and systematic approach. CRC Press. Nasri, N. M., Nasri, N. and Abd Talib, M. A., 2020. Cross-language qualitative research studies dilemmas: A research review.Qualitative Research Journal. Rezapour Nasrabad, R., 2018. Criteria of validity and reliability in qualitative research.Journal of qualitative research in health sciences,7(4). pp.493-499. Zhou, H. and Li, L., 2020. The impact of supply chain practices and quality management on firm performance:EvidencefromChina'ssmallandmediummanufacturing enterprises.International Journal of Production Economics,230. p.107816. Online FiveContemporaryQualityManagementIssues,2018.[Online]Availablethrough< https://prodsmart.com/five-contemporary-quality-management-issues/> TheImportanceofQualityManagement,2018.[Online]Availablethrough <https://bizfluent.com/about-5377881-importance-quality-management.html> 19