Quality Management in Business

This document discusses the importance of quality management in business and its role in achieving sustainability and competitiveness. It explores different approaches and methods used in quality management, with a focus on Starbucks and its efforts to maintain quality and improve service quality. The document also covers topics such as customer satisfaction, continuous improvement, and measuring quality management.

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Quality Management
in Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Quality definitions.................................................................................................................3
1.2 Processes of inspection and assurance used in quality management.....................................3
1.3 Range of approaches to quality management (M1, D1)........................................................4
1.4 Similarities and differences between different methods........................................................5
TASK 2............................................................................................................................................5
2.1 Customer satisfaction.............................................................................................................5
2.2 Continuous improvement.......................................................................................................6
2.3 Type of added value gained...................................................................................................6
2.4 Types of information made available to customers and importance to effective marketing
(M2, D2)......................................................................................................................................6
TASK 3............................................................................................................................................7
3.1 Measuring quality management.............................................................................................7
3.2 Benefit of user or non-user surveys.......................................................................................7
3.3 Consultation methods............................................................................................................8
3.4 Value of complaints procedure (M3).....................................................................................8
TASK 4............................................................................................................................................9
Enclosed in PPT...........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Managing quality within any business is crucial aspect and thus it helps in enduring
quality excellence and achieving high sustainability and competitiveness in essential in such
economic environment. Business needs to identify its competitors and accordingly they can
undertake quality management approaches and other relevant tools so that quality management
system can be implemented within firm (Bergman and Klefsjö, 2010). There are various quality
standards such as ISO that needs to maintain by firm that helps in providing confidence to
customers and other stakeholders that quality standards are being achieved by business. Present
report undertakes Starbucks which is an American Coffeehouse chain. Due to new competitors it
has caused significant turbulence in the industry and thus Starbucks aims to modify and propose
new quality systems which help in improving the service quality.
TASK 1
1.1 Quality definitions
There are several definitions given on quality upon different parameters such as
perfection, providing good and usable product, consistence, fast delivery, delighting or pleasing
customers, total customer service and satisfaction, eliminating waste etc. Quality is considered as
an essential element that needs to be involved in the form of different service provisions so that
customer satisfaction can be attained (Sallis, 2014). Each and every business focuses upon
maintaining service quality so that quality excellence can be achieved within firm. Starbucks
aims to maintain its quality through providing wave quality coffee products to its customers and
give tough competition in terms of taste and service. Quality is the distinctive attribute possess
by someone or something and thus understand the needs of customers in order to fulfill their
needs. Starbucks operates its chain in worldwide market and therefore it maintains quality
consistently through all the coffeehouses so that customer gets the same taste and quality of
coffee. Quality is involves in the service provision of firm and therefore, it needs to be involved
in business that helps in raising sales and profitability of firm in market. For instance, service
provision in Starbucks helps in fulfilling the needs of clients and attains satisfaction (Ipeirotis,
Provost and Wang, 2010).
1.2 Processes of inspection and assurance used in quality management
Quality inspection and assurance are considered as the measure tools that help in
controlling the actions of business in regard to maintain quality within firm. Quality assurance is

the process of maintaining a desired level of quality within products or services especially by
providing attention to every stage of process of delivery of products. Starbucks carry out quality
assurance through the time of making coffee till it is being served to customers. Thus, such
service providers deliver satisfaction and reliability to their customers (Kannan and Tan, 2005).
Starbucks measure and assure its quality of coffee beans used and fulfill the expectation of its
clients which helps them to become number 1 coffee house chain in market. Quality assurance is
the process which is focused on identifying defect prevention and thus maintains quality within
business.
Further, quality inspection is another tool which helps in controlling and assuring the
products quality so that it can meet appropriate standards so that satisfaction can be attained.
Through quality inspection, Starbucks obtains ISO 9000, 14000 certification and thus maintains
its quality which is reliable source for its customers and other stakeholders in regard to
convenience them about the quality of products or services (Tricker, 2007). Thus, quality
assurance and inspection tool are considered as the best way in regard to maintain quality within
firm.
1.3 Range of approaches to quality management (M1, D1)
It involves a range of quality management approaches such as six sigma, total quality
management, quality circles and benchmarking etc. which helps in contributing and improving
quality management in business. Starbucks uses total quality management and six sigma
approaches in order to maintain its quality of coffee in order to maintain standard of its products
or services in market (Kern, 2014). However, through adopting such quality control measures it
results in continuous improvement and thus render best quality and taste of coffee to clients.
Through implementing Six Sigma within Starbucks it helps in improving business performance
and eliminates causes of errors or defects while preparing hot or cold coffee for customers.
Further, implementing Total Quality Management approach helps in empowering workers and
help them to focus upon the set targets so that overall quality can be improved within coffee
house. TQM approach assists in developing relationship within causes and quality problems so
that quality of coffee can be raised and maintained up to a great extent. However, using such
quality management approaches helps in ensuring that it helps Starbucks to improve quality
management in firm (English, 2009).

1.4 Similarities and differences between different methods
It can be assessed that there are similarities and differences between different quality
methods which are currently being implemented within Starbucks. However, implementing Total
Quality Management approach helps in improving quality standards of coffee house and thus
maintains its service quality so that best results can be attained. While, as compared to the TQM
approach, Starbucks assesses that Six Sigma measure is most useful that helps in controlling the
quality of business and therefore, ensuring clients to get better quality coffee products or services
to attain satisfaction (Papp, 2014). However, the main differences among such approaches are
that Six Sigma requires huge cost as compared to TQM and helps in maintaining quality
standards. It also helps in continuous improvement and empowers staff to deliver better customer
service to clients and raise performance. It helps in increasing the morale of workers and thus
assists them to provide better coffee products to clients and enhance service quality so that
competitive advantage can be gained. Starbucks needs to identify the varied differences and
similarities that are found within TQM and Six Sigma so that overall improvement of services
can be attained. Main similarity is that it helps in maintaining quality services within firm.
While, the difference is that in regard to carry out both these methods it requires different cost as
well as output is also different (Luning and Marcelis, 2009).
TASK 2
2.1 Customer satisfaction
Customer satisfaction is crucial for any business and therefore firm needs to improve its
quality of products or services so that they can influence clients towards firm and retain them for
long term. Starbucks needs to identify its potential customers which are youth and business class
people who usually go to coffee shops for business meetings and gathering of friends. Therefore,
business needs to adopt such strategy in regard to satisfy the needs of all their target customers.
Staff of Starbucks gives certain extra value such as greetings, bonus points to loyal customers
etc. all such values helps in exceeding the expectations of customers (De Jager and Nieuwenhuis,
2005). However, using Kano model helps in satisfying the target customers i.e. youth and
business clients. Through satisfying the customers it helps in retaining loyal and repeat
customers so that they can visit again in the coffee house which would ultimately raise the sales
of firm. Further, obtaining feedback and word of mouth from customers and resolve issues found

would help in satisfying the dissatisfied customers. Thus, through improving the service quality
gap it helps in attaining customer satisfaction (Boyd and Tucker, 2012).
2.2 Continuous improvement
Continuous improvement is the philosophy that seeks to make never ending
improvements within the process of converting inputs into outputs. However, using Kaizen
approach helps in bringing regular improvement within business and thus enhance the quality of
products and service delivery such as providing I-pad for ordering coffee or choosing products
from menu through digital way (Harter and et. al., 2011). Thus, such type of regular
improvements in technology helps Starbucks to raise their performance and influence more
number of clients towards firm. Also, it is essential for Starbucks to bring innovation within its
product quality so that customer satisfaction can be attained. Through carrying out PDCA cycle
it helps in implementing continuous improvement in business. Through adopting such process it
helps in improving the coffee preparing process and thus analyzes and redesigns the process so
that appropriate change could be implemented to attain regular improvement in coffee house.
2.3 Type of added value gained
There are different types of added value gained in the form of implementing innovative
technology and achieve continuous improvement within firm. Further, also improving the
environment of coffee house which helps in influence more number of customers to visit the
shop and enhance the operations of firm in market (Tague, 2005). Another added value that
could be gained is Starbucks employees need to be well trained so that they can minimize the
wastage and helps firm in becoming cost effective so that profitability ratio could be enhanced.
Further, cited firm also improves satisfaction of clients through adding values for loyal
customers and thus providing them offers and discounts in the form of loyalty cards, bonus
points and gift vouchers on every purchase of coffee. Thus, it encourages customers to regularly
visit Starbucks and addicted to the lovely ambience of coffee house which helps in seeking
customer attention (Sallis, 2005).
2.4 Types of information made available to customers and importance to effective marketing
(M2, D2)
There are different types of information that needs to be available to clients such as
quality of coffee beans used, atmosphere of coffee shop, loyalty customer benefits, menu on I-
pad, websites for feedback etc. Thus, all such information is being made available to customers

which are one of the best ways of marketing. Through such way it helps in improving the
satisfaction level of clients and therefore, using their feedback would help in improving service
quality. Starbucks need to regularly update its websites so that they can provide crucial
information about changes in taste and culture and new add-on so that loyal customers can be
attracted (Kuei, Madu and Lin, 2008). Hence, all such ways of providing information helps in
carrying out effective marketing and helps in enhancing the sales and profitability of firm in
market. Furthermore, information made available to customers would prove beneficial in terms
of promoting Starbucks through digital platforms and offering discount offers such as buy one
cappuccino and get another cup free.
TASK 3
3.1 Measuring quality management
It is essential for business to undertake effective ways of measuring quality management
so that best operations can be carried out. Measuring quality management helps in comparing the
methods used in past that with present sot that plans can be made to improve the product or
service quality. Using quality circle method is considered as the best approach in regard to
measure the quality performance and improve the product or service quality. Thus, Starbucks
product quality need to be measured through using different ways such as TQM approach and
thus improve the sales and profit margin of firm (Casadesús and de Castro, 2005). Quality
management within cited firm needs to be measured which helps in identifying the enhancement
of its performance and thus bring changes so that large number of clients can be attracted
towards firm. Also, it assesses the need of improving innovation within firm and using I-pad for
ordering products that helps in providing ease to clients. Thus, such type of improvement assists
in giving tough competition to rivals which results in attaining desired standards and thus
improve the performance of firm in market.
3.2 Benefit of user or non-user surveys
Surveying is the best tools that helps in identifying the needs and expectation of
customers and also fill the loopholes in regard to improve the services of firm in market. Thus,
carrying out both user and non-user surveys within Starbucks aims to identify the expectations
from users and dislikes from non users. Thus, improvement could be made upon such methods
and then implement the techniques so that quality of coffee could be raised in terms of attaining
high market share (Vanichchinchai and Igel, 2009). Main benefit of non user survey helps in

determining the dislikes from customers who does not wish to visit Starbucks due to its strong
taste of coffee or any other reason. Thus, identifying such benefits would result in improving the
requirement of customers and then improve the product quality so that customer base can be
enhanced. While, the benefit of surveying users group helps in obtaining feedback from loyal
customers and then fulfill their requirements so that needs could be attained in an effective way
(Al-Hakim, 2007).
3.3 Consultation methods
There are different consultation methods being used in quality scheme which helps in
encouraging participation by different groups so that quality of products or services could be
improved. Thus, using questionnaire method helps in improving the quality and encouraging
more number of participants to be involved in regard to give their consultation regarding
improving business quality (Su and et. al., 2008). Starbucks management also employs
suggestion scheme within its coffee shop through feedback form so that users can give their
valuable suggestion and thus firm can implement the same in order to improve the performance
of firm in market. Likewise, if they found the taste of coffee too strong or not good services
provided by staff etc, than they can give their suggestions that would help firm to improve and
bring required changes. However, it would help in encouraging non users to visit the coffee shop
and enhance sales and market share. Further, focus group is another consultation method which
is being used in regard to target potential audience and helps in expanding business operations in
market (Yao and et. al., 2010).
3.4 Value of complaints procedure (M3)
There are different ways through which complaints can be identified from customers such
as feedback form, suggestion box etc. Thus, all such method helps in obtaining complaints from
customers and helps Starbucks to overcome issues faced by clients and try to improve service
quality. However, overcoming the complaints procedure results in increasing the number of
customers within firm and thus provides better opportunities in the form of providing them I-pad
for ordering coffee innovates the environment of Starbucks and help customer to gain extreme
experience. Thus, it would encourage them to carry out repeat purchase so that quality could be
improved as per the complaints procedure (Wilkinson, 2005). Also, users can give their views
and opinions on customer feedback space available on website that would be beneficial for other
users to visit the Starbucks and enjoy with friends. Therefore, complaints are considered as

valuable because it helps in improving the service procedures and thus improve satisfaction
among clients.
TASK 4
Enclosed in PPT
CONCLUSION
Report elucidates that managing quality within business is significant concept and thus it
helps in improving business performance and satisfy the needs customers. Also, using quality
assurance and inspection tools i.e. ISO standards helps in ensuring customers and other
stakeholders about the service quality of firm. Further, complaint procedure provided by clients
regarding improving technology and service delivery system helps in attracting more number of
customers within firm.

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