Continuous Improvement Strategies for NTUC FairPrice Supermarket

This report analyzes continuous improvement strategies for NTUC FairPrice supermarket. It explores organizational culture, including engaged leadership, consistent methodology, and enabling technology, and examines various quality improvement approaches such as Total Quality Management and Six Sigma. The report highlights the role of leadership styles, including transformational and coaching leadership, in facilitating continuous improvement. It also discusses the importance of continuous improvement in supporting organizational success through better customer service, a proactive learning culture, lower employee turnover, and competitive products. The report further analyzes the sources of information used by NTUC FairPrice to identify areas for improvement, including labor turnover, decreasing sales, and customer feedback, along with the use of PESTLE analysis and benchmarking. It also explains the changes required for achieving improvements, evaluating factors driving these changes, and proposing a plan for implementation, including the necessary monitoring processes.

MANAGING CONTINUOUS
ORGANISATIONAL
IMPROVEMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Features of organisational culture that encourage continuous improvement along with
different approaches to continuous quality improvement...........................................................2
How leadership and management styles facilitate continuous improvement in supporting
organizational improvement........................................................................................................4
Importance of continuous improvement in supporting organizational success..........................5
TASK 2............................................................................................................................................6
Analyses the sources of information used by the company to help identify any improvements 6
The meaning of big data and its contribution to improvement strategies...................................8
Identification of areas for improvement in an organization........................................................8
Evaluation the potential benefits of the proposed changes in activities......................................9
TASK 3..........................................................................................................................................10
Explanation of changes required by an organization for achieving improvements..................10
Evaluation of factors that created the need for changes in an organization..............................11
Preparation of plan that implement the proposed improvement for the organization...............12
Analyses the monitoring process required to ensure the changes lead to the planned
improvements............................................................................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Continuous improvement business strategy refers continuous improvement process that
helps an organization to improve its products and processes. This continuous improvement has
several features which can support an organization in accomplishing its pre determined goals.
This present report is based on NTUC Fair Price supermarket that is co-operative of the national
trades union congress. It was founded on 22 July 1973. NTUC FairPrice has approximate 100
supermarkets across the Island and has Headquarter in Singapore (Sui, Zhang and Zhou, 2016).
This report is going to show some features of organizational culture and different quality
improvement approaches. Leadership and management style like democratic, transformational
also plays an important role in continuous improvement of the company. Big data and effective
source of information helps the company in identifying improvements and making strategies
accordingly.
Second part and presentation will explain some changes like technological and other
which the company requires improving. It will also show some factors that put pressure on the
company to make changes like governmental policies, advanced technologies etc.
TASK 1
Features of organisational culture that encourage continuous improvement along with different
approaches to continuous quality improvement
In the context of NTUC Fair price supermarket, it is stated that there are mainly 3 pillars
that make an effective organisational culture such as enabling technology, engaged leadership
and employees and consistent methodology.
Engaged leadership: If an organisational culture has engaged leadership then their
habits and behavior drive improvements. They try to boost engagement across the board by
celebrating improvements and making all employees understand that how their each
improvement contribute to organizational goals (Eaidgah and et.al., 2016).

Consistent methodology: It is called other main important feature of organisation
culture that allow and promote continuous improvement. By establishing a simple, consistent and
disciplined methodology, NTUC Fair price supermarket can make its business successful.
Enabling technology: It is stated that the right and advanced technology feature
accelerates strategic as well as daily improvement across an organisation.
There are several approaches of continuous quality improvement and that can help the company
in accomplishing their goals such as:
Total quality management: This approach mainly focuses on improving the overall
quality of the company's outputs that includes services, goods and processes. The main focus and
aim of using this approach is to exceeding customers experience by reducing time and cost of the
process of production. By implementing this approach, NTUC Fair price supermarket can
satisfy its customers' expectation, build commitment and promote continuous improvement
(Ross, 2017).
Six sigma: It is an effective method which provide a tool to the company to improve the
capability of their business processes. Its main focus is on eliminating wastes and reducing lead
time. By implementing this approach, NTUC Fair price supermarket can improve its overall
performance by reducing defects and process variation in the production process.
Uses of TQM
The main aim of using this approach for NTUC is to make it able to detect errors in the
process of production and make qualitative products. Nowadays customers first priority is
quality. It is one of the main factor which they consider the most. So, with the help of this
approach, company can satisfy needs of customers.
Advantages
• It reduces wastes cost.
• It improves quality of products.
• Reduce customer support cost.
Disadvantages
• Implementation is costly.
• Time-consuming process.
Uses of six sigma

The main use and aim of using this approach is to improve production process.
Production is preliminary process on which all other functions depend. If this process became
fail than there are high chances of poor quality and failure of other processes as well. So, by
implementing this approach, NTUC can attract customers to the great extent.
Advantages
• It helps company in increasing customers' satisfaction.
• It improves quality and process management.
Disadvantages
• It is expensive so, small businesses cannot take advantage of it.
• It generates large amounts of data and wastes which can take a lot of time.
How leadership and management styles facilitate continuous improvement in supporting
organizational improvement
Leadership and management are called the main pillar of continuous improvement and
business success. They adopt the best style of leading and managing the company which boost
engagement and create an effective working culture. Some leadership and management style are
described as follows:
Leadership styles
Transformational: This type of leaders are effective in the case of creating change.
They inspire their employees by inspirational motivation, charisma and individual consideration
to innovate and change. By changing employees attitude and belief they create potential
workforce which support organisational improvement.
Coaching leadership: According to this style, leaders try to get the best out of their
employees. They have an effective coaching skills and on the basis of this skill they improve the
performance of their employees. This nature of leader ensure that employees continue to work
autonomously. This can lead continuous improvement of NTUC Fair price supermarket.
Management styles
Transformational: This type of manager are innovators and only believe in making
change and growth for the business success. According to this style, manager try to push their
employees in more complex situation with the main aim of making them realize that they have

the capability to do something new. This style motivate employees which support organisational
improvement (Donate and de Pablo, 2015).
Democratic: This style is known as participative because according to this, manager of
NTUC Fair price supermarket involve their all employees in the process of decision-making. The
main aim of using this style is to motivate employees towards growth and development of the
company.
Importance of continuous improvement in supporting organizational success
There are several benefits of continuous improvement which can support organisational
success. Some importance includes:
Better customer services: Continuous improvement provides an effective framework to
the company for identifying customers value. It is important because by only understanding what
customers find value, an organisation provide better services to them.
Proactive learning culture: In this modern era, technology and knowledge is developing
rapidly. For being in the competition, it is important to increase learning capability and adapt
new technologies. Companies who practice continuous improvement always try to learn new
things. So , it can be said that continuous improvement framework can help the company in
reaching to the next level of excellence.
Lower employees turnover: Employee turnover is very expensive in an organization
because company invest in recruiting, hiring and on the job training for employees. If employees
leave the company then it has to face several problems and it can increase its overall cost. But
with the help of continuous improvement and its all features (engaged leaders, enabling
technology and consistent methodology), it can boost employee engagement as well as reduce
turnover rates (Lleo and et.al., 2017).
Competitive products: It is stated already that continuous improvement framework
mainly focuses on improving the processes and products as well. Improved products and
processes can help the company to provide an effective value to customers and take competitive
advantages.
So, from the above benefits it can be said that NTUC Fair price supermarket can achieve
success and expand its business.

TASK 2
Analyses the sources of information used by the company to help identify any improvements
NTUC FairPrice supermarket required to make changes in some areas. These information
of making changes in some areas is identified by the company from some resources. It is stated
that the company requires to make changes in technological area, customer services area and
post sales services area. Some sources of information which helped the company in analysing
about improvements includes:
Labour turnover: By analysing and overseeing the increasing rate of labour turnover,
the company identified need of improvement and some areas of improvement. With the help of
this source of information, the company then focuses on improving technological area.
Decrease sales: It is other source of information who shows the company that it requires
to make changes in its some areas. It oversees rapidly decreasing sales by making an sales record
system. For this it focuses on changing its marketing activity.
Customers feedbacks: With the help of analysing and overseeing negative customers
feedbacks it known the requirement of improving post sales services area. Customers told their
views and opinion about its services and the reason of their dissatisfaction by which the company
identified its improvements (Naeem, 2019).
Environmental audit
PESTLE analysis model
Political: It includes governmental policies, tax laws and other regulations which can impacts on
the performance and operations of businesses. Singapore is commercial country and do not have
ability to produce its own products and hence, it depends upon other companies. This
dependency can have some negative impacts on NTUC fair price supermarket.
Economic: In the recent year, Singapore's economy achieved growth higher than expected in the
year of 2016. It increases disposable income which is beneficial for this supermarket. An
effective economy can help it out in increasing sales and attracting customers (Perera, 2017).
Social: It includes behaviours of customers and their needs. In Singapore workers are known to
clock in an average of 46 working hours which is the highest in the world. It shows that there are

highly productive workforce. By getting this workforce, supermarket can satisfy needs of
customers and take competitive advantages.
Technological: Singaporean markets have become highly dependent on technology. It makes
them able to improve their products and make innovation. For being in a competition, NTUC
will require investing in technologies which can help it in having strong position in the market.
Whereas, it can increase its cost as well.
Legal: There are several laws such as: labour law, taxation law and others. Company requires
complying with all laws in order to prevent itself against lawsuits. By following all these laws it
can also make its working environment more effective.
Environmental: Singapore's daily waste solid output was increasing day by day. For reducing
this waste, government implemented a strict and compulsion waste collection system and illegal
dumping law. It is stated that NTUC has taken initiate and implemented food waste index. It has
made it able to improve its image in the eyes of public.
Benchmarking: Benchmarking is an effective model and process which allows company to
compare their performance metrics and best practices from other companies. With the help of
this indicator, company can know effectiveness its performance. The main aim of knowing
effectiveness is known whether it is on the right direction or whether it is using effective
strategies or not. After evaluating, it can make changes in its strategies accordingly (Duan and
et.al., 2016).
Products and services of NTUC supermarket are reliable and high quality which give
value and savings to customers. It also makes sure that its products are fresh, have good quality
and value for money.
Organizational analysis
It is other main analysis model by which NTUC supermarket can understand its
performance, all areas of weaknesses as well as strengths (Lipset, Trow and Coleman, 2017). For
making, it successful it is important for the supermarket to set some objectives and goals, getting
all informations, ways of accomplishing goals etc. Some advantages and disadvantages of using
this analysis are:
Advantages

• With its help it can take competitive advantages.
• It can manage its performance by evaluating workforce and resources.
Disadvantages
• Low morale and poor leadership is one of the main weakness of this analysis model.
The meaning of big data and its contribution to improvement strategies
A big data is a term that includes structures and unstructured data. With the help of using
big data and informations the company can make an effective decision and strategic business
moves. There are several importance and ways by which big data promotes business efficiency
such as:
Better communication with customer calls: Call centre are called the best way and tool
for improving communication, big data suggest to the company of improvement in quality.
When the company study of recorded calls then it can analyse keywords and tone of its
employees and customers and then can make improvements. The best way in which big data
boost business growth is voice recording (Aksu, 2017).
Enhance marketing efficiency: By using the big data, the company can customize user
experience by introducing timely offer in order to attract potential customers. Data analytical can
help the company and tell them about its customers as what and when they buy something.
Customer intelligence to close deals: Big data plays an important role in sales and
marketing. With the help of predictive analysis, the company can detect customer behavioural
patterns which can help them in improvements.
Identification of areas for improvement in an organization
NTUC fair price company wants to create a new concept for customers experience. It
also wants to increase the loving standard of Singaporeans, so it can be said that there is a
requirement to improve customer service, conflict resolution, marketing areas (Areas for
improvement in NTUC Fair price, 2017).
Customer service: It is the main area in which the company requires to make improve
for changing the face and behaviour of customers and for accomplishing its goals. For this it
requires to interact with its customers and knowing their demands. By taking feedbacks and

making changes according to feedbacks it can increase this area and achieve their goals. Through
technology like by creating next gen vending machines for ready to eat food, unifies self check
out system, it can increase customers satisfaction and attract them towards buying its services.
Marketing: Marketing function is all about to introduce products to customers. By
making changes and by tailoring to different customer segment in marketing activities. By
focusing on digital marketing, the company can focus and attract people of different ages.
Special offers for customers: For making improvement and accomplishing its goals it
requires to provide post and attractive services to customers like in store senior friendly features,
special discount for seniors, kids' play area and by making other activities at floor it can improve
its business and increase customers loyalty.
Evaluation the potential benefits of the proposed changes in activities
From the above, some areas of improvement is being discussed and it is identified that
NTUC fair price company requires to make improvement in customer services, special offers or
post services and marketing. There are several benefits of making changes and improving areas
which required. Some benefits of improving all these areas are described as follows:
Benefits of customer services
A good customer services can help the company in increasing sales by building a good
brand image. It can also help them in creating an effective workforce because satisfied
customers support organization in creating a positive working environment by providing
a positive feedbacks about employees and the company.
Benefits of improving marketing services
By improving marketing services and with the help of digital marketing, the company can
introduce about its products and each detail of the company to customers in an effective manner.
It can increase sales by attracting them. It can increase visibility of the company's brand. Digital
marketing can save time and cost of the company by which the company can use this time and
cost on other activities (Zhang and Luo, 2016).
Benefits of post sales and special services

Post sales and special services motivate customers and attract them to purchase products.
When customers feel respected and special treated then they become the permanent customers.
They also help the company in promoting by mouth of words which can make the company more
successful. Special services improves relationship with customers by which the company can
become the market leader.
TASK 3
Explanation of changes required by an organization for achieving improvements
Due to some internal and external factors which lead and create the need of changes,
companies require to make changes in their strategies and policies. NTUC fair price offers
health, beauty and wellness products to its customers at lower price than its competitors. The
main aim of this company is it wants to improve grocery shopping experience with ads for new
retail concept. It wants to make changes and develop some factors for accomplishing its goals
includes:
Technological changes: As it is stated that this company wants to create a new retail
concept and for making this successful it requires making changes in technology. By working
with interior designer and by making attractive interior and kitchen, it can achieve
improvements. Its new campaign is “something Extra for everyone” and for making this
campaign more successful it requires to make an effective use of technology.
Marketing activities: This company also requires making changes in its Marketing
activities. From face to face marketing it requires to make it digital marketing. By doing this it
can introduce the new concept of its retail store to wider range of customer and save time as well
as cost.
So, it can be said that by making these changes, this company can accomplish its goals
and remove all its problems It wants to decrease cost of infant formulas and by making an
effective use of internet, research and development and technology it can achieve improvement.

Leadership and management abilities
Leadership and management are 2 main players which perform several functions. One of
the main ability of leader of NTUC supermarket is they have ability to make employees able to
perform in a group. It develops team and an effective working environment. They also have good
communication and decision-making skills which makes this supermarket able to deliver
products in a timely manner and satisfy customers by solving their problems quickly.
On the other hand, managers of this supermarket has an effective business planning skills
This skill help this supermarket in taking decision and improve day to day operations.
Roles and responsibilities
• One of the main role of leaders of NTUC supermarket is to motivate employees.
• Building morale and making an effective working environment is other responsibility of
leaders.
• Manager of this supermarket are responsible for providing strategy and direction for
developing it.
• They also monitor internal terms and all functions for increasing productivity.
Cultural factors
Workplace environment and culture plays an important role in taking competitive
advantages. There are several factors which need to be considered by NTUC in order to make its
working environment effective such as: focusing on interaction as culture is learned via
interaction, cultures shows behaviours so, it important for supermarket to focus on behaviours,
people shape the culture, culture is negotiated and it is difficult to change. So, it is important to
make an effective plan in order to develop culture. Some factors include which makes an
effective culture: workplace practices, leadership, management, working environment, people,
communication, vision and mission.
Evaluation of factors that created the need for changes in an organization
There are some factors that can cause changes in an organisation. In the context of
NTUC Fair price supermarket, it can be said that it wants to reduce the cost of living in
Singapore by helping the underprivileged in society. For this it offers its all products at lower