Quality Management Report: An Analysis of Tesco's Quality Strategies

This report provides a comprehensive analysis of quality management principles, focusing on their application within Tesco. It begins by defining quality in terms of business and service provision, exploring processes of inspection, assurance, and various quality management approaches, including those of Deming and Juran. The report then delves into customer satisfaction, continuous improvement, and the types of added value gained through effective operations. Furthermore, it examines how quality management can be measured, the benefits of customer surveys, and the value of complaint procedures. The report also covers the types of information made available to customers and concludes with a summary of the key findings and recommendations for Tesco's quality strategies. This report is a valuable resource for students studying business development and quality management, offering insights into real-world applications and strategies for enhancing business performance.

QUALITY
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Definition of quality in terms of business and service provision...........................................3
1.2 Processes of inspection and assurance...................................................................................4
1.3 Range of approaches to quality management........................................................................5
1.4 Similarities and differences between the different methods..................................................5
TASK 2............................................................................................................................................6
2.1 Meaning of customer satisfaction..........................................................................................6
2.2 Meaning of continuous improvement....................................................................................7
2.3 Type of added values gained through effective and efficient operations..............................7
2.4 Types of information made available to customers...............................................................8
TASK 3............................................................................................................................................8
3.1 Way in which quality management can be measured............................................................8
3.2 Benefits of user and non-user surveys in determining customer needs.................................9
3.3 Methods of consultation employed in one quality scheme....................................................9
3.4 Value of complaint procedure and the way they may be used to improve the quality..........9
TASK 4..........................................................................................................................................10
Covered in PPT..........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Quality management can be simply defined as an act of look over the complete activities
or tasks so that maintenance of quality is done to achieve desired level of excellence (Talk,
2016). It ensures the consistency of products as well as services of an organisation. It not only
concentrates on the products or services but also on the processes through which it is achieved.
There are four important components of quality management namely planning related to the
quality, assurance of and controlling of it along with the improvement related to quality of
products. The present report is explaining different concepts associated with quality management
in order enhance the quality of products within Tesco.
TASK 1
1.1 Definition of quality in terms of business and service provision
In terms of business and service provision, quality is coined as the degree or grade of
appreciation of goods and services that fulfil consumer’s expectations. There is no special or
unique meaning of quality unless it relates with some object or operations. The quality is seen or
recognised in different was by different scholars or entrepreneurs. Tesco needed to examine
these interpretations in order to clarify scenario of quality in the present world. Some of the
interpretations of various authors are given as below:
 According to the view points of society of America, quality stores two meanings. In
technical meaning, the quality is that characteristic of goods or services which shows its
abilities to fulfil the demand as stated (Talib and et.al., 2011). Another meaning tells that
the product must be error free but have all needed properties.
 The ISO 9000 tells that quality is nothing but collection of inherent properties regarding
products that must fulfil the requirements or basic needs.
 According to Six Sigma rules, it is defined as a number of faults as per million
opportunities.
 As per the view points of Peter Drucker, a product quality or services provided by them is
not the input of suppliers or manufacturer but it is the feedback of consumers that is
fulfilment of the demand of the customers. The company should fulfil their wishes as
they paying a large amount of money for this.

 Sir Joseph M. Juran has defined it as fitness for use and the degree of fitness is defined by
users.
These are different views of scholar and successful entrepreneur which reflects different
colours of quality of products and services.
1.2 Processes of inspection and assurance
Processing of inspection and assurance is defined as the involvement of different
methodologies for checking quality of goods. Tesco uses various processes of inspection and
assurance. Some of them are discussed as below: Quality planning: This is the process that determines satisfaction of required standard of
quality through identification of quality standard of products and services producing
Tesco. This process identifies various policy, standards, description of products and more
things (Sallis, 2014). It uses different methods like benchmarking, cost benefit analysis,
design experiment methods and the flowcharts for verification of present levelsof quality. Quality assurance: In this process, the evaluation of complete production performance is
achieved on regular basis. Additionally, it assures the management of arranging
production on the basis of defined quality standards. The managers of Tesco says that this
process is treated as soul of quality management. Without this, success in determining the
faults of services or goods is not possible. Total quality management: For maintaining the required quality standards, different
programmes related to improvement of quality are applied within enterprise. Quality
programmes are used to maintain various processes of production such as training,
planning, testing of fields, audit, etc. that are performed by the employees of organisation
(Talib and et.al., 2011).
 Quality Control: It is the process of monitoring goods and services in order to determine
whether they satisfy the specified standards or not. The identification of production
methods is also carried on to show whether it is poor or good. If it is poor, it will be being
removed and the work goes on. For the identification of poor performance of methods of
production processes, different analysis is used like control charts, flowchart, pareto
diagrams, sampling on the basis of statistics, trend analysis, etc.

1.3 Range of approaches to quality management
Tesco identifies different approaches of quality management so that it can take some
advice regarding the improvement of quality. Some of the ranges of quality management
approaches are given as below:
 According to the viewpoints of Deming, quality is nothing but the consumer expectation.
Designing of quality is important in order to plan for the future and predict problems so
that managers can free the wastage present in products (Krenkel, 2012). He gives advice
to Tesco that they should engage their employees in decision making process. Deming
believes that the quality can be achieved by partnership between ventures and population
of nation i.e. “A partnership in quality”. Cooperative steps are taken in order to enhance
the total quality supportive nature and promises that were taken by top leadership within
enterprise.
 Additionally, he has also given various theories providing relevant guidelines and
directions to the managers of corporation such as “Deming’s system of profound
knowledge” involving Deming's cycle “plan-Do-check-Act (PDCA) and also the
Deming’s “14 points” (Papp, 2014). These theories concentrate on production of the best
quality goods and services as per consumer's demand. This effectively aids managers to
show the way of achieving successful marketing.
 According to Juran, consumers focus on the quality planning. He said to ensure better
practising of different methodologies like quality control, planning of quality and
improvement regarding quality of products. To achieve the top management, company
makes their own strategies like project planning by creating a training program for
complete staff.
1.4 Similarities and differences between the different methods
Many similarities and differences exist among different methods explained above. Some
of them are discussed as below:
 Each and every plan of quality management has been designed on the basis of particular
standards of quality.
 Similar actions or activities are performed in both the processes of quality control as well
as quality plan in order to diminish the bad performance of corporation.

 In decision-making programs of different ventures, same quality assurance and
controlling methods of quality are evaluated.
 All methodologies express the quality as satisfaction of consumer's need.
Some differences also exist that are listed as below:
 The quality levels that is planned previously is only accepted in the scheme of quality
planning.
 Some methods refer quality as customer’s satisfaction while other shows less defect in
the production and services provided by corporation (Kneese, 2013).
 Only few methodologies use benchmarking and design experiment methods are used in
the verification and validation of current quality.
TASK 2
2.1 Meaning of customer satisfaction
The customer's satisfaction can be simply defined as the degree of the happiness of the
consumers that show the satisfaction of them regarding the product. The Tesco recognises the
satisfaction of the customers by following the below listed components:
 Any organisation providing goods and services must have to focus on the demand of
consumers.
 They should provide fair products as per their pay.
 The scholars said that the company can achieve the consumers' satisfaction only when
the consumers feel special when they purchase goods from the enterprise (Kim and et.al.,
2012).
 Satisfaction is also achieved when the users having feeling that product is manufactured
only or specially for them.
 Consumer satisfaction is very important as it provides measurement of improvement to
the marketers and entrepreneur. The business improvement can only be achieved when
demand of users is fulfilled.
 The loyalty must be maintained in order to acquire willingness of population. Consumers
must not be cheated by providing defective goods.
There are six major reasons to make the customers satisfied that are listed as below:

11 It is treated as the leading indicator that shows repurchase behaviour of consumers, that
is, it tells the future involvement of users to existing corporation.11 It is a notable point which make a difference among company's turnover. As it is an era
of competition where different companies compete, so, customer satisfaction is can be
seen as a differentiator. One who completely fulfil the wishes of their consumers are
surely on the top marketing place.11 It enhances the value of consumers for life time. A survey of InfoQuest reflects that
consumers who are completely satisfied contribute more than 2.6 times revenue in
comparison to one who are partially satisfied (Kern, 2014). Additionally, the totally
satisfied people have given a contribution of 14 times more money than partially dis-
satisfied one.11 It decreases the churn of users. According to the global consumer satisfaction report of
year 2008, population churn is not due to increment in prices but it mainly occurs due to
the transfer of poor services to its consumers.
2.2 Meaning of continuous improvement
The continuous improvement can be simply defined as an ongoing effort of an
organisation in order to improve the production and services. Tesco has been going through the
continuous development in their production by focussing on quality management. Break down in
the improvement of different processes are not considered in this respect. On the contrary,
incremental development or the overtime working done by employees contribute in regular
improvement (Gratwohl and et.al, 2011). The value of improvement can be achieved by doing
hard cooperative labour by workers. In order to enhance the profit of enterprise, employees
should conduct a survey of their local places through which they have to identify the lifestyle or
taste of civilians of different age group.
2.3 Type of added values gained through effective and efficient operations
There are various types of added values that have to be gained for Tesco. Some of them
are discussed as below: Cause-related added value: It is related to the social marketing strategy. In this, some
value of company is donated for any social work. Example- Money donated to a school,
hospitals, etc.

 Quality added value: Adding the values according to wish of consumers is fall into this
category. For example: manufacturing food items that contains proteins and fats, etc.
 Cultural added value: This is also a kind of social marketing plans. In this some cultural
aspects are taken in order to produce such goods that are desired by some special group
of people.
2.4 Types of information made available to customers
Information is needed by the customers when they decide to start studying or researching
on the product which are being used by them. For this purpose, Tesco decides to provide relevant
information related to the products to their consumers. By getting such information, they easily
make an overview of the corporation. Different types of information are provided by the
enterprise. Some of them are listed as below:
 The date of manufacturing as well as expiry
 Composition of product i.e. the mixture of elements by using of which product is created
(Goetsch and Davis, 2014).
 The maximum retail price of commodities including all taxes.
TASK 3
3.1 Way in which quality management can be measured
Tesco uses different ways to measure quality management. Some of the ways are
mentioned as below: Feedback: Corporation uses feedback of consumers as a tool to recognise the quality of
goods. Less feedback means good quality (Fürber and Hepp, 2011). Performance indicator: Corporation uses several performance indicators to detect the
performance of products that ultimately tells about the quality. Counting worn goods: The enterprise counts number of defected manufactured items.
This counting tells them about the degree of quality.
 Warranty procedures: Company provides goods to customers by giving some warranty
period in which goods can be changed or modified. If less commodities are returned for
the modifications then the product is considered to be of good quality.

3.2 Benefits of user and non-user surveys in determining customer needs
Tesco has to understand the need of its consumers first. Survey is the most popular
method through which identification of needs of consumers are achieved. Non-users survey is
one of the important ways to determine the basic desire of population. This survey tells company
the reasons of not using their products or changes should be done in order to satisfy the need of
them. User survey aids corporation to find the performance (good or bad) of enterprise. On the
contrary, non-user survey recognised the needs of consumers conveniently.
3.3 Methods of consultation employed in one quality scheme
Some methods are used by Tesco to encourage the under-represented groups that are
listed as below: Telephone surveys: It is an effective tool that examines the expectations, needs as well as
issues of under-represented groups (Chen and Luo, 2014). Interviews: In this method, any one from the under-represented groups can be selected for
conducting interviews. Group interviews: The group interviews or discussions are very helpful in analysing
situations of under-represented sets. Mail surveys: In this process, pre-paid envelop having a group of questionnaires are used
to send to receive their respond.
 Electronic surveys: Same like mail survey except the email is used to send the questions.
3.4 Value of complaint procedure and the way they may be used to improve the quality
In order to satisfy the customers, the Tesco should provide goods that show some
complaints procedures. This provides them other opportunities to recognise the defaults of
products. Here, the consumers determine the weaknesses of goods or services. The low or bad
quality points are attained when complaints are recorded against previously created products
(Menezes, 2012). This data is used in drawing the plans of quality management procedures.
Tesco can develop the turnover by understanding their faults in the manufacturing of products.
Additionally, many times, the consumers complained against employees of the corporation who
are not providing effective services as after receiving such complaints, enterprise might do
improvement regarding the training of employees.

TASK 4
Covered in PPT
CONCLUSION
From the above report, it has been concluded that quality management is very important
in order to increase the turnover as well as reputation of Tesco. Various strategies are applied in
order to improve the product’s qualities and services. Value added methods are also explained
here. The encouragement of underrepresented groups are also focused. Real meaning of
customer’s satisfaction is drawn by examining different ideas of scholars or entrepreneurs. The
corporation can gain its potential only when it considers the demand of all ages of population of
its nation.

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