Quality Management Report: Analysis of Starbucks' Strategies

This report delves into the principles of quality management, examining its significance in business and service provision. It explores various methods of inspection and assurance, highlighting the similarities and differences between different quality management methodologies, including Six Sigma and Total Quality Management, with a specific focus on the Starbucks case study. The report defines customer satisfaction and emphasizes the importance of continuous improvement in quality management, discussing added values gained from efficient operations. It also analyzes different types of information available to customers and the importance of effective marketing. Furthermore, the report examines how to measure quality management, including the assets of user and non-user surveys and methods of consultation, and the values of complaints procedures. The report provides a comprehensive overview of quality management strategies, customer satisfaction, and practical applications, supported by the example of Starbucks.

QUALITY MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Definitions of quality in terms of business and services provision ......................................1
1.2 Illustration of methods of inspection and assurance.............................................................1
1.3 Range of approaches towards quality management..............................................................2
1.4 Similarities and differences between various methodologies...............................................3
TASK 2............................................................................................................................................3
2.1 Meaning of customer satisfaction.........................................................................................3
2.2 Consistent improvement in management of quality..............................................................3
2.3 Different types of added values gained from efficient and effective operations..................4
2.4 Types of information available to customers and importance of effective marketing..........4
TASK 3............................................................................................................................................5
3.1 Measuring the quality management......................................................................................5
3.2 Assets of user and non-user surveys for determining needs of customers............................5
3.3 Methods of consultation........................................................................................................5
3.4 Values of complaints procedures which analysis for improve quality.................................6
TASK 4............................................................................................................................................7
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Superior quality of products and services is ensured by quality management. Quality of a
product can be determined with the help of factors such as durability, performance and
reliability. It differentiates an organization from its competitors (Brennan and et.al., 2013).
Starbucks is American based coffee firm established in 1971 at Seattle. It differentiates
itself from its competitors by offering very high quality coffee thereby satisfying customers all
over the world.
The report throws light upon different ways in which effective quality management can
lead to enhanced performance by an organization.
TASK 1
1.1 Definitions of quality in terms of business and services provision
The method of satisfying all the needs customers through capacity and suitability of
services is referred as quality in terms of business and service provision. A product is said to be
of high quality if it is able to satisfy all needs and wants of customers up to a certain extent. In
order for measuring the quality of products and services, several standards have been established
by standardizing bodies. A wide range of products and services are covered along with many
industries under these standards (Buntinx and Benjamins, 2010).
Some extra efforts are generally made by Starbucks in order to make their customers
satisfy. The quality of coffee offered by them is the only major thing that differentiates Starbucks
from other organizations of same sector. People become more confident about the organization
that has been cited because of enhancement of the quality of products and services offered by
them. These customers become more loyal towards cited firm which increases the reputation of
organization.
1.2 Illustration of methods of inspection and assurance
Starbucks always makes attempts for delivery of high quality products and services to
their customers (Wan and et.al., 2012). The delivery of high quality to customers ensures the
enhancement of its reputation in the sector or field of coffee. Basically, two methods are
involved in quality management that have been discussed below:
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 Control of Quality: The reviewing of all the components in association with production
process of Starbucks, this methodology is known as quality control. This process ensures
the maintenance of following:
1. Knowledge and skills of employees
2. The quality of production process.
3. Soft elements in association with production process such as team dynamics, organizational
culture and motivation.
 Assurance of quality: Avoiding the problems and defects of services or products offered
by company are ensured with help of this method (Dania and Margherita, 2013). Certain
procedures are being conducted by Starbucks that services and products offered to
customers are of the quality required by them. This is done in accordance with the
standards and reputation of company.
1.3 Range of approaches towards quality management
Quality management of an organization can be improved with the help of various
approaches. Some of these approaches that can be utilized by Starbucks have been discussed
below: Six Sigma: In order to complete particular task, the efforts that are applied by team, are
usually focussed in this approach. This makes the results of organization a way better and
also the performance is improved. Defects in production process, inventory,
transportation, waits, over processing and motion are the six categories of wastes which
are eliminated by it. Total quality management: The overall efficiency of production could be made better in
accordance with an organization, through this approach. Main emphasis is laid over the
services that are offered and also on improvement required in quality of product (Dugal,
Kothavade and Musani, 2010). Therefore, to effectively manage their product quality,
this approach should be adopted by Starbucks. Benchmarking: Improvement, control and planning of quality are the three specifications
that are defined through it. The needs and wants of customers are identified with help of
it. Furthermore, development process is planned out with reference to product. Then, the
process is transferred to operations.
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1.4 Similarities and differences between various methodologies
For ensuring quality management various methods are used by Starbucks. The effective
and smooth running of quality management with respect to company is ensured with help of
these methods.
The dependence on inspection process of quality check is eliminated with both the
methods of Six Sigma and total quality management. Improvement of the overall efficiency in
production in order to give better results are focussed by both of these two methods.
However, there are certain differences in both these approaches. Quality is viewed as
conformity of internal needs by total quality management. While, on the other hand, quality
improvement is being concentrated upon by Six Sigma in order to reduce defects (Elamir and
Sadeq, 2010). Also, Starbucks uses Six Sigma for reducing their operational costs.
TASK 2
2.1 Meaning of customer satisfaction
The methodology of conformity of needs and wants of customers to the features provided
by services & products offered by Starbucks, is referred to Customer satisfaction. Loyal of
customers towards Starbucks is enhanced. This also increases the profits and sales of Starbucks
along with strengthening of brand image. Starbucks have their own policies of customer
satisfaction to satisfy their customers with products and services that they offer (Singh, Verma
and Bharti, 2016). For example, the newly recruited employees are instructed in their induction
which includes a description of the guidelines to be adhered with policies of customer
satisfaction.
For fulfilling the needs and wants of customers, products or services are purchased by
people as per the behaviour of buyer. Customers give positive feedback only if the product is
able to solve their issues or problems and complete satisfaction is given to them.
2.2 Consistent improvement in management of quality
Various activities which mainly focus on improvement of different factors affecting
procedure of company are included within the culture of an organization. This is referred to as
Continuous Improvement. Brand new strategies and plans for improvement of various aspects
are made continuously by Starbucks. Organization's performance is improved with its help and
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also better quality of products & services are ensured (Ming, 2012). The popularity and
reputation of organization is improved with aid of continuous improvement.
Continuous improvement usually involves four basic steps. The areas which require
improvement are identified in the first step. Activities are planned for implementing identified
aspect of company in the second step. Then in the third step, implementation of the plans
proposed in second step is done. Finally, reviewing of plans that have been implemented for
improving performance of Starbucks is done in fourth step.
2.3 Different types of added values gained from efficient and effective operations
Continuous improvement activity identifies the opportunity and improvement in
development and training system for workers in association with Starbucks. For improving
specific skill set of workers to another level, various opportunities of training program are
allowed to be identified by it (Forsythe, 2012). The employees working in Starbucks get better
level of skill set that provides help to organization for setting new processes as per employee
skills because of continuous improvement plan.
Because of continuous improvement process, the added values are: reduction of cost of
processes, benefits from reduced costs of process and also enhancement of benefits of
organization as processing cost remains the same. Along with these, some added values are also
there. These include increment in loyalty of customer, repeated purchases, brand image and
profits of Starbucks, etc.
2.4 Types of information available to customers and importance of effective marketing
Various sorts of information such as location of retailer for specific product, retailer's
time of operation, product's price list offered by that retailer and various discounts provided by
them. The outcome of providing this information to customers gathers their interests towards the
brand thereby increasing overall sales of the product. Information with respect to various
procedures of company and quality management activities is given to customers. The
information which is shared by company, increases the business of Starbucks. More confidence
and trusts are build up between customers and organizations.
To the current customers and potential buyers of Starbucks, information is communicated
more efficiently and effectively with the aid of effective Marketing Strategy. The reputation of
the company is further increased through it. Anticipation is allowed to be done by effective
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marketing strategy (Matkar and IMCOST, 2012). Identification and satisfaction of the needs of
customers within a given limit of time is also ensured in specific market.
TASK 3
3.1 Measuring the quality management
For ensuring high quality of product and service, certain activities are carried, for which
process of organization is responsible. Assurance, control and inspections of quality are included
in the processes involved in system of quality management. The main aim of quality
management system is improving the satisfaction level of customers. Carrying out a survey of
customers satisfaction is the most effective method to find out the success of quality
management. Furthermore, contribution in the sales of products and services is also given by it.
The main factors affecting quality management's success are the final quality of product and
service. With the help of interviews, questionnaires, surveys and opinion polls in both inside and
outside of Starbucks, the process of quality management can be measured.
3.2 Assets of user and non-user surveys for determining needs of customers
There are different methods available for identifying needs of customers with respect to
specific range of product (Gwyn, 2011). The most suitable and appropriate method for collecting
various quantitative data is survey. In Starbucks, different questions which are asked to
customers are included in survey and based on the answers to these questions feedbacks are
given by customers. With the help of this feedback, better understanding about the customer
requirements is done along with analysation of different situations in market. In accordance with
usability and features of products, many people are interviewed or asked questions about. Large
amount of data with respect ton product, is provided with the help of this type of market
research. Also, the advices required for improvement of services and products are given with its
help.
Non user survey could be used for analysing the people of an organization who are non-
user (Liu, Qiao and Shah, 2015). The survey that aims a particular set of users in accordance
with a specific product is known as user behaviour.
3.3 Methods of consultation
Encouraging participation from different groups can be done with help of several
methods as discussed below:
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 Interview:Any of the person is randomly selected from the represented group for the
interview. Telephonic Survey:This type of survey serves as an active tool for identifying the various
problems of groups, their suggestion s along with needs & requirements. Survey: In the survey, different types of questions are included which are designed for
fast replying of answers. This type of survey easily analyses the requirements and
expectations of customers. Group Interview: In the group of specific people different type types of questions are
asked in this method. Mail Survey: Questions are sent in form of pre paid envelopes that require short answers
in this method. A few people are selected from the specific group (Liang, 2012).
 Electronic Survey: E-mail is being used in this method for conducting survey. Its
electronic nature differentiates it from the Survey method.
3.4 Values of complaints procedures which analysis for improve quality
In order to assess customer complaints it is essential to determines values which assist to
make positive results and performances. In this aspect, quality performances can be increases
through assessing different elements (Weckenmann, Akkasoglu and Werner, 2015). It also
provides opportunities which assist to make results and concentrate of Starbucks results. They
are as follows:
 Listen and understand: The chosen company can improves their quality through listen
their requirement. In this aspect, Starbucks can conduct market research in which they
understand customer requirement. Hence, it supports to quality of personnel and
knowledge for each customer (Bayraktar, Tatoglu and Zaim, 2013).
 Follow up with customer: This is another element which create value through complaints'
procedure. In this aspect, each customer need to be satisfy by Starbucks with solution. It
can be done through asking feedback on the basis of complaints which are made by the
firm.
 Find a solution: When any customer have complaints, it is important to handle it in
effective manner (Miranda, Silveira and Roebeling, 2015.). In this aspect, customer
service team of Starbucks can develops solutions in which firm can make through
concentration on issues which are repeated.
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TASK 4
Covered in ppt
Conclusion
For any organization delivering quality products is of utter importance. Quality
management is an important parameter for determination of growth of an organization. Various
definitions with respect to quality have been discussed in terms of business and service
provision. Delivery of quality products ensures enhancement of performance of organization. An
organization needs to follow certain process for assurance and inspection of quality management.
Also, there are different approaches that can the organization can adapt to achieve quality
required for proper functioning of organization. It is very important that the customer is satisfied
with the quality of services and products that are offered. If the customer is satisfied then, the
brand image of the organization will be enhanced. The organization can conduct various surveys
to determine feedbacks so that it can find out what the customers think about their products and
services. So, the image and reputation of an organization is dependent on effective quality
mangement.
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