Analysis of Quality Management Practices and Strategies at Starbucks

This report provides a comprehensive analysis of quality management practices within Starbucks, a prominent American coffeehouse chain. It begins by defining quality and exploring inspection and assurance processes, including ISO certifications, employed by Starbucks. The report then delves into various quality management approaches, such as Total Quality Management and Six Sigma, highlighting their similarities, differences, and impact on Starbucks' operations. Customer satisfaction is a key focus, with an examination of strategies to meet customer needs and foster loyalty. The report also discusses continuous improvement methods, including the Kaizen approach and PDCA cycle, and their role in enhancing product and service quality. Furthermore, it analyzes the added value gained through these practices, such as employee training and customer loyalty programs. Finally, the report explores the importance of information made available to customers for effective marketing, covering topics like website updates and feedback mechanisms, and concludes with an overview of measuring quality management through surveys, consultation methods, and complaint procedures.

Unit 32. 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.....................................4
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)......................................................................................................................................7
TASK 3...................................................................................................................................7
3.1 Measuring quality management.............................................................................................7
3.2 Benefit of user or non-user surveys.......................................................................................8
3.3 Consultation methods.............................................................................................................8
3.4 Value of complaints procedure (M3).....................................................................................9
TASK 4.................................................................................................................................10
Enclosed in PPT.........................................................................................................................10
CONCLUSION....................................................................................................................10
REFERENCES.....................................................................................................................11

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
As per the view of standard of something as measured against other things of similar type
in order to obtain excellence of something. Furthermore, another definition of quality in terms of
distinctive attribute or characteristic possessed by someone or something (Papp, 2014). 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 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 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 involving 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 regarding 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 certifications and thus maintains
its quality which is reliable source for its customers and other stakeholders regarding
convenience them about the quality of products or services (Tricker, 2007). Thus, quality
assurance and inspection tool are considered as the best way regarding 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’s, 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 sigmas
approaches 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).
M1 For instance it is essential for business to adopt effective quality management approaches so
that best results could be attained. It also helps in improving business performance and
maintaining effective quality approaches so that appropriate results could be attained.
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 regarding 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 help 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). Another added value is that
Starbucks focuses upon providing great quality and taste of coffee to its customers so that it
helps in enhancing customer satisfaction. Further, another added value is that it is essential for
firm to prove attractive schemes as compared to competitors so that competitive edge could be
attained.
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. For instance, with the help of using website it helps in
providing suitable information to customers thus using Starbucks website helps business to
provide crucial information through websites so that best information could be delivered to
clients.
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 about 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. Business uses varied methods
such as statistical process control and benchmarking so that it could be useful in temrs of
improving business performance and thus measuring quality within firm. Also, such method help
in measuring quality management and thus enhance business performance in market. Starbucks
also uses internal benchmarking that helps in comparing the quality and service standards so that
best performance could be attained. It also results in improving business performance and attain
success. Further, using external benchmarking with regard to identify the cost coffee and thus
results in measuring successful outcomes.
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 fill the loopholes regarding 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). It can be
assessed that user and non user surveys prove to be very useful for businesses and thus it helps in
identifying the needs and wants of customers. Through user surveys it helps in providing benefits
to customers and thus identify their needs so that it could be fulfilled. While, the benefit of non
user surveys helps in identifying their expectations so that their needs could be fulfilled.

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 regarding 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 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, then 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
regarding 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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