Strategic Quality Management And Customer Satisfaction Paper Essay Example
Strategic Quality Management And Customer Satisfaction Paper Essay Example

Strategic Quality Management And Customer Satisfaction Paper Essay Example

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  • Pages: 4 (1087 words)
  • Published: May 8, 2018
  • Type: Case Study
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"It was the summer of 1969: Man took his first walk on the moon. Nearly 450,000 people gathered in upstate New York to witness the historic Woodstock concert. And Doris and Don Fisher opened the first Gap store in San Francisco" (Gapinc.com 2007). Today, Gap Inc. is a significant specialty retailer globally, with over 3,100 stores and fiscal 2006 revenues of $15.9 billion. The company operates four renowned apparel brands worldwide -- Gap, Banana Republic, Old Navy, and Piperlime.

Gap Inc. strives to engage with customers globally, while also benefiting shareholders and making a positive impact in the communities it operates in. The brands under Gap Inc. share a common goal: to enable individuals to showcase their unique sense of style (Gapinc. com 2007). Each brand within Gap Inc. continuously adapts to better cater to customer preferences by offering innovative and inspiring designs, convenient

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and immersive in-store experiences, as well as effective communication that resonates with consumers' lifestyles.

The text discusses how Gap Inc. incorporates total quality management (TQM) into its policies and procedures. It explains the reasons behind Gap Inc.'s current success, as well as its implementation of TQM. When Gap Inc. was established in 1969, it introduced a fresh and distinctive approach. The company focused on capturing the younger customer segment. Its bestselling items were classic blue jeans and simple white cotton t-shirts, which were particularly popular among the younger demographic. The founders recognized the growing demand for jeans among this generation of consumers.

However, Gap acknowledged that even though it was popular among young people, there were insufficient jeans options in their stores. Taking advantage of this gap in the market was the logical next

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move for expansion. The founders of Gap were confident that a chain of specialized stores exclusively selling jeans would be profitable. As Gap's concept became successful, they broadened their range of products and now provide clothing for men, women, and children. With the growth of Gap's business, they also started expanding further.

Gap Inc. expanded its company by incorporating Banana Republic and Old Navy. Each of these chains has its own specific target audience. Banana Republic is recognized for offering upscale, top-notch clothing, catering to the demands of the most fashion-forward customers. In contrast, Old Navy has revolutionized affordable fashion retail by providing enjoyable shopping experiences and making trendy clothing accessible to customers of all ages. Old Navy caters specifically to the value-centric segment within the fashion-conscious market.

Gap has recently launched Piperlime, an online shoe store that provides fashionable shoes for individuals of all ages. The Gap family comprises three brands, each with its own distinct management structure. Old Navy and Banana Republic have contrasting management teams. Old Navy's team is composed of five managers: a general manager, logistics manager, customer service manager, and two supervisors. Conversely, Banana Republic has a smaller management team consisting of only two managers – a general manager and an assistant manager.

When comparing Old Navy and Banana Republic, it can be concluded that Old Navy has a more efficient approach to total quality management. This is achieved by dividing the management staff into two sections, which increases their ability to identify production errors. Additionally, this division fosters effective communication among managers since all managerial tasks inherently involve communication (as stated in "Fundamentals of Management," page 380). It is evident that without

access to information, managers are unable to make informed decisions.

Communication is essential for the operation of a management staff. It is necessary to inform the management staff about decisions made. Without communication, the management staff remains unaware of any decisions made. Communication is crucial for implementing ideas, suggestions, and plans. This is why Old Navy excels in communication among its management staff, whereas Banana Republic lacks effective communication among its employees.

Bananna Republic has a specific role known as a keyholder, whose responsibilities include opening/closing the building and assisting the management staff. However, keyholders are not considered part of the management staff. Their presence is crucial for the smooth functioning of the store; however, if the management staff fails to communicate issues to keyholders, it can greatly impact team morale and create a significant communication barrier that affects the quality of the management team.

Total Quality Management is focused on prioritizing the customer. The highest priority for Gap Inc. is customer satisfaction. The company believes that its success is dependent on satisfying its customers. Gap is quick to respond to customer requirements and is sensitive to their needs. This includes going beyond simply reducing defects and errors and meeting specifications or reducing customer complaints (Fundamentals of Management 382).

The concept of requirements is broadened to include both fundamental product and service attributes and those that enhance and distinguish from competitive advantage. All parts of the company participate in Total Quality, serving as both customers and suppliers. To ensure customer satisfaction, Gap must quickly respond to customer needs, which requires short product and service introduction cycles. These cycles can be achieved through customer-driven and process-oriented

product development, resulting in simplicity and efficiency, and significantly reducing the time required.

Concurrent product and process development simplifies and brings efficiencies to Gap Inc. By eliminating non-value-adding efforts such as re-design, the company is able to significantly reduce the time it takes from product concept to first shipment. To ensure successful implementation of Total Quality Management (TQM), Gap Inc. emphasizes that it must be introduced and led by the management staff. This is a crucial point, as attempts to implement TQM often fail when the management staff delegates and pays mere lip service instead of being fully committed.

Top management plays a crucial role in establishing and implementing quality values and goals that align with the company's objectives. They are also responsible for developing structured systems, methods, and performance measures to meet these goals. These systems and methods serve as guidelines for all quality-related activities and foster employee participation. The implementation of performance indicators is closely tied to customer satisfaction, as well as management and employee relationships. Gap Inc. demonstrates a solid total quality management program in its various divisions.

Each store is designed differently to cater to different atmospheres. Successful implementation of TQM is crucial and can only be achieved if done accurately. It is important to note that total quality management begins at the management level, but it cannot be effective without adequately trained employees. Gaps achieved success through the company's comprehensive policies and procedures regarding total quality management. The training process serves as the foundation. Employing capable individuals in teams contributes to the overall quality improvement.

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