MGT449 Wk 3 Strategic Quality Management and Customer Satisfaction
MGT449 Wk 3 Strategic Quality Management and Customer Satisfaction
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Strategic Quality Management and Customer Satisfaction Paper 1 Strategic Quality Management and Customer Satisfaction Paper Team Members University of Phoenix Quality Management and Productivity MGT/449 Instructor Date Strategic Quality Management and Customer Satisfaction Paper Introduction In today’s world the companies have to strive real hard in order to compete the harsh competition prevailing around. The most important thing that the companies need to work towards is the customer satisfaction. Only those businesses succeed who ensure quality and customer satisfaction, in fact the truth is that both the quality and customer satisfaction are strongly related and linked to each other. Unless and until the companies do not offer the exquisite and top class quality, they’ll not be able to attract and satisfy the customers. The companies and organizations need to emphasize on strategic plans, strategic objectives, and process improvement plans along with sufficient tools and techniques required for all this. For this purpose management must come up with various strategies to improve their quality and enhance their customer satisfaction. A lot of strategic management in regard to quality control and customer satisfaction is required if a company wants to gain and retain the customers. Target Corporation Target is a well known store in United States and is popular in regard to the outstanding and exclusive products it offers. The mission statement of the company highlights customer satisfaction and making it certain that Target stores are the most appropriate and accepted store for the customers who seek style and trend. The store offers a wide range of exclusive, creative and innovative products made by various designers at very reasonable prices. This is how they tend to gain and retain customer satisfaction. The company commits to expect more and pay less brand promise. This has given a new and refreshing look to retail business. It ensures that the experience of the customers shopping here is worthy and fulfilling and enforce them to shop here again and again. According to Target (2010) outstanding values, public, diversity and the environment are part of Target’s mission. One cannot mistake the significance of the Target Corporation Mission Statement which makes clear that the values and services are incorporated the brand promise offered by target ensures that the community is supported, extraordinary products are provided, and the customer service should be friendly and welcoming. This brand promise is the guiding principle that helps Target incorporate quality and customer satisfaction. Everyone either at top management or at any other level is committed to be a part of the Target brand promise and needs to follow the guideline thus making it sure that all the standards and requirements are met. There are number of brands offered to match the requirements of the different shoppers. The designs offered here are suitable to different price ranges depending on the purchasing power of the customers. Besides the exceptional, marvelous and wonderful offering in regard to products and services by the Target, it ensures that all good business practices and quality principles are followed. According to Target (2010) the store does not focus in increasing its sales rather efforts are made to keep up with all the ethical standards and business principles. The store is committed to its team members, guest, vendors, shareholders and the communities and conscious efforts are made to support and help in every possible manner. Target Corporation SWOT Analysis Strengths The basic concept of introducing Target stores was to satisfy the customers’ needs by supplying them with low price products but these products must be different from what the competitors are offering in regard to their designs which should be in accordance to the present trends and fashions. The company’s 7% of the total sales come from the novel creations, elite and selected products. The company believes truly in customer satisfaction therefore it is their major concern when making the mission statement. The company highly strives to offer best quality, outstanding customer service and suitable prices to its target customers. The company emphasizes on fulfilling the company's brand of promise to expect more, pay less. The quality of the products is based on the customer satisfaction rather than their looks. WalMart is the greatest competitor therefore the Target’s strategy is to offer such innovative and inventive products on reasonable prices. It also makes efforts to attract the customers from other large stores. Because of the company logo used in advertising the consumer awareness was enhanced which consequently brought in more profits and revenues. The excellent customer service, well equipped and well stocked merchandise, spotless and tidy stores and fast checkouts are the major elements on which the store focuses. Besides these strengths the company has agreements with designers who are the peak of their professions. Target store sells the products of these designers on suitable prices with another name which is agreed by both. Weaknesses At present Target stores are only operating in local US markets whereas the competitors WalMart and KMart are well known around the world. Therefore to retain its success and to compete Target needs to penetrate in the international markets and for this purpose it can utilize the same strategy which it uses in US. Opportunities There are number of opportunities for Target to explore and make use of. The most important element for success is the customer satisfaction. To know if the customer is satisfied or not it is very beneficial to communicate with the shoppers directly while they are shopping. This will enhance the knowledge of their likes and dislikes and will help in building a healthy and strong loyal customer base. The customers will feel important and will be happy to share their feedback instantaneously. The company can always offer trendy and stylish products to various target segments like women, young shoppers. In fact the company adopted a strategy to offer novel, innovative, creative and designer products to the young target segment in 1990s and this strategy turned out to be a great success. The young customers who opt for more stylish and new designer products when found these products at favorable prices they were very much attracted. Thus the company an always bring innovative ideas for different target segments. The most important of the opportunities right now for the target store is to expand its operations in new regions and places around the world. The people will welcome the store having quality, trendy, fashionable and creative products at low prices they definitely will be drawn towards them. Threats Target stores are offering products at higher prices as compared to their competitors. These stores are also offering good quality products but their price range is lesser therefore there is a chance that the customers will opt for them. Therefore Target needs to work out on its prices. Secondly there is a chance that the employees’ morale is reduced but sufficient training and education to the employees will enhance their decision making and confidence thus increasing their morale. This will help in employee retention. In order to survive, grow and compete the Target Corporation needs to go global. This expanding and penetrating globally should be the main focus of the company. Once they have entered in the global market with their existing strategy that is to offer valuable quality and outstanding customer satisfaction the customers of their competitors will also be attracted. In order to enter the global market Target will need to establish stores. If the company will opt to buy their own stores, this will increase their costs too much. No doubt by doing so many people will get jobs but all this is too expensive and time consuming. The better option through which the money can be saved and the penetration in global markets become easier, will be to introduce itself on the Internet. Easy cataloging on the internet and easy approach to different web pages will enhance this experience. Companies use a number of tools and techniques to measure the customer satisfaction. Target is also involved in using these tools. According to Mahoney (2010) these tools are very effective in attaining customer satisfaction since Target is still leading in customer satisfaction soaring well above their competitor WalMart and is able to stand strongly in this economic slump. One of the major tools on which Target rely is the employees’ satisfaction. Target believes in the fact that if the employee is satisfied it will offer the best to the customers thus making them also satisfied. Target considers their employees as assets and invests a lot in their training. According to Hisey (1994) Target do not hire the employees from other retail stores rather it prefer taking the fresh graduates as it believes that they are more enthusiastic and energetic. Secondly these employees are not aware of politics played by the competitors therefore the risk of losing them to the competitors is very less. These employees are made certain that they are very important for the company which enhances their morale and they tend to give their best output. Another way of finding about the customer satisfaction is through surveys. A certain group of customers is selected and they are asked to fill questionnaires which derive the information from them regarding their needs and wants. For instance Target offers a brand called Cisco to its customers. A set of customers were surveyed regarding their satisfaction about this product. The customers answered these surveys very positively thus getting an excellence award which is a very distinguished award for Cisco. It also proved the customer loyalty (Cisco, 2010). According to Allen (2008) in order to get the feedback from the customers through interviews Target uses a company called Decision Analyst. Conclusion There is a very tough competition going on in the markets because now all the companies and customers are well aware because of the knowledge explosion and technological advancements. The organizations and companies need to adopt well planned and well implemented strategies in order to compete successfully. Every organization has specific goals and objectives and to achieve then efficiently and effectively they need well prepared strategies. For every goal a welldefined and well organized strategy is required like for building a workforce, for market penetration, for customer satisfaction different strategies will be adopted. Despite of the fact that separate strategies are required for different goals the fact that these strategies should be interconnected cannot be ignored. Through strategy thinking the cost could be reduced, energy could be saved and the profits can be generated at higher levels. No doubt all the goals are very important for the success of every company but the most important one which need to be accomplished with all the efforts is the customer generation as customers are the source of revenues generation and they are the one who decide that a company should stay in long run or not. Therefore Target Corporation adopts various strategies to ensure that their customers are satisfied and it makes all the possible efforts to earn their loyalty. It provides them with quality, best customer service and then takes their feedback to improve itself. All these things ensure its customer gain and retention. References Dinger, E., Knight, J., & Kolstad, J. Target Corporation. Encyclopedia of Major Marketing Campaigns. Vol. 2. Detroit: Gale, 2007. p15991606. www.associatedcontent.com/article/69980/target_corporation_analysis_pg4.html Target Corporation Mission Statement (2006). Retrieved from http://www.samples help.org.uk/missionstatements/targetcorporationmissionstatement.htm Target. (2010). Target Company. Retrieved from http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04030795 Allen, C. (2008). Target Corporation honors decision analyst for customer satisfaction research . Decision Analyst. Retrieved 7 November, 2010, from http://www.decisionanalyst.com/publ_data/2008/award.dai Cisco. (2010). Customer Satisfaction. Retrieved 7 November, 2010, from http://www.cisco.com/web/partners/pr11/pr20/partners_customer_satisfaction_concept_h ome.html#~tab3 Hisey, P. (1994). Customer satisfaction linked to employee training. Discount Store News. Retrieved 7 November, 2010, from http://findarticles.com/p/articles/mi_m3092/is_n8_v33/ai_15158777/ Mahoney, S. (2010). Nordstrom, Target lead in customer satisfaction. Marketing Daily. Retrieved 7 November, 2010, from http://www.mediapost.com/publications/? fa=Articles.showArticle&art_aid=122442
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