Table of Contents
1.1 Stakeholders and their interests.
1.2 TESCO and its STAKEHOLDERS.
1.3 Impact of poor service quality on stakeholders.
2.1 What is Quality?.
2.2 Approach to quality management
2.2.1 Quality Control
2.2.2 Quality Assurance.
2.2.3 Total Quality Management (TQM)
2.3 Setting Standards and Monitoring.
2.3.1 What are standards?.
2.3.2 What are standards for?.
2.3.3 Who are the standards for?.
2.3.4 How to set standards?.
3.1 What is continuous improvement?.
3.1.1 Deming Cycle.
3.2 Importance of Continuous Improvement
3.3 How to implement Continuous Improvement (CI)
Today’s global market is pretty competitive which demands ever-increasing customers and this ‘forever’ increase requires quality products and or services with lesser payment. In this report, we will be discussing the different stakeholder groups of Tesco Plc., expectations of each group towards the company, impact of poor service quality on both the organization and the stakeholders, and we will also be analyzing how the need of different stakeholder groups can be met through a common platform by not hampering anyone’s need.
In the second task of this report, we will be analyzing the concepts of quality and quality standards with respect to Tesco Plc. and will evaluate different approaches to quality management in accordance with Tesco Plc.’s service policy with a brief description of how quality standards are set and monitored.
At the end of the report as task 3 we will be analyzing the concept of continuous movement with the evaluation of its importance and how continuous improvement can be implemented within the organizations.
1.1 Stakeholders and their interests
Commonly we call stakeholders to those who may be affected or have an effect due to the action of the particular organization. Though the stakeholders can be characterized in different ways, the most common way is to characterize by their relations to the effort in question.
- Primary stakeholders
- Secondary stakeholders
- Key stakeholders
- Primary stakeholders: This category includes the people or groups that are directly affected by the organization, whether it’s positively or negatively. In some cases, the primary stakeholders reside at both sides of the equation – positive and negative. Like a rent control policy that may benefit the renters may make the owners unhappy.
- Secondary stakeholders: This type includes people or groups that are affected indirectly through the action of the organization or institute.
- Key stakeholders: This group belongs to those who can be affected positively or negatively but not part of the first two groups.
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With the varied range of stakeholders, there is also a varied range in the interest of the different stakeholders. In spite of the difference, there are some common interests found among all the stakeholders which are described below.
- Economics – Economic prospects of the stakeholders
- Social change – an alteration in the social climate
- Work – an enhanced work-life can increase job satisfaction
- Time – flexible work hours can reduce stress and increase productivity
- Environment – resource conservation, open space protection can have both positive and negative impact on business
- Physical health – Physical health can also be a concern of stakeholders
- Safety and security – efforts by the organization can improve the safety and security of a particular area or group of people or as a whole
- Mental health – mental health can also be the interest of stakeholders as it is really important to not only the affected people but also to their families and community as a whole.
1.2 TESCO and its STAKEHOLDERS
A big company like Tesco Plc. has many stakeholders with different needs. It’s simply not the buyer-seller relation like most of the small companies. And a common problem having numerous stakeholders is stakeholders’ various self-interest may not be aligned and can conflict with each other. So for an organization to become successful and efficient an in-depth research is required on different groups of stakeholders and the conflicting interests should be resolved with utmost priority. The stakeholders for Tesco Plc. can be divided into the following major categories-
- A non-governmental organization (www.tescoplc.com, 2014)
It is very important for an organization to first identify and then analyze the stakeholders and their interests as the improvement of the organizations largely depend on this. Below find the analysis of the interests of Tesco’s stakeholders.
- Customers: Customers are the primary stakeholders for Tesco Plc. as they are affected directly due to the action taken by the organization. Tesco Plc. has a wide range of customers, who have come from different ethnic origins having different languages, different religions, of different age groups. And this diversity in this stakeholder group results in diversification in their interests also. Though most of the customers’ interests are based on economics as Tesco offers competitive prices, some of them also emphasize the time factor, as most of the goods they need are obtainable from one place at a single go.
- Colleagues: Like customers, colleagues are also secondary stakeholders of Tesco Plc. as actions taken by organizations such as salary, increment policy, bonus policy, etc. directly affect the colleagues or the workforce of the organizations. Though they have a unified mission and vision as the employee of the organization, they also have varied interests as the personal choice varies from one person to another. Like customers, some of them have an interest in the economics part, as earning money is the main concern. Again some of them yearn for a time as flexible hours may boost up their morale. To some physical health is important and may not happy if they are told to do heavy works.
- Suppliers: Suppliers are also primary stakeholders and directly affected the decisions of the organizations. Better management of suppliers can significantly improve the profits of the organization and often the benefits offered from the suppliers worth a lot more than the value achieved through price reduction. Most of the organizations are now working extensively with suppliers through Supplier Relationship Management (SRM) and it is high time for Tesco Plc. for starting a venture with that concept(Scharioth & Huber, 2003).
- Investors: Investors fit in the primary stakeholders’ group as the shareholders are affected directly from the organization’s primary viewpoint of maximizing profits. Investors’ interests mostly lay on economics and sometimes social change also. In a manner, safety and security are also maintained through maintaining the financial achievements of the organization.
- Non-governmental organizations: Unlike the above-mentioned group, the non-governmental organizations are grouped under the key stakeholders, as they do not get directly affected through the decisions of the organization – whether positively or negatively. Now a day, aided by the advancement in information technology, NGOs have more focused attention on the environmental and social impact of business activity (Friedman & Miles, 2006)……………..