Essays on Total Quality Management in Sumak Motors Case Study

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The paper 'Total Quality Management in Sumak Motors " is a great example of a management case study. Any business organisation seeks to make a profit and gain market leadership by offering value to customers so as to lock them in. for any success, a firm must craft business strategies or corporate strategic plan that is in sync with market trends. According to Darwin cited in Tung (2001:41), it is not the strongest that survives, but those able to adapt to change. Goldratt in his theory of constraints and systems view notes that an organisation is strong as its weakest links (Dettmer, 1997:7).

This means that an organisation should function as a whole with each semi-independent parts contributing to its wholeness. While total quality management does not necessarily turn out to increase business competitiveness, if well combined with other best practices it can lead to an organisation gaining a significant market share and thus, translated to market leadership (Lakshman, 2006:42). The necessary ingredients which can support the same include continual improvement, leadership based management, teamwork and strategic human resource management (Lakshman, 2006:43).

TQM is a key tangible resource that acts as an organisation’ s strength thus, allowing it to compete effectively if only an organisation embraces demand/customer driven total quality management (Malik et al. , 2006:26). This report explores how TQM can be implemented to guarantee reduced cost and market leadership. 2.0 Assumptions 2.1 At the macro level At the macro-economy level, there is a level playing field for all motor dealers. Apart from pricing, most customers want vehicles with guaranteed performance in terms of speed, safety, comfort, fuel consumption and those that last as a measure of value and standard benchmark for evaluating cars. 2.2 At the industry level The market is highly competitive with numerous players each adopting different strategic positioning in terms of market segment, pricing and value.

Sumak Motors have adopted the strategy of value at a competitive price. The industry is dynamic with numerous innovations. Sumak Motors is able to keep abreast with these developments by taking the lead or through reverse engineering. The firm engages in business to business marketing model. 2.3 Internal level As per its level, the firm has enough tangible and intangible resources to implement its strategic plans.

Moreover, the firm has willing top-level management which is based on leadership. The company had streamlined most of its internal operations. The best practices adopted include producing at a lower cost compared to its competitors and it has after-sales service. The firm has an innovation culture. The problem is that they are not synchronised. From 2009, sales have not expanded instead it is dropping and consequently return since the firm has not adopted TQM. This means that the firm is not performing because it is not competitive, but because of non-guaranteed integrated quality where each department is operating single-handed without synchronising customer needs.

Moreover, the firm has not embraced a system approach to management and lean management in the form of Just-in-Time production so as to produce and sell cars when needed according to demand. The company has embraced strategic human resource planning. In this scenario, the company is engaged in total reward and talent management based on the premise that it is a key factor for success. This allows it to attract and retain qualified personnel. The company practices performance management and other human resource management best practices. Apart from the creation of value and selling at a competitive price, the company is engaged in relationship marketing as a customer retention strategy. In a nutshell, at the internal level, the firm has tried to implement all best practices be it at production, finance, marketing, supplies management and innovation.

The only problem is the lack of systems view in quality management. This means all departments are not involved in guaranteeing quality leading to disjointed processes.

References

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