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Mercadona's TQM Success Factors

The document discusses how the Total Quality Model (TQM) helped Mercadona achieve success through various aspects of its business. It explains that TQM played an important role by satisfying different business components and focusing completely on customers. The model separated Mercadona's core business into processes to address different needs. TQM oriented the company towards completely satisfying customers by offering innovative products to help them shop easily and quickly. The document also discusses challenges posed by the 2007 Spanish economic crisis, and whether Mercadona should give employee bonuses during difficult economic conditions.

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Julian Gomez
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173 views2 pages

Mercadona's TQM Success Factors

The document discusses how the Total Quality Model (TQM) helped Mercadona achieve success through various aspects of its business. It explains that TQM played an important role by satisfying different business components and focusing completely on customers. The model separated Mercadona's core business into processes to address different needs. TQM oriented the company towards completely satisfying customers by offering innovative products to help them shop easily and quickly. The document also discusses challenges posed by the 2007 Spanish economic crisis, and whether Mercadona should give employee bonuses during difficult economic conditions.

Uploaded by

Julian Gomez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TO: Juan Roig, CEO of Mercadona

FROM:
DATE: 18 June 2020
RE: The use of the Total Quality Model has helped Mercadona to achieve
success due to its impact in various aspects of the business.
_______________________________________________________________

1. What factors will determine the success of Mercadona since its creation through

the mid 2000?

The success of Mercadona has been determined by different factors such as the values

that surrounded Roig’s life, which focused on the importance of delivering the best

possible experience to consumers, by giving them all the information needed and

properly training its employees. Through the Total Quality Model, Mercadona has been

able to achieve success by satisfying important components of the business. Keeping

prices as low as possible has been a key factor, as well as constantly improving

technology and products, making the shopping process as easy and convenient as

possible, and always staying in touch with customers, having them as the most important

stakeholder.

2. Explain the role of TQM in Mercadona’s success.

As mentioned before, TQM played an important role in Mercadona’s success by

satisfying various different components of the business and giving complete attention to

its customers. The model separated Mercadona’s core business into different processes in

order to focus on different needs for the company. The main mission of the company was

not focused on only profitability, but it is oriented on being able to completely satisfy

customers by offering innovative and necessary products with a wide variety, in order to

help people complete their shopping as quickly and easily as possible.


3. What are the challenges and opportunities posed by the 2007 Spanish economic

crisis?

The 2007 Spanish economic crisis occurred due to the bursting of the U.S. property

market bubble, and it had a major impact on the country’s GDP. This made transactions

to decrease in a considerable way and various customers were leaving. However, these

declines in sales helped Mercadona realize that it could lower their prices even more and

change the way they sold fruits and vegetables, reducing packaging costs. A very big

challenge was to keep growing as a company in a time where businesses around the

country were struggling to survive. The main focus of the company had to switch in order

to understand that they needed to help society, even if it meant earning less money.

4. Should employees be given the bonus in such difficult economic conditions?

Please justify your answer

I believe that employees should be given bonuses tied with different goals. As mentioned

before, society’s well being and stability should be a priority instead of focusing on

profitability. Employees need to understand that Mercadona is fully committed to its

customers and their satisfaction, so bonuses should not be tied to sales during these

difficult times. Employees must know that the company’s goals need to adapt to the

needs of customers during the recession. It is understandable that employees might have a

hard time earning less money while working harder, but it is important that they

understand that they must keep working hard in order to satisfy its customers, and

bonuses tied to different goals could encourage them to continue working hard.

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