TQM/Customer Service

Brief History

McDonald’s was originally a restaurant set up by brothers Dick and Mac McDonald in 1940’s in California. The company emerged from Ray Kroc who in 1955 became the exclusive franchising for the entire United States. McDonald’s global motto is focused on the quality, service, cleanliness and value (Q.S.C. & V.).

In 1977, Mike Mehigan opened Ireland’s first McDonald’s restaurant in Dublin’s Grafton Street. Since then McDonald’s has become hugely popular in Ireland. A second restaurant followed shortly on O’Connell Street. Today, 74 restaurants around the country and have recently opened five McCafés in Dublin, providing more variety to their service and employed over 3,500 people. As an achievement, McDonalds Restaurants of Ireland was included in the 2005 ’50 Best Companies to Work for in Ireland’ list. Also McDonald’s supports community programs which operate and focused on family and local environment related issues. These include sponsorships of local teams, fundraising for children’s charities and educational and environmental initiatives. In addition, McDonald’s globally has extensive conservation policies applicable not only to its packaging but to the products and ingredients it sources from suppliers.

The entire McDonalds’ stands for the principles of Quality, Service, Cleanliness and Value, the combination of which is designed to achieve 100 per cent total customer satisfaction. The business operated strict specifications for all its products and raw materials and is responsible for developing as well as, implementing systems to ensure safe food of the highest quality throughout the restaurants in Ireland.

The Five Gaps

Gap 1: the gap between what customers want and what management thinks customers want. This gap results from a lack of understanding or a misrepresentation of the customers’ needs, wants, or desires. A firm that does little or customer satisfaction research is likely to experience this gap.

Gap 2: the gap between what management thinks customers want and the quality specifications that management develops to provide the service. Essentially, this gap is the result of management’s inability to translate customers’ needs into delivery systems within the firm.

Gap 3: the gap between the service quality specification and the service are present in every company. If both gaps 1 and 2 have been closed, then gap 3 is due to the inability of management and employees to do what should be done. Poorly trained or poorly motivated workers can cause this gap. Management needs to ensure that employees have the skills and the proper tools to perform their jobs.

Gap 4: the gap between what the company provides and what the customer is told it provides. This is clearly a communication gap. It may include misleading or deceptive advertising campaigns promising more than the firm can deliver or doing “what it takes” to get the business. To close this gap, companies need to create realistic customer expectations through honest, accurate communication about what firms can provide.

Gap 5: the gap between the service that customers receive and the services they want. This gap can be positive or negative. For example, if a patient expects to wait twenty minutes in the physician’s office before seeing the physician but waits only ten minutes, the patient’s evaluation of service quality will be high. However, a forty-minute wait would result in a lower evaluation.

Recommendations

The success of a recommendation relies on the ability of the whole organization to comprehend. These recommendations are not hard to handle because it will begin from the initiatives of the organization or the entire team.

Reliability is the ability to perform the service dependably, accurately, and consistently. Reliability is performing the service right the first time. This component has been found to be the one most important to consumers.

Responsiveness is the ability to provide prompt service. Examples of responsiveness include calling the customer back quickly, serving lunch fast to someone who is in a hurry, or mailing a transaction slip immediately.

An assurance can be experiences when the knowledge and courtesy of employees and their ability to convey trust. Skilled employees who treat customers with respect and make customers feel that they can trust the firm exemplifies assurance.

Empathy is the act of caring, individualized attention to customers. Firms whose employees recognize customers, call them by name, and learn their customers’ specific requirements are providing empathy. Union Square Hospitality Group, owner of several popular New York City restaurants, will return items customers have left behind by messenger or FedEx so the customers do not have to return to retrieve their belongings.

Tangibles are the parts of a service include the physical facilities, tools, and equipment that a firm can use to provide the service, such as a doctor’s office or an ATM, and the appearance of personnel.

Works Cited:

Grant, S., 2007. Focus on the Competition. Essentials of Service Quality. [Online] Available at: www.goatkids.net/Essentials.pdf. [Accessed 28 October 2009].

Hewson, M., (Dir.), 2006. The Facts About McDonald’s Restaurants of Ireland. [Online] Available at: http://www.mcdonalds.ie/docs/FactsaboutMcDonalds.aspx. [Accessed 28 October 2009].

Services and Nonprofit Organization Marketing. [Online] Available at: http://faculty.inverhills.edu/rmitche/Marketing/chap11and12.htm. [Accessed 28 October 2009].

Shanin, A., 2005. SERVQUAL and Model of Service Quality Gaps: A Framework for Determining and Prioritizing Critical Factors in Delivering Quality Services. [Online] Available at: http://www.proserv.nu/Docs/Servqual.pdf. [Accessed 28 October 2009].

Impact of Debt Financing on Corporate Performance in Nigerian Economy

Introduction

Investments are needed to establish the kind of business that will help the economy to regulate it financial stability. Investments may come in different sources but the most popular source came from the debtors who are willing to support the firm’s production or selling activities.

Debt Financing

The effect of cash on product market performance will actually reflect of debt ratios. Corporate financing is a product of market decisions that was blended with the pure investment and debt financing. The impact of corporate debt financing will be seen competitive outcomes. In studies, the firms with low debt ratios is actually their debt capacity, firms will experience stronger product market performance than their highly indebted rivals (Fresard, 2009).

The negative side of the debts tackles the possibility of controlling for lagged leverage. The competitive effect of cash is not completely absorbed by that of debt ratios. The influence of cash on market share growth arises because there are cash that serves as a negative debt.

Specifically, cash is not the same as negative debt when reducing debt and does not guarantee the ability to access similar debt conditions in the future when debt capacity diminishes. When a firm has a saturated debt capacity when it faces financial constraints and when its investment opportunities tend to arrive when cash flows are low when hedging needs are high (Fresard, 2009). The financial constraint of the firm is based on their asset size and assign to the quartile of the size distribution. It is said that the strong market effectiveness of the firm is usually depends on how strong the positive debt against the negative debt, that can support the continuous financial cycle.

Costs and Benefits

Issuing debt in a capital structure has a wide-ranging in terms of costs and benefits. In an overview, the capital structure depends on the specific circumstances of the firm and overall development of the capital market infrastructure. In different industry, the high leverage can reflect poor corporate governance that exerted too much control over firms. The more focus on size and market share while downplaying return on investment (Haksar and Kongsamut, 2003). The more likely to use debt financing as opposed to raising equity and diminishes the control on the ownership. And with this scheme of high leverage is the main symptom in making the sense of governance weaker.

When there is a presence of the large shareholder that will dominate the ownership of companies, the pursuance in financing policy has characterized the equity and dominating the companies in their respective industries. The usual strategy in company’s expansion projects is also expanding their investments in using borrowed funds although the returns on those investments are declining (Saldaña, 1999). It is because larger companies that have superior access in debt financing is used to apply this kind of strategy, that results in further concentration in industry sales.

Many corporate groups that have an affiliation with banks enjoy more advantages in terms of access in financing and investing in economy and operating in related industries. The advantage that enables the company in this type of option is acquiring the adequate debt financing for their projects because affiliation or relation with banks only means that the organization has a strong managerial impact and competitive within the industry.

Nigerian Manufacturing Sector

In Nigerian economy, policies were pursued for more of the periods were anti-growth in fiscal imbalances that were translated into high public debt and the monetary policy fueled the inflationary rates. The financial market adversely influences interest rates and adopts risks over the private sector credit in the face of the government’s large borrowing requirements (Adenikinju, 2005).

The weakness of the capital or financial market is indeed to need more funds that are fully required on both working capital and to finance investment. Nigerian economy, as well as the manufacturing sector has two source of financing capital which is the internal and external financing. In internal financing is exercised through retained earnings such as profits while external is a mixture of different sources namely debt, owner’s equity, grant and subsidies from the government. These two financing source of any firm creates a great impact in productivity.

Internal financing is generally believed to have a greater positive impact or repetition because retained earnings can usually be used more quickly and readily to improve productivity. However, external finance serves as an agent of restraint and can usually force management to pursue productivity-enhancing goals.

References:

Adenikinju, A., 2005. Productivity Performance in Developing Countries: Country Case Studies Nigeria. [Online] Available at: http://www.unido.org/fileadmin/import/60396_03_nigeria_final.pdf. [Accessed 27 Nov 2009].

Fresard, L., 2009. Financial Strength and Product Market behavior: The Real Effects of Corporate Cash Holdings. Journal of Finance [Online] Available at: http://www.afajof.org/afa/forthcoming/6386p.pdf. [Accessed 27 Nov 2009].

Haksar, V., & Kongsamut, P., 2003. Dynamics of Corporate Performance in Thailand. International Monetary Fund [Online] Available at: http://www.imf.org/external/pubs/ft/wp/2003/wp03214.pdf. [Accessed 27 Nov 2009].

Saldaña, C., 1999. Conference on Corporate Governance in Asia: A Comparative Perspective. Philippine Corporate Governance Environment and Policy and their Impact on Corporate Performance. [Online] Available at: http://www.oecd.org/dataoecd/7/55/1931508.pdf. [Accessed 27 Nov 2009].

Student Labor and HR

Introduction

The employment issue does not mean that the under-developed and developing countries, but it also silently settled in developed countries. The only difference is the unemployment scenarios in the developing countries can barely seen and felt while the unemployment in a developed country is invisible. This creates away to make the future laborers prepared themselves and armed with full knowledge that they will be use tomorrow. There are student programs that aim to make the student aware of the business world, which is with relation on the course that he/she is taking. The programs are good in terms of keeping the students aware of, but, are the students are well prepared enough to accept the early and why does many companies preferred to use the student labor as part of their labor force?

The Student Hiring

Through the use of the internet, the aspiring student workers can submit their resume’s in the website of the company where they chose to work. There are also websites that encourage the students to grab a chance to work in the company and promises to make the opportunity for them to be possible. Those kinds of websites are acting as the agency over the internet. The company will be the one to decide on how many students they will hire and rate on the kind of the job these students are expecting for. Then the decision will be forwarded in the Human Resource Department to make the schedules for these students.

Student Job Policies

After the appropriate count of student workers has been achieved, the human resource department will nurse them for and give the student workers’ orientations and briefing in the work industry that they enrolled. The HR department will then assign various trainers to guide the student workers. All students will be paid an hourly wage rate as defined by each individual department, and the basic wage will be scheduled on the assessment through their company meeting. Student employees are expected to fulfill duties in a responsible and competent manner, regardless of the fund out of which they are paid. Any student failing to perform satisfactorily should be counseled immediately by the supervisor to ensure that the students fully understand their job.

Potential Reasons of the Companies

One purpose at the Employment office is to assist students in meeting some of their expenses through employment, to provide an orderly process through which students are hired on campus, and to promote a positive correlation between learning and work. Working allows the student to learn to use their time effectively, develop competencies, confidence and workplace skills, and increase chances of staying in school. Students will also learn to manage their own money, develop a solid work ethic, and test possible career choices.

The “skills” which employers find inadequately developed in today’s job applicants are actually attitudes, not skills. The truth about skill requirements for jobs of the future is a matter of much dispute, but much evidence indicates that growth in skill requirements beyond basic numeracy and literacy will actually slow down. Maybe, the companies consider the hiring of student workers advantageous because there are companies that offer a minimum wage proposal and limitation on benefits. The company gain advantage through the additional productivity that in an exchange of minimum cost. The term that they use to say that they only train the students in the field of work that they will face soon is another factor, but the most applicable reason behind the student labor policy is giving the company a boost in their revenue and gather the students that well deserved to have their offer in the position when those students already finished their education. This kind of company strategy is like keeping the best for last.

Conclusion

The student labor is a kind of outreaching the students and exploiting their knowledge in a higher education. Therefore, such educational reform is needed to avoid the mismatch of the employee toward the work or vice versa. The company prospects those skilled enough students and gradually keeps them. It is good in the case of a student worker and the working environment that he/she seems to control in an early time of the career. The problem that might arise in the company is they cannot overpower the student’s schedule because the priority of the student worker is the school. Therefore, they should have a wide understanding on the student’s time management.

References:

Nissen, B., & Seybold, P., (1994) Labor and Monopoly Capital in the Labor Education Context, Monthly Review, Vol. 46 No. 6

Northern Arizona University (2004) Student Responsibilities: Hiring and Managing Student Workers, Information Technology Services [Online] Available at: http://www4.nau.edu/its/policy/Hiring_and_Managing_Student_Workers.htm [Accessed 19 Aug 2009].

The Executive Fast Track (2009) Cultural Dimension (Hofstede). [Online] Available at: www.12manage.com/methods_hofstede.html [Accessed 19 Aug 2009].

VODAFONE: An Analysis of a Multi National Telecommunication Company

PEST Analysis

Political – political factors involved the tax policy, labor law, environmental law, trade restrictions, tariff, and political stability.

Due to the customer relationships that the company value most, Vodafone is willing to shift their approach away from unit pricing and unit based tariffs to propositions that deliver much more value to customers in return for greater commitment, incremental penetration of the account or more balanced commercial costs. This will require a more disciplined approach to commercial costs to ensure our investment is focused on those customers with higher lifetime value. In essence, we are confident that by targeting our offers, we can deliver more value to our customers and have a better financial outcome for Vodafone.

Economic – economic factors includes the economic growth, interest rates, exchange rates and the inflation rate. The pricing factors the company usually do is giving the consumers a right and justly cost so that, everybody can avail or purchase their product in a broad sense.

Social – social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The need for an equipment that can be a good device for every age range is available, since everybody are fully oriented in the use of the mobile technologies.

Technological – technological factors includes ecological and environmental aspects, like R&D (Research and Development) activity, automation, technology incentives and the rate of technological change. The technology is the thing that Vodafone is very proud of. The technological advancement enables the company to make a customer relationships stronger because of their customers trust that built over the years.

The PEST factors have major impacts on how businesses operate and make decisions. With the help of PEST analysis, the business can penetrate to the market with readiness. The determination of its four keys, the business will answer the common questions that revolve around the business society. These basic questions are what to produce, how to produce, when to produce and for whom to produce. No matter how many times a business answer these questions, the needs from the market will remain constant and unchanged.

It is an advantage of the company to know the scope and limitation of their business. It is done so that the company is prepared enough to face a future and ready to give solutions as possible when the demand for the products are satiated or already diminished.

SWOT Analysis

Strengths – The Company’s strengths can be the reputation of the business in the local market because of the product in long run. The company’s strengths are the strong bond of the company towards the customer and valuing them most as they craft another product. Another strength that can be depicted is the technology that is their greatest asset above the competitors.

Weaknesses – The result of the weaknesses can be shortage of materials needed or more expensive purchase of materials in the target country. Meeting the customers’ demand is sometimes hard to cope. Every company must admit that reaching the customers’ taste and preferences are really hard to achieve. But this weaknesses will serve as a challenge in the company and they must prepare actions in answering this needs.

Opportunities – The opportunities can be a well established position when the business successfully landed in the foreign market. On growth opportunities, the three target areas are Mobile data, Enterprise and Broadband

Threats – The threats can be large competitors that are waiting for the business that were undiscovered before conducting the study. This possibility is not that new. The Vodafone is not the only company that serving a kind of delicacy. Some companies might surpass their achievement, and therefore, they must maintain their company culture in dealing with their customers and being ahead in the products and services. The threats will not mean bankruptcy, but it can be a contributing factor in the bankruptcy of the company.

The SWOT analysis is a tool that assesses the company in its position in the market, or commercial viability. The method of sales distribution with the accordance to brand or product, business idea, strategic option, such as entering a new market or launching a new product, opportunity to make an acquisition, potential partnership, changing a supplier, outsourcing a service, activity or resource, and investment opportunity, in short, SWOT measures a business unit, a proposition or idea.

Conclusion

The fast growth of the company doesn’t depend on its strong cash flow but also affected by the assurance of the company’s customers loyalty. The exposure of the products in the market eye is a great help in earning the customer’s trust. The proper use and taking the chance of innovation considers a fifty-percent risky and the other half is fifty-percent successful. But in doing a business, the company must keep into their mind that it is better to lose a little in the income in trying to make a difference than to lose all because of doing nothing.

Sources:

History of Vodafone [Online] Available at: www.vodafone.com/start/about_vodafone/who_we_are/history.html [Accessed 19 Aug 2009].

Company Vision [Online] Available at: www.vodafone.com/start/about_vodafone/who_we_are/history.html [Accessed 19 Aug 2009].

Corporate Strategic Review [Online] Available at: http://www.vodafone.com/start/investor_relations/strategy0.html [Accessed 19 Aug 2009].

Vodafone’s Story of Success [Online] Available at: http://www.lexmark.com/success/Ret_ScS_Vodafone.pdf [Accessed 19 Aug 2009].