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Mercadona - Coggle Diagram
Mercadona
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5 components of TQM
1. Boss (customer)
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Contact: Specialists know customers by name and stores have toll free number that customers can call
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4. Society
Environmental productivity - making concentrated liquid detergents/ trucks loaded minimum 95% capacity/ working with suppliers to eliminate direct-store deliveries from suppliers such as coca cola and rerouting them to its logistics block to reduce traffic congestion and noise at its stores
Social impact - reduced disturbance to neighbourhood through quiet and quick offloading / same drivers for same stores/ paying attention to traffic and appropriate delivery times for each area to make sure deliveries are fast and quiet
Focus on long term profitability/ continuous improvement in productivity and reinvestments in profits to increase equity (90% reinvestment)/
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Managing store network
Prescription instructors introduced in 2006 - increased accountability for both customers and specialists
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My take
Should Mercadona pay the 2008 bonus?
Yes they should but then use this as an opportunity to change the policy on bonus temporarily. Recessions are not permanent so the policy change should reflect the eventuality of financial unpredictability. Why - The company has been performing well and still is. Their margins have been high and they have managed to keep their costs down. Most of the employees are in this for the long haul.
What benefits does Mercadona reap from investing in its people and processes?
• Commitment to the company success
• Efficiency in processes
• Staff retention and low turnover
• Efficiency in recruitment
• reduced waste
How do they make this strategy work?
• Making their staff to be in charge of how the company is run
• Co-creating and collaboration with suppliers and customers in improving processes and products
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Do we have a different set of responsibilities to employees during a crisis?
• Yes but this should be anticipated in any business and planned for but not reacted to
• protecting the livelihoods of employees sometimes impacts the employees in ways that they might not feel great about in the moment
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