Total Quality Management (TQM) has emerged less than a century ago (Mukherjee, 2006), but has already became one of the most popular and competitive corporate approaches. The essence of TQM lies in the philosophy linking business goals and customer satisfaction (Oaklamd, 2003). This approach to quality can be viewed both as a goal, a method of doing business and as a separate management philosophy as well. TQM is now applied in various business spheres, be it industry or commerce. TQM can be defined as the business approach based on continuous improvement of performance involving leadership, business vision and goals, plan statement, evaluation, control of processes, product design, employee participation, education and training, recognition and rewards, with ongoing customer focus (Cummings & Worley, 2008). The goal of this paper is to select a UK-based company and to analyze how its performance could be improved by implementing TQM in all spheres of the company’s activities.

Description of the company

One of the most successful UK-based companies which has grown into an international network is Vodafone. This company is the largest one by revenue in the sphere of telecommunications, and by the number of subscribers it is the second largest in the world. Own and partner networks of Vodafone cover more than 70 countries, with 30 countries being covered by own Vodafone networks (Books LLC, 2010). The company provides voice and data services over mobile phone, fixed phone and data services, roaming and a variety of value-added telecommunication services. In addition to this, Vodafone Group Plc. operates business managed services (online management portals, security, cost control, logistics, etc.), unified communications service and a network of stores with branded products as well as stores offering customer support and services (Hitt & Ireland & Hoskisson, 2008). In 2009, Vodafone entered the market of mobile healthcare communications and network technologies (Surhone & Timpledon & Marseken, 2010). The company has always been known for its attention to quality; Quality Management at Vodafone was certified according to ISO standards in 1994, and then the certificate was upgraded in 2000 (Hitt & Ireland & Hoskisson, 2008). The company is also pursuing goals of sustainability: during the 2009-2010 period Vodafone increased the rate of network equipment waste sent for reuse and recycling by 2% (from 97% to 99%) (Books LLC, 2010) and reduced its proportion of carbon dioxide emissions.

Benefits of TQM

Potential benefits of TQM for Vodafone are numerous and include better control over their production and services, minimization of excess production and wastage, improvement of the quality of Vodafone goods and services, increase of the productivity ratio, better control for operating and manufacturing costs (Morfaw, 2009), and effective business adjustments not only within a particular department, but also in the whole global network of the company. In addition to this, a comprehensive use of TQM at Vodafone could lead to higher customer loyalty (Kerzner, 2010), and thus for the growth of market share in the world telecommunications industry. TQM will also help to manage customer complaints better (Tonchia & Quagini, 2010), and to improve cost efficiency for the whole company. However, there are a number of potential difficulties for TQM implementation. First of all, Vodafone has a large package of different services and departments in more than 70 countries, and to manage all these systems in a consistent manner is a difficult task. Secondly, not all the effects of TQM on the performance of Vodafone could be measurable and tangible; certain effects might be long-term and their effect will be visible after a certain period of time (Bernowski & Stratton, 2001). For example, improved customer loyalty would lead to growing revenues in the future, but it is not possible to relate this effect to the influence of TQM directly.

TQM methods for improving performance and competitiveness

Each organization develops its own TQM methods; the most popular techniques applied for implementing TQM are cause-and-effect analysis, process analysis based on flow charts, DMAIC, six sigma technique and balanced scorecard approach (Hill, 2008). Cause-and-effect analysis employs Ishikawa diagrams (Janakiraman & Gopal, 2006) and allows to analyze the dispersion of processes through organization of factors and providing a structured view of the whole picture (Charantimath, 2011). Flow charts allow to model the processes within the organizations in order to identify problems and opportunities, bottlenecks and critical paths (DIANE Publishing, 1993). DMAIC and six sigma model are quite similar and help to clarify and direct the processes within the company as well as align them with the company’s strategic goals (Sashkin & Kiser, 2003). Finally, the balanced scorecard approach allows to measure the competitive position of the company (Lal, 2008), and can be used to translate strategic goals into operational based on a strategy map.

Implementation of TQM at Vodafone

Vodafone departments could improve their efficiency and increase local customer satisfaction after the application of process analysis methods to these departments. While processes at different departments can be incomparable (Dahlgaard & Kristensen & Gopal, 2005), local application of flow charts approach and detailed analysis would help to improve local effectiveness. At the top management level, Vodafone should seek for new opportunities not used by competitors in the telecommunications industry. The search of these opportunities and the analysis of existing competition can be illustrated using Ishikawa diagrams, together with cause-effect analysis (Stahl, 2004). The examples of such new opportunities for Vodafone are enterprise products and services, collaboration with Verizon, rationalization of commercial costs, and the expansion of voice and data services to emerging markets (Surhone & Timpledon & Marseken, 2010). DMAIC technology should be used to establish clear business goals, and to introduce the whole process to the Vodafone network. In order to transform the strategy into detailed steps, balanced scorecard should be implemented (Roy, 2007).

In 2010, the company has already performed an attempt for applying TQM in order to improve performance and effectiveness in the Netherlands department of Vodafone (Surhone & Timpledon & Marseken, 2010). The company uses the services of Capgemini Consulting in order to maximize customer experience, to determine critical success factors and to improve operational efficiency. During 12 weeks the professionals of Capgemini Consulting used a variety of change management tools in order to identify improvement opportunities. They have created a business case joining all improvement opportunities, and a transformation map for the department. The tools applied by the consulting company included as-is analysis, to-be design, business case analysis, transformation design and change management tools. As a result, 27 initiatives were pursued (Surhone & Timpledon & Marseken, 2010), the return on investments for Netherlands department has significantly increased, and customer experience has improved, including customer self-service opportunities and overall mobility of the department. The service model developed in the department was evaluated as a blueprint for the transformations of other departments.

Conclusion

Total Quality Management offers a number of benefits for Vodafone Group Plc., starting from greater return on investments and better customer satisfaction to the potential increase of global market share for the company. Vodafone has already tried to apply TQM at different departments, and the example of Netherlands department illustrates the effectiveness of TQM methods. However, Vodafone is not using TQM methods at the level of the whole international network, and from this point of view such approaches as process flow analysis, cause-and-effect analysis, DMAIC methodology and balanced scorecard approach can be recommended as the means of reaching a new level of quality of products and services for Vodafone.

References

Bernowski, K. & Stratton, B. (2001). 101 good ideas: how to improve just about any process. ASQ Quality Press.
Books LLC. (2010). Vodafone: Mclaren, Verizon Wireless, Vodafone Market Share, Roshan, Digicel, Bharti Airtel, Vodafone Essar, Crazy John’s, M-Pesa. General Books LLC.
Charantimath, P.M. (2011). Total Quality Management – Second Edition. Pearson Education.
Cummings, T.G. & Worley, C.G. (2008). Organization development & change. Cengage Learning.
Dahlgaard, J.J. & Kristensen, K. & Gopal, K.K. (2005). Fundamentals of Total Quality Management: Process Analysis and Improvement. Routledge.
DIANE Publishing. (1993). A Total Quality Management Process Improvement Model. DIANE Publishing.
Hill, D.A. (2008). What makes Total Quality Management work: A study of obstacles and outcomes. ProQuest.
Hitt, M.A. & Ireland, R.D. & Hoskisson, R.E. (2008). Strategic management: competitiveness and globalization : concepts & cases. Cengage Learning.
Janakiraman, B. & Gopal, R.K. (2006). Total Quality Management Text And Cases. PHI Learning Pvt. Ltd.
Kerzner, H. (2010). Project management best practices: achieving global excellence. John Wiley and Sons.
Lal, H. (2008). Organizational excellence through total quality management: a practical apporach. New Age International.
Morfaw, J. (2009). Total Quality Management (TQM): a model for the sustainability of projects and programs. University Press of America.
Mukherjee, P.N. (2006). Total Quality Management. PHI Learning Pvt. Ltd..
Oaklamd, J.S. (2003). Total quality management: text with cases. Butterworth-Heinemann.
Roy, R.N. (2007). A Modern Approach To Operations Management. New Age International.
Sashkin, M. & Kiser, K.J. (2003). Putting total quality management to work: what TQM means, how to use it, & how to sustain it over the long run. Berrett-Koehler Publishers.
Stahl, M.J. (2004). Perspectives in total quality. Wiley-Blackwell.
Surhone, L.M. & Timpledon, M.T. & Marseken, S.F. (2010). Vodafone. VDM Verlag Dr. Mueller AG & Co. Kg.
Tonchia, S. & Quagini, L. (2010). Performance Measurement: Linking Balanced Scorecard to Business Intelligence. Springer.

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It is known that any marketing communication activity denotes promotion of this or that product, brand or a company. Effective marketing communication guarantees effective marketing. There are five different elements of the promotion mix. They are advertizing, direct marketing, personal selling, sales promotion and public relations.

Advertizing is a type of communication which does not require personal participation because it is a product of media which includes such sources as television, radio, newspapers, magazines, billboards, internet. The major goal of any advertising is to inform the public and to persuade that the advertised product is good. Usually it is done by means of a message. It is also important that the advertiser should pay for his advertisement. It is considered to be “above the line promotion”.

Direct marketing is a so-called process of selling which denotes direct relations between the customers and the business organization by means of promotion letters, messages, websites, catalogs, online ads and so on. Direct marketing is used by all types of businesses that is why it is very popular.

Personal selling denoted a process when a seller wants to persuade somebody to buy his product. It is an oral communication. Personal selling is related to a bargain with one potential buyer. For example, door-to-door sale or sales meetings are considered to be personal selling.

Sales promotion is connected with the provision of incentives to the buyers. It may be also a distribution channel which increases the product’s demand. It is considered to be a short-term promotion of the product. For example, free samples of the product which are given to the buyers or some coupons which will encourage the buyers to make a purchase.

Public relations denotes the way of product promotion by means of special information about the product which should be placed in the media. In this case the company does not have any control over the process of promotion. Public relation, or publicity is a non-personal method of communication related to a large number of people. However, the company does not pay for it.

Advertising Essay Conclusion

In conclusion, it is necessary to say that the effectiveness of marketing depends on the communications effectiveness that is why all the elements of promotion mix play a significant role in the process of promotion a product, brand or a company.

References

Belch, G.E., Belch, M.A. (2003) Advertising and Promotion. McGraw-Hill. Irwin.
Koekemoer, L., Bird, S. (2004) Marketing Communications. Juta & Company Ltd.
Lancaster, G. (2010) Above and Below-the-Line Promotion. Durham Associates.
Retrieved from:< http://www.da-group.co.uk/index.php?option=com_content&view=article&id=18%3Athe-communication-mix&catid=2%3Amarketing-lectures&Itemid=3>
O’guinn, T. (2008) Advertising and Integrated Brand Promotion. Oxford University Press.
Pickton, D., Broderick, A. (2005) Integrated Marketing Communications. Second Edition. Prentice Hall.
Schultz, D.E., Tannenbaum, S., Lauterborn, R. (2007) Integrated Marketing Communications: Putting it Together and Making it Work. NTC Business Books.
Scott, D. (2010) The New Rules of Marketing and PR: How to Use Social Media, News Releases, Online Video, Viral Marketing to Reach Buyers Directly. Second Edition. Wiley.
What is Promotion Mix? (2010) Wise Geek. Retrieved from:<http://www.wisegeek.com/what-is-a-promotion-mix.htm>
Young, A. (2010) Brand Media Strategy: Integrated Communications Planning in the Digital Era (Advertising Age). Palgrave Macmillan.

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Such type of business running has its advantage and disadvantage, of course. As for its advantages it’s possible to say that an owner can control and take decisions concerning his business as he likes. He also can sell or demise it at any time. The tax policy is less complicated than a corporate one. It does not cost too much to establish a proprietorship and the formal requirements are less complicated. But at the same time an owner is completely responsible for all credits and obligations his business has as well as for obligations which are the consequence of the employees’ actions (Piper, 2007).

Partnerships

A partnership means an official decision between two and more people to create a business including its financial and running aspects (Matlin, 2001). A general partnership presupposes that all benefits and losses should be reflected into the partners’ tax returns. All partners are similar responsible for this business and they take part into running business together, taking decisions and performing everyday operations inherent to this business. This type of business running has its own advantages and disadvantages as well which are well-seen through the shared ownership concept which is the main feature of it (Madura, 2006).

It’s easy to start such type of business running. Funds have more chances to be increased due to partner’s capacities to bring more funds at the very beginning and to be able to take more credits. It’s also possible to involve employees into running business if parties are interested in it. All together partners have more knowledge, skills and contacts and they can forward them to specific sphere for each of partners to act. Furthermore, they can support each other and create favorable conditions for stimulating creative brainstorming.

As for a partnership disadvantages it’s possible to say that running business together means to be responsible for each other’s actions as well as all debts and errors made by the other partners. One cannot take decision by himself and he should always discuss it with his partners, being open for compromises and stable providing arguments (Robinson, 1999). All the benefits gotten from running the business are shared between remembers and the question how to evaluate other partner’s efforts and time in operating it can rise. As a partnership is created for long time, the situation can change and personal disagreement can influence business relationships between partners as well. Partnership life also depends on partner’s interest or his presence. It can end up because of absence of interest or partner’s death. Moreover, this type of running business cannot introvert into a larger form (Merrifield, 2005).

Corporation

On contrary to proprietorship or a partnership a corporation is a type of business running which is reviewed by law as a separate legal entity with its own powers, responsibilities and obligations (Carpenter, 1997). Stockholders have limited responsibility and they are not involved into corporation credits and obligations.

A corporation life does not depend on interest or presence of its owner, it will exist in a case he dies, sells or transfer his stocks what, in effect, is very easy to do. It’s also possible to sale part of stocks to increase funds of corporation (Balmer, 1999). Corporation also establishes insurance and retirement funds. It has centralized management that may remain on its post even if a business is sold.

The essential disadvantage of this type of business running is the fact that profits are taxed two times as income of the corporation and as a stockholders’ personal income. Double taxation can be reduced with the help of salaries or other business operating expenses which are considered to be business expenses (Anbalagan, 1996). Double taxation was and remains the main source of tax revenues in most countries.

References

Anbalagan, R., Sharma, S., Raghuvanshi, T., Appelbaum, E., Katz, E. (1996). Corporate taxation, incumbency advantage and entry. European Economic Review, 40(9), 1817-1828.
Balmer, J.M.T., Gray, E. (1999). Corporate identity and corporate communications: creating a competitive advantage. Corporate Communications: An International Journal, 4(4), 171-177.
Carpenter, C. (1997). Corporate Communications. Journal of Vascular Access Devices, 2(4), 31-32.
Madura, J. (2006). Introduction to business. P. 160.
Matlin, S. (2001). Partnership Challenges. Compare, 31(1), 11-19.
Merrifield, B. (2005). Limited Liability Partnerships. Research-Technology Management, 48(5), 16-19.
Piper, M. (2007). Surprisingly Simple: Independent Contractor, Sole Proprietor, and LLC Taxes Explained in 100 Pages or Less. p. 56.
Robinson, R.J. (1999). Partnership. Bangladesh, 6(15), 1-6.
Sitarz, D. (2005). Sole Proprietorship: Small Business Start-up Kit. p. 39.

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