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TQM management: Explain importance of customer satisfaction in organizations

Select One organization from each of the following American industries:

1. Manufacturing
2. Service
3. Non-Profit (May use, but not limited to USO ??)
4. Government ( May use, but not limited to US ARMY ??)

Explain the value of quality in relationship to customer satisfaction within each organization.

Include a description of customer-driven quality and assess the importance of participatory management as it relates to quality.

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MANUFACTURING INDUSTRY

It is the quality of the GM vehicles that has resulted in customer satisfaction and growth over the years. GMNA designs, manufactures, and/or markets vehicles primarily in North America under the following nameplates: Chevrolet, Pontiac, GMC, Oldsmobile, Buick, Cadillac, Saturn and HUMMER.GME, GMLAAM and GMAP primarily meet the demands of customers outside North America with vehicles designed, manufactured and/or marketed under the following nameplates: Opel, Vauxhall, Holden, Saab, Buick, Chevrolet, GMC and Cadillac.

To increase customer satisfaction the company has taken several measures. Substantially all the Company's automotive-related products are marketed through retail dealers and distributors in the United States, Canada and Mexico, and through distributors and dealers overseas. At December 31, 2004, there were approximately 7,600 GM vehicle dealers in the United States, 800 in Canada, and 300 in Mexico. There were also a total of approximately 19,400 outlets overseas, which include dealers, and authorized sales, service and parts outlets.

General Motors Corporation (General Motors or GM), has encouraged participatory management since it was first incorporated in 1916. It has two core businesses, which constitute its operating segments: Automotive and Other Operations (Auto and Other), and Financing and Insurance Operations (FIO). GM's Auto and Other segment consists of GM's four automotive regions: GM North America (GMNA), GM Europe (GME), GM Latin America/Africa/Mid-East (GMLAAM), and GM Asia Pacific (GMAP), which constitute GM Automotive (GMA), and Other, which includes the design, manufacturing and marketing of locomotives, and certain corporate activities. GM's FIO operating segment primarily relates to General Motors Acceptance Corporation (GMAC). GMAC provides a range of financial services, including consumer vehicle financing, automotive dealership and other commercial financing, residential and commercial mortgage services, automobile service contracts, personal automobile insurance coverage and selected commercial insurance coverage.

To increase customer satisfaction and improve its quality GM has established equity ownership directly or indirectly through various regional subsidiaries in New United Motor Manufacturing, Inc. (NUMMI), Fiat Auto Holdings (FAH), Fuji Heavy Industries Ltd., Suzuki Motor Corporation (Suzuki), Isuzu Motors Ltd., Shanghai General Motors Co., Ltd. (SGM), SAIC-GM-Wuling Automobile Company Ltd., CAMI Automotive Inc. (CAMI) and GM Daewoo Auto & Technology Company (GM-DAT). These investees design, manufacture and market vehicles under the following nameplates: Pontiac, Fiat, Lancia, Alfa Romeo, Subaru, Suzuki, Isuzu, Buick, Wuling, Daewoo and Chevrolet.

It is through participatory management that the company has been successfully been able to compete with Ford Motor Company, DaimlerChrysler AG (DaimlerChrysler), Toyota Corporation (Toyota), Nissan Motor Corporation, Ltd., Honda Motor Company, Ltd., Mazda Motor Corporation, Mitsubishi Motors Corporation, Volkswagen A.G. (Volkswagen), Hyundai Motor Company, Ltd. (Hyundai) and Bayerische Motoren Werke AG (BMW).

SERVICE INDUSTRY

Customer satisfaction through quality improvement measures has enabled McDonald's to serve "Billions", indeed. McDonald's is the world's #1 fast-food company by sales, with more than 31,000 flagship restaurants serving burgers and fries in more than 100 countries. Almost 30% of its locations are company-owned; the others are run by franchisees. To increase customer satisfaction and convenience most of the company's eateries are free-standing units In addition, it does have some quick-service kiosk units located in airports and retail areas. Each unit gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing. McDonald's also owns the Boston Market and Chipotle Mexican Grill fast-casual chains.

McDonald's Corporation operates and franchises McDonald's restaurants in the foodservice industry on the principle of increasing customer satisfaction by providing high quality food item. Its restaurants serve a varied yet limited, value-priced menu in more than 100 countries around the world. The Company also operates Boston Market and Chipotle Mexican Grill, and has a minority ownership interest in the United Kingdom-based Pret A Manger. In December 2003, the Company sold its Donatos Pizzeria business. All restaurants are operated either by the Company, by independent entrepreneurs under the terms of franchise arrangements (franchisees/licensees) or by affiliates operating under license agreements. When granting franchises and forming joint ventures, the Company is selective and generally is not in the practice of franchising to, or partnering with, investor groups or passive investors.

Under the conventional franchise arrangement, franchisees provide capital by initially investing in the equipment, signs, seating and decor of their restaurant businesses, and by reinvesting in the business over time. McDonald's generally shares the investment by owning or leasing the land and building. Franchisees contribute to the Company's revenue stream through payment of rent and service fees based upon a percentage of sales, with specified minimum rent payments, along with initial fees. The conventional franchise arrangement typically lasts 20 years and franchising practices are generally consistent throughout the world.

The Company, its franchisees/licensees and affiliates purchase food, packaging, equipment and other goods from numerous independent suppliers that have been approved by the Company. McDonald's has quality assurance labs around the world to ensure that its standards are consistently met. The quality assurance process not only involves ongoing product reviews, but also ...

Solution Summary

The 3511 word solution presents a very comprehensive response to the question by industry.

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