ASSESSING THE ROLE OF TOTAL QUALITY MANAGEMENT ON FOOD AND BEVERAGES COMPANIES IN LAGOS NIGERIA
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ASSESSING THE ROLE OF TOTAL QUALITY MANAGEMENT ON FOOD AND BEVERAGES COMPANIES IN LAGOS NIGERIA
Chapter one
INTRODUCTION
1.1 Background of the Study
The onset of globalisation, characterised by increased consumer choice, has heightened competitiveness in both domestic and foreign markets. Consumers were now exposed to a broader selection of generic products, allowing them to select high-quality products at lower rates.
One strategy that could provide organisations with a competitive advantage is to offer quality products and services to consumers at affordable pricing. The success of Japanese organisations in the late twentieth century prompted most organisations to view quality as a key market component that provides a competitive advantage (Alolayyan et al, 2013).
As a result, most organisations are increasingly incorporating Total Quality Management (TQM) as a strategic decision to achieve customer loyalty, market share, and competitive advantage, ultimately allowing them to survive in the competitive climate.
In today’s tumultuous market climate, businesses must develop and execute overall quality management methods that allow them to identify and adapt swiftly to changing market conditions.
TQM methods enable organisations to respond proactively through continuous improvement in order to attain optimal organisational performance (Chase et al., 2005). Furthermore, organisations may use overall quality management to enhance market share, obtain a competitive advantage, save operating costs, and improve corporate reputation (Heizer and Render, 2004).
Ismail (2002) defines generic TQM practices as customer focus, leadership and top management commitment, employee training, employee involvement, continuous improvement, innovation, product design, cross-functional quality teams, benchmarking, performance measurement, and statistical process control.
These generic practices apply to all organisations, regardless of size or nature. To thrive in the global market, businesses must prioritise complete quality standards that provide them with a competitive advantage.
The food industry tries to ensure the safety of its products while also delivering crucial information to its business partners along the food chain and customers. On the other hand, when viewing processes from the perspective of stakeholders who might affect business processes, the enterprise’s emphasis broadens and the meaning of quality shifts.
As a result, organisations employ various instruments and methods, particularly Integrated Management methods, to ensure certain quality requirements. The use, relevance, and efficiency of Integrated Quality Management Systems, or so-called Total Quality Management (TQM), were investigated as part of a research project titled ”
Assessing the role of total quality management on food and beverage companies in Lagos Nigeria” (Morath, 2008). Furthermore, the potential for TQM to improve food industry firms has been evaluated, and recommendations have been developed.
In the globalisation era, quality is the most crucial competitive factor in any firm or industry. The rapid shift in the competitive business environment has pushed many businesses to develop both innovation and the ability to compete in both domestic and international markets.
To remain competitive in today’s market, businesses must adopt and execute management best practices in operation management, such as total quality management (TQM) and supply chain management (SCM) (Heizer and Render, 2004).
These techniques can assist organisations in identifying change in the dynamic environment and responding proactively through continuous improvement activity in operational processes to attain optimal performance (Chase et al., 2005).
The obstacles in enhancing performance in a competitive environment include constant improvement of business activities centred on customers, adaptability, and quality.
Companies should therefore manage quality in order to expand their market and compete. Companies who are unable to manage change will progressively fade in the marketplace.
Conceptually, quality is the entirety of the shape and qualities of goods or services that reflect their ability to meet the needs of their apparent and hidden users (Heizer and Render, 2004).
Some experts describe quality in a variety of ways. Juran (1989) defines quality as “fit for use.” This definition comprises product features that match consumer needs and are devoid of flaws.
Deming discovered that quality meets the demands and expectations of customers based on the price they paid. Deming’s theory of creating quality as a system (Bhat and Cozzolino, 1993). Bina Produktivitas Tenaga Kerja (1998) defines quality as:
(1) a perfect degree that contains a comparative understanding of the product level (grade) specific,
(2) the level of quality that contains the notion of quality to evaluate technical, and
(3) suitable for use, which is the ability of the product or service to deliver satisfaction to customers. Heizer and Render (2004) discovered that quality significantly impacts businesses in four areas:
1) cost and market share: higher quality can lead to greater market share and cost savings, as well as an impact on profitability;
2) corporate reputation: a company’s reputation follows a quality reputation produced. Quality will emerge as a result of the company’s new product, employee management practices, and supplier relationships;
3) product liability: organisations bear a great deal of responsibility for everything that results from the use of goods or services; and
4) international implications: in the age of technology, quality is a concern for international operations. For businesses to compete effectively, their products and services must fulfil the expected quality and price. In truth, quality is a difficult term to grasp.
Today, the term “quality” has a variety of connotations. It can’t be defined as a single phrase because it depends on context. As a result, this study focuses on measuring the impact of overall quality management on food and beverage enterprises in Lagos, Nigeria.
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