Operation Analysis of Iga Supermarket

Topics: Quality of service, Customer, Quality management Pages: 13 (4188 words) Published: January 6, 2010
This essay aims to conduct an operational analysis on IGA (Independent Grocers Alliance) which is one of the top five retail stores in Australia. This study examines the relationships between productivity, administrative effectiveness, customer satisfaction, and employee attitudes over time. This essay will evaluate the effectiveness by reviewing the performance analysis. This essay also offers a detailed and comprehensive operational analysis of IGA’s strategies and executions and focuses on providing a qualitative review of the company’s operating environment and business outlook. This study starts by explaining the concept of service quality and employee performance. The findings indicate some reasons for service quality decline among employees which is followed by explaining the strategies on how to develop employee performance which can yeild good results in business.

1) Introduction
2) Service Quality
3) Employee Performance
4) Reasons for Employee Performance Declination
5) Service Quality Measurement
6) Measures to Improve Service Quality
7) Service Quality Dimensions
8) Total Quality Management (TQM)
9) Competition in Supermarket Industry
10) Strategies to make Operations More Effective
10.1) Employee Involvement
10.2) Ensure service leadership
10.3) Excellent Customer service
10.4) Reward System
10.5) Performance measurement strategies
10.6) Customer satisfaction and loyalty
11) Conclusion

Supermarket shopping is often categorised as a self-service retail environment. For supermarket retailers wanting to build relationships with their customers, being able to track their levels of ‘satisfaction’ with the key elements of the supermarket environment is extremely important. Service quality and customer satisfaction are increasingly becoming important for supermarket industry to stay in the business. This essay about the operational analysis of IGA supermarkets on employee performance, service quality and customer satisfaction. As a branch manager of IGA, I ‘am responsible for conducting the operational analysis to improve business and surviving in the competitive market. As a branch manager of IGA, I identified a problem in the analysis that in one of the branch employee performance is declined which in turn effected service quality and employee satisfaction. In this study we will discuss the reasons for performance declination and give the possible strategies in order to make operations effective. This essay starts by explaining the general concept of service quality, its meaning and service quality at IGA supermarkets. Service quality has been seen as critical for service firms to position themselves strongly in a competitive environment (Parasuraman, et al., 1985, Shemwell et al., 1998; Mehta et al., 2000) and it also indicates its business performance (Hurley & Estelami, 1998). Superior service quality can help firms become more profitable and help them sustain a competitive advantage in their served markets. It also identifies the strength and weakness of the service which is currently being delivered. This is followed by the reasons of performance declination. Secondly, it discusses many possible strategies which make IGA branch operations effective. Thirdly, it provides the implementation process of all these strategies. Finally conclusions are drawn from all the above analysis and possible recommendations were given. Service Quality: Service quality is the delivery of excellent or superior service related to customer expectations” and occurs for most services during the interaction between a customer and a service provide. Most of the service quality definitions fall within the “features of products which meet customers’ needs and thereby provide customer satisfaction” category (Juran,1999). Feinburg & de Ruyter (1995) pointed the importance of adapting the...

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