QuikTrip

QUIKTRIP CASE STUDY

QuikTrip Case Study

Introduction

This discussion concerns itself with a case study titled, QuikTrip, by Zeynep Ton. In essence, Zeynep Ton seeks to assess the approach that QuikTrip has embraced in efforts to outshine the competition. She also discusses the company’s capabilities in as far as the maintenance of a huge loyal workforce is concerned. The discussion below assesses the impact of this particular convenience chain’s practices as well as operational strategies.

Part 1

QuikTrip’s Operations Strategy

An operations strategy could be conceptualized as the basic approach that an enterprise takes in seeking to execute its mandate. For this reason, it has got to do with a company’s approach in efforts to achieve its objectives. In the case of QuikTrip, the operations strategy could be thought of in terms of customer service. Thus, to a large extent, the company has in place a core-competencies strategy. According to Brown, Lamming, and Bessant (2007), a core-competencies strategy has got to do with the deployment of systems and processes that seek to further enhance a company’s capabilities, resources, strengths, etc. Thus, in the words of the authors, “a company's core competencies can include its proprietary technology, employees, financial position, market share and distribution system” (Brown, Lamming, and Bessant, 2007). One of the major strengths that QuikTrip has sought to project relates to employee development. As a matter of fact, as has been pointed out in the case study, the company’s purpose statement states, in no uncertain terms, that “QuikTrip’s purpose is to provide an opportunity for employees to grow and succeed” (4). In so doing, the company seeks to ensure that it finds persons best suited for the tasks at hand, and then equipping them with the tools, resources, and capabilities to effectively execute their mandate. To find the person most suited for the available role, the company takes serious consideration of factors considered predictors of high performance. Training is aggressive and is focused on critical skills required for optimal performance. The company also seeks to ensure that employees are well motivated to perform effectively in their various duties. The company treats its employees so well to the extent that most do not see the need to pursue employment opportunities elsewhere.

How Organization Seeks to Gain Competitive Advantage In Terms of Sustainability

Sustainability has got to do with the conduct of business in a manner that does have a negative impact on either the community (as well as larger society) or environment (Bumford and Forrester, 2010). This the company has sought to achieve by infusing the ideals of corporate responsibility in its core values. This is more so the case in relation to core value 5, where employees are called upon to “do the right thing” (3). Here, employees are required to think about how their actions impact the company as well as its key stakeholders (i.e. customers and the community). Further, partnerships and encouraged in efforts to support communities. This could be a source of competitive advantage for the company in the sense that customers are likely to consider doing business with a company that takes sustainability seriously. Qualified and skilled persons are also more likely to work for a company that demonstrates clear efforts on this front.

Part 2

Impact of Operation Management Activities on Customer Experience

It is clear from the case study that customer experience is in this case immensely impacted upon by the various operation management activities. From a general perspective, the company has consistently been focused on long-term impact even in those scenarios where there is a sizeable cost in the short-run. For instance, the QuikTrip sought to renovate its bathrooms at a cost of 12 million dollars because it came to the realization that a move of this nature would pay off in the long-term in terms of attracting more customers into its stores. Customers were glad to visit QuikTrip locations in which case they were sure of access to clean washrooms as they sought to purchase their products of choice. Yet another example of withstanding short-term inconvenience/’pain’ for long-term benefit that also had a positive impact on customer experience was the decision by the company to not offer for sale magazines having pornographic content as well as paraphernalia related to drugs. To a large extent, this had the impact of providing customers with a conducive ‘family’ environment for shopping.

The move by the company to have in place resource groups could also have a positive impact on customer satisfaction. This is more so the case given that the said resource groups make it possible for employees to highlight concerns (including those related to customer service) and explore opportunities for improvement. As a matter of fact, as the author of this particular study indicates, the said resource groups have been instrumental in efforts to advance the product and process improvement agenda. This results in the further enhancement of customers’ feelings as well as perceptions about QuikTrip.

Next, the resolve by the company to adapt its processes and ensure that they are geared towards offering the best possible customer service also results in positive customer experience. This is more so the case with regard to the move by the company to ensure that customer service at its various stores was not only friendly, but also fast. Indeed, one of the top managers of the company has been quoted in the case study noting that “…we serve the customer faster, in a friendly and clean environment, and have the best prices” (6). Thus, customers can in this case be sure of convenience, time saving, and access to a superior shopping experience. Further, the company has also sought to ensure consistency, i.e. via the adoption of, amongst other tools, what is referred to as a daily activities worksheet (DAW). In so doing, it ensures that repeat customers who visit any of its stores are not baffled or perplexed by differing processes or formats. Familiarity could in this case be considered a key aspect of a positive customer experience.

Operation Management Challenges

There are a number of operation management challenges that QuikTrip faces. One such challenge relates to the cost of setting up a new store. In essence, as has been pointed out, QuikTrip had a higher cost of setting up a new store than its competitors. This could have the impact of slowing its growth and expansion efforts in the future – especially if the economy does not perform as expected, i.e. in case of a downturn in economic activity. One possible solution to this particular challenge is the utilization of cheaper fittings and fixtures – i.e. those built using recycled materials. Another solution would be the adoption of a minimalist approach in its store design and layout.

Yet another challenge that the company faces relates to limited career advancement opportunities or promotion opportunities for employees, i.e. for store managers. This is more so the case given that the specialist positions above this position are rather few and only become available in rare circumstances. The company could address this concern by embracing job rotation, i.e. where employees are provided with opportunities to work in other positions or assigned roles in different regions.

Part 3

QuikTrip’s Value Chain: Effectiveness to Operations in Terms of Quality, Value Creation, and Customer Satisfaction

QuikTrip’s value chain could be perceived in terms of the wide range of processes as well as business activities that the company partakes in with an intention of providing the various services to customers. Towards this end, the company is committed towards securing the interests of the customer at every step of the way. In terms of quality, this informs the caliber of employees that the company hires and the deliberate measures it takes to train them. This guarantees the advancement of stellar services to this particular stakeholder. When it comes to value creation, the company has deployed various technologies and processes to ensure superior service. A good example on this front would be the deployment of a statistical model to determine optimal store location. Customer satisfaction is enhanced by ensuring that services offered differ from those offered by competitors, i.e. in relation to more friendly and faster customer service.

Part 4

Performance Measures that Can be Used to Measure QuikTrip’s Service-Delivery System Design

Morden (2021) is of the opinion that businesses stand to reap immense benefits by assessing the design as well as quality of their service delivery systems. This, according to the author, is more so the case given that a move of this nature makes it possible to identify areas that need to be improved and, thus, further enhance customer satisfaction. There are a number of performance measures that QuikTrip could deploy on this front. These are inclusive of, but they are not limited to, post-service ratings and mystery shopping techniques. I selected these measures owing to the fact that they are rather easy to deploy. Further, they have a minimal cost implication.

To begin with, post-service survey ratings would seek to assess the perspectives of customers about their experience right after the services they sought have been offered. This would especially be an ideal approach, as opposed to follow-up surveys, because the customer’s experience is in this case yet to be diluted or forgotten. In brick-and-mortar stores, as is the case with QuikTrip locations, this could take the form of having a service representative ask random customers a set of questions about their experiences with the services they received. In the case of online transactions, a business enterprise could make use of an integrated website feature that avails a rating box.

On the other hand, when it comes to mystery shopping, the idea is to have a person assigned the role of an undercover customer with the intention of getting a first-hand feel of the services of the enterprise and the offer suggestions for improvement. This has already been deployed to a certain extent in QuikTrip stores. According to Bumford and Forrester (2010) this is an approach that has extensively been utilized by hotels and retail stores. I am of the opinion that QuikTrip could also find the technique more worthwhile in the measurement or evaluation of its service-delivery system design by hiring and deploying a higher number of personnel in more frequent formats. Better insights could be gathered by capturing and analyzing larger amounts of data – with the said analysis conducted by utilizing various computer-aided modeling systems.