QuickTrip Case Study

An organizational strategy is a proposal that includes specific details of how resources will be allocated in the business to ensure that business activities such as marketing, accounting, production, infrastructure are supported. It includes all the actions that will be implemented as the company is trying to reach its long-term goals. These actions form the strategic plan, and they take about twelve months to complete since it involves many stakeholders. For instance, senior management creates the general operations strategy, but the middle, as well as lower management, adopt the step by step actions for achieving these goals. The organizational strategy is guided by the company’s mission and vision, but the actions have to be step by step to ensure that they lead to long-term goals. This paper will assess the operational strategies of QuikTrip including the organizational layout, performance metrics, and the technology that is used to measure performance and connect with consumers.

Operations strategy

QuikTrip is a leading gasoline corporation that has about 850 stored in eleven states within the United States of America. Its headquarters are at Tulsa, and it earns about $9.16 billion annually making it among the top private companies according to Fortune and Forbes. Among its goals is becoming the most convenient gasoline station in the United States, making it reliable for consumers by having many locations. Since they prioritize customer service, they ensure that they have the best products as well as stores that have everything a consumer needs as they drive to their various destinations. They know that to boost their sales, they need to have multiple stations to ensure that they provide convenience to their consumer that also leads to loyalty. They also prioritize value given to the consumer and therefore are very keen on customer feedback since it enlightens areas that need improvement.

They also gain a competitive advantage by thoroughly training their employees which leads to uniform customer service throughout their stores. This training ensures that they are effective and efficient by learning behavior that attracts customers and ways they can boost their experience. They incorporate creativity in service delivery, and this makes them gain a competitive advantage. Their value increases when they have more sales since they have attractive costs, products, services, and value for the consumers’ money (Lorenz, 2017). For instance, since they have already established a stable supply chain, they hardly have issues with gasoline breakdown. They also have more services at their stations that make them a preferred gasoline company. For instance, they have shopping facilities, safety guards as well as health stores that translates into increased value, consistency as well as profits for the company.

Challenges and Solutions

Inventory

The stable supply chain of QuikTrip ensures that gasoline as well as other products and services are available in all their stores. They aim to ensure that the client can get everything they need in one stop by ensuring that they also enjoy excellent customer service. The steady supply of quality products and services such as quality gasoline at reduced prices or available fresh fruits in their stores attracts customer loyalty. QuikTrip has set up its locations in areas that have high traffic, and it delivers high-quality products and professionalism in their service delivery that attracts more consumers. However, challenges could arise when they cannot arrange their standard inventory in a convenient facility in this location or setting up the station in a high traffic location since it could lead to losses. If management neglects to do their job, then sales are likely to decrease since the employees are not motivated or productive (Kesavan, 2018). Therefore, they should have an online system that will help them monitor their inventory in terms of what was sold and how much was restocked. Since there are different shifts, managers can continuously track inventory as they proceed from data input from previous shifts.

Terms of operation

QuikTrip thrives on consistency, and therefore inconsistency can affect operation in various stores. The methods they use to prepare for the products and services can affect delivery if there is a communication breakdown from management. Members of staff need to understand the terms of operation as well as the strategies that are implemented in QuikTrip’s culture to ensure that they all follow the procedures in their various shifts. If they are not followed, and there is a series of customer complaints, then this could ruin the reputation of QuikTrip. Therefore, management ensures that there is consistent communication and monitoring since it ensures an effective supply chain as well as motivated employees who will deliver customer service.

Value chain

A value chain refers to all the steps and activities that are undertaken by companies, to ensure that products are successfully delivered from their areas of manufacturing. These activities involve the procurement of raw materials, manufacturing, transport, marketing among others. Value chain analysis is conducted to ensure that all procedures are implemented effectively, and that maximum value is delivered at a consumer-friendly cost.

QuikTrip prides itself on delivering quality customer service and convenience for its consumers and therefore their value chain needs to be very effective (Grewal. 2017). The value chain affects the quality of products that influences consumer satisfaction and therefore, it has to be effective to ensure that the company gains a competitive advantage. From the moment the products are collected from the suppliers, saved to the inventory, and distributed to various QuikTrip stores, management monitors this process to ensure that by the time the product or service is getting to the consumer, it is of quality. This process also involves monitoring the supply chain to ensure that quality products are delivered in the store networks. The effectiveness of the value chain reflects in the profits. What the company makes and how it attracts employees who have been loyal to the company for years. Also, since they aim to create value and prioritize quality, consumers are constantly purchasing their products because they know that it is legit and that they will get value for their money. The brand has remained the best in the market because of their organizational culture, that makes them gain a competitive advantage.

Performance measurements

Measuring the performance of employees and the company allows management to know which areas need improvement. They need to have evaluation techniques that will help them assess the performance of each employee in different departments. It will inform the strategies that will be implemented to boost their productivity that will reflect in the improved sales made every month. For instance, QuikTrip could assign different tasks to employees that management could use as a platform to measure their behavior and productivity, which will be considered in performance appraisal.

The 3600 feedback tool could also be used to help understand the performance of employees from the junior employees to the senior employees (Espinilla, 2013). It gives anonymous information about an individual from their colleagues as well as information about their performance through self-evaluation. This feedback tool helps management know which employees are not doing very well, and this leads to individual assessment. This individual assessment helps them learn about the strengths and weaknesses of these employees, which informs the department they should be placed, maximize their abilities when integrated with training (Rahman, 2018). For instance, this technique could be used to measure how well an employee works when they are part of a team, how they treat others regardless of their status, color or age, how they respond to criticism as well as whether they are innovative or adaptable.

The BARS technique or the behavior anchored rating scale is another method that QuikTrip should incorporate to assess their performance. It evaluates different job positions as well as the behavior of these individuals under different circumstances. The data on this behavior is included in the rating scale. It is on the range of extraordinary, excellent, competent as well as unacceptable. Although this process is expensive and time-consuming since they have to custom-make the rating scale for all position, it is still effective in identifying the employees who are lagging. It informs the decision to rank employees based on their behavior and critical thinking skills (Matosas, 2017). It also helps set the expectations of the standard of skills that employees in different departments need to meet. It ensures that there is a standard code of conduct across all stations since this is what makes QuikTrip gain a competitive advantage.

QuikTrip has a system referred to as the Pump Shield that was created to deal with scammers. It tracks unaccredited card users by sending a message to the support team who immediately stops the transaction. It has proven effective in preventing fraudsters at QuikTrip gas stations. These stations have been crime-free since this system was implemented. Also, the company has implemented an automated system for measuring the performance of employees. This system always has updated information about how the employees are performing. It also keeps the employees motivated since they need to be accountable, especially for poor performance. They also have automated virtual assistants who assist in checking the inventory records in the store. These systems give continuous feedback about their employees that helps them in tracking performance. For instance, this information is used by managers to restock inventory appropriately.

These systems are all relevant in supporting the value chain. For instance, through the use of the automated systems of tracking inventory, management is aware of the products that are needed. Therefore, when liaising with suppliers, they are sure about the products they need or what is required in the inventory. These technologies have led to systems being effective in ensuring that there is sufficient stock for the consumer. As mention earlier, QuikTrip ensures that its consumers can access a wide range of products or services anytime they get to any of their stations. Value is measured when the consumers of QuikTrip products or services are satisfied with performance delivery. It then leads to the retention of consumers that translates to an effective value-chain (Inkpen, 2017).

Conclusion

QuikTrip is known for its differentiation in terms of how they deliver quality services and providing quality products. It is also a very convenient station that has consistent quality in products and services. QuikTrip is very focused on achieving its vision of ranking as the best gasoline station in the United States. For that to happen, they need to have an effective supply chain and professional customer service. It will ensure that value is placed on quality products and services, which they promise to deliver to their consumers. It also has a unique technology that allows automation of inventory in all their stores that also influences the quality of their value chain. Their evaluation techniques inform them of their operations that are working and those that need improvement. In their strategic planning, they include the step by step activities that will lead to the accomplishment of the long-term goals. For instance, having a regular evaluation of employees will ensure that there are no complaints on service delivery and customer satisfaction. Also, it informs about the status of each employee to know which of them deserve performance appraisal or those that need more training to meet the standards of QuikTrip customer service.

References

Espinilla, M., de Andrés, R., Martínez, F. J., & Martínez, L. (2013). A 360-degree performance appraisal model dealing with heterogeneous information and dependent criteria. Information Sciences222, 459-471.

Kesavan, S., Kuhnen, C. M., & Lee, H. S. (2018). Managerial incentives, operational decisions, and firm outcomes: Evidence from a quasi-experiment at a retail chain. Kenan Institute of Private Enterprise Research Paper, (19-4).

Grewal, D., Roggeveen, A. L., Sisodia, R., & Nordfält, J. (2017). Enhancing customer engagement through consciousness. Journal of Retailing93(1), 55-64.

Inkpen, A., & Ramaswamy, K. (2017). Breaking up global value chains: Evidence from the global oil and gas industry. In Breaking up the Global Value Chain. Emerald Publishing Limited.

Lorenz, P. D. (2017). Strategic Interaction in the Private and Public Sectors: Empirical and Theoretical Approaches.

Matosas-López, L., Leguey-Galán, S., & Doncel-Pedrera, L. M. (2019). Converting Likert scales into Behavioral Anchored Rating Scales (Bars) for the evaluation of teaching effectiveness for formative purposes. Journal of University Teaching & Learning Practice16(3), 9.

Rahman, N., Othman, M., Yajid, M., Rahman, S., Yaakob, A., Masri, R., … & Ibrahim, Z. J. M. S. L. (2018). Impact of strategic leadership on organizational performance, strategic orientation and operational strategy. Management Science Letters8(12), 1387-1398.

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