EVALUATION OF THE impact OF TOTAL QUALITY MANAGEMENT ON food AND BEVERAGE BUSINESSES IN LAGOS, NIGERIA
1.1 INTRODUCTION TO THE STUDY
Globalization, which is characterized by expanding consumer options, has heightened competition on both local and worldwide markets. Consumers were now exposed to a greater variety of generic items, allowing them to select high-quality, low-cost options. Offering consumers superior products and services at reasonable pricing could be one of the methods that provide firms a competitive edge. The success of Japanese businesses in the late 20th century prompted the majority of businesses to view quality as the most important market element that confers a competitive advantage (Alolayyan.et al, 2013).
As a result, the majority of firms are adopting Total Quality Management (TQM) as a strategic decision to obtain customer loyalty, market share, and victory in the competitive environment, and thus to survive.
The current volatile market climate necessitates that businesses establish and execute overall quality management strategies that enable them to identify and respond swiftly to changing market conditions. TQM methods enable firms to respond proactively by means of continuous improvement in order to attain the highest level of organizational performance (Chase et al., 2005). Moreover, firms may embrace overall quality management to increase market share and competitive advantage, reduce operating costs, and enhance corporate reputation ( Heizer and Render, 2004). Ismail (2002) identifies additional generic TQM practices as customer focus, leadership and top management commitment, employee training, employee participation, continuous improvement, innovation, product design, cross-functional quality teams, benchmarking, performance measurement, and statistical process control. These generic techniques are relevant to all types and sizes of businesses. To withstand global competition, businesses must prioritize complete quality procedures that provide them with a competitive edge.
The food industry seeks to ensure the safety of its goods and provide vital information to its business partners and consumers along the food chain. Alternatively, when evaluating the processes from the larger perspective of the stakeholders who can impact business processes, the organizations' focus broadens and the definition of quality shifts. As a result, businesses utilize various instruments and methods, particularly Integrated Management Systems, to ensure quality requirements. Within the context of a research project named “Assessing the influence of total quality management on food and beverage enterprises in Lagos, Nigeria,” the use, relevance, and effectiveness of Integrated Quality Management Systems, or so-called Total Quality Management (TQM), were examined (Morath, 2008). In addition, the improvement potential of TQM in the food business has been studied and recommendations have been determined.
In the era of globalization, quality is the most crucial factor as a source of competitive advantage for every firm or industry. The quickest shift in the competitive business climate will lead many businesses to produce both innovation and the capacity to win in the domestic and worldwide marketplaces. Companies must embrace and apply the management best practices in operation management, such as total quality management (TQM) and supply chain management (SCM), in order to remain competitive in the marketplace (Heizer and Render, 2004). These techniques can assist an organization in identifying change in a dynamic environment and responding proactively through continuous improvement in operational processes in order to attain optimal performance (Chase et al., 2005). Continuous improvement of customer-focused company activities, adaptability, and quality are the obstacles to performance enhancement in a competitive environment. Consequently, organizations should manage quality in order to expand their market share and win the competition. Companies that were unable to manage the transformation would eventually lose market share. Conceptually, quality is the entirety of the form and features of a product or service that reflect its capacity to meet the wants of its manifest and latent consumers (Heizer and Render, 2004). Numerous meanings of the term “quality” are provided by a range of experts. Juran (1989) defines quality as the capacity to be utilized. This definition comprises product characteristics that satisfy consumer needs and are devoid of defects. Deming discovered that consumers' demands and expectations are satisfied by the quality they receive in excess of the price they have paid. Deming's theory of constructing quality as a system (Bhat and Cozzolino, 1993). General definitions of quality by Bina Produktivitas Tenaga Kerja (1998) are: (1) a perfect degree that contains a comparative understanding of the product level (grade) specific, (2) The level of quality that contains the concept of quality to evaluate technically, and (3) suitable for use, the capability of the product or service to provide customer satisfaction. According to Heizer and Render (2004), quality impacts businesses largely in four areas: 1) cost and market share: an improvement in quality can result in a gain in market share and cost savings, as well as an impact on profitability. 2) corporate reputation: a company's reputation follows the quality of its reputation. 4) the international implications: in the age of technology, quality is a concern for worldwide businesses. For businesses to effectively compete, their products and services must be of the desired quality and price. As a matter of fact, quality is a difficult notion to comprehend. Today, the term quality is interpreted in numerous ways. It cannot be defined as a single phrase because its definition is dependent on context. Consequently, the purpose of this study is to evaluate the impact of complete quality management on food and beverage enterprises in Lagos, Nigeria.
1.2 DESCRIPTION OF THE PROBLEM
According to Sila et al. (2007), total quality management (TQM) has a crucial role in boosting the competitiveness of businesses. In an ever-evolving global market, delivery speed and product quality are crucial factors for businesses to compete. TQM is a method that should be implemented by many firms in order to raise product quality, decrease production costs, and boost productivity. TQM implementation has favorable effects on revenue and manufacturing costs (Gaspersz, 2005). Other research reveals that companies who use TQM best practices produce improved profitability, shareholder value, and cashflows (Corbett and Rastrick, 2000). Measurement of performance is an essential element of efficient management. In general, performance is defined as the degree to which an operation meets its performance targets and takes significant steps to meet client requirements. The research demonstrates that without measuring performance, it is difficult for managers to improve it. Therefore, increasing an organization's performance should begin with the identification and reliable measurement of performance-influencing variables. In order to attain both operation efficiency and optimum commercial performance, measurement of quality performance is crucial for many organizations (Demirbag et al., 2006).
The food and beverage industries appeared to be losing market share due to quality issues. Due to the influx of imported beverages into the country, sales of lager beer and soft drinks fell by 12 percent and 10 percent, respectively, for some food and beverage enterprises (Delta Corporation Full Year Report 31 March 2015). Similarly, Nestle PLC appeared to be experiencing raw milk quality issues, which led to an increase in imports (Nestle PLC Annual Report 2014). The question is whether quality management approaches effect the food and beverage industry's market and operational performance. Consequently, the purpose of our study was to establish the extent to which overall quality management-related practices have impacted the performance of the beverage industry in Lagos, Nigeria, in order to provide some remedies. These issues need an investigation into the impact of total quality management on food and beverage industries in Lagos, Nigeria.
1.3 OBJECTIVES OF THE STUDY
This study aims to evaluate the impact of total quality management on food and beverage enterprises in Lagos, Nigeria. Included among the specific aims are the following:
Assess the efficacy of the comprehensive quality management strategies utilized in the food and beverage industry.
Determine if complete quality management principles are used in the food and beverage industry.
Determine the impact of total quality management strategies on the performance of the food and beverage industry.
Determine the entire quality management practices-related obstacles confronting the food and beverage industry.
5. Determine a viable solution to the issues affecting the entire quality management approach in the food and beverage industry.
1.4 RESEARCH QUESTIONS
The following are the pertinent research questions linked to this study:
How effective are the whole quality management strategies utilized in the food and beverage industry?
EVALUATION OF THE IMPACT OF TOTAL QUALITY MANAGEMENT ON FOOD AND BEVERAGE BUSINESSES IN LAGOS, NIGERIA