Fifteen years earlier, this Spanish grocery store chain had actually held its own version of overall quality management, called the Total Quality Model, changing from the market's conventional high-low rates to "constantly low costs" and constant enhancement. The Total Quality Model had actually been a success in terms of business development and success, sustained by the success of Mercadona's abnormally high financial investment in staff member training and fulfillment.
When sales development slowed down in 2008, CEO Juan Roig concluded that Mercadona had let its clients down by not keeping rates low enough for such difficult times. Given that Mercadona did not fulfill its targets, the business policy was that no one-not even leading management-would get a benefit. Roig understood that his workers worked difficult and well in 2008 and might not be held absolutely accountable for the recession or for management's failure to respond rapidly enough.
PUBLICATION DATE: April 14, 2010 PRODUCT #: 610S26-PDF-SPA
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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