Quality his customers called to alert him that


and Customer Relationship Management Assignment

number: 18 11 76
code: BBA 3 – QCRM
pages: 9 pages

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The purpose of this assignment is to provide quality and
customer relationship management solutions to Evan Segal who is the CEO of
Dormont Manufacturing Co, a company which makes hoses that hook up deep-fat fryers
and the like to gas outlets throughout Europe.


One day one of his customers called to alert him
that McDonald’s and other restaurants could no longer use his hoses. French
inspectors demanded that Evan’s hoses be replaced with French-approved


This assignment attempts to help Dormont
Manufacturing Co apply quality management principles to the organisation
defined by ISO 9000, explain how the application of customer relationship
management principles can help Dormont Manufacturing Co. achieve its goals and
explain how it can establish a process for handling external complaints
received by customers.


Evan has issues with different national standard
agencies. The British Standards Institute, one of the European agencies issued Evan
a certificate authorising his products. Evans competitors sent a formal
complaint to the European Commission (the EU’s executive body) arguing that the
British office and his authorisation was withdrawn.


The benefits of implementing quality and customer
relationship principles to the organisation is that Evan customer issues will
be addressed and the quality of his gas hoses will be improved where quality
needs to be improved.


Implementing quality and customer relationship practices
will give Evan Segal the tools to manage, measure, and improve the quality of
his products according to specific standards and enable him to resolve
issues with approval of his products so that he can once again sell them
throughout the region.

Table of Contents
Introduction. 2
Question 1. 4
Question 2. 5
Conclusion. 7
References. 8


List of Figures


Figure 1: A process for external complaints at Dormont
Manufacturing Co. 6



List of Tables


1: The 14 principles of quality management and its implementation at Dormont
Manufacturing Co. 4

2: ISO 9000 quailty managememt principles and their benefits for Dormont
Manufacturing Co. 5

3: The application of customer relationship management principles at Dormont
Manufacturing Co. 5

4:  Steps to take when handling external
complaints at Dormont Manufacturing Co. 6


Question 1


1.1 Table 1: The 14
principles of quality management and its implementation at Dormont
Manufacturing Co.


Deming’s fourteen

Implementation at Dormont
Manufacturing Co.

Continual improvement of
product and service

Evan should ensure that his hoses are to use on gas
appliances and are checked and maintained regularly.

Adopt the new philosophy
for economic stability

Evans hoses should meet the country’s
acceptable gas hose design standards to sell them throughout the region.

Stop dependence on
inspection to achieve quality

The gas hoses and specifications should conform to acceptable
gas hose design standards.

Minimise total costs by
working with a single supplier

The business goals and objectives are to improve consumer satisfaction.

Improve constantly

The business team should improve
quality and productivity constantly and institute a programme of total
quality control for business processes.

Institute training on
the job

Employees should receive the training necessary
to understand their job.

Institute leadership

Training and teamwork are necessary to guide transformational
leadership in an organisation.

Eliminate fear

Practice effective communication and employee

Break down barriers
between departments and individuals

A barrier-free atmosphere can be
used to reduce employee stress levels and improve communication practices.

Eliminate slogans, and
targets for the workforce

Create a supportive environment where employees
overcome challenges with a supportive attitude and not in a competitive
effort to get ahead of other employees or even their own mangers.  Practices include brainstorming, suggestion
boxes, and walking and talking.

Eliminate numerical
quotas for the workforce

Institutions should focus on
quality by reducing the tasks where employees are forced to work by

Increase workmanship

Increase co-operation by avoiding on monetary

Institute a vigorous
programme of education

should encourage employees to enhance job skills through education and training.

Put everybody in the
organisation to work to accomplish the transformation

Work towards shared leadership, trust and




Question 2

Table 2: ISO 9000 quailty managememt principles and their
benefits for Dormont Manufacturing Co.



Customer focus

Increased customer satisfaction.

Measuring customer satisfaction and acting
on the results to improve customer loyalty leading to repeat business.


Eliminating fear of management.

Inspiring, encouraging and recognising
people’s contributions.

Involvement of people

People will use their knowledge, skills and
creativity to find innovative ways to solve problems.

People accept ownership of problems,
therefore they are able to identify constraints to their performance and
evaluate their performance against their personal goals and objectives.

Process approach

Effective use of resources.

Evaluation of key activities.

System approach to

Understanding the interdependencies between
processes of the system.

Aligning processes that will help the organisation
achieve the best results.

Continual improvement

An increase in the organisations

Continual improvement of processes and



Table 3: The application of customer relationship
management principles at Dormont Manufacturing Co.


relationship management principles

of customer relationship management

Top management must be

Management must be involved at every level
of the organisation.

Restructure employee compensation

Adjust the compensation structure.

Manage cultural change and people issues

Listen to employee issues at the workplace.

Concentrate on the customer life-cycle value

Maintain good customer relationships.

Push the project if you are serious. And keep pushing.

Clear unpredictable obstacles and encourage
employees to focus on the solution and move forward.

Provide training and support.

Understand the importance of CRM in the organisation
and understand that CRM is a continuing process.


Figure 1: A process for external complaints at Dormont
Manufacturing Co.













Table 4: 
Steps to take when handling external complaints at Dormont Manufacturing




Listen to the

Take ownership of
the problem and apologise.

Record complaints

All verbal and written
complaints will be recorded at the time. The name, contact details of the
person and details of all communication with the complainant and any actions
to resolve the complaint will be recorded in the same place.

Respond to

Resolve all
complaints within an appropriate timeframe and inform the person regularly
about the progress of their complaint.

Follow up

Follow up to see if
the customer is happy with how their complaint was handled and let them know
what you are doing to avoid the problem in the future.






Dr. W. Edwards Deming developed fourteen key principles for quality
management that significantly improve the effectiveness of a business or
organisation. By implementing Deming’s fourteen principles of quality
management, Evan Segal has helped his company improve its customer service, productivity,
management and product quality.


The ISO 900 refers to a group of guidelines that
help organisations improve its customer satisfaction and organisational
performance. Question 2 of this assignment discusses each of the eight quality
management principles defined by ISO 9000 and its key benefits for an
organisation like the Dormont Manufacturing Co. These benefits include
leadership in the role of management, effective use of the organisations resources
and continual improvement of the organisation’s performance.


Customer relationship management is the
practice of making customer satisfaction the primary objective for
all strategies, systems, policies and procedures of the organisation. Any firm with
organisational challenges and technical issues would benefit tremendously
from applying the six principles of customer relationship management. Dormont
Manufacturing Co. applied these six principles to restructure their
employee compensation and merit system, provide training and support for their
staff and transform their organisational culture by sustaining their products quality.


There were many issues with the handling of external
complaints received by Dormont Manufacturing Co. Evan Segal has implemented a
complaint handling procedure to show staff and customers the steps to take when
dealing with complaints. These steps involve defining the complaint, recording
the complaint, responding to the customer and following up on the complaint
procedure to ensure the complaint has been dealt with.


In summary, the key issues with
Dormont Manufacturing Co were not its products but the organisations
performance in its market and industry and its potential to exploit
opportunities and eliminate threats that hinder it from progressing and
performing efficiently with the new British laws and legislation. 



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