Complete an analysis of the QuickTrip. Assess the organizational layout, performance metrics, and the technology that is used to measure performance and connect with consumers.The QuickTrip Case Study is available in the course shell. It is also available at the following link: http://supplychainresearch.com/images/quik_trip.pdfWrite a six to seven (6-7) page paper in which you:Evaluate QuickTrip operations strategy and explain how the organization seeks to gain a competitive advantage in terms of sustainability.Analyze how operation management activities affect the customer experience. Select two (2) operation management challenges and provide the solutions for confronting them.Examine QuickTrip value chain and evaluate its effectiveness to operations in terms of quality, value creation, and customer satisfaction.Determine the different types of performance measurements that can be used to measure QuickTrip service-delivery system design. Select at least two (2) types that can be applied and provide justifications for the selection.Examine the different types of technologies applied to QuickTrip service operations and evaluate how the technologies strengthen the value chain.Use at least two (2) quality resources in this assignment that do not include the initial case study. Note: Wikipedia and similar websites do not qualify as quality resources.Your assignment must follow these formatting requirements:Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow Strayer Writing Standards (SWS). Check with your professor for any additional instructions.Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.The specific course learning outcomes associated with this assignment are:Apply the concept of operations management.Compare and contrast the difference between a supply chain and a value chain.Analyze the types of measures used for decision making.Analyze the five key competitive priorities and their relationship to operations strategy.Analyze different types of technology and their roles in manufacturing and service operations.Use technology and information resources to research issues in operations management.Write clearly and concisely about operations management using proper writing mechanics.Click here to view the grading rubric for this assignment.By submitting this paper, you agree: (1) that you are submitting your paper to be used and stored as part of the SafeAssign™ services in accordance with the Blackboard Privacy Policy; (2) that your institution may use your paper in accordance with your institution’s policies; and (3) that your use of SafeAssign will be without recourse against Blackboard Inc. and its affiliates.
grading_rubric.docx
quik_trip.pdf
strayer_writing_standards.pdf
Unformatted Attachment Preview
Grading for this assignment will be based on answer quality, logic / organization of the paper, and
language and writing skills, using the following rubric.
Points: 250
Criteria
1. Evaluate
QuickTrip’s
operations
strategy and
explain how the
organization
seeks to gain a
competitive
advantage in
terms of
sustainability.
Weight: 15%
2. Analyze how
operation
management
activities affect the
customer
experience. Select
two (2) operation
management
challenges and
provide the
solutions for
confronting them.
Weight: 20%
3. Examine
QuickTrip’s value
chain and
evaluate its
effectiveness to
operations in
terms of quality,
value creation,
and customer
satisfaction.
Weight: 15%
Assignment 1: QuickTrip Case Study
Unacceptable
Meets
Minimum
Expectations
Fair
Proficient
Exemplary
Below 60% F
60-69% D
70-79% C
80-89% B
90-100% A
Did not submit
or incompletely
evaluated
QuickTrip’s
operations
strategy; Did not
submit or
incompletely
explained how
the organization
seeks to gain a
competitive
advantage in
terms of
sustainability.
Did not submit
or incompletely
analyzed how
operation
management
activities affect
the customer
experience. Did
not submit or
incompletely
selected two (2)
operation
management
challenges; Did
not submit or
incompletely
provided the
solutions for
confronting
them.
Did not submit
or incompletely
examined
QuickTrip’s
value chain; Did
not submit or
incompletely
evaluated its
effectiveness to
operations in
terms of quality,
value creation,
and customer
satisfaction.
Insufficiently
evaluated
QuickTrip’s
operations
strategy;
Insufficiently
explained how
the
organization
seeks to gain a
competitive
advantage in
terms of
sustainability.
Partially
evaluated
QuickTrip’s
operations
strategy;
Partially
explained how
the
organization
seeks to gain a
competitive
advantage in
terms of
sustainability.
Satisfactorily
evaluated
QuickTrip’s
operations
strategy;
Satisfactorily
explained how
the
organization
seeks to gain
a competitive
advantage in
terms of
sustainability.
Thoroughly evaluated
QuickTrip’s
operations strategy;
Thoroughly explained
how the organization
seeks to gain a
competitive
advantage in terms of
sustainability.
Insufficiently
analyzed how
operation
management
activities affect
the customer
experience.
Insufficiently
selected two
(2) operation
management
challenges;
Insufficiently
provided the
solutions for
confronting
them.
Partially
analyzed how
operation
management
activities affect
the customer
experience.
Partially
selected two
(2) operation
management
challenges;
Partially
provided the
solutions for
confronting
them.
Satisfactorily
analyzed how
operation
management
activities affect
the customer
experience.
Satisfactorily
selected two
(2) operation
management
challenges;
Satisfactorily
provided the
solutions for
confronting
them.
Thoroughly analyzed
how operation
management
activities affect the
customer experience.
Thoroughly selected
two (2) operation
management
challenges;
Thoroughly provided
the solutions for
confronting them.
Insufficiently
examined
QuickTrip’s
value chain;
Insufficiently
evaluated its
effectiveness
to operations in
terms of
quality, value
creation, and
customer
satisfaction.
Partially
examined
QuickTrip’s
value chain;
Partially
evaluated its
effectiveness
to operations in
terms of
quality, value
creation, and
customer
satisfaction.
Satisfactorily
examined
QuickTrip’s
value chain;
Satisfactorily
evaluated its
effectiveness
to operations
in terms of
quality, value
creation, and
customer
satisfaction.
Thoroughly examined
QuickTrip’s value
chain; Thoroughly
evaluated its
effectiveness to
operations in terms of
quality, value
creation, and
customer satisfaction.
4. Determine the
different types of
performance
measurements
that can be used
to measure
QuickTrip’s
service-delivery
system design.
Select at least two
(2) types that can
be applied and
provide
justifications for
the selection.
Weight: 20%
5. Examine the
different types of
technologies
applied to
QuickTrip’s
service operations
and evaluate how
the technologies
strengthen the
value chain.
Weight: 15%
6. 3 references
Did not submit
or incompletely
determined the
different types of
performance
measurements
that can be used
to measure
QuickTrip’s
service-delivery
system design.
Did not submit
or incompletely
selected at least
two (2) types
that can be
applied; Did not
submit or
incompletely
provided
justifications for
the selection.
Insufficiently
determined the
different types
of performance
measurements
that can be
used to
measure
QuickTrip’s
servicedelivery system
design.
Insufficiently
selected at
least two (2)
types that can
be applied;
Insufficiently
provided
justifications for
the selection.
Partially
determined the
different types
of performance
measurements
that can be
used to
measure
QuickTrip’s
servicedelivery
system design.
Partially
selected at
least two (2)
types that can
be applied;
Partially
provided
justifications
for the
selection.
Did not submit
or incompletely
examined the
different types of
technologies
applied to
QuickTrip’s
service
operations; Did
not submit or
incompletely
evaluated how
the technologies
strengthen the
value chain.
No references
provided
Insufficiently
examined the
different types
of technologies
applied to
QuickTrip’s
service
operations;
Insufficiently
evaluated how
the
technologies
strengthen the
value chain.
Partially
examined the
different types
of technologies
applied to
QuickTrip’s
service
operations;
Partially
evaluated how
the
technologies
strengthen the
value chain.
Does not meet
the required
number of
references; all
references
poor quality
choices.
More than 8
errors present
7-8 errors
present
Does not meet
the required
number of
references;
some
references
poor quality
choices.
5-6 errors
present
Weight: 5%
7. Clarity, writing
mechanics, and
formatting
requirements
Weight: 10%
Satisfactorily
determined the
different types
of
performance
measurements
that can be
used to
measure
QuickTrip’s
servicedelivery
system design.
Satisfactorily
selected at
least two (2)
types that can
be applied;
Satisfactorily
provided
justifications
for the
selection.
Satisfactorily
examined the
different types
of
technologies
applied to
QuickTrip’s
service
operations;
Satisfactorily
evaluated how
the
technologies
strengthen the
value chain.
Meets number
of required
references; all
references
high quality
choices.
Thoroughly
determined the
different types of
performance
measurements that
can be used to
measure QuickTrip’s
service-delivery
system design.
Thoroughly selected
at least two (2) types
that can be applied;
Thoroughly provided
justifications for the
selection.
3-4 errors
present
0-2 errors present
Thoroughly examined
the different types of
technologies applied
to QuickTrip’s service
operations;
Thoroughly evaluated
how the technologies
strengthen the value
chain.
Exceeds number of
required references;
all references high
quality choices.
9-611-045
REV: JUNE 23, 2011
ZEYNEP TON
Qu
uikTrip
p
2
Chet Cadieux
C
(Cheet), CEO of tthe Tulsa, O
Oklahoma-based QuikTrip (QT)
In November 2010,
conveenience storess and son of one
o of QT’s founders, Cheester Cadieuxx (Cadieux), sstood up to d
deliver
his an
nnual address to more th
han 1,000 emp
ployees from
m the chain’s Atlanta-area stores. “I waant to
thank
k you and let you
y know wh
hat a great job
b you are doin
ng,” Chet beg
gan.
Once again,, we outperfo
ormed our competition th
his year. In 2010, we posted a by-sto
ore
profit which was
w almost do
ouble that of the
t top quarttile of compeetitors in our business. Alsso,
thee vast majoriity of you aree shareholders in QuikTrrip so you sh
hould be happ
py to hear th
hat
yo
our average an
nnual return on investmen
nt was 18% du
uring the lastt decade. And
d our customeers
keeep raving ab
bout our serv
vice. But I do
on’t want yo
ou to take th
his for granteed. We need to
un
nderstand and
d adapt to thee present and future wantss of our custom
mers.
Sin
nce its foundiing in 1958, QT
Q had openeed over 500 sttores, but Cheet had future growth in miind as
he con
ntinued addressing his Atlanta employ
yees. “And forr all that we h
have accompllished, we aree only
in 11 cities,” he sa
aid. “The nextt four years will
w provide eexciting oppo
ortunities forr growth. By 2014,
we pllan to have 73
32 stores. We have saturateed some mark
kets and are beginning to saturate otheers, so
most growth will come
c
in new markets.”
m
or 2011, QT planned to opeen 33 new sto
ores in existin
ng markets aand enter a neew market—N
North
Fo
Carolina. Tradition
nally, when QT
Q entered a new market,, it opened 100 to 12 storess per year unttil the
markeet was satura
ated. But Ch
het thought it
i was time tto be more aaggressive. He was consid
dering
openiing stores in North Carolina at twice the usual sp
peed, with ass many as 200 stores openeed by
September 2012.
The U.S. Conv
venience Store
S
Indu
ustry
ores in the U
By
y December 2010, there weere 146,341 co
onvenience sto
United States, over 60% of w
which
1 Sales
were single-store operations.
o
S
in 2009 had been $5511 billion.2 O
Over 80% of cconvenience stores
also sold gasoline and
a diesel fueel, accounting
g for approxim
mately 80% ($$328.7 billion
n) of all fuel saales in
3
the U.S.
U market. The
T average convenience
c
store
s
with fueeling stationss served 1,1000 customers a day,
or app
proximately 400,000
4
a yea
ar.4 The avera
age cost to bu
uild and open
n a new storee, including aall real
_______
_______________
_______________
________________
___________________________________________________________________
Professo
or Zeynep Ton prep
pared this case witth the assistance of Research Associatte Matthew Preble of the Global Reseearch Group. HBS ccases are
develop
ped solely as the ba
asis for class discusssion. Cases are no
ot intended to serv
ve as endorsementss, sources of primaary data, or illustraations of
effectivee or ineffective man
nagement.
Copyrig
ght © 2011 Presiden
nt and Fellows of Harvard
H
College. To
T order copies or request permission
n to reproduce maaterials, call 1-800-5545-7685,
write Ha
arvard Business School Publishing, Bo
oston, MA 02163, or
o go to www.hbsp
p.harvard.edu/edu
ucators. This publicaation may not be d
digitized,
photoco
opied, or otherwise reproduced, posteed, or transmitted, without
w
the permisssion of Harvard Bu
usiness School.
611-045
QuikTrip
estate, construction, and inventory costs, was roughly $2.8 million dollars in urban markets and
slightly under $2 million in rural areas.5
Convenience stores differed from grocery and drug stores in that they were smaller, carried fewer
products, and stayed open longer. Stores averaged about 2,700 square feet of selling space6 and
offered a range of items including hot and prepackaged foods, fountain and bottled drinks, grocery
items, coffee, snacks, beer, tobacco products, and lottery tickets; some of the larger chains also offered
private-label foods and drinks. Convenience stores offered customers a quick shopping experience;
the average customer spent only three to four minutes from arrival to departure.7
There was a great variety in the scope of operations and range of products. U.S.-based 7-Eleven
operated 32,000 stores in North America, Asia, Europe, Australia, and Mexico8 while Sheetz operated
365 stores across six states in the eastern U.S. and specialized in made-to-order fresh food items.9
Some convenience stores offered dining areas; some shared retail space with fast-food restaurants,
banks, and other retailers.10
QuikTrip’s Evolution
QT was founded in 1958 in Tulsa, Oklahoma by childhood friends Chester Cadieux—Chet’s
father—and Burt Holmes. After graduating college and serving three years in the U.S Air Force,
Cadieux wanted to start his own retail business and found a partner in Burt Holmes. The two
decided to open a convenience store. Their first location was in their hometown of Tulsa and sold
only groceries. In the early years, Cadieux worked the night shift alone, which, he later joked, earned
him the right to be president and CEO. He held both positions for over 40 years until succeeded by
his son Chet in 2002. (See Exhibit 1 for QuikTrip’s major milestones.)
Under Cadieux’s leadership, QT expanded into large Midwestern metropolitan areas in the late
1960s and then into other large U.S. cities. Initially, QT’s growth strategy was to open stores
piecemeal in small towns around its major Midwestern markets.11 Cadieux observed that, while this
offered employees rapid promotions, it placed inexperienced employees in critical jobs.12 Cadieux
scrapped this strategy when he realized that small markets would not generate enough profit for
future large-scale growth.13 QT ultimately closed stores in 37 small markets to focus on what Cadieux
called the “3Ms—Million Metropolitan Markets—those markets that have populations exceeding a
million.”14
In 1971, QT started selling gasoline and closed stores that could not support pumping stations. It
required a large upfront investment to enter this highly competitive business and it was more than
two decades before QT had established a reputation for selling high-quality gas at low prices. In the
mid-1990s, the company invested millions of dollars in improving the quality of its gas and began a
new advertising campaign which involved handing out coupons for free gas, giving away floor mats
through car dealers and mechanics, and offering to fix any car problems caused by QT’s gasoline.15
Chet explained:
My father worked mercilessly to get better supply-chain advantage, quality, branding, and
prices to become the best at selling gasoline. Our branded gasoline is now recognized as toptier by companies like BMW and Audi. Our customers perceive us having both great quality
and the lowest price. And we’re confident about the future of our business because our
breakeven on gas is lower than any of our competitors. That means that, if, someday, people
quit buying gasoline, all of our competitors will go out of business before we do.
2
QuikTrip
611-045
In the 2000s, food industry experts stated that close to one-fifth of all meals in the U.S. were eaten
in the car16. QT, observing this trend and hearing from its own customers that they wanted to buy
fresh food on the go, decided in 2007 to sell fresh food. Ron Jeffers, vice president of operating
systems, explained: “Our customers used to take our products home to cook. But now they are very
active, constantly going from activity to activity. And they want food they can eat while driving to
the next activity. Mealtime is not a time they want to spend.”
Instead of preparing fresh food in the stores, QT decided to invest in developing centralized
QuikTrip Kitchens (QTKs), which prepared and delivered fresh foods—never-frozen baked goods,
sandwiches, salads, and fruit—to each store daily. On entering the fresh-food market, QT set out to
become the best gasoline, convenience, and food retailer in the eyes of its customers, competitors, and
employees. Chet knew, however, that it would be a while before customers could equate convenience
stores with good food.
“Our challenge is to be recognized as a gasoline retailer that also sells good food. Our QTKs were
intentionally built for much higher volume than we run today. That means that we are operating well
below capacity and, as a result, right now they lose millions of dollars a year. I know that and I don’t
mind because I am confident that it will pay off in the long term. Like my father did with gasoline,
we are going to work on food until we perfect it and reach that high volume. “
QuikTrip in 2011
By January 2011, QT had over 10,000 employees, owned and operated 549 stores in 11 U.S.
metropolitan areas (see Exhibit 2 for QT’s markets and dates of entry), and generated more than $8
billion in yearly revenues. Gasoline accounted for two-thirds of revenues but only one-third of
profits; two-thirds of profits came from store merchandise.
Store merchandise included fresh prepared foods, snacks, tobacco products, beer, grocery items,
and bottled, fountain, frozen, and hot beverages. QT also sold private-label food and drink items,
including its QT-branded coffee, energy drinks, sports drink, and frozen shakes as well as its Hotzi
brand breakfast items and the fresh-food items sent daily from its QT Kitchens. QT kept prices
competitive by only offering the core products its customers wanted and selling them in high
volumes. “In all categories we sell, we are a price leader in the convenience channel,” Chet explained.
“In high-volume categories like soda, beer, and gasoline, our prices are as cheap as Wal-Mart’s.”
QT stores were highly productive. In 2010, merchandise sales per labor hour was $94.67 for the
top quartile of convenience and gas stores, $85.50 for the average convenience and gas stores, and
$142.30 for QT. QT stores had much higher sales volume than competitor stores. Merchandise sales
per square foot for the top quartile of the industry was $13.83 per week, with an average store size of
2454 square feet. Merchandise sales per square foot for the average in the industry was $10.04, with
an average store size of 2000 square feet. For QT, merchandise sales per square foot was $15.48 per
week, with an average store size of 4343 square feet. Motor fuel sales for the top quartile of the
industry was 43,889 gallons per store-week and for the average 29,044 gallons per store-week. The
same metric for QT was 91,995.
Many in the company attributed QT’s success to the systematic practice of five core values by all
employees, from part-time store clerks to the CEO. These were: (1) Be the best, (2) never be satisfied,
(3) focus long-term, (4) do what’s right for QT, and (5) do the right thing. Focusing on the long term,
even when it came at the expense of short-term financial losses, drove big investment decisions as
well as small operational decisions. For example, recognizing that clean bathrooms would bring more
traffic into the stores, QT invested $12 million over three years to renovate its bathrooms. Determined
3
611-045
QuikTrip
to maintain a “family environment,” QT did not sell drug paraphernalia, rolling papers, or
pornographic magazines, although some of these were popular and profitable items. Chet provided
an example of QT’s willingness to take on even a long-term loss for the long-term good of its
employees:
When I became the CEO, I realized that there were hundreds of employees who had been
working for us for many years and who were working until midnight many days of the week.
That made it very difficult to have a normal life with a family. The only way to change that
was to add a full-time person in every store. It cost us $10 million a year for the rest of the
company’s history. I believe that it reduced turnover. It probably would have been difficult to
do this if we were a public company.
QuikTrip remained privately held and ranked 37th on the 2010 Forbes list of America’s largest
private companies.17 The Cadieux family owned 65% of QT, upper management owned 13%, outside
investors owned 10% and the remaining 12% of stock was owned by employees through QT’s stockownership and profit-sharing/401K plans.
Culture
QuikTrip’s purpose is to provide an opportunity for employees to grow and succeed.
— QuikTrip’s Purpose Statement
Since its beginnings, QT had focused on finding the best people, paying them well, and promoting
from within. However, company culture had changed significantly over time. During its first
decades, QT was highly results-oriented and store operations were militaristic. As Jeffers explained,
“Until the draft ended in 1973, most employees had served in the military and were used to an
autocratic system. In the years after, new employees without military experience clashed with our
‘Yes sir, no sir’ type of mentality. We had two cultures cla …
Purchase answer to see full
attachment
We can help you complete this assignment or another one similar to this. Just hit "Order Now" to get started!
