BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ - TÀI CHÍNH

THÀNH PHỐ HỒ CHÍ MINH

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ESSAY 10%

SUBJECT: QUALITY MANAGEMENT

Topic: The Coffee House

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Lecturers: Nguyễn Thanh Mỹ

Class: MGT1116E_B10E

Group Name: Group 4

Members:

Trần Thị Phương Ngân

Nguyễn Ánh Xuân

Vũ Lê Nhật Vy

Hứa Thanh Bạch

Hoàng Kiều Vy

Phạm Thắng Lợi

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 MENU

THE OPENING CHAPTER.....................................................................................................

I. THEORETICAL BASIS & CONCEPTUAL SYSTEM.....................................................
1.1 Theoretical basis.............................................................................................................
1.1.1 Total quality management.......................................................................................
1.1.2 The framework for total quality management.........................................................
1.2. Related studies..................................................................................................................
II. OVERVIEW OF THE COFFEE HOUSE.........................................................................
2.1. History of formation and development.............................................................................
2.2. Technical facilities............................................................................................................
2.3. Featured products.............................................................................................................
III. EVALUATION ACCORDING TO TOTAL QUALITY
MANAGEMENT PROCESS...................................................................................................
3.1. Managing the operation of the cafe..................................................................................
3.1.1. The input...................................................................................................................
3.1.2. The process...............................................................................................................
3.1.3. The output.................................................................................................................
3.2. Operation management objective.....................................................................................
3.2.1. Coffee quality...........................................................................................................
3.2.2. Time..........................................................................................................................
3.3. Inventory management.....................................................................................................
3.4. Action management issues...............................................................................................
3.4.1. Supply chain management of The Coffee House.....................................................
3.4.2. Total quality management........................................................................................
3.5 Continuous improvement..................................................................................................
IV. EVALUATE BASED ON THE FRAMEWORK FOR TOTAL
QUALITY MANAGEMENT...................................................................................................
V. ADVANTAGES AND DISADVANTAGES.......................................................................
5.1. Advantages.......................................................................................................................
5.2. Disadvantages...................................................................................................................
VI. SOLUTIONS.......................................................................................................................
6.1. Similar solutions...............................................................................................................
6.2. Specific solutions.............................................................................................................
VII. CONCLUSION, LESSONS LEARNED.........................................................................

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 THE OPENING CHAPTER

In the era of technology 4.0, the strong development of the Internet makes
competition in the restaurant and coffee shop business increasingly hot,
requiring businesses to boldly invest and apply the latest technology solutions to
increase business efficiency and provide the best experience for diners. At the
same time, with the current market economy, if an enterprise operating in any
field wants to survive and develop, its products must be accepted by customers.
Improving service quality - Improving product quality must go hand in hand to
enhance the ability to attract customers and build company brand reputation. In
addition, in the food and beverage business, customers not only come to
consume the restaurant's products to serve physiological needs but also to satisfy
psychological needs. Therefore, customers want to receive comfort and a
positive feeling when consuming products. Besides, the catering business is one
of the two basic services in human life, so service quality has a role. It plays a
very important role in determining the success or failure of a business. To
evaluate the quality of food service needs to be based on many factors, but
mainly depends on the subjective opinions of customers. It can be considered a
very difficult job because the characteristic of food service is its intangibility,
but only through its use can one be assessed, there is no clear standard. This
study was conducted by the research team to explore the customer's preferred
factors when choosing food and beverage business services and at the same time
to explore more deeply the factors affecting service quality as well as the city
that has a Some solutions to improve service quality, increase customer
satisfaction, increase competitiveness of one of the most popular coffee shop
chains today. The selected object is the brand The Coffee House. With the motto
"People-centered", it seems that small things have brought great effects.

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I. THEORETICAL BASIS & CONCEPTUAL SYSTEM

1.1 Theoretical basis

1.1.1 Total quality management

- TQM is a comprehensive, organization-wide effort to improve the quality of

products and services, applicable to all organizations.

- It was recognized that culture played an enormous role in whether

organizations were successful or not with their TQM approaches. Good
communications were seen to be vital to success but the most important of all
was commitment, not only from the senior management but from everyone in
the organization, particularly those operating directly at the customer interface.

- Total quality management is a structured approach to managing the entire

organization. The process focuses on improving the quality of the organization's
production, including goods and services, through continuous improvement of
internal practices. The standards set within the TQM methodology can reflect
both internal priorities and any existing industry standards.

- Industry standards can be defined at many levels and can include compliance
with various laws and regulations that govern a company's operations. Industry
standards can also include manufacturing components to an understandable
standard, even if that standard is not supported.

- QM is considered a customer-centric process that focuses on continuous

improvement in business operations management. It strives to ensure that all
related employees work on common goals to improve the quality of products or
services, as well as to improve the procedures applicable in production. There
are a number of guiding principles that define TQM.

- Focus on customers: With TQM, customers determine whether your products

are of high quality. Customer input is highly valued as it allows the company to

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better understand the needs and requirements of the production process. For
example, consumer surveys may reveal insufficient durability of goods. These
inputs are then fed back into TQM systems to implement better sourcing,
manufacturing processes and quality control procedures.

- Employee Involvement: For TQM to be successful, employees must accept the

processes and the system. This includes clear communication between
departments and leaders of goals, expectations, needs and constraints. A
company adopting TQM principles must be willing to train employees and
provide them with sufficient resources to complete their tasks successfully and
on time. TQM also aims to reduce turnover and keep employees well informed.

- Continuous Improvement: As a business learns more about its customers,

processes, and competitors, it should gradually evolve and aim for incremental,
small improvements. This concept of continuous improvement helps the
company adapt to changing market expectations and allows for greater
adaptation to different products, markets, customers or regions. Continuous
improvement also drives and extends the competitive advantage the company
has built over related companies.

- Process adherence: A systematic TQM approach relies heavily on process

flowcharts, TQM diagrams, visual roadmaps, and documented workflows. Each
member of the process must be aware of and trained in their part of the process
to ensure that appropriate steps are taken at the correct time of production.
These processes are then continuously analyzed to better understand process
deficiencies.

- Strategic and systematic approach: the company's processes and procedures

should be a direct reflection of the vision, mission and long-term plan of the
organization. TQM requires a systemic approach to decision-making that

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requires the company to commit to integrating quality as its core element and
making the appropriate financial investments to make it happen.

- Use of data: A systematic TQM approach only works when feedback and
inputs are provided to evaluate the flow of the process. Management must
constantly rely on production, turnover, productivity and workforce metrics to
correlate predicted results with actual results. TQM relies heavily on
documentation and planning, and only through the use and analysis of data can
management understand whether these plans are being implemented.

- Systems Integration: One way to use data is to integrate systems. TQM

strategies assume that systems should talk to each other, transfer useful
information between departments and make smart decisions. When goods or
inventory are used in one area, another department should have immediate
access to this ERP information. By connecting data sources and sharing
information between systems, TQM aims to keep everyone on the same page at
the same time.

- Communication: While data can be freely transferred between departments,

coordinating processes and ensuring the efficient operation of the entire
production line is the human element. Whether it is about normal day-to-day
operations or major organizational changes, effective communication plays an
important role in TQM in order to motivate employees and train participants in
the process and avoid process errors.

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 1.1.2 The framework for total quality management

Figure 1: The framework for total quality management

- Total Quality Management was consciously adopted as the quality

management approach because of the broadness of its scope and
adaptability to different circumstances. According to Oakland (2003),
TQM is an approach in which quality is emphasized in every aspect of
the business and organization; its goals are aimed at long term
development of quality products and services. Total quality
management is a broad culture change vehicle with internal and
external focus. It embraces.

• Behavior

• Service issues

• Quality assurance

• Quality control

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 • Performance management

• Continuous improvement

- The TQM model has four hard components – four P’s – processes,
people, planning and performance, which are the keys to delivering
quality products and services to customers and continuously
improving overall performance. The three C’s ̶ culture, communication
and commitment provide the glue or soft outcomes. These 3
components are illustrated in Figure 1. Total quality management is
far more than a means of detecting data errors. It is essentially a way
of planning, organizing and understanding each activity and depends
on each individual at each level.

1.2. Related studies

Originating from the need to learn and evaluate the service quality of The
Coffee House and then offer solutions to promote business activities, the
research topic has been carried out by many domestic researchers. The authors
have consulted a number of similar research works to determine research
content and build a proposed research model, such as:

● Dao Phuong Thao (2015): “The evaluation of service quality of The

Coffee Shop”. Research subjects in the survey are people who often go
to the city's pubs between the ages of 15 and 40. The SERVQUAL
model is the main general model for measuring and managing service
quality. Tangibility, reliability, responsiveness, assurance and empathy
are the five common SERVQUAL scale units. for quality
measurements. SPSS and Microsoft Excel are the software used to
analyze the collected data. The results show that it is necessary to
maximize the space and focus on training the staff to make customers
more comfortable when coming to the shop.

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 ● Bui Thanh Dat (2016) "Evaluating service quality of Thanh Nghia
supermarket in Kon Tum city". Quantitative research is carried out
using a quantitative survey method to collect data. Data were
processed using the statistical software SPSS 16.0. The scale is
evaluated by Cronbach's Alpha reliability coefficient, EFA exploratory
factor analysis and the research model is tested by linear regression. In
today's increasingly fierce competition environment, Thanh Nghia
supermarket needs to create for customers a good feeling about
supermarket service quality and minimize bad feelings about
supermarket service quality. town.
● Vu Thi Tinh (2020): “Study on the factors affecting the brand
experience of The Coffee House”. The structure of the study is based
on previous studies that combine the use of multivariate regression
models with research hypotheses to analyze data. Research results
show that perceived quality, event marketing, and media marketing
positively affect the experience of The Coffee House brand in Ho Chi
Minh City. Ho Chi Minh. Customer experience is all the experience
that a user has when interacting with a certain brand.

II. OVERVIEW OF THE COFFEE HOUSE

2.1. History of formation and development

The Coffee House is a chain of coffee shops in Vietnam, founded in 2014

by Mr. Nguyen Hai Ninh - a talented and famous person in the startup world.
Before establishing The Coffee House, Mr. Ninh also made an impression with
Urban Station coffee chain with his friend Dinh Nhat Nam. After the success of
Urban Station Coffee, Mr. Nguyen HaiNinh continues to cherish the dream of
starting a business again.

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 Despite being born late, The Coffee House is growing faster than many
competitors in the coffee market thanks to the business understanding the
market and good management. After the brands Passio and Urban Station
Coffee, this is a successful example of a Vietnamese startup in the competitive
coffee chain market against the encroachment of foreign investors. The success
of The Coffee House today is due to the business clearly defining a business
model that focuses on high detail and finding the gap in the red ocean.

In August 2014, The Coffee House coffee chain was officially launched
and continuously impressed with its rapid growth rate. From the first store at 86-
88 Cao Thang, up to now, The Coffee House chain of coffee shops has been
present in 6 major cities nationwide (Ho Chi Minh City, Hanoi, Da Nang, Bien
Hoa, Hai Phong, Vung Tau).

In less than 4 years, The Coffee House has opened 100 stores across the
country. This is an extremely impressive number that surely any brand in the
coffee shop chain market wants to achieve. Not only that, in the context of
globalization, foreign brands have flocked to every corner, there is more reason
to be proud of the success created by a collective of Vietnamese people. The
country has about 18,000 coffee shops, while there are only more than 100 The
Coffee House stores and Vietnam has 100 million people, but at the beginning
of 2019 The Coffee House has served 26 million customers.

The Coffee House brand has been “redefining” the coffee experience with
an inspiring space, friendly staff and good product quality at a price that suits
the masses. Not only that, after merging the coffee division of Cau Dat Farm,
The Coffee House officially operated its own farm in Cau Dat - the golden strip
of Arabica coffee beans, in order to provide clean coffee products and quality.

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 2.2. Technical facilities

With a luxurious interior decoration style combining classic and modern

in deep and stylized colors, The Coffee House appears in the minds of
consumers as a "foreign" coffee house. unique, professional and high-class with
reasonable prices for customers. The most special is the design of the brand
name, round letters, under each "o" add an underline that makes people
misunderstand that this is a Korean hieroglyphic typeface.
Entering any store, we can easily see images of students - students sitting,
chatting, studying, working or simply sipping a book at the shop because the
place This is a very comfortable and airy space

2.3. Featured products

The Coffee House offers a standout drink that is Peach Orange

Lemongrass Tea - a drink with bold identity. There are 20,000 cups of Orange
Lemongrass Peach Tea sold every day thanks to the sweet taste of Greek
peaches, the mild sourness of Yellow Orange in the skin, the acrid taste of black
tea, and the characteristic strong aroma of lemongrass which is the highlight that
makes the attraction. Guide to this drink.

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III. EVALUATION ACCORDING TO TOTAL QUALITY
MANAGEMENT PROCESS

3.1. Managing the operation of the cafe

3.1.1. The input

The input of the Coffee house includes customers and the

ingredients for making drinks and food.

The ingredients must be strictly controlled to choose high quality,

providing the best beverage experience for customers. In the coffee house, from
the first stores, they have started a partnership with Cau Dat Farm to grow
coffee according to their own standards. Through a strict roasting process under
the hands of leading coffee experts in Vietnam, coffee beans with uniform
quality, rich aroma and the inherent balanced taste of Cau Dat coffee beans will
be brought to all stores on The Coffee House system to serve the customers.

The customer comes to the Coffee house to enjoy the drinks and food.
Moreover, this is the place that they can connect to their friend, college or
another relationship.

3.1.2. The process

The process of serving drinks and food at The Coffee House includes
making coffee for customers and customer’s care when they wait for their
drinks.
" Before - In - After. "
Customers wishing to use the store's drinks will be greeted by the staff
and guided to choose the right drink for their taste. After receiving the
customer's order and paying, the staff will give the customer an invoice and a

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vibrating card with a code. Guests find their own seats. The staff will be
responsible for preparing the right drink that the customer requests and after the
dish is done, they will dial the customer's card number at the central broadcaster.
When the card vibrates, the customer will go down to the cashier to receive the
previously ordered drinks and return the card to the cashier. If the customer has
any other request, the staff at the store will come to serve to make the customer
experience always good.

The employees will instruct customers to enter the cashier's counter

to order the drinks, the cashier will guide the guests to choose the beverages
according to the customer's needs, based on the menu placed immediately, and
the small menu is placed on the menu table. In addition to some exceptional
cases at the store, when new beverages, seasonal drinks, combo, different
promotions. At the cashier's shop, will they need to ask whether they want to try
that drink? Not only that, but the stores have snacks like salty cakes. If
combined with the guest's drinks, it adds to guests' meals.

Payment will occur after the order is completed, at the Coffee

house's payments including cash, online banking, card, momo. Since the coffee
house uses both mobile apps on both IOS & Android platforms in which the
customer's information will be stored and other offers membership, the cashier
also needs to ask customers to help customers with the shopping.

After ordering and paying, customers will be instructed to sit and wait for
their drinks. Customers will be served water and enjoy the music.

In addition to the invoices that the cashier gave customers, there would be
a copy of the employee bill that would keep sending the bartender. From here,
the bartender would sort the bill in order and start making things. The

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implementation of the drink must comply with the formula and complete within
a given time for each invoice, except when there are too many drinks at the
time, the cashier will have to ask for a client's permission to produce later (from
10 to 15 minutes). Once the bartender has done his or her part, they'll send the
drink to the bartender to do the rest.

From here on, the staff will finish the drink following what has been
specified from the top of (with a hot drink such as coffee, chocolate, mathe
coffee houses will be left with a long spoon and a paper pipe that is placed) side,
which a paper pipe will accompany. When it has finished, the staff will
arrange a drink again and put it on the tray simultaneously, arranging the
proper invoices for that drink and when the customer comes to receive the drink,
the staff will not forget to tell the customer: "You enjoy your meal."

From here, customers will use their drinks and if any problems
occur such as drinks, space, etc. Customers can call their employees directly
to help if they are uncomfortable, and the customer can still submit their
experience at the store through an existing app. After each app transaction
appears a review table for the customer at several stars from 1- 5,
depending on the customer satisfaction level after making the evaluation table, it
will directly be sent to the store manager if there are a low number of
issues or issues that have complained. It's best to make customers experience
when using the store at best.

3.1.3. The output

After enjoying the service and quality of the coffee, customers will
have the assessment of the products that determine their brand loyalty. At The

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Coffee house, they have designed an app for the customers to respond to their
feelings or not be satisfied about the products or staff. Get feedback on the
spot, if there is a problem, they will handle it immediately, avoiding a
crisis. For example, the writer once wrote a review through the app about the
coffee cup with some powder on the bottom, less than 5 minutes later the
manager came and asked for permission to make a new cup. Moreover, when
customers order online: for every 10,000 VND, they will get 1 point and 50
points corresponding to 500,000 VND, you will receive a drink of their choice.
Customers have voluntarily updated their information and they have more
motivation to come to The Coffee House and get the promotion.

3.2. Operation management objective

3.2.1. Coffee quality

To achieve success today, the last seven years The Coffee House
continuously pursued actual coffee value, "non-season." It's like a religion, in a
belief and grit aspect. Do the right thing; it may not see the short term
immediately, but in the long run, you will surely reap the sweet because it is the
right way to go.

The coffee house recognizes that Vietnam ranks second in export but is
raw coffee, used as raw materials for extracting components such as caffeine.
We also have high-quality coffee but no brand and hidden source. That proves
that Vietnam can grow good coffee but depends on buyers, world markets. It’s
time to build a reputation for high-quality Vietnamese coffee.

The coffee house began the journey of self-producing, providing raw

materials, and giving natural coffee to the customers. From the farm at its land
bridge: production according to modern processes to improve the value of

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Robusta and arabica of Vietnam. Conservation of typical, yellow cat of local
and imported varieties of coffee from Costa Rica. Testing preparation
methods from the world's famous coffee countries with future goals will bring
Vietnamese coffee abroad with a new mentality.

"From farm to cup" – “từ nông trại đến ly cà phê” is the whole process
from the time the enterprise incubation, the harvest control, the preparation, and
roasting in the counter.

Behind the journey a drop of coffee was carried to the customer's hand,
the collective effort of many people. To enjoy a cup of coffee usually only takes
30 minutes, but to take care of the coffee tree that yields fruit takes three years.
And it takes two more years to get the best quality coffee. The coffee house
silently incubates the first coffee trees from three years ago, as soon as the
dream of "THE COFFEE HOUSE" is hatching, and it will undoubtedly need
more "three years" such as this exciting journey.

3.2.2. Time

While quality is what customers focus on the most, preparing a drink will
affect the customer's mood to enjoy the drink. Customers do not require
drinks to be served perfunctorily, but they do not want to wait too long for
their drinks. Beverages are required to meet the expected 5 – 10 minute
maximum wait time. When managing such a professional and reputable brewing
process, the baristas will not spend too much time making drinks and cause
trouble to customers.

3.3. Inventory management

● Step for the coffee house to manage inventory

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Step 1: Statistics of numbers
This is one of the key factors influencing the budget. THE COFFEE
HOUSE will take measures to limit fluctuations in the supply of food in its
warehouse. This is also the most likely stage of the loss. THC used to get this
job done.
Make a list of:
- Raw material: is a raw material that is sold or kept for production in the
future, sent for processing and bought on the way home: sugar ice, coffee
beans, math coffee house, ice cream ...
- Finished product: is the finished product after the product process. Such
as: cakes, bread, etc.

Step 2: Use the treatment system

- If you want to manage in detail and accurately the import and export
situation of raw materials.
- The coffee house uses the software. The recipe declaration of the software
products will take up a lot of time at the coffee house, Include the goods
declaration, raw materials list, then set quantity for each item. With a list
of about 100 products it will take about an afternoon to sell.

Step 3: Check inventory regularly to minimize errors

Warehouse management is not easy, there will be a lot of problems
around import and export you have no control, such as the employee forgot.
Do not enter the receipt of goods into the software, the staff enter
the warehouse wrong number, sales staff did not enter the software, sold the
wrong product, the formula was much wrong. This makes the data on the
software skewed with reality and only inventory that you know.

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 3.4. Action management issues

3.4.1. Supply chain management of The Coffee House

First of all, The Coffee House has their own supplier which is Cau Dat
farm. There, they provide the finest and aromatic Arabica coffee beans in
Vietnam. The Coffee House also has producers which bring packages and cups.
Under the control of the management team, the quality of these products is
guaranteed. The beans after harvest will be roasted, grinded and stored in cold
storage. In every store, the manager of the store orders the use of term-type
orders filled which include coffee beans, milk, takeaway cups, straws, etc,
ordering volume = demand – inventory.

Secondly, about the inventory file, everyday before work, the manager
must check and calculate the inventory of raw materials. Suppliers will deliver
materials to each store. Thirdly, it is about distribution planning, staff in the
store receive and prepare orders to serve customers at the table. The Coffee
House also takes orders via the app, then the staff prepares, packs and ships the
drink to the customer.

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 Finally, about customer service, THE COFFEE HOUSE welcomes
any questions, comments, feedback and looks forward to receiving your
information. Those comments help them strive to provide the best customer
experience possible. Customers can leave comments on their fanpage or
customers can review on the app THE COFFEE HOUSE and they will try to
reply to you as soon as possible.

3.4.2. Total quality management

The total quality management that the coffee house wants to focus on is
the quality of the Vietnamese coffee. Customers experience the best cup of
coffee.

“People define good coffee as bitter and smooth. For the past 5 years, our
regular customers say that the coffee is as watery as tea. I travel to many parts of
the world, but I have found that they do not add additives like coffee in
Vietnam, that brings me down compared to the world. The cultural things are
preserved, and what makes us set back should change. My coffee culture is
coffee filter, not marinade coffee” - The CEO of the coffee house said.

The Coffee House Blend is a unique blend of coffee at The Coffee House
chain. The principle is always put on top to ensure pure taste is sent to
customers. The coffee beans are strictly selected from the ripe fruit of the
latest season, are harvested entirely by hand, reaching the ripe fruit rate
accounting for more than 95% of the harvest. The roasting and blending recipe
of Arabica and Robusta beans of The Coffee House creates a balanced overall
bitter, sweet and sour taste, helping coffee to be bold and fragrant.

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 The Coffee House wants to bring the best service to the customer. In
terms of Staff, All staff must experience a severe training course to make
sure the unique flavor and therefore the quality of nutrition for his or her
drink is consistent with the group’s standards.

3.5 Continuous improvement

● Demand
The Coffee House has over 150 stores across Vietnam that serve
over 40,000 customers a day. As the behavior changes due to customer taste,
THE COFFEE HOUSE must update the new trend. The Coffee House should
use a quantitative approach to improve the quality of products which will satisfy
customer’s desires in real time.

IV. EVALUATE BASED ON THE FRAMEWORK FOR TOTAL

QUALITY MANAGEMENT

1. Planning : The Coffee House establishes a clear quality policy that

outlines its commitment to delivering high-quality products and services.
This policy is communicated to all employees, ensuring that everyone
understands and aligns with the company's quality goals. The Coffee
House sets specific quality objectives that are measurable, achievable, and
aligned with customer expectations and business goals.

2. People : The Coffee House recognizes the importance of involving

employees in quality initiatives. They encourage open communication,
teamwork, and collaboration among employees at all levels. Employees
are encouraged to share their ideas, suggestions, and feedback related to
quality improvement. The Coffee House fosters a culture where

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 employees feel valued, respected, and included in the quality management
process.

3. Processes : The Coffee House recognizes the importance of training and

development in ensuring quality. They have processes to identify training
needs, design training programs, and provide ongoing development
opportunities for employees. Training and development processes help
equip employees with the necessary skills, knowledge, and competencies
to meet quality requirements and contribute to continuous improvement.

4. Performance : The Coffee House establishes and tracks various quality

metrics to measure its performance. These metrics may include product
quality indicators (such as defect rates or customer complaints), service
delivery metrics (such as on-time delivery or response time), and process
efficiency metrics (such as cycle time or waste reduction). By monitoring
these metrics, The Coffee House evaluates its performance and identifies
opportunities for improvement.

5. Communication : The Coffee House establishes feedback mechanisms

and communication loops to capture feedback from customers,
employees, and other stakeholders regarding quality issues. This includes
channels such as customer feedback forms, suggestion boxes, and regular
meetings to discuss quality-related matters. The Coffee House values
feedback as an opportunity for improvement and ensures that there are
effective communication channels to address and resolve quality concerns
promptly.

6. Commitment : The Coffee House is committed to complying with

relevant quality standards and regulations. They ensure that their

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 operations meet industry-specific quality requirements and follow
applicable laws and regulations. The company conducts internal audits
and assessments to verify compliance and implements corrective actions
when necessary.

7. Culture : The Coffee House embraces innovation and creativity in its

menu offerings and cafe designs. They continuously introduce new and
unique coffee blends, flavors, and food items to cater to evolving
customer preferences. The Coffee House also explores creative
approaches to cafe design and aesthetics, creating visually appealing
spaces that stand out.

V. ADVANTAGES AND DISADVANTAGES

5.1. Advantages

1. Strong Brand Recognition

The Coffee House has achieved significant brand recognition and has become
a well-known coffee chain in Vietnam. This recognition provides a
competitive advantage and helps attract customers.

2. Wide Network of Outlets

The Coffee House has expanded its presence with a wide network of outlets
across major cities in Vietnam. This extensive reach allows for increased
customer accessibility and convenience.

3. Diverse Menu Options

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The Coffee House offers a diverse range of coffee beverages and food items,
catering to different tastes and preferences. This variety attracts a wider
customer base and provides options for various dietary needs.

4. Emphasis on Customer Experience

The Coffee House places importance on providing a comfortable and

welcoming environment for customers. This focus on the customer
experience helps create a positive brand image and fosters customer loyalty.

5.2. Disadvantages

1. Inventory management
Warehouse management is not easy, there will be a lot of problems around
import and export they have no control, such as the employee forgetting. Do
not enter the receipt of goods into the software, the staff enter the
warehouse wrong number, sales staff did not enter the software, sold the wrong
product, the formula was much wrong. This makes the data on the software
skewed with reality and only inventory that they know.

2. Supply chain management

The first one is cost pressure. Labour costs continue to rise and a lack of local
materials. The cost of preserving raw materials is also high. The product that
comes to customers must be the freshest. Secondly, there is a decline in the
profit of stores. Determining the areas that supply chains are impacted by
controlling by local policies. This led to disruptions and bottlenecks due to strict
inspection on food safety.

3. Product and service quality

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The issue of processing drinks of The Coffee House is that when they receive
customer complaints about the quality of the drink. Moreover, the attitude of the
staff is sometimes unpleasant.

4. Stiff competition
Because of the huge demand for coffee- even in social situations, it is not
uncommon to find a coffee shop in every corner. There are many choices such
as Starbuck, Highland,..

VI. SOLUTIONS

6.1. Similar solutions

1. Inventory Management

Economic Ordering Quantity: Starbucks uses both the EOQ system and the P-
system to effectively manage its shop level inventories. The plans help
Starbucks stop stock losses and wasteful spending. At sales point registers,
inventory is tracked using programmed computers. Most orders and shipments
of Starbucks goods are made in two different methods. Retinal storage makes
use of the P-system. Starbucks orders are placed with a 7-day lead time and a 3-
day average delivery time. To ensure that customers' needs are met, Starbucks
places a 15% overstock on its whole inventory. Daily orders for the Economic
order quantity are placed with a lead time of 48 hours.

Adoption of RFID: - It is obvious that retailers would have a difficult time

simultaneously managing deliveries and customers. Since Starbucks is in the
retail industry, it must come up with ways to deal with such inventory
management issues. Therefore, Starbucks has implemented new inventory
management tools like RFID. Starbucks, a chain of coffee shops, needs RFID

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technology to solve problems with customer service and inventory management
in retail.

2. Supply chain management

Supplier Relationship Management: Long-term supplier relationships are an

important part of a successful supply chain, and the Starbucks coffee supply
chain is no exception. Starbucks continuously works with our suppliers to
ensure that all coffee beans meet our requirements. To prevent a possible coffee
shortage, Starbucks bought a Costa Rican coffee plantation in 2013.

Manufacturing & Distribution: Starbucks' distribution strategy is impressive. As

previously mentioned, Starbucks stores span his six continents and the company
has six centralized warehouse facilities that can streamline logistics across his
25,000 stores in 69 countries. When chickpeas arrive at our warehouse, they are
roasted on site to ensure the same roasting standards in each country. Roasted
and packaged coffee beans are then shipped to Starbucks distribution centers to
large, regional or small warehouses, where they are shipped to retail stores.

3. Product and service quality

Quality of service Starbucks uses a dedicated Twitter account to respond to

customer requests @MyStarbucksIdea ("My Starbucks Ideas"). Through this
page they develop a brand personality and the 'intimate' language they use when
responding to requests and complaints. The name alone is associated with the
brand's mission to become the '3rd place customers go after home and work'
(online).

Starbucks uses a dedicated Twitter account to respond to customer requests

@MyStarbucksIdea ("My Starbucks Ideas"). Through this page they develop a
brand personality and the 'intimate' language they use when responding to

26
requests and complaints. The name alone is associated with the brand's mission
to become the '3rd place customers go after home and work' (offline).

4. Stiff competition

The competitive strategy of the Starbucks brand as mentioned above is to focus

in detail on each experience that the store creates. This is considered the
foundation for the company's philosophy and values. In the United States, which
has the largest number of stores, they applied innovative design ideas to create
stores from unused shipping containers. The interiors of these stores are created
through certain materials, combined with clever and artistic lighting
arrangements, etc. In international markets, Starbucks has applied localization
strategies to some elements of the store while ensuring the right Starbucks
experience.

6.2. Specific solutions

1. Inventory Management:
- The solution for inventory management is that the company should
apply the FIFO Method (First In – First Out), this is an important
principle in inventory management. First in - First out means that
the items they first entered need to be used first, which is especially
necessary if you are selling perishable products. Therefore, firms
make sure that products are not left in stock too long. Materials
imported first will be processed first, material imported later will
be processed later. So the quality of the drink will be guaranteed.
2. Supply chain management
- Communication and collaboration between supply chain control
teams, building business operations, purchasing, logistics, etc. Are
essential to reducing individual work and risk throughout the chain.
They are taking advantage of the latest developments in automation

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 to increase productivity and reduce costs, improve storage
capacity and consolidate manufacturing and distribution
operations, and maximize service levels, system flexibility and
operational resilience. Firms should try to simplify and
improve the supply chain to increase efficiency and profitability.
3. Product and service quality
- For the drink, The Coffee House ought to verify the quality of
products that suppliers have provided. When using a machine,
every day, they must clean all of the machinery and examine them
every two weeks. If something goes wrong, they must do
maintenance to ensure the food's quality.
- The process of labor recruitment is carried out strictly and
fairly and training must be conducted regularly. To improve
workers' sense of responsibility, they are forced to be punished if
they are wrong.
4. Stiff competition:
- Developed a new type of snack and offered it to customers
in the house after purchasing beverages such as: Peanuts, chips,
etc. In the coffee market, there are very few cafes that offer free
snacks to customers after they order drinks. This service will make
a difference for The Coffee House. The prices of these snacks are
very affordable but can imprint on customers' minds a new way of
serving. Because many customers will feel short when only
drinking one cup of coffee. These snacks will not affect the sales of
other cakes in The Coffee House because: snacks will not only
make customers full but also snacks will mainly be salty. The
Coffee House will lead the cafe market in terms of this service.

28
 - Opening a souvenir shop at the store not only helps the restaurant
increase revenue but also enhances the brand awareness of the
coffee house to customers.
- Organize minigame activities to increase customer attraction,
increase brand recognition, thereby increasing sales.

VII. CONCLUSION, LESSONS LEARNED

TQM is a very important method that determines the success or failure of

the company and the performance of the organization. Because TQM enhances
productivity by eliminating wasteful activities, optimizing processes and
offering more efficient working methods. Help improve product and service
quality by focusing on meeting customer needs, ensuring safety, meeting quality
standards, and minimizing product defects. Enhance customer confidence by
providing better quality products and services, meeting customer needs, and
reducing product defects. In addition, TQM helps organizations improve their
competitiveness by improving product and service quality, improving
productivity, and reducing costs. A small benefit that few managers notice is
that it helps increase employee satisfaction by creating a positive work
environment, increasing employee responsibility and engagement, making them
feel proud about his work.
Therefore, companies should learn widely and choose the right TQM
model for their business. Not only focus on product quality, but also train and
develop employees because they are directly responsible for implementing
TQM processes applied in the company, including assessment, testing and
assurance quality. Quality assurance of products, services. In addition, between
leaders and employees, there must be a commitment and vice versa,
commitment is the catalyst to help employees work efficiently, improve

29
productivity, etc. Enterprises must also constantly improve continuously to
ensure that the company's products/services are always improved and enhanced
so that products are not outdated, updated with trends, and at the same time help
improve the efficiency and competitiveness of the company in the market.
That's why The Coffee House constantly updates modern technologies,
automates the process step by step, etc. And to implement TQM effectively, it is
necessary to have a spirit of cooperation, sharing responsibility, and leaders
must train. , communicate ideas, raise the sense of doing right from the
leadership. for the first time and each individual must always be careful and
meticulous in every step and decision. In addition, corporate culture and
information exchange are also very important, "If you want to go fast, go alone,
if you want to go far, go together", so understanding and a friendly and
harmonious working environment community will help the organization grow
more and more.
In general, the results show that customers are satisfied with the service
quality of The Coffee House chain, and will continue to come and recommend
them to acquaintances in the future. However, in order to improve the
customer's experience. For customers, The Coffee House needs to focus more
on staff training, maximizing space for customers to have the most experience.
In order to increase the search for brand experience, The Coffee House needs to
ensure the quality of input coffee. In addition, bartenders must be trained in
training, improving skills to attract customers in addition to making drinks
quickly and according to customers' requirements.
The solutions to improve service quality at The Coffee House system
proposed above are long-term in nature, but there are also short-term solutions
and will be promoted in the near future.
The Coffee House is still doing well what it is doing, bringing the brand
to all parts of Vietnam and beyond to the international community. The Coffee
House is aimed at all ages and all walks of life, making this place closer to

30
everyone. However, in order to reach out to the international market, The Coffee
House needs breakthroughs, big changes to be able to reach the harsh market.

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 BẢNG ĐÁNH GIÁ CÔNG VIỆC

Họ tên MSSV Mức độ đóng góp

Nguyễn Ánh Xuân 205101956 100%

Hoàng Kiều Vy 205017993 100%

Hứa Thanh Bạch 205017571 100%

Vũ Lê Nhật Vy 205013576 70%

Phạm Thắng Lợi 205090175 70%

Trần Thị Phương Ngân 205015753 70%

70%

32