Integrated Quality

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University of Pitești

M.S.D.A

INTEGRATED QUALITY MANAGEMENT

Students: Belu Nicoleta


Enache Miruna Conf.univ.dr habil Sinisi Crenguța Ileana
Giura Alina Mihaela
Lazăr Beatrice Andreea

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Chapter 1.Introduction
A project organization is a structure that facilitates the coordination and implementation of
project activities. Its main reason is to create an environment that fosters interactions among
the team members with a minimum amount of disruptions, overlaps and conflict. One of the
important decisions of project management is the form of organizational structure that will be
used for the project.

Each project has its unique characteristics and the design of an organizational structure should
consider the organizational environment, the project characteristics in which it will operate,
and the level of authority the project manager is given. A project structure can take on various
forms with each form having its own advantages and disadvantages.One of the main
objectives of the structure is to reduce uncertainty and confusion that typically occurs at the
project initiation phase. The structure defines the relationships among members of the project
management and the relationships with the external environment. The structure defines the
authority by means of a graphical illustration called an organization chart.
A properly designed project organization chart is essential to project success. An organization
chart shows where each person is placed in the project structure. An organization chart is
drawn in pyramid form where individuals located closer to the top of the pyramid have more
authority and responsibility than members located toward the bottom. It is the relative
locations of the individuals on the organization chart that specifies the working relationships,
and the lines connecting the boxes designate formal supervision and lines of communication
between the individuals.
Creating the project structure is only a part of organizing the project;
it is the actual implementation and application that takes the most effort. The project
organization chart establishes the formal relationships among project manager, the project
team members, the development organization, the project, beneficiaries and other project
stakeholders. This organization must facilitate an effective interaction and integration among
all the major project participants and achieve open and effective communication among them.
The project manager must create a project structure that will meet the various project needs at
different phases of the project. The structure cannot be designed too rigid or too lose, since the
project organization's purpose is to facilitate the interaction of people to achieve the project
ultimate goals within the specified constraints of scope, schedule, budget and quality. The
objective in designing a project structure is to provide a formal environment that the project
manager can use to influence team members to do their best in completing their assignment
and duties. The structure needs to be designed to help develop collaboration among individual
team members; all in a cost effective way with a minimum of duplication of effort and
overlaps.
The organization chart has a limited functionality; it only shows the hierarchical relationship
among the team members but does not shows The Project Management Structures how the
project organization will work, it is for that reason that the design should consider factors that

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will facilitate the operation of the structure; these include communications, information flows,
coordination and collaboration among its members.

1.1. Factors in designing a project structure


There are two design factors that significantly influence the process of developing a project
management structure. These are the level of specialization, and the need for coordination.
The project manager should consider these factors at the moment of designing the project
organization in order to maximize the effectiveness of the structure. Specialization affects the
project structure by the degree of specialty in technical areas or development focus; projects
can be highly specialized and focus on a specific area of development, or have different broad
specializations in many areas of development. For large projects that have multiple
specializations or technical areas, each area may have a different need; from differences in
goals, approaches and methodologies, all of which influence the way the project will
implement its activities. A project that has two components, a reconstruction and education,
will need to manage different approaches based on the specialization of each one. In the
education
component, the needs is for a structure more open and informal, where the time horizon is
longer, with more emphasis on sharing and generation of new ideas in order to achieve
innovation and creativity.
In a reconstruction component, there are specific goals, a need for a rigid, hierarchical
structure, and there is a defined time horizon with little sharing of ideas. While specialization
allows each project component to maximize their productivity to attain their departmental
goals, the dissimilarities may lead to conflict among the members or leads of each component.
In general, the greater the differences, the more problems project managers have in getting
them to work together.
Coordination is required to bring unity to the various elements that make up a project. The
project work is organized around a work breakdown structure (WBS) that divides the overall
project goals into specific activities or tasks for each project area or component; the project
manager must design an organizational structure that ensure that the various components are
integrated so that their efforts contribute to the overall project goal. Integration is the degree
of collaboration and mutual understanding required among the various project components to
achieve project goals. Most projects are characterized by the division of labor and task
interdependencies, creating the need for integration to meet project objectives. This need is
greatest when there are many project components that have different specializations. The goal
of the project management structure is the achievement of harmony of individual efforts
toward the accomplishment of the group goals. The project manager's principal responsibility
is to develop integrating strategies to ensure that a particular component or activity is
organized in a way that all of the components, parts, subsystems, and organizational units fit
together as a functioning, integrated whole according to the project master plan.

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1.2. Types of project organizations structures


Of the several factors to consider when deciding on the design of project organizational
structures, especially within an existing organization, the factor that has a significant is the
extent of authority and responsibility top management is prepared to delegate to the
project manager. An important function of the organizations’ top management is to design an
organization that fully supports project management. This is done by redesigning the
organization to emphasize the nature of the projects and adapting how roles and
responsibilities are assigned.
The organization needs to define the project manager’s job, degree of authority and autonomy,
and relationship to both the organization, other projects and to other units in the organization.
Upper management also should specify communication channels, methods of conflict
resolution between the project and the rest of the organization. Development organizations are
usually organized around programmatic focus areas such as health or education. These areas
are usually called program units and are centered on a specific development field. In this
environment a project has three organization structures available for design and all are defined
by the level of organizational authority given to the project manager: The Project
Management Structures:
• Programmatic based, in which project managers have authority only within the
program focus or area;
• Matrix based,, in which the project manager shares responsibility with other program
unit managers;
• Project based, in which project managers have total authority.

1.2. Programmatic Based


The programmatic focus refers to a traditional structure in which program sector managers
have formal authority over most resources. It is only suitable for projects within one program
sector. However, it is not suitable for projects that require a diverse mix of people with
different expertise from various program sectors. In a programmatic based organization, a
project team is staffed with people from the same area. All the resources needed for the
project team come from the same unit. For instance, if the project is related to the health area,
the project resources come from the health unit.
The most obvious advantage of programmatic based projects is that there are clear lines of
authority, in large projects the project managers tend to also be the program unit manager.
There is not need to negotiate with other program units for resources, since all of the staff
needed for the project will come from the same program area. Another advantage of this type
of organization is that the team members are usually familiar with each other, since they all
work in the same area.
The team members also tend to bring applicable knowledge of theproject.

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A major disadvantage of the programmatic based organization is that the program area may
not have all of the specialists needed to work on a project. A nutrition project with a water
component, for instance, may have difficulty acquiring specialty resources such as civil
engineers, since the only people available will work in their own program unit.

Another disadvantage is that project team members may have other responsibilities in the
program unit since they may not be needed fulltime on a project. They may be assigned to
other projects, but it is more typical that they would have support responsibilities that could
impact their ability to meet project deadlines.

1.4. Matrix Based


Matrix based project organizations allow program units to focus on their specific technical
competencies and allow projects to be staffed with specialists from throughout the
organization. For instance, nutrition specialists may report to one program unit, but would be
allocated out to work on various projects. A health specialist might report to the health unit,
but be temporarily assigned to a project in another project that needs health expertise. It is
common for people to report to one person in the programmatic unit, while working for one or
two project managers from other projects in different programmatic units.

The main advantage of the matrix based organization is the efficient allocation of all
resources, especially scarce specialty skills that cannot be fully utilized by only one project.
For instance, monitoring and evaluation specialists may not be utilized full-time on a project,
but can be fully leveraged by working on multiple projects.

The matrix based organization is also the most flexible when dealing with changing
programmatic needs and priorities. Additional advantages to matrix management are: it allows
team members to share information more readily across the unit boundaries, allows for
specialization that can increase depth of knowledge and allow professional development and
career progression to be managed. It is easier for a program unit manager to loan an employee
to another manager without making the change permanent. It is therefore easier to accomplish
work objectives in an environment when task loads are shifting rapidly between
programmatic units.

The main disadvantage is that the reporting relationships are complex. Some people might
report to programmatic unit managers for whom little work is done, while actually working
for one or more project managers. It becomes more important for staff members to develop
strong time management skills to ensure that they fulfill the work expectations of multiple
managers. This organization also requires communication and cooperation between multiple

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programmatic unit managers and project managers since that all be competing for time from
the same resources.
Matrix management can put some difficulty on project managers because they must work
closely with other managers and workers in order to complete the project. The programmatic
managers may have different goals, objectives, and priorities than the project managers,
and these would have to be addressed in order to get the job done. An approach to help solve
this situation is a variation of the Matrix organization which includes a coordinating role that
either supervises or provides support to the project managers. In some organizations this is
know as the Project Management Office (PMO), dedicated to provide expertise, best
practices, training, methodologies and guidance to project managers.
The PMO unit also defines and maintains the standards of project management processes
within the organization. The PMO strives to standardize and introduce economies of scale in
the implementation of projects. The PMO is the source of documentation, guidance and
metrics on the practice of project management and implementation. The PMO can also help in
the prioritization of human resources assigned to projects.

1.5. Project Based


In this type of organization project managers have a high level of authority to manage and
control the project resources. The project manager in this structure has total authority over the
project and can acquire resources needed to accomplish project objectives from within or
outside the parent organization, subject only to the scope, quality, and budget constraints
identified in the project.
In the project based structure, personnel are specifically assigned to the project and report
directly to the project manager. The project manager is responsible for the performance
appraisal and career progression of all project team members while on the project. This leads
to increased project loyalty. Complete line authority over project efforts affords the project
manager strong project controls and centralized lines of communication.
This leads to rapid reaction time and improved responsiveness. Moreover, project personnel
are retained on an exclusive rather than shared or part-time basis. Project teams develop a
strong sense of project identification and ownership, with deep loyalty efforts to the project
and a good understanding of the nature of project’s activities, mission, or goals.
Pure project based organizations are more common among large and complicated projects.
These large projects can absorb the cost of maintaining an organization whose structure has
some duplication of effort and the less than cost-efficient use of resources. In fact, one major
disadvantage of the project based organization is the costly and inefficient use of personnel.
Project team members are generally dedicated to one project at a time, even though they may
rarely be needed on a full-time basis over the life cycle of the project.

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Project managers may tend to retain their key personnel long after the work is completed,
preventing their contribution to other projects and their professional development.

In this type of organization, limited opportunities exist for knowledge sharing between
projects, and that is a frequent complaint among team members concerning the lack of career
continuity and opportunities for professional growth. In some cases, project personnel may
experience a great deal of uncertainty, as organization’s or donor’s priorities shift or the close
of the project seems imminent.

One disadvantage is duplication of resources, since scarce resources must be duplicated on


different projects. There can also be concerns about how to reallocate people and resources
when projects are completed. In a programmatic focus organization, the people still have jobs
within the program unit. In a project-based organization it is not always clear where everyone
is reassigned when the project is completed. Another disadvantage is that resources may not
be needed as a full time for the entire length of the project, increasing the need to manage
short term contracts with consultants and other subject matter experts.
A variety of this pure project approach is temporarily project-based organizations. This
organization consists of a project team pulled together temporarily from their program unit
and led by a project manager that does not report to a programmatic unit. The project manager
has the full authority and supervision of the project team.
Another design is based on a mixed structure that includes a matrix, programmatic focus and
project based; this mix reflects the need for more flexibility in a development organization to
accommodate different requirements. For example a health program may have a couple of
projects short term and long term all reporting to the program manager. An education project
may be organized on a matrix using resources part-time from other units, and a large water
project organized as a fully project-based were all staff report to the project manager. It is not
unusual to find this type of mixed designs on development organizations.

1.6. Management styles

Organization culture is a strong influence on the type of management styles that can be used
on projects. The local culture, customs and social dynamics also influence the management
style; along with the nature of the project, the nature of the team and the personality and skills
of the project managers. There are four distinct organizational management styles that have a
strong influence on how project are managed:

• Autocratic
• Paternalistic

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• Democratic
• Laissez-faire

Autocratic or authoritarian, the manager makes all the decisions, keeping the information and
decision making among the senior management. Objectives and tasks are set and the
workforce is expected to do exactly as required. The communication involved with this
method is mainly downward, from the leader to the subordinate; this method can lead to a
decrease in motivation from the employee's point of view. The main advantage of this style is
that the direction of the organization will remain constant, and the decisions will all be
similar, this in turn can project an image of a confident, well managed organization. On the
other hand, team members may become highly dependent upon the project manager’s and
supervision may be needed.

Paternalistic form is where the manager makes decisions in the best interests of the employees
rather than the organization. The manager explains most decisions to the team members and
ensures that their social and leisure needs are always met. This can help balance out the lack
of staff motivation caused by an autocratic management style.

Feedback is again generally downward; however feedback to the management will occur in
order for the employees to be kept happy.

This style can be highly advantageous, and can engender loyalty from the employees, leading
to a lower staff turnover, thanks to the emphasis on social needs. It shares similar
disadvantages to an authoritarian style; employees becoming highly dependent on th leader,
and if the wrong decisions are made, then employees may become dissatisfied with the leader.

Democratic style is one where the manager allows the employees to take part in decision-
making, where everything is agreed by the majority. This style can be particularly useful when
complex decisions need to be made that require a range of specialist skills. From the overall
organization’s point of view, job satisfaction and quality of work employees will improve.
However, the decision-making process is severely slowed down, and the need of a consensus
may avoid taking the best decision for the project. Laissez-faire style, the manager's role is
marginal and the manage their own areas within the project; the manager evades the duties of
management and uncoordinated delegation occurs. The communication in this style is
horizontal, meaning that it is equal in both directions, however very little communication
occurs in comparison with other styles. The style brings out the best in highly professional
and creative groups of employees, however in many cases it is not deliberate and is simply a

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result of poor management. This leads to a lack of staff focus and sense of direction, which in
turn leads to much dissatisfaction, and a poor organization image.

Unit 2. Concerns of developing quality systems and techniques


According to the American Society for Quality, “quality” can be defined in the following
ways:

✔ Based on customer’s perceptions of a product/service’s design and how well the


design matches the original specifications.

✔ The ability of a product/service to satisfy stated or implied needs.

✔ Achieved by conforming to established requirements within an organization.


What Is a Quality Management System?

A quality management system is a management technique used to communicate to employees


what is required to produce the desired quality of products and services and to influence
employee actions to complete tasks according to the quality specifications.

What Purpose Does a Quality Management System Serve?

✔ Establishes a vision for the employees.

✔ Sets standards for employees.

✔ Builds motivation within the company.

✔ Sets goals for employees.

✔ Helps fight the resistance to change within organizations.

✔ Helps direct the corporate culture.


Why Is Quality Important?
Business success may simply be the extent to which your organization can produce a higher-
quality product or service than your competitors are able to do at a competitive price. When
quality is the key to a company’s success, quality management systems allow organizations to

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keep up with and meet current quality levels, meet the consumer’s requirement for quality,
retain employees through competitive compensation programs, and keep up with the latest
technology.

HISTORY OF THE QUALITY MOVEMENT


As early as the 1950s, Japanese companies began to see the benefits of emphasizing quality
throughout their organizations and enlisted the help of an American, W. Edwards Deming,
who is credited with giving Japanese companies a massive head start in the quality movement.
His methods include statistical process
control (SPC) and problem-solving techniques that were very effective in gaining the
necessary momentum to change the mentality of organizations needing to produce high
quality products and services. Deming developed his 14 points to communicate to managers
how to increase quality within an organization.
Deming believed that 85 percent of all quality problems were the fault of management. In
order to improve, management had to take the lead and put in place the necessary resources
and systems.
For example, consistent quality in incoming materials could not be expected when buyers
were not given the necessary tools to understand quality requirements of those products and
services. Buyers needed to fully understand how to assess the quality of all incoming products
and services, understand the quality requirements, as well as be able to communicate these
requirements to vendors. In a well managed quality system, buyers should also be allowed to
work closely with vendors and help them meet or exceed the required quality requirements.
According to Deming, there were two different concepts of process improvement that quality
systems needed to address: (1) common (systematic) causes of error, and (2) special causes of
error. Systematic causes are shared by numerous personnel, machines, or products; and
special causes are associated with individual employees or equipment. Systematic causes of
error include poor product/service design, materials not suited for their use, improper bills of
lading, and poor physical conditions. Special causes of error include lack of training or skill, a
poor lot of incoming materials, or equipment out of order.
Another influential individual in the development of quality control was Joseph M. Juran,
who, like Deming, made a name for himself working in Japanese organizations focusing on
improving quality. Juran also established the Juran Institute in 1979; its goals and objectives
were centered on helping organizations improve the quality of their products and services.
Juran defined quality as “fitness for use,” meaning that the users of products or services
should be able to rely on that product or service 100 percent of the time without any worry of
defects. If this was true, the product could be classified as fit for use.
Quality of design could be described as what distinguishes a Yugo from a Mercedes-Benz and
involves the design concept and specifications. The quality of a product or service is only as
good as its design and intention. Thus, it is important to include quality issues in the design

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process, as well as to have in mind during the design phase the difficulties one might have in
replicating the product or service with the intended quality level.
Quality of conformance is reflected in the ability to replicate each aspect of a product or
service with the same quality level as that intended in the design. This responsibility is held
by individuals to develop the processes for replication, the workforce and their training,
supervision, and adherence to test programs.
Availability refers to freedom from disruptive problems throughout the process and is
measured by the frequency or probability of defects—for example, if a process does not have
a steady flow of electricity and this causes defective parts, or when an employee must
complete two jobs at once and is therefore forced to make concessions on the quality of both
products or services.
Safety is described by Juran as calculating the risk of injury due to product hazards. For
example, even if the product or service meets or exceeds all quality standards and
expectations, but there is a possibility that if it is not used properly it could injure someone,
the product will not be considered high-quality.
Field use refers to the ability of the product to reach the end user with the desired level of
quality. This involves packaging, transportation, storage and field service competence, and
promptness.
Juran also developed a comprehensive approach to quality that spanned a product or service’s
entire life cycle, from design to customer relations and all the steps in between. Juran
preached that an organization should dissect all processes and procedures from a quality
perspective and analyze for a “fitness for use.” Once this is completed the organization can
begin to make changes based on the “fitness for use” model.

2.1. Total Quality Management (TQM)


TQM is a management 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. TQM breaks down every process or activity and emphasizes that each
contributes or detracts from the quality and productivity of the organization as a whole.
Management’s role in TQM is to develop a quality strategy that is flexible enough to be
adapted to every department, aligned with the organizational business objectives, and based
on customer and stakeholder needs. Once the strategy is defined, it must be the motivating
force to be deployed and communicated for it to be effective at all levels of the organization.
Some degree of employee empowerment is also encompassed in the TQM strategy and
usually involves both departmental and cross functional teams to develop strategies to solve
quality problems and make suggestions for improvement. Continuous Quality Improvement
(CQI)
Continuous quality improvement came into existence in manufacturing as a different
approach to quality and quality systems. It does not focus as much on creating a corporate

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quality culture, but more on the process of quality improvement by the deployment of teams
or groups who are rewarded when goals and quality levels are reached. CQI allows
individuals involved in the day-to-day operations to change and improve processes and work
flows as they see fit.
CQI implementation attempts to develop a quality system that is never satisfied; it strives for
constant innovation to improve work processes and systems by reducing time-consuming, low
value-added activities. The time and resource savings can now be devoted to planning and
coordination.
CQI has been adapted in several different industries.
FOCUS-PDCA work:
 Find a process to improve.
 Organize to improve a process.
 Clarify what is known.
 Understand variation.
 Select a process improvement.
 Then move through the process improvement plan:
 Plan—create a time line, including all resources, activities, dates, and personnel
training.
 Do—implement the plan and collect data.
 Check—analyze the results of the plan.
 Act—act on what was learned and determine the next steps.
The FOCUS-PDCA acronym is an easy system for management to communicate to teams,
and it helps them stay organized and on track with the end result in mind. The system has
proven to be very successful for the CQI team approach.

Chapter 2. Study case at SC Kaufland SRL


2.1 Introduction
Name, Location, Object of activity
Company name: S.C. KAUFLAND S.C.S
Registration number at the Trade Registry Office: J40/17052/2003, the unique registration
code being RO15991149

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Legal form: Signed Kaufland, a legal person of German nationality, carries out its activity in
accordance with the laws in force and with the company's statutes. The legal form of the
company is a Simple Limited Partnership.
Registered office: The registered office is established in Bucharest, Str. Barbu Văcărescu, No.
120-144, Sector 2.
The object of activity of the Kaufland company is retail trade in non-specialized stores, with
the predominant sale of food products, beverages and tobacco. This class includes the activity
of stores that sell a diverse amount of goods, in which food, beverages and tobacco products
are predominant. Kaufland self-service hypermarkets offer products both in the food field and
many other items in the fields of: housekeeping, leisure and garden, at the lowest prices.
The company's mission: Quality is a major concern of the company, it concerns the products
and services it offers to customers and the concern related to the quality of life, the
conservation of natural resources and the interests of the community. Kaufland's mission is to
support the development of the community, to protect and encourage the protection of the
environment, as a sign of appreciation and gratitude for the trust given by the company's
customers and partners.
Kaufland is a European retail company, which operates store chains in seven countries
(Germany, Czech Republic, Slovakia, Croatia, Poland, Romania and Bulgaria) and is part of
the Schwarz group. The history of the company begins in 1930. The first Kaufland store was
opened in Germany in 1968. Later, the store concept gradually expanded, becoming one of
the leaders of modern trade at the European level. At the end of 2017, Kaufland operated a
network of around 1,270 stores in Europe, had around 140,000 employees and a turnover of
22 billion euros. The company initiated the steps for expansion in the Republic of Moldova
and in Australia. The expansion project in the Republic of Moldova is coordinated by
Kaufland Romania. In Romania, the company has been present since 2005, through Kaufland
Romania SCS, and at the end of the 2017 financial year it included a network of 119 stores
throughout the country. 6 new stores were opened during the reporting period, in Brașov,
Craiova, Cluj-Napoca, Satu Mare, Buzău and Bucharest. Also in the same period, Kaufland
Romania inaugurated the first summer hypermarket, set up in a tent, open until September 17,
2017.
Providers
The supplier is a natural or legal person who delivers goods, a product or provides a certain
service to the store. The management of the Kaufland store aims to create and maintain an
extremely close relationship with suppliers, knowing their importance for the smooth running
of the company's activity.
Most of the products (beverages, frozen foods, cigarettes, non-food products) come from the
central warehouse located in Ploiesti. The products are distributed daily from the warehouse
to all branches in the country. Due to the short shelf life, bread, sausages, dairy products are
distributed directly by the suppliers.
Suppliers:
- Sweets: Heidi, Kandia, Joe
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- Drinks: Cola, Pepsi, Timbark, European Drinks et


- Drug store: Nivea, Colgate, Hankel, Procter&Gamble, Interbrand
-Food: Fux, Unilever
-Dairy: Napolact, Parmalat, Danone
-Frozen: Agroalim
-Fish: Macromex
Our promise is to offer a superior quality/price ratio, through our own brands and an
assortment of products sourced from >77% local suppliers.

Fig 1. Organization chart


Source: Kaufland SRL

Analysis of supply activity:


Supplying refers to the function of purchasing the input elements used in the company's value
chain, and not to the input elements supplied as such. Among the input elements purchased
are: raw materials, auxiliary production materials and other consumable items, as well as
assets such as machines, auxiliary production and other consumable items, primary

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installations, the input elements are presented in each value activity, including those support.
The supply function tends to be found in all subdivisions of a company. Some items, such as
raw materials are purchased by the traditional supply department, while other items are
purchased by factory managers, office managers, sales representatives, even the general
manager of the company. The supply department has opted for choosing a warehouse
specialized in types of products, namely alcoholic and soft drinks. The following resources
are used for the deposit:
-Storage capacity
- Storage area of approximately 2500 square meters
-Equipment
- The spaces are protected with the help of a protective fence and access through an individual
entrance to the warehouse
-Security provided and patrols the area outside of working hours permanently -Video
surveillance -Possibility of storage at low temperatures.
Most of the products (beverages, frozen foods, cigarettes, non-food products) come from the
central warehouse in Ploiesti. Due to the reduced shelf life, bread, sausages, dairy products
are distributed directly by suppliers

2.2 . ISO 9000 standards requirements related to quality planning


In the case of implementing an external quality assurance model, according to ISO 9000
standards, the company must define in writing how the quality requirements will be met.
Quality planning must be correlated with the overall requirements of the company's quality
system and ensure that the specified requirements for products, projects and contracts will be
met. For this purpose, the company will give due importance to the following activities:
 elaboration of the quality plan;
 identifying and procuring all the necessary means to keep under control the activities,
processes, equipment (including those for inspection and testing), human resources,
which may be necessary to obtain the required quality;
 ensuring the compatibility of projects, production processes, associated services,
inspection and testing procedures and applied documentation;
 a permanent updating of young techniques under quality control of inspection and
testing techniques and the development of new tools;
 identification of all metrological requirements;
 identification of the appropriate verification systems for each of the phases of product
creation;

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 • clarifying the acceptance rules for all characteristics and requirements, including
those that contain subjective elements;
 • identification and preparation of records related to quality. The ISO 9004 standard
recommends that for all the company's products and processes, its management
ensures the development and up-to-date of written quality plans, which define:
 • the objectives related to quality, which must be achieved (for example:
characteristics or specifications, uniformity, aesthetic characteristics, safety in
operation, etc.);
 • stages of the company's processes (schemes, diagrams, etc. can be used to represent
the elements of the process);
 • assignment of specific responsibilities, authority and means corresponding to the
different phases of the project;
 • specific written procedures and instructions that must be applied;
 • testing, inspection, examination and audit programs, corresponding to different
phases (for example, in design/development);
 • a written procedure, regarding the changes and completion of the quality plan;
 • a method that allows determining the degree of fulfillment of quality objectives;
 • other actions necessary to achieve the objectives related to quality.
2.3 Quality Assurance According to ISO 9000 International Standards

The international standards from the ISO9000 family are general standards, which
contain recommendations through quality management and requirements for quality
assurance. The "ISO 9000 family" includes international standards developed by the
Technical Committee ISO/TC 176, namely:
 the standards numbered from ISO 9001 to ISO 9004, including those derived from
ISO 9000 and ISO 9004;
 the standards numbered from ISO 10001 to ISO 10020, including those derived from
them;
 the ISO 8402 standard. The ISO 9000 standards can be used in the following four
situations:
a. - for the purpose of internal quality assurance: the enterprise seeks to satisfy the
requirements related to quality, under profitability conditions;
b. - in contractual situations, between the supplier and the client: the client provides by
contract certain requirements regarding the supplier's quality system, specifying a
quality assurance model;
c. to obtain an approval or for the purpose of registration by a second party: the
supplier's quality system is evaluated by a second party: the supplier's quality system
is evaluated by the client, in order to recognize its compliance with the reference
standard.
d. for the purpose of certification or registration by a third party: the quality system is
evaluated by the certification body, the supplier maintaining this system for all its
clients, except for situations where, by contract, other requirements are established.
The adoption of such a solution is advantageous, because it allows reducing the
number of evaluations of the company's quality system, performed by clients. In order

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to evaluate the quality system, the following three aspects must be taken into account,
regarding each of the constituent processes:
 if the processes are defined and their procedures are documented;
 if the processes are carried out according to the procedures of the documentation;
 if the processes are efficient, so as to allow the expected results to be obtained. ISO
9001, ISO 9002, ISO 9003 standards define three models for external quality
assurance. The ISO 9004 standard describes all the elements with the help of which a
quality system can be developed and implemented, adapted to the specific needs of
companies. It serves to optimize the company's overall quality-related processes.

The external quality assurance model, proposed by the ISO9001:2000 standard


The ISI 9001:2000 standard will define a single external quality assurance model
(unlike the current version of the ISO 9000 family, which includes three such models:
ISO 9001, ISO 9002, ISO 9003).
Therefore, it will continue to serve as a reference for the certification of quality
systems, becoming the basis for the mutual recognition of certificates on an
international level.
For this purpose, it is proposed that the elements of the quality management system be
structured in four areas:
- management responsibility;
- resources management;
- process management;
- evaluation, analysis and improvement.

In finalizing the structure of the ISO 9001 standard, in such a perspective, the
following stages are considered:
- a better adaptation to the requirements of different categories of users, compared to
the current version, mainly oriented towards the industrial field;
- ensuring the necessary flexibility so that the standard can be applied, equally, by
small and medium enterprises;
- the integration of the activities corresponding to all the functions of the organization
in its quality system, from the identification of the clients' requirements, to the
achievement of the established objectives;
- defining the elements of the quality management system, with an emphasis on
prevention, promoting partnership relationships with clients, training and motivating
staff, evaluating the results obtained and identifying solutions to improve the
processes;
-facilitating the evaluation of the performances obtained in the development of the
processes, of the efficiency of the quality management system as a whole;
- simplifying the documentation of the elements of the quality management system;
- ensuring compatibility with the internal assurance method, offered by the new
version of the ISO 9004 standard, to facilitate the implementation of TQM principles,
promoted by the latter;

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Development of the commercial chain

The economic growth of recent years also represented an increase in consumption, an


increase in prices, favorable for the Kaufland company. That means: more buyers,
more sales, more "money". Although the financial crisis has not yet been felt, and
sales on the hypermarket market are still on an upward trend, it is expected that from
2011 the effects of this crisis will be felt. The greater the purchasing power, the
smaller the geographical area occupied. Following the logical line, the recent increase
in the standard of living of Romanians has generated and continues to attract retail
investors or the expansion of existing ones. In recent years, Romanians have started to
detach themselves from promotions when choosing a store for shopping. Consumers
are starting to be interested in other things as well, such as easy access to the store, it
being spacious or having quality brands, although the sensitivity to low prices has not
disappeared. The increased number of supermarkets and hypermarkets in the urban
environment and their dominant position, correlated with the decrease in the number
of "neighborhood stores", of traditional trade, presents us with an excessively
concentrated market, where there is an ever-increasing competition.
For Kaufland, the competition in the area was not necessarily decisive for the choice
of a site for the store (for example: Kaufland Braşov is located near Carrefour, in
Galati near Billa). Important were: location, location area with existing customer flow.
If these conditions are given, Kaufland has no problem to open a store next to the
competition. For example, another goal of the company is to open the first
hypermarket in sector 5 of Bucharest in 2009. Known as a hypermarket with a
discount policy, the main competitors of the Kaufland store, as they say
Gunter Grieb, general manager of the company, are: Carrefour, Real and Billa. It
currently has around 1000 stores open in Slovakia, Poland, Croatia, Bulgaria and
Romania. Self-service hypermarkets have a total sales area between 2,500 m2 and
12,000 m2 and are known as "Kaufland", "KaufMarkt", "Handelshof". The offer
includes from own brands, which contain quality products at convenient, low prices, to
products offered by regional manufacturers and branded products. Kaufland benefits
from a storage space of approximately 500 square meters, the under-floors are
numbered from 1-99 depending on the stored products. The new factory has a
constructed area of over 1,700 square meters and is equipped with the latest generation
equipment. The production capacity is 10 tons per 8 hours. More than 50 employees
are involved in the actual production process and its supervision, including the
analysis laboratory and the product quality and safety control department. Every day,
more than 200 trucks leave Kaufland's logistics centers, loaded with countless pallets
of the best quality goods! From the supply of warehouses with goods to the delivery of
goods to stores, all tasks are taken over by the Logistics department. An important
element of Kaufland's investment in Romania is the Kaufland central warehouse,
inaugurated on December 7, 2005, on DN 72, within the Ploiesti Industrial Park, on a

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200,000 square meter plot. The warehouse has about 400 parking spaces for cars and
trucks, built on an area of 21,000 square meters.
At Kaufland there are 30 cash registers that are operated by commercial workers
between 20-40 years old, in 3 shifts of 8 hours, with a more complex program around
lunch.

2.4 Competitors

Competition in the business environment represents the totality of relationships


between those who act on the same market to achieve their own interests under
conditions of economic freedom. The competitor is the natural or legal person who
competes with another (or others) in order to achieve the same business objectives.
The first three retailers in Romania, depending on the sales of consumer goods,
Carrefour, Kaufland and Billa, together hold 10-20% of the profile market, a very low
share compared to the over 40% registered in developed countries, according to a
study by the Nielsen company. Thus, in highly developed countries such as those in
Northern Europe, the first three retailers represent over 65% of the total value of the
retail market, and in developing countries such as those in Western Europe, this share
is between 40 and 64%. With a turnover at least double that of any of its competitors,
Metro is the undisputed sales leader. It can thus be stated that at the international level,
Metro is the main competitor of the Kaufland company, to which is added the
Carrefour company from Romania. German quality leaves its mark on conceptual
Kauflland, thus helping to meet the expectations of both customers and competitors.
As differentiating elements from Metro and Carrefour, Kaufland asserts itself through
a high quality of products at fairly low prices, through a diversified range of products
and through a good marketing strategy.

2.5 Customers and market segmentation


The criteria used by consumers to appreciate a service are the following: accessibility,
credibility, degree of knowledge, trust, safety, competent, communication,
friendliness, availability and physical aspects. The first five determinants refer to the
quality of the service result, while the last five refer to the quality of the performance
itself. Kaufland is based on the behavioral study of five types of customer markets.
Consumer markets are composed of individuals and households or families who buy
goods and services for personal consumption. Business or organizational markets buy
goods and services for further processing or use in their production process, while
resale markets buy goods and services that they resell at a profit. Government markets
consist of government agencies that buy goods to produce public services or to
transfer them to third parties who need them. The last category is represented by
international markets.

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Methods of customer satisfaction, specific to Kaufland

● Freshness guarantee: If during a day the customer finds one or more items that
expire at the end of the day, he receives a voucher worth 5 lei.
● Speed guarantee at the display case with assisted service: If the customer happens to
wait more than 5 minutes and not all the scales are occupied, he or she receives a
voucher worth 5 lei.
● Speed guarantee at the houses: The customer receives a voucher worth 5 lei if not all
the houses are open and he has to wait more than 5 minutes.
● Product exchange guarantee: If the customer wants to exchange a product after
purchase, he can do so with the receipt.
● Warranty of electrical products: Kaufland offers a three-year warranty on all
electrical products that connect to 220 Volts.
● Customer phone: For suggestions or wishes, the customer can call the number
0800080888 or fill out the online form on the official Kaufland website.
As stated in various promotional campaigns, Kaufland puts its customers first, all the
company's actions are aimed at satisfying the needs and desires of consumers, who are
actually the company's source of profit.

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The SWOT analysis

STRONG POINTS: Weaknesses:


The prices of the products are much lower There are not enough parking spaces to cover
compared to those of competitors the demand
● There are many promotions every day ● Cleanliness and security outside the store are
● The friendliness of the staff and their training not well established
to provide a quality service ● Narrow entrance to shops
● Pleasant atmosphere in stores (music, ● Free bags are not given at home
temperature) ● Placement of trolleys exactly at the entrance
● Good placement of the products on the to shops creates congestion
shelves ● There are no baskets
● Prompt supply of shelf water ● In some districts, it is more difficult to find a
● The company's concern for buyers' opinions commercial worker to ask for information
● Good product quality
OPPORTUNITIES: THREATS:
The opening of another Kaufland store in Braşov ● Unstable economic environment
● Expansion of the parking lot ● Strong competition in the area
● The multitude of means of transport that can ● Lack of consumer education
be used to reach Kaufland ● Continuation of the economic crisis
● The price policy practiced also attracts other
buyers from more distant neighborhoods
● Large supply network
● The hypermarket market is developing

SWOT analysis is a method used in the business environment to help project an


overview of the company.
Strong points:
● The prices of the products are much lower compared to those of competitors
● There are many promotions every day
● The friendliness of the staff and their training to provide a quality service
● Pleasant atmosphere in stores (music, temperature)
● Good placement of the products on the shelves

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● Prompt supply of shelf water


● The company's concern for buyers' opinions
● Good product quality
● The existence of parking
● The existence of barcode reading and price display devices
● Diversified product range
● The offer includes from the own brand K-Classic, which contains quality products at
convenient prices, to products offered by regional manufacturers and branded products
● Kaufland offers various products that cover all daily needs
● For some products, the lowest price on the market is guaranteed
● Feedback is emphasized
● There are enough trolleys
● There are places for luggage storage
● There are customer information offices
●Clear compartmentalization by assortment
● Kaufland promotes and preserves environmental protection
● The fresh produce department with assisted serving includes over 500 items from
Romania

Weaknesses:
● There are not enough parking spaces to cover the demand
● Cleanliness and security outside the store are not well established
● Narrow entrance to shops
● Free bags are not given at home
● Placement of trolleys exactly at the entrance to shops creates congestion
● There are no baskets
● In some districts, it is more difficult to find a commercial worker to ask for
information
Opportunities:
● The opening of another Kaufland store in Braşov
● Expansion of the parking lot
● The multitude of means of transport that can be used to reach Kaufland
● The price policy practiced also attracts other buyers from more distant
neighborhoods
● Large supply network
● The hypermarket market is developing.
Threats:
● Unstable economic environment
● Strong competition in the area
● Lack of consumer education
● Continuation of the economic crisis

Recommendations resulting from the SWOT Analysis:

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● Continuation of the price policy it promotes


● Continued investment in store development
● Attracting a larger number of customers through advantageous offers
● Consumer behavior research
● Greater attention to staff
● Increasing the range of our own high-quality products
● Consolidation of a good brand image based on trust, quality and fulfilled promises.
Food products from Kaufland
Kaufland offers the appropriate products for everyone. Fresh on the table - says a Kaufland
principle. From fruits and vegetables, meat and sausages to dairy products and cheeses.
Non-food items
What in specialized language is called Non Food, are the non-food products that buyers find
in Kaufland stores. Kaufland is guided by the principle of "everything under the same roof",
offering various products that cover all the daily needs. The offer includes from its own brand
K-Classic, to products offered by regional producers and branded products. A strong point for
Kaufland is the fresh products department: Kaufland guarantees its customers daily the
absolute quality and freshness, at low prices, for meat , sausages, cheeses and dairy products,
up to vegetables and fruits. In addition to the varied offer of food products, Kaufland also
offers attractive items for the home, textiles, household appliances, stationery, toys and
seasonal items, at advantageous prices, as well as special offers that change weekly.
A strong point for Kaufland is the fresh products department: Kaufland guarantees its
customers daily the absolute quality and freshness, at low prices, for meat, sausages, cheeses
and dairy products, up to vegetables and fruits.

Vegetable and fruit department


A special point of attraction is the fruit and vegetable department. Here, in any season, a wide
range of fruits and vegetables from the country, seasonal items, but also exotic products are
offered.
Fresh products department with assisted service
It includes over 500 items from Romania, including regional specialties at very low prices.
This department is completed with a dairy department, where customers can buy Romanian
and international specialties.
The range of available products can be classified into two categories: food and non-food. In
the category of food products, in Kaufland you can find: meat, sausages, cheeses and dairy
products, vegetables and fruits, bakery with: bread, baguettes and buns, but and specialties,
sweets, soft and alcoholic drinks, etc.
In addition to the varied offer of food products, Kaufland also offers attractive items from the
fields of: household goods, glassware, porcelain, textiles, electrical and household appliances,
stationery, toys and seasonal items, as well as special offers that change weekly.

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The following strong entrepreneurs round off Kaufland's offer: Domo, Sensiblu, BRD,
Fornetti, Global Net, Internity. Through this variety of domains, Kaufland offers all the
conditions for a successful shopping experience.
In addition, unlike other hypermarkets with self-service, here you will not find products
unfolded on the shelves of the store. If the stocks for a certain product run out, before a new
supply, an announcement is placed on the shelf in which the management apologizes for the
momentary lack of the product and promises to deliver it as quickly as possible.
The cleaning inside the store is ensured by special staff, as for the cleaning outside, this leaves
much to be desired. There are not enough trash cans in the parking lot.
Facilities for customers Kaufland offers its customers a modern building, built according to
all current standards, which offers optimal conditions for shopping. The broad colors and a
clear division into assortments facilitate quick orientation.
Kaufland and the competition The first three retailers in Romania, depending on the sales of
consumer goods, Carrefour, Kaufland and Billa, together hold 10-20% of the profile market, a
very low share compared to the over 40% recorded in developed countries , according to a
study by the Nielsen company.
Thus, in highly developed countries such as those in Northern Europe, the first three retailers
represent over 65% of the total value of the retail market, and in developing countries such as
those in Western Europe, this share is between 40 and 64%. representatives of Nielsen, the
fast pace in the development of modern trade remains relatively constant this year as well, and
the trend of geographical expansion is generalized to all store formats, no longer having a
specific characteristic of discounters.
With a turnover at least double that of any of its competitors, Metro is the undisputed sales
leader. Its receipts in 2006 registered a slight increase compared to the previous year, even
when the number of operated stores was the same. The other top retailers registered increases
in turnover of comparable values, with the exceptions: Kaufland, Real. Own brands Without
really being a fashion, retailers' own brands (which belong exclusively to a network and
cannot be found on the competition's shelves) occupy an increasingly important place in the
baskets of Romanian buyers. And retailers counterattack by increasing the range of such
products.
Romanians' habits have changed in recent years, influenced by the evolution of modern trade,
which brought the stores' own brands to the Romanian market. According to market estimates,
the annual value of own brand sales has reached 100 million euros, and the value may double
in the next two years, if the rate of growth is maintained.
A sustainable management
The sustainability team and the CSR (Corporate social responsibility) Committee ensure the
implementation of the sustainability strategy at every level and in all departments of the
company. The sustainability team was created in 2017. Each team member successfully
participated in a GRI standards certified training course provided by a GRI training partner.
The sustainability team includes one member from each department of the company, meets

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monthly, is responsible for collecting the information presented in the sustainability report,
develops internal mechanisms for the data collection process, develops and implements
projects to improve performance in terms of tasks materials of the company and monitors its
implementation in all strategic directions of the company. The CSR Committee was born in
2016, along with a process to improve how sponsorship applications are reviewed and
evaluated. We did this because we want to be transparent in making decisions about the
projects we support and at the same time involve as many colleagues in the company as
possible in this process. The CSR Committee includes a representative from each department
of the company (each member being appointed by the Board of Directors), meets once every
three weeks, has the role of discussing and analyzing project proposals that our company
receives, using various criteria for evaluation, and submits these proposals to a vote. In a next
phase, the organizations implementing the projects are legally checked to examine whether
they fall under the sponsorship law. The General Director has the right to veto any decision.
Projects that exceed one million lei are sent to the Board of Directors for approval.
Fairtrade
We care about people and the environment. We therefore offer a constantly growing selection
of organic and Fairtrade labeled products. We are also involved in the development of
regional agriculture. We offer a variety of organic products in all categories: dairy products,
beverages, coffee and tea, even canned and frozen products. Among them are also many K-
Bio products.
Sustainable cleaning
K-Classic cleaning products carry the "Sustainable Cleaning" logo, which translates to
environmentally friendly products. We are thus among the companies committed to
manufacturing products in a safe and environmentally friendly manner.
Quality system procedures
Correspondingly, we distinguish several types of procedures: of the quality system,
operational procedures, testing, inspection, etc. The quality system procedures ("documented
quality system procedures") represent the form of the basic documentation, used in the case of
the implementation of a quality system, according to the standards of the ISO 9000 family.
They describe, without going into technical details, the objectives and the manner of carrying
out the various activities with an impact on quality, as well as the responsibilities, authority
and relationships between the persons who coordinate, carry out, verify or analyze the
respective activities. These procedures cover the system elements of the standard chosen as a
reference (ISO 9001, ISO 9002, ISO 9003).
For the purpose of internal quality assurance, the ISO 9004 standard recommends the
development of written operational procedures, which specify the objectives and expected
results of the various activities with an impact on quality. They must be developed and
administered in such a way as to allow all these activities to be kept under control.

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Chapter 3. Marketing program regarding the improvement of the


company's activity;
The marketing program is the tool that indicates the concrete way to achieve the objectives
included in the marketing plan. It represents a document that establishes the sequence of
specific marketing activities for mobilizing the human, material and financial resources of an
organization in order to achieve, under performance conditions, a major objective of
marketing planning.
The role of the marketing program for the organization's activity results especially from the
following:
● Allows the establishment of concrete ways of achieving the objectives of the plan
marketing, the responsibilities as well as the deadlines of the various
activities involved, the relationships between them, so as to ensure
fitting the entire approach into the planned period;
● Ensures proper allocation of resources required for rollout
various marketing actions;
● It represents an effective way of communication within the organization between
all the factors involved in the operationalization of the marketing plan;
● Allows knowing at any time the degree of implementation of the plan;
● It represents a means of control of the action undertaken for the achievement
planned objectives
● It allows the necessary corrections to be made in time in case of some
dysfunctions.

3.1 Justification of program choice


Starting from the context in which the programs are developed and implemented
marketing, from the objectives pursued, the variables of the marketing mix involved
and their way of combining, we distinguish several categories, as follows:
1. Depending on the objectives pursued, we distinguish:
● Global marketing programs, which involve the involvement of all marketing-mix elements
● Partial marketing programs, which involve the involvement of only some marketing-mix
elements

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2. According to the time horizon considered for achieving the planned objectives, we
distinguish:
● Short-term marketing program, which refers to actions to be carried out within a year
● Medium-term marketing program, aimed at a time horizon of 1-5 years
● Long-term marketing program, including actions extending over a period of more than 5
years.
The marketing program that I have chosen for this project is a partial, short-term marketing
program. In the chosen program, I will choose to launch a new range of products for the
Kaufland store in Brasov, so that the brand can effectively fight the competition of the main
competitors Metro and Carrefour, well-known for the varied range of products they sell. I
believe that by applying this program, you will considerably improve your trade activity at the
level of the Kaufland store in Braşov.

3.2Program objectives
By nature, marketing objectives can be quantitative and qualitative.
Among the quantitative marketing objectives used in the program we mention:
● Increasing the number of clients
● Increase in Kaufland store sales
● Increasing the store's market share
● Diversification of the product range
Among the qualitative marketing objectives used in the program we mention:
● Increasing the notoriety of the Kaufland brand on the Brasov market
● Improving the attitude of customers towards the Kaufland store;

3.3 Strategies used


Starting from the objectives, the establishment of some strategies used is very important in the
realization of a marketing program. The chosen strategies are:
● Market penetration strategy
This implies an increase in the size of the current market by continuing to offer the same
products, to which will be added the new range chosen within the program. This implies an
increase in the efficiency of marketing actions, with the aim of determining an increase in
demand per consumption unit.
● The market development strategy involves finding new uses for your own
products and offering them to new consumer segments that follow
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to use them according to the new destination.


● Reformulation strategy, which involves improving the product offered for
increasing sales on current markets.
● The market expansion strategy involves making changes or
improvements of current products and offering them in new markets. ● The replacement
strategy aims to launch new assortments on the same markets
improved products.
● The product differentiation and market segmentation strategy has in
view the launch of new assortments of the same product, in order to satisfy
the specific requirements of different categories of consumers. TECHNOLOGY
used for new products are relatively similar to used ones
previous
● The product line expansion strategy involves the launch of new lines of
products intended for current segments and using technologies
similar in manufacture.

3.4 Program evaluation methods


I believe that once implemented, the marketing program can achieve all its objectives. By
introducing a marketing program aimed at increasing the range of products in the Kaufland
store in Braşov, it is possible to obtain:
- Increasing the awareness of the Kaufland brand
- Increasing the number of customers
- Increase in sales
- Increasing the positive opinions of customers regarding the store
- Improving the range of products
- Increasing the store's market share
- Fighting the main competitors
For a good evaluation of the program, the aspects listed above should be followed after the
implementation of the program and the launch of the new range of products, for several
months to determine whether it was a success.

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How to improve in the HR department:


Continuous improvement is the basis of behavior in setting objectives and achieving them.
Creating an environment where good mood, initiative and satisfaction at work are the most
important premises.
The focus is on the good condition of both the employee and the client.
-Offering the vacancy and employees to be able to change the field and open new horizons.
-Establishing the job through a professional selection process and distinguishing behaviors.
- Decisions are always made based on the principle of double validation, with the
participation of the direct superior.
-The realization of a schooling of each qualified employee depending on the training and the
field of activity.
-Periodic feedback based on the training course offered.
-Establishing the general conditions of the flexible program to be able to find a balance
between family, work and personal activities.
-Rewarding employees according to the position obtained.
- Supporting the employee on a professional and personal level.
- We part with employees in a fair, amicable and respectful manner
The company budgeted for this year investments in the expansion of the logistics center in
Ploiesti, without providing details.
Kaufland's medium-term plans foresee the formation of a network of approximately 50 units,
mainly in small and medium-sized cities.
In 2011, the Kaufland concern recorded net losses of 38.05 million lei, 39% lower than in
2010, with a turnover of 817.8 million lei. And it had over 2,900 employees, almost six times
more than in 2008, when it reported business of over 56 million lei, according to the Ministry
of Public Finance.
Kaufland Romania turned a profit in 2013, with an increase of 1.6 million euros, after, a year
ago, it had reported losses of 10.8 million euros. In 2012, the network increased its business
by 162%, reaching sales of 641.6 million euros, compared to the value of 232 million euros in
20111.
Last year, the company initiated a project in partnership with the European Bank for
Reconstruction and Development (EBRD), which involves long-term investments of 300

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million euros in Romania. Turnover: had an increasing trend from year to year reaching from
56.66 thousand in 2010 to 3,693.9 in 2014.
The concern's profit was negative in the years 2010-2014, recording a large increase in 2010
of 69.09 thousand. In 2011, the evolution of profit dropped significantly to 38.48 thousand in
2013. In 2014, the profit registered a large increase, the highest so far, reaching 111.54
thousand.
The associates of the KauflandRomania hypermarket network increase the company's share
capital, from 537 million lei (154 million euros), to 958 million lei (274 million euros), with
421 million lei (120 million euros), according to the general decision of the shareholders
published in the Monitorul Official. Following the increase, the German company Kaufland
RumanienWarenhandel GmbH owns 99.9% of the share capital, and Kaufland Romania 0.3%.

Yea Net Supplies Loans Debts Total Capitals Cash and


r profit activs accounts
202 847.669. 996.983. 237.458. 2.553.817. 9.235.796. 6.603.319. 975.623.
3 824 588 338 166 236 636 809
202 788.721. 944.095. 160.426. 2.433.482. 8.289.300. 5.755.649. 817.509.
2 212 202 302 630 640 812 265
202 670.347. 812.788. 164.938. 2.451.159. 7.506.442. 4.966.928. 774.202.
1 865 720 323 125 177 600 996
202 653.320. 709.750. 127.099. 2.135.226. 6.423.057. 4.208.551. 304.903.
0 307 018 910 674 851 393 675
201 648.918. 772.776. 298.168. 2.633.612. 6.513.072. 3.825.230. 412.616.
9 179 982 910 379 547 918 083
Tehnical and economic indicators Fig 2.
Source: Kaufland

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M.S.D.A

Conclusions:
Kaufland is one of the successful commercial companies in Germany, penetrating in recent
years also in Romania. In Brasov, the store is one of the best on the market, it emphasizes
customer satisfaction and offers excellent products at a very good price-quality ratio.
At Kaufland, customer satisfaction is at the center of daily activity, the brand rising to the
height of the expectations of every citizen honoring its official slogan: "Kaufland: Cheap and
good!". To improve the success of the store, you can create a marketing program that aims to
bring a new range of products on sale. Through this idea, the notoriety of the Kaufland brand
can increase considerably, as well as the number of customers and the number of sales
through the direct improvement of the product range. Kaufland is a responsible retailer and
we encourage all our customers to make informed, conscious decisions that do not have a
negative impact on the environment and benefit our suppliers and local communities. Our
concern is to offer them options that ensure a better quality of life, in the long term. At the top
of our recommendations are seasonal products, which use less energy and water in the
production process and fewer chemicals; local products, which would support local producers
and reduce the impact on the environment, since products transported over a long distance
have a bigger footprint on the environment; reducing the use of bags and packaging and being
frugal when shopping, to avoid wasting food as a result of purchasing excess quantities.
Most of the products are of superior quality and the prices vary depending on your choices
and preferences. It is open to the future and to sustainable technologies.
Young people are the future and Kaufland is one of the companies that supports personal and
professional development. The firm has opened more positions for people with disabilities in
hopes of creating continuous integration.

31
University of Pitești
M.S.D.A

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