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Quick Trip Case Study Analysis
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Quick Trip Case Study Analysis
Quick Trip began doing business in Tulsa, Oklahoma in 1958. It was founded by two
childhood friends Burt Holmes and Chester Cadieux. After graduating from college and serving
as an airman in the United States Air Force, Chester Cadieux decided to start a retail business.
He found a partner in his friend Holmes and they opened their first convenience store. Tusla was
their first location where they mostly sold groceries. During the early stages of the business.
Cadieux normally worked at night alone, which he claims made him the CEO and president of
Quick Trip. He held these two positions for over forty years until his son Chet Cadieux
succeeded him. Under Chester leadership, the business expanded into Midwestern metropolitan
regions around the 1960s and later entered the large United States cities. When the business
started, its main growth strategy was opening stores piecemeal in towns around the Midwestern
markets. Currently, the business is run by Chet Cadieux. The business is doing well as it has
recently outperformed its competitors.
#1. Evaluate Quick Trip operations strategy and explain how the organization seeks to gain
a competitive advantage in terms of sustainability.
By 2011, Quick Trip had over ten thousand employees, operated and owned over five
hundred stores in eleven United States Metropolitan areas and generated over eight billion in
annual revenues. Gas accounted for over sixty percent of its revenues but a third of the overall
profits, two-thirds came from the store merchandise. The company only sells products the
company wants and sells them in large quantities. QT tries to keep its prices as cheap as Walmart
and other big corporations. Most importantly, the company focuses on long-term strategies even
at the expense of the short-term losses. Operations decisions are made based on long term
strategies. For instance, the company invested twelve million dollars in renovating bathrooms in
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order to attract more traffic to its stores. QT does not engage in business strategies that cannot be
sustainable. For example, even though the sale of pornographic magazines could be profitable in
the short-term, the company does not engage in this type of business.
The initial strategy for Quick Trip was to open convenience stores piecemeal particularly
in small towns in the Midwestern markets. However, this strategy was later scrapped when
Cadieux realized that it would never be sustainable in the long run. The company closed down
stores in thirty-seven markets in order to concentrate on what it called the three Ms (Million
Metropolitan Markets. This strategy has proved to be successful as the company is registering
high profits and competing favorably with other market leaders. In order to motivate its
employees, the company has given them the option to own shares in the company. As Chet
explains, this strategy has proven to be effective. In 2010, the employee got an ROI of eighteen
percent on their investment. Indeed, this is a sustainable strategy
#2. Analyze how operation management activities affect the customer experience. Select
two operation management challenges and provide the solutions for confronting them
Quick Trip employees are as important as the product the company sells. It's easy to
envisage how the management of labor in this complex organization is a priority and a strategic
benefit. Quick Trip depends heavily on fast and high customer turnover in order to make profits.
This means that the faster and efficient the employees, the profitable the business will be. Chet
understood this perfectly well and to improve client conversion; he focused on employee
motivation and better recruitment strategies. Operations management focuses on controlling
every aspect of business operations. The secret is having the right people working in the store.
The most obvious function of Quick Trip was to provide better customer service and products to
its clients both in the store merchandise and the gas stations. Operation management plans
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activities critical to the provision of services and goods. As Quick Trip developed approaches to
take hold of opportunities that came along their way and address challenges that arose in the
operating environment; they developed a layout that facilitated easy access to goods and high
customer turnover. One of the challenges the company faced was in the recruitment process. This
process appears complicated and time-consuming considering the high number of applicants
every year. Getting the right talent is important but using up large resources to acquire this talent
is sometimes not reasonable. Quick Trip could have benefitted from recruitment technology tools
to simplify the process. These tools include video interviewing, internet sourcing, ATS
(Applicant Tracking Systems) and others. The company presently provides competitive
incentives and benefits to its employees. It is important for any business to understand the needs
of the employee in order to reduce employee turnover. Quick Trip has been able to maintain a
low turnover among salaried and full-time employees. However, although part-time worker
turnover is low compared to the industry average, the company would have greatly benefited
from reducing it further. This could have been achieved through the use of bonuses and
improving the working condition.
It is important for business leaders to identify and understand the needs of consumers.
This is particularly important in building a loyal customer base. As explained in the case study,
the company has few loyal customers. In order to build, loyal customers, the company could
have used loyalty cards or shopping bonuses. In addition to loyal cards, the company could have
used discounts and other offers to attract and retain new customers. The company would have
cemented its position as a market leader with these few strategies.
#3. Examine the Quick Trip value chain and evaluate its effectiveness to operations in
terms of quality, value creation, and customer satisfaction.
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The value chain is important in any company as it assists the business to determine the
best setup for success. The company’s commitment to customer satisfaction drives it to provide
quality products across is stores (Mol, 2015). Around the 1990s, Quick Trip invested millions in
enhancing its gas quality and started an advertising campaign which involved giving out free gas
coupons, floor mats through mechanics and car dealers, and fixing customers' car problems
caused by their gasoline in order to increase customer satisfaction. As Chet explains, Chester
worked mercilessly to achieve better quality, supply-chain advantage, branding as well as prices
in order to become the best gasoline seller. Quick Trip's gasoline is currently recognized as a top-
tier product by organizations like Audi and BMW. The customers perceive Quick Trip as having
low priced quality products. The company differentiates itself by providing fast as well as
friendly services to its customers in clean facilities and stores. Quick Trip continues to be
effective by providing faster services. The company has a policy that no customer should be
allowed to stand in the queue for more than one minute before getting served.
#4. Determine the different types of performance measurements that can be used to
measure the Quick Trip service-delivery system design. Select at least two types that can be
applied and provide justifications for the selection
Balanced scorecard, value chain approach, service profit chain and Baldrige performance
framework are some of the performance measurement models used by companies. The two
mostly used by operational managers are the value chain and the balanced scorecard approach.
Service-delivery systems design includes the layout and location of the facility, servicescape, job
design, and the service process, organizational structure and technology. The value chain
approach can be utilized by Quick Trip in its service-delivery system. It allows for systems that
provide value to consumers and assists in gaining a competitive edge (Elrod, Murray & Bande,
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2013). Making a bad decision when selecting these components will negatively impact on
business success. Suppliers provide services and goods to the business value chain which are
utilized in the development as well as delivery of outputs of the value chain.
Balanced scorecard method is also a good measure of the aspects of service-delivery
systems. This approach reflects the view of the customer, internal processes, growth perspective
and the financial performance of the system. Quick Trip’s system process ought to be examined
based on scorecard metrics that assess the wide performance of the system (Akkermans & Van
Oorschot, 2018). Service delivery processes can be examined based on process safety, products
or service quality, efficiency, service environment, development capabilities and delivery time.
The financial measures that examine the delivery of service include the cost structure of
the system, created revenue opportunities, asset utilization, as well as the shareholder value
produced by delivery of service. The metrics of customer perspective include the satisfaction of
the client from their price perception, quality, service or product availability as well as their
customer services, selection, engagement, product functionality, and production partnerships.
The metrics of internal perspective include the performance of important internal processes
keeping the company in business like services and goods, productivity, quality level, demand
flexibility, asset utilization, costs and rework as well as flow time. Other metrics used include the
efficiency of the suppliers, logistical measures, and the production process (Akkermans & Van
Oorschot, 2018). Management of customer relationship process metrics used includes
acquisition, selection growth, and retention parameters. Measures of innovation processes
include evaluating the generation of the idea through commercialization and research design.
Internal environments are shaped by available opportunities for the development of staff as well
as the environment safety.
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Growth and learning are also aspects of balanced scorecard models in the service-
delivery design. These aspects focus on the factors of future success, especially the workers and
infrastructures of the organization (Elrod, Murray & Bande, 2013). The metrics of key
performance include time taken by the company to produce services and products, employee
training, innovativeness as well as development capabilities.
#5. Examine the different types of technologies applied to Quick Trip service operations
and evaluate how the technologies strengthen the value chain.
Providing fast services to the customer was important to Quick Trip's success. The
customer normally came to the stores and left as quickly as they could. They would not shop in
the stores if there was no parking space or the store was full. Therefore, the company had to
ensure that this did not happen. The company designed its stores to assist customers to locate
products easily and quickly. All its stores had similar layouts and the same products, and
therefore loyal customers could easily find products. Workers shared the cash registers, and
everyone could use them at any given time. However, instead of scanning high-volume items,
workers utilized speed keys in order to speed up checkouts.
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References
Akkermans, H. A., & Van Oorschot, K. E. (2018). Relevance assumed: a case study of balanced
scorecard development using system dynamics. In System Dynamics (pp. 107-132).
Palgrave Macmillan, London.
Elrod, C., Murray, S., & Bande, S. (2013). A review of performance metrics for the supply chain
management. Engineering Management Journal, 25(3), 39-50.
Mol, A. P. (2015). Transparency and value chain sustainability. Journal of Cleaner
Production, 107, 154-161.
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