Krispy Kreme Essay Example Essay Example

Krispy Kreme Essay Example Paper Krispy Kreme Essay Introduction Krispy Kreme Doughnuts, Inc. FIN Professor XXX XXXX Month xx, xxxx History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast-raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept for Krispy Kreme doughnuts allowed Rudolph to grow his factory stores to 29 shops in 12 states by the late 1950’s. When Rudolph died in 973 Beatrice Foods bought his company and expanded it to more than 100 locations and expanded the menu to include soups and sandwiches. Beatrice tried to reduce costs by changing the appearance of the stores and using cheaper ingredients. This negatively affected the company and Beatrice sold the company to a group of franchise owners. This group of owners was led by Joseph McAleer, who was the first Krispy Kreme franchisee. The leveraged buyout was completed for $24 million in 1982. The new group brought back the original recipe and logo. By 1989 the group was almost debt free and they were beginning to expand. The company CEO, Scott Livengood, took the company public in April of 2000. The share price after the first day was $40. 63. Holes in Doughnut Accounting Practices In May of 2004 Krispy Kreme announced to its investors that they should expect earnings to be 10% lower than predicted. It was at this time that the low-carb diet had taken the U. S by storm, and Krispy Kreme blamed this low-carb diet for their low wholesale and retail sales. Krispy Kreme Essay Body Paragraphs They also announced the sales of a the Montana Mills bakery chain of 28 bakery cafe’s that had been acquired in January of 2003 for $40 million in stock. Krispy Kreme also announced that the Hot Doughnut and Coffee Shops were falling short of expectations and three of them were closing at a cost of $7 to $8 million. Krispy Kreme (KKD) stock price closed down 30% that day. Shortly after on May 25th, 2004 when the Wall Street Journal published a story about how Krispy Kreme handled is accounting for franchise acquisitions. According to the article Krispy Kreme recorded the interest paid by the franchisee as interest income for immediate profit, except that Krispy Kreme booked the purchase cost of the franchise as an intangible asset and did not amortize it. In the repurchase agreement of the 7 stores in Michigan, they allowed one of the franchises top executives to stay on with the company after the repurchase. This executive left the company shortly after closing the deal, and had to pay him $5 million in severance which Krispy Kreme also rolled into the unamortized-asset category. Krispy Kreme claimed it followed GAAP standards and had done nothing wrong. The final shoe to drop as on July 29th, 2004 when Krispy Kreme announced that the Securities and Exchange Commission (SEC) had launched an informal investigation related to â€Å"franchise reacquisitions and the company’s previously announced reduction in earning guidance†. Krispy Kreme (KK) shares fell another 15%. The revelations about the companies accounting practices and showing interest as immediate income and not amortizing the repurchased franchises but rather showing them as intangible assets alone could justify the devaluation of their stock price by approx. 45%. Couple their earnings decline and the announcement of store closings and it easily can be justified. Couple that with the fear of the unknown. If Krispy Kreme was treating their interest and reacquired franchises as they were which seems to be blatantly wrong, what else might the SEC find during their investigation? This fear would certainly drive investors away and their share price down. The facts along with its ratings being dropped by 50% of analysts to â€Å"Hold† from â€Å"buy† a few months earlier. Krispy Kreme Deep Fried and Possible Deeper Issues Krispy Kreme grew incredibly quickly in the years leading up to the nvestigation (as shown in the chart below) and then may have tried to meet Wall Street expectations through some questionable practices such as shipping more product or pulling ahead product orders, then allowing the orders to be returned shortly after for credit. â€Å"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager ordered that retail store customers be sent double orders on the last Friday and Saturday of the 2004 fiscal year, explaining â€Å"that Krispy Kreme wanted to boost the sales for the fiscal year in order to meet Wall Street projections. The witness said the manager explained that the doughnuts would be returned for credit the following week – once fiscal 2005 was under way† (Chin, 2005). It seems pretty clear that Krispy Kreme was using questionable methods to inflate profits. Investors also later found out that Scott Livengood (CEO), the former COO John W. Tate, and the former CFO Randy Casstevens, â€Å"unloaded more than 475,000 shares of Krispy Kreme stock for proceeds of $19. 8 Million†, (Chin, 2005) while they were fully aware sales were declining since January of 2003. During this investigation, Scott Livengood, Krispy Kreme’s CEO announced his retirement. It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a shareholder I would want out, or to be certain that Krispy Kreme’s accounting mess was cleaned up. The chart below shows Krispy Kreme’s performance during the years leading up to the investigat ion. Krispy Kreme Re-made Fresh Today Krispy Kreme’s stock has not fully recovered, (see chart below), but as of the end of 2012 Krispy Kreme seems to have made a comeback. â€Å"Krispy Kreme Doughnuts, Inc. Krispy Kreme) is a retailer and wholesaler of doughnuts complementary beverages and treats and packaged sweets. The Company’s principal business is owning and franchising Krispy Kreme stores, at which a variety of doughnuts, including the Company’s Original Glazed doughnut, are sold and distributed together with complementary products, and where a broad array of coffees and other beverages are offered. As of January 29, 2012, there were 234 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 460 shops in 20 other countries around the world. Of the 694 total stores, 292 were factory stores and 402 were satellites. The Company operates in four segments: Company Stores, domestic franchise stores, international franchise stores, and the KK Supply Chain† (â€Å"Krispy Kreme Doughnuts†). As of close of business on Friday last week KKD traded at $14. 80, way below its heyday when the stock traded in the $40’s but it is double its all-time low. Krispy Kreme doughnuts (KKD as of March 22, 2013 When compared to its competitors Krispy Kreme’s P/E is 49. 33. This is much higher than the others but its P/S is in the middle. Krispy Kreme’s competitors are listed as Dunkin’ Brands Group, Einstein Noah restaurant Group, and Starbuck Corporation. Below is the direct competitor comparison. Direct Competitor Comparison| | | KKD| DNKN| BAGL| SBUX| Industry| Market Cap:| 989. 57M| 3. 94B| 253. 09M| 42. 99B| 384. 28M| Employees:| N/A| 1,104| 6,912| 160,000| 10. 87K| Qtrly Rev Growth (yoy):| 0. 16| -0. 04| -0. 04| 0. 11| 0. 30| Revenue (ttm): | 435. 84M| 658. 18M| 427. 01M| 13. 66B| 453. 84M| Gross Margin (ttm):| 0. 17| 0. 79| 0. 21| 0. 57| 0. 31| EBITDA (ttm):| 47. 93M| 304. 86M| 48. 46M| 2. 46B| 47. 5M| Operating Margin (ttm): | 0. 09| 0. 38| 0. 07| 0. 14| 0. 07| Net Income (ttm):| 20. 78M| 108. 18M| 12. 74M| 1. 43B| N/A| EPS (ttm):| 0. 30| 0. 93| 0. 74| 1. 86| 0. 78| P/E (ttm):| 49. 33| 39. 95| 20. 01| 30. 87| 29. 99| PEG (5 yr expected):| 1. 02| 1. 58| 0. 98| 1. 43| 1. 50| P/S (ttm):| 2. 24| 5. 96| 0. 59| 3. 13| 1. 04| | | | | Suggestions for a Krisp/Klean Future Making Doughnuts I three things I might suggest if I were the CFO for Krispy Kreme doughnuts would be to insure open communication with investors and insure them that internal auditing systems are in place. I’m sure that investors lost all trust in the previous management because of the questionable practices that were followed. Krispy Kreme needs to rebuild that trust by having open lines of communication with its investors. I would take a serious look at closing unprofitable stores, and research other markets to open more stores. Some areas may still be underperforming whi le others are booming. Concentrate on the areas that show better potential and take advantage of that market while it is supporting growth. Because their competitors seem to offer expanded menus I would concentrate on healthy choices for the lunchtime crowd. Everyone is aware of Krispy Kreme’s doughnuts, but I’m not so sure their other menu items are well known as an option for lunch/brunch. Other than the morning rush for doughnuts, they could make their stores more profitable with being the †go toâ€Å" spot for lunch also. References Chin, N. (2005). Krispy Kreme Dougnuts: Empty calories or empty profits? Retrieved from http://www. corporateconflicts. com/index-sb-cases-kk. html Krispy kreme doughnuts. (n. d. ). Retrieved from http://www. google. com/finance? client=obq=NYSE:KKD We will write a custom essay sample on Krispy Kreme Essay Example specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Krispy Kreme Essay Example specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Krispy Kreme Essay Example specifically for you FOR ONLY $16.38 $13.9/page Hire Writer

5 Key Terms Of Dramatism Example

5 Key Terms Of Dramatism Example 5 Key Terms Of Dramatism – Coursework Example Reflection Discussion: 5 Key Terms of Dramatist In investigating the semantic dimensions of language, the five primal terms of dramatists are the best tools to use. However, from the real life experiences, there exist ambiguities in analyzing a situation using these terms. There exists a great variance in the analysis of different situations and thus the ambiguity. Besides, the interrelationships among these terms are eminent as it is revealed by encounters in the real world.When the five terms of dramatist are used to analyze a situation, the interrelationship between these terms is apparent. It is because some terms have to work together in forming a common ground or substance for a given situation (Burke XIX). For instance, dancing in a church can be considered inappropriate, whereas dancing in a wedding is granted. In this context, the scene, and the act have a strong relationship. The interrelationship is used as the ground for justifying the appropriateness of an act, given the prevailing scene.The terms also bring forth ambiguity when used in the analysis of situations. In fact, the social and political trends surrounding a given situation act as the sources of ambiguity (Burke XVII). For instance, one can consider voting as an act and the voters as the agents during an election. From a differing point of view, the votes and voters can all be seen as the agents of a politician or even part of the scene through which he or she gets into office. Also, war brings out the point of ambiguity clearly in the sense that; during a military officer regards war as scene because it inspires the nature of his training, another person views war as an agency because it is a means through which an end, victory, is achieved. Without doubt, different situations deserve different analysis when using the five key terms of the dramatist.Work CitedBurke, Kenneth. A Grammar of Motives. Berkeley, CA: Univ. of California Press, 2000. Print.

Absolute And Relative Ethics Commerce Essay

Absolute And Relative Ethics Commerce Essay There are many approaches to ethics. I will briefly outline two types of theoretical approach to ethics and their implications: principle-based approaches, and character and relationship-based approaches. Principle-based approaches to ethics: It is important to understand this concept. This approach has often been based on two different ethical traditions – Kantianism and utilitarianism. Immanual Kant, was a German philosopher (1724-1804) in the eighteenth-century. He developed a theory of ethics. This approach to ethics is known as ‘deontological’ or duty-based. It plays a vital role in moral philosophy and also in professional ethics. ‘Persons’ are considered to have rational and self-determination – it means they are capable of making choices and acting upon them. For deontological ethics, the important thing isn’t the result or consequence of the action, but the action itself. If the action is wrong, in and of itself, then donâ€⠄¢t do it. This approach mainly has its focus on respect of the service user and also that he can make his own decisions. The main principles in this approach are to maintain confidentiality, obtain informed consent, no discrimination or offering misleading or false information. For Kant, it would be morally wrong to perform any action which is based on false information even though the end result is beneficial. According to this approach, we must all respect individual’s choices. Utilitarianism, on the contrary, is a teleological theory. It is particularly associated with two British philosophers, Jeremy Bentham (1748-1832) and John Stuart Mill (1806-1873) (Mill 1863/1972). Also known as the consequentialist theory of ethics. The main difference lies in the concept and it is in striking contrast as compared to the Kantian ethics. The moral worth (rightness or wrongness) of an action is said to lie in its consequences; hence if we have to decide if an action is right or wrong , we have to weigh pros and cons and also anticipate. According to this concept, if lying leads to good results, it would probably be good to lie. This theory relies on the fact that whether something is right or wrong depends on the result or end of that action. Theories that are interested in ends are called teleological. The name has originated from the Greek word for ‘end’ – telos. For a teleological ethical thinker, the end justifies the means. The believers of this theory argue that the rightness of an action is judged by the end it produces. In my opinion, people consider both types of ethical principles in making decisions. We have to make a judgment that ensures that we are looking at individual’s best interest or the welfare of the society at a bigger scale. Absolute and relative ethics Absolute ethics holds that there is one universal moral code which is final and applies equally to all men of all ages, and that changing situations or changing v iews make no difference whatsoever to this absolute moral code. Relative or relativistic ethics holds that the moral standard varies with different circumstances. There are so many cultural and religious differences and in some circumsatnces, it may be ethically correct to do certain things but in other situations it might be completely immoral. For example it is right for Muslim people to have four wives but for a Christian man this would be considered immoral.

A Treatise of Human Nature by David Hume Essay Example | Topics and Well Written Essays - 250 words

A Treatise of Human Nature by David Hume - Essay Example The researcher states that David Hume is an Empiricist. He is a believer in sense experience as a primary source of knowledge. He believes in observable phenomena, that greatly influences his view of the self. He believes all the elements that make up the self can be observed. The most vital premise he advances to support his ‘no-self’ conclusion is that there is too much turbulence in one's life for one to remain untouched. This is a well-thought position. Imagine that constantly in life, one has to tackle varying circumstances using equally varying means. It’s impossible that there is a part that remains impervious to all this change. Small elements of our make –up may remain the same but the general picture is altered from time to time and with different situations. Also, central in Hume’s study of the self is his assertion that the self is â€Å"is a bundle or an assemblance of different perceptions† not a substance. Perceptions are† ideas or impressions† about oneself. This is to say that every person has a character that is unique to them. It also to states that this â€Å"ideas and impressions† are recognizable even by ourselves. By and large, we all agree to some extent with Hume’s position. The ideas that build up to his conclusion are well thought out and go a long way to re-affirming him as foremost on personal identity.

Introduction to social media in the classroom Research Proposal

Introduction to social media in the classroom - Research Proposal Example The intended audience for this study will be teachers, students and administrators of institutions who are keen to reduce the negative effect that social media has in classroom learning and gain from the benefits that it promises to bring. This study is important in the sense that it provides insights to how social media has been used by students in classroom settings; this will inform this research on how to carry out this (Dabbagh & Kitsantas, 2012). Literature will also provide insights on how scholars designed their research in order to answer their research questions; this will be relevant in this study since the research design used by previous scholars may be applicable to this study, therefore saving on time. The literature reviewed will also be used as a comparison tool for this study to ascertain the precision of the result. An experimental design will be used where the respondents will be divided into two groups, the experiment group will be allowed to access social sites for a week where statistics on their usage will be carried out, and the other group will not be allowed to use social networks for a week, after the experimentation period, questionnaires were given to the students. The study population is defined as all the elements involved in a study that satisfy the sample selection criteria to be included in the study, in our case, the population consists of all the students and the teaching staff of selected institutions. A sample size of 60 students was selected from schools where the experimental group would consist of 40 students and the remaining 20 would belong to the control group. The students who were selected to participate in the study were required to have been in the institution for at least one academic year and must be active users of at least two social media sites. A questionnaire and an in-depth interview were identified as the most

Hemingways Hills Like White El :: essays research papers

“Hills Like White Elephants,'; by Ernest Hemingway   Ã‚  Ã‚  Ã‚  Ã‚  In Ernest Hemingway’s “Hills Like White Elephants,'; the two main characters, Jig and the unnamed American man, are at a train station in Spain trying to decide whether or not they (actually just Jig) should go through with an abortion. The first time I read the story it wasn’t very clear to me what type of an operation it was that they were talking about. Hemingway doesn’t really spell it out for the reader. After reading the questions at the end of the text and reading over the story again I realized that the operation they were talking about was in fact an abortion. Although Hemingway provides very little information about the character’s situation or their pasts, the use of symbolism in the character’s dialogue throughout the story makes it a whole lot easier to understand.   Ã‚  Ã‚  Ã‚  Ã‚  The only thing I really noticed the first time I read the story was the tension between the two main characters throughout the story. In the first dialogue, there seems to be some tension between Jig and the American man. They speak to each other in short sentences and Jig starts getting sarcastic with her male companion (Hemingway doesn’t state whether they are married) when he says that he’s never seen white elephants. At first impression, seems like the lady is the antagonist. For most of the beginning of the story all they talk about is drinks. At one point Jig says “That’s all we do, isn’t it—look at things and try new drinks?';(445) These people must have a pretty meaningless relationship if that’s all they do. Even after they’re done talking about having the operation on page 446, they go back to more drinking.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The whole dialogue about the operation made me question the American man’s love for Jig. Was he sincere? At first he’s convincing her that the operation is simple and how “it'; is the only thing that has made them unhappy. One can tell that Jig doesn’t really want to go through with the operation by the way she talks. She asks him, “And if I do it you’ll be happy and things will be like they used to be and you’ll love me?'; It sounds like she really doesn’t think that he’ll love her if she does have the kid. It also sounds like he isn’t really concerned about her safety either.

Quality Management Worldwide Total Quality Management Essay

For more than four decades after independence the companies in India enjoyed a protected market with virtually no competition, and some of them even monopolised the market, with customers having little or no choice. As a result complacency set in, and no pressure existed for improvement or change. However, the policy of globalization and liberalization adopted by the Indian Government five years ago, has hrown open new avenues and challenges to companies in India. The new policy has resulted in open doors through which global corporate players have entered the Indian markets, and are threatening the domestic manufacturers and suppliers, using quality as a weapon. This has compelled the managers of local companies to look for those tools and techniques, proven and tested, which would help them to maintain and improve their strategies and positions in the market. One such policy or philosophy that has captured the attention of industry and the business community is TQM. Particularly, in the recent years TQM is even regarded as bsolutely essential for growth, stability, and prosperity. This paper has the main intention of presenting an overview of TQM’s progress in the country, starting from its initiation to its current status. Besides, the paper also describes how the organizational attempts by various agencies enabled the establishment of a TQM culture. Further, these attempts are presented in a chronological order, to appreciate the role played by various agencies, which resulted in growth and propagation of TQM in India. Towards the end, the gaps that still exist and hence the efforts that eed to be channeled are pointed out, so as to result in appropriate guidelines about the work to be done. The author R. Jagadeesh is an Assistant Professor in the Department of Mechanical Engineering, S. J. College of Engineering, Mysore, India. Keywords TQM, India, Quality Abstract Total quality management (TQM) has spread its wings in every sphere of the global corporate world and Indian companies are no exception. In this paper, first the growth and spread ofTQM in India is traced from its initiation to current status. Further, the paper has tried to identify the causes for poor quality of products and ervice, and the gaps that exist between the expectations and the outcome after adopting the TQM practices. Later a critical view of the quality scene in India is presented, and finally, based on these observations suitable guidelines and recommendations are made to bridge this gap. It is concluded that there is still a long way to go for Indian companies to receive the stamp of acceptance for their products at international level. Electronic access The current issue and full text archive of this Journal is available at http://www. emerald-library. com are synonymous with high quality products and trust worthiness. However, the post- independent era did not witness any spectacular improvement regarding the quality of goods and services produced in the country. According to Agrawal (1993) due to protected business environment many positive attributes of the Indian industry have been lost and weaknesses have surfaced. These weaknesses based on the study are: lack of trust and credibility in the working system, lack of clarity/seriousness for achieving target, lack of precise observance of rules and norms, low quality of supplies and components, lack of consciousness of time as money, viewing only short term benefits ahead of long term oals, politicalization of labor unions, lack of accountability for actions, lack of management commitment, lack of national quality policy, inadequate economic resources, lack of indigenous technology, inadequate infrastructure, preferring quantity to quality, lack of team spirit, cartel formation, and sellers’ market. Besides, lack of consumerism, Government control on everything, bureaucratic delays, quick profit making attitudes by the companies, all resulted in quality getting a low priority and consequently Indian products were constrained to serve only the domestic market being not able to compete in the international markets. Further, the factors mentioned before, clearly proved to be obstacles in the path to progress, and India in spite of possessing good resources and rich scientific and technical manpower, could not produce world-class products acceptable in the international markets. The TQM movement in India The TQM initiatives were first set by the Confederation of Indian Industries (Cll) in the early 1980s, in its pioneering effort in promoting awareness about quality among Indian industries. The work done by Cll in this direction is well documented in Deccan Herald Advertising Feature (1993) and also in The Standards Engineer (1996). In 1982, quality circles took birth in India, and some of the companies to launch quality circles first were Bharat Electronics Limited, Bangalore, and Bharat Heavvy Electricals Limited, Trichy. In 1986 the Cll then known as CEI (Confederation of Engineering Industries), invited Professor Ishikawa to India, to address industry people about quality. Later in 1987, a TQM division was set up by the Cll. This division owes its foundation to 21 companies who agreed to support the cause by pooling resources and pledging to start the Journey to TQM. Chief executives of these companies formed the National Committee on Quality, 22 Total quality management in India ? ± perspective and analysis R. Jagadeesh The TQM Magazine Volume 1 1 . Number 5. 1999 . 321? ±327 newsletter on quality. In 1987 and 1988, the Cll invited the Juran Institute to India to conduct three training workshops, and then in 1989 a team from India attended the Deming Seminar in London. Study teams organized by the Cll were taken to Japan and the USA to study quality practices. During 1990, the Cll consolidated and focused on training, and in February 1991, an Indian company with the assistance of the Cll, obtained the first ISO 9000 certification in India. The Cll organized the launch of the National Quality Campaign led by the Prime Minister of India in May 1992. It is around this time, the process of globalization and liberalization was started in the country, bringing a new dimension to the business and industrial sectors. From then on, a new line of thinking in terms of quality, productivity, and competitiveness has begun. Since 1993, the Cll has been organizing The Quality Summit every year. This provides an opportunity for all business leaders, and higher level managers of member and non-member organizations of the Cll to network, learn, and contribute hrough experience sharing, and listening to the experts who gather there. The National Productivity Council (NPC) has set up a TQM and Benchmarking Division in New Delhi, and offers TQM implementation services, which include modular training programs and consultancy services. In 1996, the Government of India announced the setting up of the Quality Council of India, (QCI) with the Industry Ministry bringing in half the seed capital of Rs. 1. 5 crores. The rest of the seed capital will be contributed by the corporate sector. The setting up of a national agency for quality certification is art of the World Trade Organization (WTO) agreements, under which member countries will not trade in non-certified products two years down the line. The corporate sector too was demanding the setting up of an internationally recognized quality council as it found the certification process from foreign agencies too expensive. Besides, it would save vital foreign exchange for the country. The QCI will be entrusted with monitoring and administering of the National Quality Campaign and will also oversee the effective functioning of the National Information and Enquiry Services. Post-liberalization scene ? ± improvement in quality The economic reforms that started in 1992 have ushered in a new era of progress and prosperity in the country. According to a report published in YoJana (1997), the real gross domestic product (GDP) recorded a growth rate of 6. 8 per cent in agriculture and allied sectors, 7. 0 per cent in industry, and 7. 4 per cent in services. The Eighth Five Year Plan (EFYP) (1992-97) which ended with an average growth rate of 6. 5 per cent per annum, compares well with the target rate of 5. 6 per cent for the EFYP, and actual achievement of 6. 0 per cent in the Seventh Five Year Plan. In fact his is the highest average growth rate achieved in the planning period since 1951. The sectoral average growth rates for the period 1992-97 are: Agriculture and allied sectors ? ± 4. 0 per cent, Industry ? ± 7. 8 per cent and, Services ? ± 9. 2 per cent. Further, exports during 1996-97 registered a growth rate of 4. 1 per cent. Foreign direct inve stment amounted to US $2,696 million during 1996-97. These facts clearly indicate that the economic reforms brought through globalization and liberalization have yielded rich dividends, and hold a lot of promise for the coming years. While all ndividually to improve their product quality, besides overall performance through TQM practices. For example, Gupta and Sagar (1993) describe a case of total quality control in an engineering company through the extensive use of personal computers, and state that the Indian company was able to overcome many quality related problems which included: high rejection levels, slow inspection rates, frequent errors in measurement, inconsistency in interpreting inspection data, time consuming data storage and retrieval, rigid inspection schedules, not responding to changing environment, and quality plans not adjusted to varying batch sizes. The company improved the problem solving capacity through quality circles, and quality database at each stage. Comprehensive information systems enabled the personnel to obtain better guidance leading to improved decision making. Thus the success is attributed to systematic application of TQM. 323 The TQM Magazine volume 11 . Number 5 . 1999 . 321? ±327 Business Today (1995) in an exclusive coverage on status of quality of India, presents a detailed report on companies which are market leaders and corporate giants. The cases covered include reports on leading Indian companies like Mukand, BPL, Arvind, IFB, ABB, HDFC, Amex, Hidustan Lever, Ranbaxy, Indal, Gujarat AmbuJa, Wsya Bank, Oberoi Hotels, and Thermax. It is emphasized that these companies carved a niche for themselves by focusing on quality in their planning, operations, and marketing strategies. Awareness of quality ? ± a positive change Pati and Reis (1996) state that India is emerging as a leading economy in the new world economic order. The phenomenal increase in India’s export earnings, which rose to IJS$ 26. 2 billion in the 1994-95 fiscal year showed an increase of 18. 27 per cent over its 1993-94 export earnings of IJS$22. 7 billion. This is said to be an indicator of how its products and services are perceived by its global customers. It is further stated that the thrust has been shifted from import substitution to development of an export-oriented economy. Other pertinent observations made are: . Indian businesses are pursuing paths of superior quality and high productivity; . quality conscious consumeris m; . increasing competition; . industries expanding their domestic share and venturing into global markets; . significant rise in the ISO 9000 certified companies. The survey conducted by Pati and Reis (1996) has further revealed many interesting aspects bout quality practices in India. The survey questionnaire has used a five-point Likert interval to capture the strength of perception, where points 1 (very high), 2 (high), 3 (medium), 4 (low), and 5 (very low) indicate the degree of current practice related to quality. The critical success factors contributing to quality and overall average scores (3. 43); . role of quality department/personnel (3. 14); . training (3. 69); . product/service design (2. 91); . supplier quality management (2. 6); process management and operating procedures (2. 74); quality data reporting (2. 72); employee relations (2. 2). It is concluded from the survey that the manufacturing sector in India is well aware of importance of quality, and efforts have been channeled to improve product quality. However, the service sector mostly Government owned and operated, lags behind the manufacturing sector in all aspects that i mply quality. TQM ? ± success stories of Indian companies Many Indian companies are beginning to realize that ‘ ‘customer focus† is an absolute requirement of TQM. Jain (1996), while writing on TQM in India, states that companies are paying closer attention to consumer feedback in order to tailor roducts to meet customer needs and are using a wide variety of methods that include benchmarking with rival products, regular customer meetings, and even engaging market research companies to collect consumer feedback on their product range and after sales service. Two specific cases are worth mentioning. Escorts Limited, an automobile manufacturing company, based on the feedback from customers and dealers, changed the delivery route to ensure safe and quick delivery. Similarly, J. K. Synthetics, based on feed back from customer meetings, focused on standardization of quality parameters, and started after-sales service. This resulted in the sales rise from 220 tonnes in first quarter of 1995 to 632 tonnes in the last quarter of the same year, an impressive growth in the sales by three times the previous value. According to a report published in Business Today (1998), some Indian companies are being guided by Yoshikazu Tsuda, a counselor at JUSE (Union of Japanese Scientists and Engineers) in their quest for total quality. Some of these companies are Sona Steering, Jai Bharat Maruti, GKN Invel, Asahi Float Glass, Brakes India, Lucas TVS, India Pistons, and India Piston Rings. Further, as stated in The Economic Times (1998), sixsigma technique, which is considered to be a classic TQM technique, is being practiced by several Indian companies notable among 324 significant achievement by an Indian company due to its practicing TQM principles is reported by Sridharan (1998a). The Indian company Sundaram Fasteners located near Chennai, India, has received the Best of Best Vendors Award consecutively for two years during 1996 and 1997, for its supply of metal radiator caps to General Motors, USA. The award was given to the company for its consistent zero defects rate, 100 percent reliability in delivery schedules, and lowest price. The company is the only supplier to General Motors, USA from India out of its 3,000 supplier companies scattered all over the globe. In an exclusive interview covered by Premchander (1996), the managing director of Asea Brown Boveri Ltd (a partly owned subsidiary of Asea Brown Boveri Limited, Zurich) one of the very successfully operating multi-national companies in India, has stated that the managers have to spend time and resources on TQM. A historical achievement by an Indian company winning the coveted Deming Prize for Overseas Companies, for successful implementation of TQM, is reported by Sridharan (1998b). The Indian company Sundaram Clayton, has successfully turned its people into quality practitioners by the actual deployment of TQM tools, techniques, and systems. 38 ? ± time to market; 22 ? ± corporate credibility. Indian quality scene ? ± a critical view The developments related to Indian companies, concerning quality of products and services, need to be examined on a comparative global scale. This would enable judgement of the progress made in improving quality. A survey made in 1994 in which products and services from 41 countries were ranked by World Competitiveness Report indicates that the quality of Indian products and services is isappointing. According to the summary of results given in Skaria (1995), India’s rank based on different quality parameters is as follows (the rank out of 41 is given followed by the parameter): . 39? ± price to quality; . 38 ? ± practice ofTQM; . 40? ± customer orientation; . 28 ? ± product liability; . 39 ? ± time to innovate; The report clearly suggested that on a global scale, Indian products and services are far from satisfactory, and have a poor image. This is a major cause of worry for the corporate managers particularly for those looking for new markets, and ventures with oreign collaborators. One commonly quoted reason for getting away with low quality in India, is lack of pressure from consumers. Many managers are of the opinion that unless the customers are aware of their right to demand high quality, and insist on companies to invest in quality, they continue to receive poor quality products. While the growth and spread of quality practices are slow in India, TQM has firmly seated itself in other Asiatic countries. In a cover feature on ‘Quality in Asia’ reported in World Executive Digest (1996), it is stated that as Asia grapples with the challenge of lobalization, more and more companies seek ISO 9000 certification and adopt TQM. Companies in Hong Kong, Taiwan, Malaysia, Singapore, and China are overtly involved in embracing practices of total quality to march ahead in global markets. According to The Economic Intelligence Unit (1996), which surveyed companies in Hong Kong on issues in the region. The growth of TQM across Asia however means that new approaches are being developed in the region. These observations clearly suggest that India has to carefully watch the developments in the Asiatic region, as TQM principles have been successfully applied by several countries improving their utput quality, attracting more foreign investment, and hence capable of restricting India’s share in the global market. What the quality experts say In spite of the hype created by the ISO 9000 bandwagon, which today has more than 1,500 companies certified as such, quality is yet to emerge as a major strength of Indian products. Managers of Indian companies have still a lot to learn and implement in the image building process based on quality. This is perhaps aptly summarized by a statement made by Philip Crosby as reported in The Times of India (1997). While addressing a 325 ews conference at the end of his weeklong visit to India, Crosby has said that complacency is a major problem with the Indian management system. The managers of Indian industries should take this seriously. In an interview published in Business India (1997-98) James Harrington, a leading authority in the field of quality, has stated that India still has four types of companies: those with poor performance, with good performance, with better performance, and with outstanding performance. Harrington remarks that companies with poor performance went bankrupt in other parts of the world, while those with good performance would follow them. But those with better performance will survive and those with outstanding performance would explode into the twentyflrst century. This indicates that India still has scope for bad products, and bad performance, which need to be immediately curbed. It is pointed out by Sukumar (1998) that TQM continues to baffle corporate India, as evident by the different interpretations made by each person in the industry about what is TQM. It was observed during the Sixth Quality Summit organized by the Cll in New Delhi, that TQM means anything and everything depending on the individual’s perspective, politics, and paradigms. During the summit as many as nine different definitions were presented by the speakers about what constitutes TQM. This means people in the corporate sector have no consensus about the concept of TQM and it could be a deterrent in its implementation. In another survey conducted by Arun et al. (1998) with regard to ISO certified companies interesting observations were made about implementing TQM in a company. Out of 17 companies that were surveyed, managers in seven companies said that though they believe in TQM they do not know how to implement it. The survey further revealed that the long term supplier elationship, an essential ingredient for successful implementation of TQM, has not the implementation of TQM were found to be: continued dependence on traditional incentive schemes, numerical targets, performance rating, slogans for improving productivity, and not identifying and providing the right type of training for each and everyone as demanded for every Job. The survey concludes that if all these factors are not mitigated a company may continue as ISO certified but not be recognized as a TQM company. Comments and conclusion The various surveys independently conducted by researchers and business ublications have revealed that awareness on quality of products and services has picked up in India. With quality based competition intensifying, Indian industries and business people are showing keen interest in improving the quality of products through TQM. A number of organizations, private and Government are actively propagating TQM through a variety of training and educational programs. TQM has proved to be a vital ingredient for success, and now has its permanent roots in the mission and vision† of the Indian corporate sector. However, based on common observations the requirements for quality to succeed in India can be summarized as ollows: . a strong consumer movement; . a sincere and committed drive by the corporate sector to keep quality as the main focus; . trict enforcement of standards by the regulatory bodies and authorities; . avoidance of multiple grading of quality in products, like export quality, first grade, seconds, import rejects, etc. ; . setting an example in adhering to high quality performance and output, before pointing to others. While TQM no doubt has enabled the Indian companies to improve the quality of products and services, the international market demands still higher uality levels to give due recogn ition and acceptance.