Toquma Final Revised

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I. Executive Summary
The paper contains the history of Nestle Philippines Inc. during the year
1867, the founder, Henri Nestle, named it Nestle after his surname, and thought
of selling nutritional products because of the problem of the mothers that can’t
breastfeed their babies. For centuries, Nestle have been operating very well.
Nestle is among the top companies in the Philippines and has over 3,700
Total Quality Management in Nescafe

employees.
After the world war II, Nestle came back for its operation with the new
name called “Filipro” and continues to import goods such as MILO, Nido,
Milkmaid, and even Nescafe, later change its company name back to Nestle.
The paper contains the explanation of the leaders in the organization from top
management to bottom. Having a strategy for Nestle is to be able to deliver the
best and relevant goods to people through their lives. The taste of the Nestle
products are sold in different countries. They’re into decentralization, which
means everyone has the opportunity to run the business as well as the
recruitment of its staff. Nestle’s strategy includes being a proactive leader,
relation-only alliance, and understanding and serving the customer.
It also consists of the quality dimensions of the product of Nestle, which
is Nescafe coffee. One of its quality dimensions includes performance,
aesthetics, special features, conformance, safety, reliability, durability,
perceived quality, service after sale which explains how the product Nescafe
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performs in the industry. The SWOT analysis is also given to know the
company’s strength, weakness, opportunities and threats. It also consists of the
top management leaders in the industry from past to present, and the next part
shows the design theme of each Nescafe products. The next part which is the
reduction and process, quality assurance, packaging and shipping that defines
the overall product’s procedure and the conclusion towards the overall paper.

Next is the recommendation which shows the possible solutions that the
researchers would like to establish to be able to improve Nescafe’s problem or
other factors that needs to be fixed. Lastly, is the appendix, which are those
added or extra information that is not yet included in the parts of the paper.
A. Company Profile
In 1867, the founder of Nestle was Henri Nestle, who developed a milk-
based food for the mothers to feed their babies because mothers can’t feed their
babies milk. (Prezi.com, n.d.).
A hundred years has past, when Nestle Philippines, Inc started its
operation. Today the organization is now stable and strong, being the best
company to offer the best food and beverages for consumers throughout the
years. Nestle has over 3,700 men and women employees over all the country.
Nestle is the among the top companies in the Philippines, its products are strong
brands in their categories. (Nestle.com, 2016).

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During the early times, in 1895, Nestle goods were already available in
the Philippines. In 1911, Calle Renta, Binondo was the first sales office of Nestle
and Anglo Swiss Condensed Milk Company when it was accepted in the
country. (Nestle.com, 2016).
During World War II, the company stopped its operation but was able to
get back after the liberation with a new name called Filipro, Inc. which continues

to import products such as MILO, NIDO Powdered Milk, Milkmaid, and Nescafe
from other countries. During the year 1950’s, the Philippine government-
imposed import control that lead to difficulties for Filipro, Inc. with no imported
products to sell, they were forced to become a distributor of different products
such as peanut butter, napkins, fruit preserves, and patis (fish sauce) just for
the company to keep their operation still.
In 1960, Nestle S.A and San Miguel Collaborated which started its
Nutritional Products, Inc. In 1962, the first operation factory for Nutritional
Products Inc. is located at Alabang, Muntinlupa for manufacture NESCAFE. In
1977, Filipro Inc and Nutripo Inc. collaborate under the name of Filipro but in
1986, Filipro changed its name to Nestle Philippines, Inc. (Nestle.com, 2016).
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B. Mission and Vision
Mission:
“The world's leading nutrition, health and wellness company”. Our mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.” (nestle,n.d.).
Vision:

“To be a leading, competitive, Nutrition, Health and Wellness Company
delivering improved shareholder value by being a preferred corporate citizen,
preferred employer, preferred supplier selling preferred products.” (Nestle, n.d.).
C. Leadership and Strategic Planning
Table 1: Key Executives for Nestle Philippines, Inc.
Name Position
Mr. Jacques Reber Chairman and Chief Executive Officer
Mr. Peter Brabeck-Letmathe Chief Executive Officer of Nestle SA
Ms. Queenie Phan Head of Corporate Purchasing
Ms. Aurora Alipao Head of Consumer Engagement
Services
Ms. Sandra Puno Director of Communications

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Source: (Bloomberg, 2018)
Figure 1: General Organization of Nestle S.A (Global)
Source: (Nestle, 2018)

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Strategic Planning of Nestle Philippines, Inc.
Nestle has become famous for its high-quality products which exists around the
world. The company’s strategy composed of different fundamental principles. Through
their innovation and restoration of geographic activities and the product lines. Long
term opportunities is never forgo with the short term performances. The company’s
goal is to deliver the best and relevant goods to people through their lives. The taste

of the Nestle products sold in different countries. They’re into decentralization, which
means everyone has the opportunity to run the business as well as the recruitment of
its staff. The headquarters says that the overall strategy for the company is to approach
the “centralize what you must, decentralize what you can” Nestle believes that their
other organizations located globally should think about the organization as a whole not
only the people they deal with locally (UKEssays, 2013).
The quality that nestle has been enhancing and contributing for a healthy future,
by aiming to deliver sustainable, industry-leading financial performance and earn the
people’s trust (UKEssays, 2013).

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Source: (UK Essays, 2013)
1) Proactive Leader- Nestle continues to do a wide research and development
team. With their research and development employees that are composed of
275,000 people and are located in 130 different countries. (Kays, 2014).
2) Relation-Only Alliance- with strong relationship between Nestle and their
suppliers, they allow their suppliers as well to have access on their geographic

facilities. Nestle looks forward to work more with many challenges using vertical
integrated process. (Kays, 2014).
3) Understanding and Serving the Consumer- with the company having the
biggest research and development network in terms of food and beverage
category, this company is continuing to innovate and renovate the standard for
meeting the customers need. Nestle working partnering with leading companies
around the world which includes those startups, schools, and public
organizations. It enables to strengthen their capabilities, by having new ideas,
being able to access new skills and implement new technologies which helps
them to keep up with consumer trends. (Nestle, 2018).
II. Quality Dimensions
A. Performance
Nescafe has set its standard and that is to ensure that everyone is
enjoying the greatness of the coffee with an affordable price. One of the most
popular beverages in the world is Coffee. Aside from having a quality product
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the company is also concern with the environmental performance. Nescafe
used Life Cycle Assessment (LCA) Approach also known as the Product Life
Cycle to ensure each of the process from the manufacturing process to the end
consumers were really performed well. (Nescafe, 2016) The performance of its
product was maintained by their saying “From The Bean To The Cup” here are
the steps of Nescafe to have better performance:

1. Processing- After the Coffee beans have been harvested the outer shell
of the bean will be place into another process to make green coffee bean.
(Slideshare, 2018)
2. Blending- Nescafe blends with Arab Arabica and Robusta coffee beans
to cater wide variety of flavors. (Slideshare, 2018)
3. Roasting- Nescafe makes sure that green coffee beans are being
roasted while it leaves an aromatic smell. (Slideshare, 2018)
4. Grinding- This will help the company to easily brewed the coffee and
also enhance the flavor of the coffee. (Slideshare, 2018)
5. Making it Soluble- Nescafe used two equipments for these and that is
spray-dried and freeze-dried technology to have soluble tasty coffee.
(Slideshare, 2018)
6. Cultivation- after using the machine to keep the coffee dry. There were
now two main varieties of coffee: Arabica and Robusta. (Slideshare,
2018)
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B. Aesthetics
Figure 2: Nescafe

The main ingredients of Nescafe coffee were made from 100% pure quality
coffee beans, including ready-made mixture, and contains whitener and sugar which
usually added in coffees. These ingredients will have aromatic and tasteful feeling in
every sip (Nestle, 2016).
Characteristics of Each Flavors in Nescafe Coffee:
1. Nescafe Classic: Pure spray dried coffee
Figure 3: Nescafe Classic

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2. Nescafe Gold: Pure freeze-dried coffee. (Slideshare, 2018)
Figure 4: Nescafe Gold Blend

3. Nescafe Espressos: Short, dark roast, with intensive flavor. (Slideshare, 2018)
Figure 5: Nescafe Espresso
4. Nescafe Altarica, Cap Colombie: Premium Arabica Blended Coffees.
(Slideshare, 2018)
Figure 6: Nescafe Alta Rica and Nescafe Cap Colombie

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5. Nescafe Decaf: Nescafe without caffeine. (Slideshare, 2018)
Figure 7: Nescafe Classic Decaf

Nescafe Cappuccino: foaming, creamy coffees. (Slideshare, 2018)
Figure 8: Nescafe Gold Cappuccino
6. Nescafe 3-in-1: coffee, milk, and sugar. (Slideshare, 2018)

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Figure 9: Nescafe Original 3-in-1

C. Special Feature
Nescafe aims to offer a cup coffee that has a great taste but affordable by all. A
coffee that has a special taste and fragrance with every sip of Nescafe. Behind their
craft starts from choosing the right farmers and teaching the Nescafe Plan to them.
Followed by the roasting of its beans which creates aroma, hue and flavor and is
roasted to bring out the full-flavor. Nescafe flash freeze its coffee to sub-zero
temperatures which dries its coffee and removes remaining water. Next is to taste test
the finesse, acidity and intensity of every product by 14 highly qualified Taste Masters.
Finally, consumers get a chance to enjoy a well-crafted cup which is made to perfection
(Nescafe, 2018).
Categories and flavours of Nescafe coffee are:
1. Nescafe Classic
Figure 10: Nescafe Classic Varieties

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With every sip of Nescafe Classic, consumers can taste the pure

aroma coffee that is made with Exclusive Pure Coffee Capture. It is
made from 100% pure, high quality coffee beans (Nestle, 2016).
2. Nescafe Gold Blend
Figure 11: Nescafe Gold Blend
A premium coffee that is made from high quality Arabica and
Robusta coffee beans which are golden roasted to perfection to create a
rich, enjoyable taste and tempting aroma. (nescafe.com.ph, 2018)
3. Nescafe Gold Collection
Figure 12: Nescafe Gold Cappuccino

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Nescafe Gold Collection is the brings the Nescafe Gold to a whole

new level by combining it with delicious milk layered with a rich and
velvety cafe froth. Choose from its three (3) flavors: Latte Macchiato,
Cappuccino and White Espresso; Nescafe Gold Collection will ensure
that it will elevate their consumers coffee experience to a whole new level
(Fernandez, Y.V.S., 2017).
4. Nescafe Decaf
Figure 13: Nescafe Decaf
Nescafe Decaf will make coffee drinkers experience the taste of
Nescafe Classic without the caffeine. It has a rich and delightful aroma
which is made from medium-dark roasted Robusta beans. Moreover, it

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uses the decaffeination process which uses water to remove caffeine
from the beans (nestle.com.ph., 2018).
5. Nescafe 3in 1
Figure 14: Nescafe 3 in 1

Figure 15: Nescqafe Blend and Brew
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Figure 16: Nescafe Twin Pack

Figure 17: Nescafe Berry Mocha and Coco Mocha
Figure 18: Nescafe Creamy White and Creamy Latte

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Enjoy Nescafe 3 in 1 in many flavors: Blend & Brew Espresso
Roast, Nescafe Blend & Brew Silky Roast, Nescafe Blend & Brew

Original, Nescafe Brown ‘n Creamy, Nescafe Original, Nescafe Creamy
Latte, Nescafe Creamy White, Nescafe Berry Mocha and Nescafe Coco
Mocha.
6. Nescafe Super Premium
Figure 19: Nescafe Super Premium
Nescafe Super Premium, also known as “Nescafe to-go”, are cold,
delicious coffees which is a convenient ready-to-drink format
(nestle.com.ph, 2016).
7. Nescafe Dolce Gusto

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Figure 20: Nescafe Dolce Gusto Pods
Source: (www.escapes.ie)

Using the Nescafe Dolce Gusto machine for Nescafe Dolce Gusto
capsules/ pods, consumers can enjoy exquisite taste of coffee in different
flavors. Some of the flavors are: Latte, Macchiato, Mocha, Espresso,
Cappuccino, Lungo and Espresso Intenso. (dolce-gusto.us, n.d.)
Aside from its different flavors, Nescafe also offers coffee machines for
coffee lovers who are looking for a perfect cup of brewed coffee, like:
1. Nescafe Red Mug Machine
Figure 21: Nescafe Red Mug Machine
source:(nescafe.com.ph)
Creating ideas inspired by barista recipes of delicious coffee,
Nescafe Red Mug Machine can easily help prepare different hot or cold
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drinks whether it’s gourmet coffees, lattes, cappuccinos, iced lattes, etc.
Bringing home, the cafe experience, it can turn any Nescafe Classic and
Nestle Coffee Mate into an appealing coffee adding foam and layers to
every cup and many more (nestle.com.ph, 2018).

Figure 22: Nescafe Dolce Gusto Machine
Source: (nescafe.com.ph)
Nescafe Dolce Gusto creates fantastic coffees for every taste and
occasion through a wide range of flavors to choose from. It is an
innovative machine which pumps the coffee from the different flavors of
coffee pod, making professional coffees with a single tap on the machine
(nescafe.com.ph, 2018).
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D. Conformance
Figure 23: Robusta Beans

Nescafe have made sure that their coffee offers a high-quality Arabica
and Robusta beans making sure that every cup delivers a unique coffee
experience. They are well-known for having 100% pure coffee using 100%
natural ingredients when enjoyed as a black coffee. Making sure that their coffee
is all natural that has the rich aroma with the right amount of acidity to it. Varying
in different flavors that will suit the taste of consumers in different occasion
E. Safety
These are the contents of Nestle’s policy with regards of safety:
1. Safety is Non-negotiable - Nestle believes that the most important
asset that the company has are its employees as they contribute to the
company’s culture and business results. Therefore, the company
devotes all the necessary energy and attention to protect employees,
contractors and any other people involved with the company along the
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value chain, including suppliers, customers and the public (nestle.com,
2008).
2. Compliance - To reach the company’s goal of being at the forefront of
accident prevention in the industry, the company implements in all their
sites the mandatory Nestlé Occupational Safety and Health Management
System, which meets or exceeds the requirements of the health and

safety laws applicable in the countries in which they operate (nestle.com,
2008).
3. Strong Safety and Health Organization - Nestlé believes that accidents
are preventable therefore the company integrates Safety and Health in
the management of the business. This is to advance a strong safety
culture that effectively prevents accidents, Nestle commits to perform a
systematic identification of hazards and to manage them with appropriate
risk assessments and corresponding actions to minimize danger
(nestle.com, 2008).
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4. Behavioral Approach - Nestlé attributes the highest importance to
people’s behaviors as the main factor for the prevention of accidents.
The company believes that every time an accident occurs, the root
causes can be traced to someone’s behavior. Therefore, Nestlé
implements programs that encourage employees to engage in
conversations with colleagues and management about safety and at-risk

behaviors that would affect the company (nestle.com, 2008).
5. Communication, Education and Training - Nestlé builds a proactive
safety culture by first, spearheading the implementation and continual
improvement of the Nestlé Occupational Safety and Health Management
System through communication with employees, contractors and other
stakeholders and Second, educating, training and equipping employees
to ensure that they are empowered to avoid unsafe situations and to
respond rapidly to unexpected events (nestle.com, 2008).

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F. Reliability
The company take the following factors into consideration to ensure that their
products are reliable and safe:
1. Materials
The company’s approach to food safety covers the entire supply
chain, starting with farmers and suppliers. The company follows strict

procurement and selection processes to ensure safe, high quality raw
materials. This includes specifications for the materials being used and
performing checks to ensure they always comply with the standard. If
materials don’t comply, the company rejects them (nestle.com, 2016).
2. Preparation
All the company’s manufacturing facilities, wherever they are in
the world, are designed to prepare products to the highest quality and
safety standards. This includes preventing foreign bodies from entering
products, enabling the management of allergens, and controlling pests.
The factories are all built according to precise specifications, including a
clean and safe water supply, air filtration, and to watch out for any
material that will come into contact with food, to guarantee that the
materials, equipment and manufacturing environment are all designed to
produce safe products (nestle.com, 2016).

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3. Processing
The company’s recipes and processing techniques are
scientifically formulated to deliver the safest possible products. They
prepare products in quantities that provide the corresponding amount of
dosage of any nutrient, to avoid any over or under dosage. And the
company processes food at optimum temperatures to retain its nutritious

value, while removing dangerous microorganisms and preventing the
formation of chemical contaminants that would adversely affect the
health of consumers (nestle.com, 2016).
4. Testing
Before a batch of any product leaves one of the factories, it must
pass a “positive release” test to confirm it is safe to consume. At Nestlé,
they carry out more than 100 million tests a year to verify product
compliance with internal and external standards, including for harmful
compounds or microorganisms in the materials used and the
environment where it operates (nestle.com, 2016).
5. Packaging and Transportation
Packaging has an important role in ensuring the products reach
consumers in a safe condition. It also carries important information about
how to prepare, store and use the product, the ingredients as well as any
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allergen risks. The company makes sure that best-before and use-by
dates are correct, so consumers understand when the product will be
past its best and when it will no longer be safe to consume (nestle.com,
2016).
When products are released from the factory, the company makes

sure they reach their destination in optimum condition. For chilled or
frozen products, this also means ensuring they are stored and
transported at the correct temperature (nestle.com, 2016).
The company’s packaging has a unique traceability feature; they
use unique batch codes, to tell exactly when a product was produced,
what ingredients were used and where those ingredients came from. The
company has an early warning system to help them pinpoint signals that
may develop into problems (nestle.com, 2016).
G. Durability
The most ideal approach to store your espresso for a very long time
depends a great deal on the kind of espresso you jump at the chance to drink.
Solvent espresso has a more drawn out shelf life than simmered beans and
ground broiled beans, and green beans keep well however must be cooked and
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ground before you can transform them into awesome espresso (nescafe.co.uk,
2018).
All in all, putting away your espresso, regardless of whether it's solvent,
green espresso beans, simmered beans or ground broiled beans, needs a dry,
sealed shut holder. As a rule, refrigeration isn't prescribed as it could influence

the espresso taste. Anyway, solidifying can be a decent option for putting
away dissolvable espresso (nescafe.co.uk,2018).
Solvent espresso, while it accompanies a best before date and has the
longest time span of usability, needs to keep away from an excess of
presentation to air and dampness to not destroy the flavor. The immense thing
about solvent espresso is that once you've opened the pack, the espresso can
be utilized for a considerable length of time or even months on the off chance
that you keep it in an impermeable container (nescafe.co.uk,2018).
Green espresso beans, as most plant seeds, keep well and will keep
going for well over a year whenever put away in cool, dry and hermetically
sealed compartment. Truth be told, this is how espresso is put away by the
makers previously broiling (nescafe.co.uk,2018).
In the event that you get a kick out of the chance to purchase cooked
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espresso beans straight from the roaster, these should be kept in a dull, dry
and impenetrable holder and utilized inside fourteen days. Both green
espresso beans and simmered beans can be solidified, anyway you have to
ensure you pack them firmly (nescafe.co.uk,2018).
You can likewise purchase ground broiled espresso. While it's

advantageous, it must be put away for a couple of days in a dull, dry,
hermetically sealed holder before it loses its taste (nescafe.co.uk, 2018).
H. Perceived Quality
Nestle is one of the most popular and known products in the world but
only that they are famous for nutrition, but little do consumers know that they
are also hated by others for That Nestle is promoting unhealthy food should
come as no surprise, but the level at which they operate it is simply staggering.
A recent report by the UK Consumers Association claims that 7 out of the 15
breakfast cereals with the highest levels of sugar, fat, and salt were Nestle
products. Nestle dismissed all responsibility in promoting healthy food. To pour
even more salt in the foods wound, mister Brabeck came out with a dismissive
interview in the Telegraph, claiming that he is not obese yet ‘every morning I
have a tablet of dark chocolate as my breakfast’ and that it is the perfect balance
and contains everything he needs for the day.

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I. Service After Sale
Nestle offers services from one of their products “Nestle Nescafe Dolce
Gusto, it is a coffee maker machine that can prepare your coffee as fast by
pressing on with one finger and it starts to prepare using a mini capsule type of

coffee maker. You can have an option in choosing over 30 different high-quality
coffee creations, from coffee, tea or hot chocolate and many more. With a
choice of cold or hot beverages as well. It is also eco-mode, since after 5 mins
of not using the machine, it turns off by itself. With two-year guarantee.
(Dolcegusto.com, n.d.).
Service after sale includes:
1) Orders: If they don’t like the product they have the right to return it within
30 days after it has been bought. They don’t accept return on coffee or
accessories product. (dolce-gusto.com, n.d.).
2) Machine Warranty: When machines that are bought on the internet are
guaranteed by the manufacturer itself based on the legal documents.
(dolce-gusto.com, n.d.).
3) Service After Sale- If there is any problem encountered with the
machine, they can contact the Nescafe Dolce Gusto customer care or if
it cannot be resolved through the phone, then they can immediately

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contact Nescafe Dolce Gusto through phone for detailed information.
(dolce-gusto.com, n.d.)
III. Strength and Weaknesses
Table 2: Strength and Weakness
STRENGTH ● Strong Brand Name: Having strong brand name is one
way to increase the level of consumer brand awareness.

Consumers become very aware of Nescafe such as they
classify Nescafe as one of the top coffees in the
Philippines. The brand was easily to recall because there’s
retention in consumer ‘s mind.
● Multi-flavor Variances: Nescafe coffee have plenty of
flavors to choose from in 3-in-1 there have the Berry
Mocha, Coco Mocha, Blend & Brew, and Creamy Latte.
Nescafe also have the Classic, Decaf, Gold and Blend,
and Super Premium. For the consumer have the option to
choose from.
● Wide Distribution Channel: Since Nescafe is originated
in Brazil yet the Nescafe products were spread all over the
world not only in the Philippines but also in other countries
around Asia, USA, Europe etc. The product is accessible
because Nescafe used two different distribution channels:

o
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1. From Nestle / Nescafe to Supermarkets and to the
consumers; 2. From Nestle / Nescafe which is the
manufacturer followed by the wholesalers to retailer and to
consumers. (Nestle-Nescafe, 2016)
● Effective Advertisements: The company Nescafe had
used celebrity influencer on their TV commercials, namely:

Kathryn Bernardo and Daniel Padilla; Toni Gonzaga;
Alden Richards and Maine Mendoza and etc. These
celebrity endorsers are convincing in a way consumer will
have stronger brand awareness due to these influencers.
WEAKNESSE ● Health Risk on Drinking Too Much Coffee: One of the
S major concerns in drinking too much coffee is the health
risk. According to some article drinking coffee excessively
is prone to high cholesterol, loss of sleep, can raise high
blood pressure and can cause anxiety; due to its
ingredients that have a caffeine content which is bad for
the health when consumed excessively. Coffee can also
increase weight and generate acids in the stomach of the
consumer.
● A Bit Expensive Compared to Other Local Brands: As
of the previous year 2017, there’s a news that tells Nescafe

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increases its price in their coffee. The consumer now may
experience higher cost for a coffee; it’s all about consumer
will pay for about 46% more 26%. (TheSun, 2017)
● Many Other Beverage Alternatives: There are various
preferences that a consumer can have in a beverage
industry. Therefore, people tend to have the power to
choose whether what beverage they will purchase. In
some instances, at the time when people are very thirsty
they tend to buy carbonated drinks, juice, or water. In other
words, people didn’t ‘t come up with drinking coffee when
they are thirsty. That’s why, alternative products tend to
shadow coffee in the beverage industry.

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IV. Responsibility for Quality
A. Top Management
Table 3: Top Management of Nestle Philippines
Name of the Position Description

Executives
Past
Mr. Jacques Reber Since 2015, He became the

chairman and CEO of Nestle
Philippines, Inc. During the 1990, he
joined as a international auditor for
CEO the Nestle S.A which was the
headquarters located in Vevey,
Switzerland. (Bloomberg, 2018).

Mr. Peter Brabeck- In 1968, he started as an ice cream
Letmathe
salesman in the Nestle Company.
Later on, he was able to develop
something innovative in advertising
Chairman of
the Board which led to success in the industry.
He had developed with 34 Nestle
brands that are worth more than 1
billion dollars and kept climbing
forward. Which he plans to retire in
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2017. (American Advertising

Federation, 2017).
Ms. Queenie Phan Head of Corporate Purchasing for

Nestle Philippines. She’s a
Head of Vietnamese-American with
Corporate
experiences in corporate and global
Purchasing
purchasing. (Bloomberg, 2018).

s. Aurora Alipao As she is the head of the customer
service, she opens the line of
Head of communication with consumers, and
Customer
develops and builds stronger
Service
relationship with their customers. She
helps build Nestle Club membership
that helps engage over a million
members. She creates ideas and
develops and accomplish consumer
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relationship marketing programs that

helps brand awareness and have larger
consumption. She also seeks new ways
to improve the quality of consumer
interactions and responses of Nestle
Company especially when it comes to

customer complains. She is also
involved with the promotion of Nutrition,
Health and Wellness by using Nestle
recipes and by sharing this idea to
consumers. (Linkedin.com, 2018).
Sandra Pu Before the Chief Marketing

Communication Officer position was
given to her, she started with
Communications and PR (Information
Media Head
Office of His Eminence Jaime L.
Cardinal Sin) and become Account
Management (VP-Ace Saatchi and
Saatchi) followed by the Marketing
Group Product Manager and Media
Head and eventually SVP-Director of
Communication of Nestle Philippines.
The multi awarded campaigns
developed in Nestle were: Choose
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Wellness, 100 Years Kasambuhay

Habambuhay and United for Healthier
Kids Campaign. She served as board
member of PANA (Philippines
Association of National Advertisers)
and ASC (Ad Standards Council).
(LinkedIn, n.d.)

PRESENT
Mr. Kais Marzouki Mr. Kais Marzouki is the newly

appointed Chairman and CEO of
Nestle Philippines effective July 1,
CEO 2018
2018. In 2013, he was the CEO of
Nestle Central and West Africa
Region before he become the CEO
of Nestle Philippines.
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B. Design Themes
Since the start of Nescafe coffee in the year 1929 in Brazil, it continues
to give consumers the perfect blend of the brand’s well-established history.
Creating different varieties of flavors that will suit different taste of consumers
around the world; and some of Nescafe coffees are Nescafe Classic and
Nescafe Dolce Gusto, both targeting coffee lovers but each having its own twist

1. Nescafe Classic
Figure 24: Nescafe Classic
Nescafe Classic aims to target coffee drinkers who are looking for
an instant yet giving a satisfactory taste of coffee. Moreover, it is a
convenient for people who wants to enjoy a simple coffee at home work
or school. Furthermore, some of Nescafe Classic targets consumers, like
working individuals or students, are aimed at consumers who are looking
for a drink that could keep them awake in the mornings, sober up in the
afternoons or keeping awake during the evenings (mervegulnazerdem.
Wordpres, n.d.).
37
Figure 25: Nescafe Dolce Gusto

Aimed at coffee lovers and enthusiasts who are looking for
creating a modern cafe-style quality coffee at the convenience of one’s
home or office. At the same time, effortlessly creating a customized drink,
whether hot or cold, using a machine and have a finished product all
under half a minute choosing from 10 different capsule flavors (Orange
Magazine, 2015).
C. Reduction and Processes
Coffee Production:
● Plantation- It all started from the plantations, were farmers went to the
coffee plants and harvest the coffee cherries, usually by hand. Next, they
separate the bean from the outer part of the cherry. This is done by either
hulling them or by washing them in a pulping machine and then drying
the beans in the sun. Once dry, the beans will have a greenish color
38
these are called ‘green beans. It’s in this state that they usually exported
for blending and roasting. (Nescafe, 2018)
● Roasting Time- The most important phase of coffee production is
roasting. But before the green beans can be roasted, mixing, or blending
of coffee beans need to be created. By combining different types of
beans it’s possible to create a more rounded taste in the resulting coffee.

It is not until the green beans are roasted that they release the coffee
aroma and flavor. Depending on the roasting equipment and the desired
flavor of the coffee, green beans are roasted between 180°C and 240°C
for between three and 12 minutes. (Nescafe, 2018)
● Ground and Brewed- Before it can be brewed, the roasted coffee must
be ground. Grinding increases the surface area of the coffee, allowing
the flavor to be extracted more easily. To make soluble coffee, the ground
coffee is brewed and then dried. The coffee can be dried using freeze
dry and then gently heated under vacuum. Finally, the coffee is packed
and sent to the stores. Furthermore, each step in the process starts with
selecting the green coffee beans to maintain the best quality. (Nescafe,
2018)
39
D. Quality Assurance
Quality is the foundation of Nestle and its fully embedded in the
company’s purpose and values. Nestlé products and brands are trusted and
chosen by millions of people all over the world to fulfil their nutrition, health and
wellness needs (nestle.com, 2017).
This trust is based upon the company’s quality image and its reputation
for consistently delivering high-quality products. Every product, every service
and every contact with the company’s customers has helped to shape this trust.
When you see a Nestlé brand name on a product or a service, it is a guarantee

that it is safe, that it complies with all relevant laws and regulations and that it
constantly meets the company/y’s criteria of high standards of Quality
(nestle.com, 2017).
Nestle is dedicated to achieving high Quality standards for their products
and services through the application of the Nestlé Management System for
Quality & Safety, Health and Environment. It is fully aligned to ISO standards
and is implemented across the organization and verified by independent third-
party certification bodies (nestle.com, 2017).
To sustainably create value and to effectively and efficiently build trust, Nestlé:
1. Guarantees product safety and full compliance by respecting the policies,
principles and standards with full transparency, (nestle.com, 2017)

40
2. Ensures and enhances preference and consistency to delight individuals
and families by valuing what they value and by offering products and
services that always meet or exceed their expectations, (nestle.com,
2017)
3. Strives for zero defects and no waste by constantly looking for
opportunities to apply the continuous improvement approach to deliver
competitive advantage (nestle.com, 2017)

4. Engages people’s commitment across our complete value chain and at
all levels of our organization to build the Nestlé Quality mindset
(nestle.com, 2017).
Figure 26: Enhancing Quality of Life

41
E. Packaging and Shipping
● Packaging
Being environmental conscious, Nescafe Plan aims to reduce
Nescafe’s environmental footprint by converting waste into energy and
using cleaner energy sources. Nescafe is taking a step of increasing
environmental sustainability through improving its packaging. Some of its

packaging are:
1. Glass Jars
Figure 27: Glass Jars
Glass containers are considered to be an effective package
since it is made out of sand and it can be form into different shapes
and designs making it appealing to the eye. Moreover, it can
assure the freshness of a product when it is properly sealed by
sealing moisture and oxygen (nescafe.com.ph, 2018).
To reduce glass usage, Nescafe uses glass and recycled
glass, called “cullet”, for making its jars. Since cullet glass requires
42
less energy for it to melt, mixing it with glass will make the
packaging lightweight nescafe.com.ph, 2018).
2. Sachet
Figure 28: Sachet 3-in-1

Traditional sachets used by Nescafe are ravioli-shaped
which has either three (3) or four (4) sides (nescafe.com.ph, 2018)
Figure 29: Sachet Classic
Source: (buyrite.co.uk)
Through responsible packaging, Nescafe aims to use
single-serve portions, which will minimize food spoilage, by

43
introducing the “stick pack”. The stick pack’s shape resembles a
cannelloni-pasta tube, filled in the middle and closed at both ends.
Furthermore, stick pack will use less material but nevertheless, it
have the same high standards that consumers expects from
Nescafe coffee (nescafe.com.ph, 2018).

● Shipping
Nestle has two different forms of distribution which are the: Fast-
Moving Consumer Goods (FMCG) strategy, which involves breaking the
bulk, and the typical distribution strategy (Bhasin, H. 2018).
Figure 29: Fast-Moving Consumer Goods (FMCG) Strategy
Figure 30: Typical Channel of Distribution Strategy
For Nestle’s channel of distribution, they are known to have a
strong marketing and sales network. Moreover, Nestle regularly offer
trade discounts, a type of sales promotion that offers discounts to

44
channel dealers, and various tactics which keeps the channel motivated
(Bhasin, H. 2018).
V. Conclusion
A. Quality Dimensions (Special Features): The researchers can conclude
that the special features include the aiming the great taste of coffee that
is affordable with the right process of Nescafe craft:

● Finding the right farmers and teach the Nestle Plan
● Roasting of beans with the right temperature
● Flash Freeze to sub-zero temperatures
● Highly Qualified Taste Masters to taste
● A perfect cup of coffee for consumers
This should be done properly, one mistake from this and the
quality of coffee would be affected either through uncertainty, or the
weather.
B. Strength and Weaknesses: They are keen on knowing and
understanding customer wants and were able to provide different
products that address different social classes, likes in taste, health
consciousness, affordability and convenience.
C. Responsibility for Quality (Quality Assurance): The researchers can
conclude that Nescafe is a company that is dedicated to serve the
interest of their customers by delivering tasteful and quality products in
each cup.
45
VI. Recommendation
Table 4: Recommendation
Conclusion Problem Recommendation

A. A. Quality Weather could affect the ● Do a research on
Dimensions: whole quality of coffee beans ways how to
Special Features preserve the
coffee even at
times of bad
climate.
● Location of
plantation that
uses a tent-like
house that
preserves the
plants at a right
temperature.
B. Strength and Health Conscious Consumers ● New product line

Weaknesses: that caters to
Weaknesses health
consumers.
C. Responsibility Quality Control ● Nescafe should

for Quality: have proper time
Quality Assurance frame, Quality
Management
System which is
the platform that
they use to
guarantee the
safety of the
food, in
compliance with
quality standards
and to give
customers good
value.
46
A. Company Profile
Jotex Knitting and Manufacturing Corporation is a textile and garments
manufacturing company that was first owned by Chua Chin Chiok, a Chinese immigrant
who came to the Philippines with a hope of saving his family from scarcity back in his
province in Southeast China. It started from a few machines and a few people until It
became engaged in textile manufacturing because the company already has sufficient
resources and the ability to manufacture its own textiles that is used to manufacture its
Total Quality Management in Jotex

apparel products. The company was a success during its early years and was at the
top of its game in the late 90s to the early 2000s. During those times the company was
able to manufacture more products and have the ability to increase its product line.
Though in the late 2000s, the company suffered some issues regarding its production
costs along with the decreasing volume of sales, the main cause is bad management
of the company and tough competition in the market. This ultimately caused the
company to nearly close during that period of time. However, by the early 2010’s and
until today, the company managed to bounce up and has been manufacturing and
selling their products at an increasingly higher rate. The company offers wide variety of
garments. From Regular T-shirts round neck and V-neck, Shirt with Collar, to
Honeycomb cotton collar shirts.

Mission
The mission of Jotex Knitting and Manufacturing is to provide upper garments to
wide range of consumers from affordable to quality garments that will equally satisfy
both us and our customers and maximize the value of their purchase.
Vision
To be the top choice of every consumer and be known as a leading provider of
upper garments that gives consumers maximum value for every purchase.
47

a. Self-initiation
Persons in the top management must have the desire and compassion in what
they do. They must have self-initiation in managing human resources and the
company. The Top management which are composed of certain persons are
involved in major decision making especially with regards with finances, cost
management, cost reduction and purchasing.

b. Adding team agents
The company is starting to find and hire competitive agents. There was also a
factor on contributing demand for the company. Hiring competitive sales agents
increases and creates demands.
c. Latest trends
It is important that the company is updated with the latest trends. Fashion
and trends change over time. Customer’s needs and preferences can change over
time. It is important for the company to be aware of the latest trend in fashion. Being
aware of the latest trends also contributed with the competitive advantage of the
company.
d. Preference of younger generations

Younger generations are usually aware about the latest trends in
fashion on what style suit their needs.
e. Competition with competitors

It is important to be competitive in the market. The company may lag
behind when they were not aware of the level of competition in the market.
Managing costs and rising prices of raw materials in the market are huge factors
in the competition.
48
f. Maximizing internal affairs

Top management must maximize its human resources. Company imposes
quota or target performances that workers needed to reach in order to reach
demands on time.
II. Quality Dimension
A. Performance
Based on the past, the customers have been satisfied which is why they
would keep coming back. Why will they keep on patronizing the brand if they are

not satisfied? The shirt’s performance is based on the wicking of the fabric and the
absorption of sweat in the fabric to keep the user dry and cool. The composition of
the material of the fabric, the way the fabric is knitted and the way the yarns are
spun all contributes and affects the performance of the fabric. It affects the wicking
and absorption of sweat in the fabric. Cotton can absorb at least 27 times its weight
in water that is why majority of bath towels are made of 100% cotton in order to
absorb water or sweat. Cotton’s absorbency happens due to several reasons
including the molecular structure of cotton and the structure of water. Norton, K.
(2018, March 13).
B. Aesthetics
The company uses the standard size used in America with a little alteration.
The younger generation wouldn’t like to have huge hanging sleeves, and by altering
it, the company gives what the market wants and needs. Styles changes over time
based on the latest trends in the market. It is important for the company to be always
aware of the latest trend in fashion. Different styles change over time.
C. Special Feature
The special feature of Jotex Knitting and Manufacturing Company is that they
hide the stitches around the collar of the shirts, v-neck shirts with various colors of
which the market prefers. They also offer basic undergarments for children, school,
ladies and adults. The company plan is to launch colored undergarments to
compete with competitors and still offer quality at a lower price.
49
D. Conformance
The company offers different brands with different qualities. The quality
depends on the brand that they produced but it is cheaper than the premium brands.
There were no specific standards to follow for fabric. The important is the overall
quality of the fabric and the shirts follows the standards set by the company, if the
shirt were in good conditions and there were no damages or errors in producing a
shirt.
E. Safety

There are no harmful chemicals added in the shirts produced. The company
assures that the health of the customers will not be sacrificed. There were no toxic
chemicals used in the dyeing of the shirts. So far there were no reported incidents
of customers having allergic reaction with the product.
F. Reliability
The shirts have a lifespan or usefulness too like the other things. It usually can
reach up to 100 washes and in 30 to 40 washes surely there will be no fade. But
when the shirts reached 100 washes it is normally will be look like a rag.
G. Durability
The products have a longer lifespan compared to their competitors.
According to the person we interviewed, their shirts can last up to 30-40 washes
without fading. They also make shirts that are slightly thicker than their competitors
to achieve better quality. They make sure their shirts are durable by thoroughly
inspecting every single shirt for defects after it gets manufactured. The last process
which is trimmers checks the product before packaging and shipping.
Their shirts’ perceived quality is really good. Customers keep coming back
to purchase their shirts for 40 years and they are starting to become a well-known
brand. They strive to always meet the quality the customers demand in order to get
repeated purchases from consumers. Different customers have different perception
of quality of a shirt. Some people may perceive that the thicker the fabric, the better
50
the quality. Some people may perceive that the more cotton the more it is durable
and better.
I. Service After Sale

The company prioritize the quality of their products over the price of it. They
make sure that the customers are satisfied and are willing to exchange defected
shirts on the spot. They are willing to adapt to the needs and wants of the customers
by listening to their suggestions after making a sale. If there were any defects
founded by the customer. The customer can report the company about the damage

upon purchase. The company will be responsible and eager in replacing the
damaged product like holes or stains in some shirts caused by machine errors.
III. Strengths and Weaknesses
Table 5: Strengths and Weaknesses
STRENGTHS WEAKNESSES
Known in the Market Problem with the HR

● The company has been in business ● There were problems as to
already for over 40 years and there are regard with the company’s
brands that the company offers that human resources. Some
were somehow known in the market. workers may demand for
increase in wages, but the
company continues to
carefully discuss with regards
to compensation.
51
Not compromising quality over price Cannot cater the demand

● The company’s focus in quality is one of ● There was a sudden
the factors on why it has been business fluctuation in the demand and
for a long time. It still caters to people there were times that the
are conscious with regards to quality company have a hard time in
over price. providing the demands due to
limited manpower and
resources. (See Fig.1)

Less reliance on outsourcing. Lacks promotional strategies and
● Quality may be affected especially if advertisement
majority of the products were ● There were lack of promotional
outsourced. Majority of the products are strategies and advertisement
still manufacture In-house so that the due to conflicts and issues in
company can further monitor and the top management
control the quality of the products regarding concerns in costs
manufactured. and expenses.
I. Responsibility for Quality

A. Top Management
There were changes in the top management from past and its current. There
were recorded downfalls in the past due to mismanagement of the previous
administration. Production was running slow and costs are not carefully monitored
and managed. After the past management was replaced there were periods of
changes. Different materials were used, and inverter powered machines was
introduced in the production which lessened electric costs.
52
B. Design Themes
According to the person that was interviewed by the group, there were not
many similarities in regards with the process design comparing with competitors
especially with the sewing of garments. Most companies that are in the garments
industry have almost similar process design and there are no much differences,
although some companies may have complex machines that can reduce the time
of finishing a unit of shirt or a garment and it may be too expensive for the company
to purchase a complex machine. That can shorten the production time of a garment.

C. Reduction and Processes
There were changes made by the company. Last year the company
introduce the usage of servo motors for the sewing machines. The usage of servo
motor would be able for sewers to control more of the machine’s speed and will
make their work much better. The usage of servo motors saves 60-80% less energy
than an ordinary clutch motor. (“How to Choose the Right Sewing Machine for Your
Facility,” n.d.).
Figure 31 : Clutch Motor and Servo Motor
Clutch motor (left) and a Servo motor (right)

For the circular knitting machines majority of the knitting machines are
already equipped with a variable speed drives which may save and reduce
energy consumption by up to 60% because a variable speed drive reduces the
53
amount of energy drawn by the motor. (“How to Choose the Right Sewing
Machine for Your Facility,” n.d.).
Figure 32: Variable Speed Drive

Variable Speed Drive (Used to save costs)
Products and shirts are checked and monitored in the last step of the
manufacturing process where trimmers check if there were errors in sewing of
the shirts or damages caused by some machines. Some machines may
contribute to the damage of the product especially oil stains from the machines.
There are times that the company get some problems regarding the cutting and
the making of the patterns. Holes in the fabric due to errors in the circular
knitting machines are carefully monitored by cutters before it gets to sewing.

There were certain problems that the company faces when it comes to the
shipping of the products. Some products can be received late by customers
because of weather disturbances which may affect the services of the company.
Products are placed in sacks and packaged carefully before delivery and shipping.
Sacks may be damaged while in shipping and the company is fully aware of some
incidents.
54
II. Conclusion
Jotex Knitting and Manufacturing Corporation have been in business for over
40 years and strive to continue its focus in bringing quality garments to its consumers
and maximize the value of every purchase. Jotex Knitting and Manufacturing have
acquired knowledge from competitors when regards to maintaining costs especially
with the introduction of different motors, machines and devices that may contribute to
reduce costs. The company was careful in maintaining and monitoring product quality
and monitoring of the process to assure product quality. There were challenges that
the company faces with regards to sudden fluctuations in demand and managing

human resources. With different methods explained on how the company continues
monitor the quality of the products that the company produce, it can be concluded that
the company strives in achieving quality and it is focus and very much aware in bringing
quality products to its customers and continuously maximize the value of every
customer’s purchase.
III. Recommendation
A. Jotex Knitting & Manufacturing Corporation should improve handling of the
human resources because these may result in conflict of interest, lack of
coordination, lack of interest and undefined responsibilities. The consumers
should not only be satisfied but also delighted. Jotex should have promotional
strategies and advertisements to help their brands to be more known in the
market.
B. Jotex Knitting & Manufacturing Corporation should invest more in new
machineries, so the company can cater the demand and exceed the
expectations of the customers. With this, it will also lessen the need for
manpower and would help speed up the production to cater to the demand of
consumers.
C. They should use boxes in packing the goods before delivery instead of sacks
to ensure the safety of the products from being damaged.
55
A. Company Profile
Figure 33. Samsung Logo.
Total Quality Management in Samsung

Samsung Electronics Co., Ltd. engages in the manufacturing and selling of electronics
and computer peripherals. The company operates through following business divisions:
Consumer Electronics, Information Technology & Mobile Communications and Device
Solutions. The Consumer Electronics business division provides cable television, monitor,
printer, air-conditioners, refrigerators, washing machines and medical devices. The Information
Technology & Mobile Communications business division offers handheld products,
communication systems, computers and digital cameras. The Device Solutions business
division comprises of memory, system large scale integrated circuit and light emitting diode.
The company was founded on January 13, 1969 and is headquartered in Suwon, South Korea.
Vision - Vision 2020
"Inspire the World, Create the Future".
The Vision 2020 is at the core of our commitment to create a better world
full of richer digital experiences, through innovative technology and products.
The goal of the vision is to become a beloved brand, an innovative
company, and an admired company. For this, we dedicate our efforts to
creativity and innovation, shared value with our partners, and our great people.
We have delivered world best products and services through passion
for innovation and optimal operation.
We look forward to exploring new business areas such as healthcare
and automotive electronics, and continue our journey through history of
innovation.
Samsung Electronics will welcome new challenges and opportunities
with joy.
56
Mission
Inspire the world with our innovative technologies products and design
that enrich people’s lives and contribute to social prosperity by creating a new
future.
Table 6: CEO

Kim, Ki Nam
ㆍPresident & CEO [2018~Present]
ㆍPresident & Head, Device Solutions [2017~Present]
ㆍPresident & Head, Semiconductor Business [2014~2017]
ㆍPresident & Head, Memory Business [2013~2014]
ㆍCEO, Samsung Display Co., Ltd. [2012~2013]
ㆍPresident & Head, Samsung Advanced Institute of Technology
[2010~2012]
Kim, Hyun Suk

ㆍPresident & Head, Consumer Electronics [2017~Present]
ㆍHead, Visual Display Business [2011~2017]
ㆍHead, Product Strategy Team, Visual Display Business
[2011~2011]
ㆍHead, R&D Team, Visual Display Business [2009~2011]
57
Koh, Dong Jin

ㆍPresident & Head, IT & Mobile Communications
[2017~Present]
ㆍPresident & Head, Mobile Communications Business
[2015~Present]
ㆍHead, Mobile R&D, Mobile Communications Business
[2014~2015]
ㆍHead, Technology Strategy Team, Mobile Communications

Business [2011~2014]
ㆍHead, Development Management Team, Mobile
Communications Business [2007~2011]
Strategy
Samsung sustains they’re management to aim and create integrated values. The company
also create economic values by maximizing the profits and the shareholder values, takes on a
stronger responsibility as a global citizen to create social values. The company delivers
innovative products and services along the value chain that is based on the core values that
the company pursue, Samsung generates values in the fields of economy, society and
environment. The company monitors all the financial and non-financial impacts that the
company exert on the society throughout such process so that the company maximize the
positive impacts and minimizing the negative feedbacks.
I. Quality Dimensions
A. Performance
● Octa-core 2.3 GHz Exynos 8890 processor
● 4GB of ram
● Faster than other s7 cousins
● Posting scores of 2,114 single core and 6,175 multi-core in Greekvnech
tests
58
● 2545 frames in the GFXBench G: offscreen Manhattan 3 test for an average

of 41fps
B. Aesthetics
● 6.0.1 Marshmallow out of the box
● 5.7-inch Quad HD dual edge
● Super Amoled

● 1440x2560 pixel resolution
● Corning Gorilla Glass 5
C. Special Features
● The camera app is all new
● Power-saving mode actually lowers your resolution
● The S pen doubles as a magnifying glass
● The S pen at a glance
● There’s a blue light filter to save your eyes
● Samsung’s browser has extensions
● You can turn off those awful icon frames
D. Conformance
The Galaxy Note 7 has a quality issue in light of the fact that the gadget
has not fulfilled the quality principles expected of it. From a quality
administration point of view, Samsung customers are not happy with the
execution of the gadget. The choice by the organization to review the gadget
and issue discounts is planned to protect its image in the focused Smartphone
advertise. It is evident that the Galaxy Note 7 neglected to meet both the nature
of plan and quality conformance. The nature of configuration is connected to
the attributes of the gadget expected by the producer. This contains execution,
unwavering quality, highlights and style. On account of the Galaxy Note 7, its
dependability and execution neglected to meet the producer's expected quality
in light of the fact that the battery detonates when charged. Furthermore, the
gadget neglected to meet quality conformance since it didn't fit in with the
producer's plan determinations. Samsung will bring about outer disappointment
59
costs because of the disappointment of the Galaxy Note 7 to meet the expected
quality models. Outside disappointment costs are acquired when deserts are
found after the client gets the item, which was the situation with the Galaxy note
7. These expenses will involve substitution, review costs, repair, and lose of
generosity by clients.
E. Safety
Samsung is focused on quality to the point that they have re-evaluated
each progression of the cell phone fabricating process and built up the 8-Point

Battery Safety Check. It includes putting the batteries through extraordinary
testing, all around, trailed via cautious review by X-beam and the human eye to
guarantee most astounding quality. This is the dedication of the organization to
more secure gadgets now and later.
F. Reliability
Samsung demands a high standard of quality that is rigorously tested
before taking any and all of its products to market. This is true for Samsung’s
notebooks. Designed for business and travel, they are made with the best
materials. They are some of the lightest and thinnest notebooks available.
Featuring fast startup, long-lasting batteries and a dependable processor,
Samsung notebooks ensure users can work any time, with lower power
consumption and improved performance.
All of this technology is protected by the durability of these devices,

which is tested in several ways to mimic situations that may occur in a user’s
daily life. These tests are conducted to ensure that Samsung notebooks are
as light as they are durable.
G. Durability
The Gorilla Glass 5 boasts enhanced protection against phone drops
from about a meter high on rough surfaces. The protective glass on the Galaxy
Note 7 performed rather well in a recent durability test that requested the device
to be dropped on its front, back, and side. Following the test, the smartphone
suffered a crack on its lower back edge, but no major damage was done to the
60
screen. The smartphone also performed well during the bending test, as the
smartphone didn't snap, and not even the flame test produced any major
damage to the phone.
Reputation Institute has studied consumer attitudes for more than a
decade, and in its ranking, it considers seven categories that measure
customers' "emotional connections" to brands or companies. Of the 50 tech
companies ranked in the 2015 U.S. Technology RepTrak report, Samsung lead

the pack, while Apple ranked twenty-first and Facebook came in thirty-ninth.
After Samsung, Hewlett-Packard, Microsoft, Google and software
maker SAP, received the highest "pulse scores," or composite ratings that take
into account products and services, innovation, workplace, governance,
citizenship, leadership, and financial performance.
I. Service after sale
Samsung’s Galaxy Note 7 battery debacle hurt the company’s
worldwide smartphone sales during the all-important holiday shopping season,
according to surveys by Counterpoint Research. From August—just before the
Note 7 was recalled due to its potentially exploding battery—through the end of
December, Samsung’s global market share in premium phones sales
plummeted from 35% to 17%, Counterpoint reported. Apple’s share of the
category, which includes phones that cost $400 and up, jumped from 48% to
70%. For all prices of smartphone sales, Samsung’s share sank from 20% to
15%, and Apple’s share rose from 10% to 19%.
II. Strength and Weaknesses

Strength
It's made of premium materials, include Corning's latest Gorilla Glass 5 on
the front and rear panels, as well as a sturdy metal bezel that surrounds its
edges and helps protect the phone from drop damage. The Note7 feels solid
in-hand, and there are no loose keys or internal components that jiggle just
61
slightly when you shake it even after an unfortunate fall onto an unforgiving
Boston sidewalk.
The phone is a great size, and even though it's still considered a phablet,
it's not as big or clunky as previous Note phones. In fact, it's only slightly larger
than the GS7 edge, and it has a bigger, 5.7-inch display, compared to the GS7
edge's 5.5-inch screen. It's also relatively light for its size. For context, the Note7
is significantly smaller and lighter than the iPhone 6s Plus, though it's also more
than 0.5mm thicker.

The Note7 has a water-resistance rating of IP68, which means it'll be just
fine in up to five feet of water for as long as 30 minutes, according to Samsung.
In other words, the phone should be well-suited for field workers who might
have to work outside in the rain and it should stand up to the occasional toilet
dunk. However, it's a good idea to use a protective case on the Note7, because
its large screen is still prone to shatters.
Security Strength
The security strength of Samsung is planning to update the Note7 from
Android 6 "Marshmallow" to Android 7 "Nougat" in "two to three months", so the
new Note should soon receive all the security enhancements in the latest
Android for Work update.
A new "Secure Folder" feature lets you create a locked "container" on
your phone that can't be accessed without authentication. It's essentially a more
consumer-friendly version of Samsung's My Knox personal container feature.
You can also choose to hide the secure folder, so the only way to access it is
by drilling down into the secure folder settings. IT departments cannot disable
this secure folder, but security-conscious organizations could choose to run the
Note7 in "container only" mode, according to Samsung. Such a move would
block the use of the secure folder, because the device can't run a secure
container within another container.
Finally, the Note7 lets you encrypt all content on memory cards, a simple
feature but one security- and privacy-conscious users should appreciate.
62
Weaknesses
Note 7 do explode and after Samsung first recalled its
acclaimed Galaxy Note 7 phone, the electronics giant finally announced
what caused Note 7 phones from two separate batches to catch fire in
the first place: a design failure in the first battery and a manufacturing
defect in the second.
Who made the defective Batteries?

Samsung won't name names, but a source familiar with the issue told
CNET that Samsung SDI, a subsidiary of Samsung Electronics, supplied the
batteries that led to the original recall. Amperex Technology created the second
set, according to the source.
III. Responsibility for Quality

A. Top Management
Past
Samsung was founded by Lee Byung-chul in 1938 as a trading
company. Over the next three decades, the group diversified into areas
including food processing, textiles, insurance, securities and retail. Samsung
entered the electronics industry in the late 1960s and the construction and
shipbuilding industries in the mid-1970s; these areas would drive its subsequent
growth. Following Lee's death in 1987, Samsung was separated into four
business groups; Samsung Group, Shinsegae Group, CJ Group and Hansol
Group. Since 1990, Samsung has increasingly globalized its activities and
electronics; in particular, its mobile phones and semiconductors have become
its most important source of income. As of 2017, Samsung has the 6th highest
global brand value.
Present
Samsung is now a global brand, therefore managing the company is
divided into different branches handled by President and CEOS.
63
B. Design Themes

Figure 34: APQP Process
1. Preplanning process - involves gathering and compiling

knowledge about a product that is intended to be designed.
2. Plan and define phase - all the needs, desires and requirements
of the consumers are put into consideration. During the same
phase, a list of design/reliability goals and preliminary special
characteristics are established.
3. Product design and development - the design of the product is
made. The designers carry out a formal review of fine details,
geometrical measures, design features, special characteristics
and tolerances of the product intended to be developed.
4. Design and development - This phase involves exploring the
measurement methods and manufacturing techniques that will
64
suit the vision of the designers of a product and put the product
into reality.
5. Product and process verification - The focus of this phase is to

validate volume capabilities and process quality. Process
Capability Studies, Management System Analysis and

Statistical Process Control are among the tools used in this
phase. Product Part Approval also takes place in this phase.
6. Feedback Assessment and Corrective Action - This phase
involves assessing the ongoing manufacturing process and
taking corrective actions where they are needed. Eight
Disciplines of Problem Solving are applied in this phase. There
are detailed inputs for each of the phases described above.
In the case of Samsung, the company will have to find a solution to the
problem with the design of the batteries for Galaxy Note 7. In case the
company will be able to determine the defective batteries and separate
them from the good ones, it will be able to save the cost of manufacturing
new batteries. However, it might be difficult to separate the defective
batteries from those that are note defective. As such, the best answer for
Samsung is to manufacture new batteries for Galaxy Note 7. In order to
avoid making mistakes in the future, the company should apply the APQP
process when designing all new products. In the current case, the
company will be able to ensure that the electrodes in the batteries cannot
tough each. Also, the company will be able to determine other problems
that may not have been identified initially. Applying APQP process will
help to improve the design and manufacturing process in several ways.
First, the company will be able to determine any defects in the new
products being manufactured as early as possible, and hence, facilitate
early response. The APQP process incorporates early failure mode
discovery shown in appendix B. Second, the company will have
knowledge of the risks involved in the production process and thus, it will
65
have a good opportunity to deal with them. Third, the APQP process will
help to improve Design for Manufacturability and Assembly. Last, the
APQP process will help to facilitate collaboration between all individuals
involved in the production process. The ultimate impact is that Samsung
will increase chances of satisfying its customers.
C. Reduction and Process

Figure 35. Reduction and Process
Purchase
Enforce an Eco-partner certification system to help reduce hazardous
parts & materials in the supply chain.
Development & Production
Eco-design process prioritizes eco-friendly products, minimizing impact on the
environment. Implementing cleaner production operations & more efficient
facilities to reduce harmful emissions.
Distribution
Make logistics greener with more fuel-efficient modes of transport and eco-
friendly packaging.
Use
Developing more energy-efficient products to help minimize energy.
Disposal
Maximize waste collection & recycling systems and use recycled material &
packaging whenever possible.
66
Samsung’s enhanced 8-Point Battery Safety Check addresses safety
from the component level to the assembly and shipment of devices. Included in
the check are Durability Test, Visual Inspection, X-Ray Test and Disassembling
Test.
Samsung formed a battery advisory group of external advisers made up
of academic and research experts to ensure the company maintains a clear and
objective perspective on battery safety and innovation.

Samsung Announces New and Enhanced Quality Assurance Measures
to Improve Product.

Packaging
Packaging Instructions Summary: Ensure the device is packaged
securely prior to shipping. Samsung recommends wrapping the device on all
sides including the top and bottom with at least 2” (5cm) of air-cellular
cushioning material such as bubble wrap when shipping the device. Place the
wrapped item inside a sturdy outer box. Any accessories should also be
wrapped in appropriate amounts of cushioning. Accessories should be placed
in spaces alongside the device. Do not place any accessories on top of or
underneath the device. Any spaces should be filled with soft material to ensure
the device and any accessories cannot move inside the outer box. Close and
seal the top and bottom of the outer box with at least three strips of tape that is
at least 2” (5cm) wide. Tape all seams and flaps.
67

Figure 36. Packaging Process.
Shipping
General Shipping Information:
Samsung's Standard and White Glove shipping methods allow
for shipments to all 50 United States and the District of Columbia. At this
time the company do not ship to U.S. territories, PO Boxes, and
APO/FPO addresses.
If inventory is available, most orders leave from the company’s

warehouses within one (1) business day from the date the order has
been accepted and confirmed.
Deliveries typically occur Monday through Friday (holidays
excluded), during normal business hours.
Multiple Shipments
In order to deliver the order as quickly as possible, Samsung may ship
items from different warehouses. This will not increase the shipping charges.
Partial Shipments
Products from the same order are often shipped from different
warehouses, or at different times based on item availability. When this occurs,
68
the status of the order may be labeled 'Partially Shipped.' Partial shipment of
an order is at Samsung's discretion and will not increase the shipping
charges.
Signatures Required
To ensure that the Samsung purchase arrives safely, Samsung
requires that someone sign for the order when it is delivered.
Tracking Your Order
When an item from the order has been shipped, the company will send

the shipping confirmation email which will include a tracking number that
enables to track the progress of the packages from the company’s warehouse
to the address specified. It may take up to 24 hours before the order tracking
information is available from the carrier's tracking system. That means even
though your package has already shipped from the company’s warehouse, the
carrier may not be able to provide any information about the package for up to
24 hours.
Shipping Methods
Samsung offer four methods for shipping orders from Samsung.com:
● Standard -
The order ships within one business day from acceptance and
confirmation. Transit time is 1-3 business days.
● Expedited -
confirmation. Transit time is two (2) business days
● Express -
confirmation. Transit time is one (1) business day
● Samsung White Glove Delivery-
Samsung offers white glove delivery service on select
television models.
69
White glove delivery service includes:

o Delivery of the TV by trained professionals
o Placing the television into any accessible room in the
customer’s home that is specified;
o Removal of the television from its packaging;
o Assembly of included television stand (if applicable);
o Placement of the TV on the A/V furniture. (Please be sure

the furniture is assembled and ready in advance.)
o Connecting the television to a power supply and verifying
that the television can be powered on; and;
o Removal of the packaging debris from the customer’s home
The white glove delivery does NOT include assembly of any

audio/video furniture, wall mounting or installing the television, connection of
any audio or video sources to the television, and/or removal of old televisions
and/or audio/video components from the customer’s home.
Shipping Costs
Shipping costs are based on the destination, size and weight of the
item(s). At certain times during the year, Samsung may offer free shipping in
select categories or via certain shipping methods.
70
IV. Conclusion
A. Quality Dimensions - Samsung Note 7 has a good specification but did
not meet the expectation of the consumers.
B. Strength and Weaknesses – Samsung Note 7 has a tight security and
is up to date with the latest version but the consumers have some
problems with its battery exploding.
C. Responsibility for Quality – Samsung lacks on checking of the
production of producing galaxy note 7 so the consumer encountered

problems with it.
V. Recommendation
A. Quality Dimensions – Samsung should improve more to meet the
expectation of the consumers.
B. Strength and Weaknesses – Samsung should check the Samsung
Note 7 again to know what the problem is and improve it.
C. Responsibility for Quality – Samsung should apply the APQP process
and focus on it to make the consumer happy about their pro

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Total Quality Management in Nescafe

management to bottom. Having a strategy for Nestle is to be able to deliver the

products are sold in different countries. They’re into decentralization, which

recruitment of its staff. Nestle’s strategy includes being a proactive leader,

relation-only alliance, and understanding and serving the customer.

It also consists of the quality dimensions of the product of Nestle, which

is Nescafe coffee. One of its quality dimensions includes performance,

aesthetics, special features, conformance, safety, reliability, durability,

company’s strength, weakness, opportunities and threats. It also consists of the

Total Quality Management in Nescafe

researchers would like to establish to be able to improve Nescafe’s problem or

babies milk. (Prezi.com, n.d.).

brands in their categories. (Nestle.com, 2016).

country. (Nestle.com, 2016).

Total Quality Management in Nescafe

products to sell, they were forced to become a distributor of different products

the company to keep their operation still.

Products Inc. is located at Alabang, Muntinlupa for manufacture NESCAFE. In

B. Mission and Vision

occasions, from morning to night.” (nestle,n.d.).

Total Quality Management in Nescafe

delivering improved shareholder value by being a preferred corporate citizen,

preferred employer, preferred supplier selling preferred products.” (Nestle, n.d.).

C. Leadership and Strategic Planning

Table 1: Key Executives for Nestle Philippines, Inc.

Mr. Jacques Reber Chairman and Chief Executive Officer

Mr. Peter Brabeck-Letmathe Chief Executive Officer of Nestle SA

Ms. Queenie Phan Head of Corporate Purchasing

Ms. Aurora Alipao Head of Consumer Engagement

Ms. Sandra Puno Director of Communications

Source: (Bloomberg, 2018)

Figure 1: General Organization of Nestle S.A (Global)

Total Quality Management in Nescafe

Source: (Nestle, 2018)

Strategic Planning of Nestle Philippines, Inc.

world. The company’s strategy composed of different fundamental principles. Through

Total Quality Management in Nescafe

only the people they deal with locally (UKEssays, 2013).

by aiming to deliver sustainable, industry-leading financial performance and earn the

people’s trust (UKEssays, 2013).

Source: (UK Essays, 2013)

1) Proactive Leader- Nestle continues to do a wide research and development

2) Relation-Only Alliance- with strong relationship between Nestle and their

Total Quality Management in Nescafe

integrated process. (Kays, 2014).

biggest research and development network in terms of food and beverage

organizations. It enables to strengthen their capabilities, by having new ideas,

them to keep up with consumer trends. (Nestle, 2018).

II. Quality Dimensions

the company is also concern with the environmental performance. Nescafe

the steps of Nescafe to have better performance:

Total Quality Management in Nescafe

to cater wide variety of flavors. (Slideshare, 2018)

roasted while it leaves an aromatic smell. (Slideshare, 2018)

also enhance the flavor of the coffee. (Slideshare, 2018)

spray-dried and freeze-dried technology to have soluble tasty coffee.

now two main varieties of coffee: Arabica and Robusta. (Slideshare,

Total Quality Management in Nescafe

every sip (Nestle, 2016).

Characteristics of Each Flavors in Nescafe Coffee:

1. Nescafe Classic: Pure spray dried coffee

Figure 3: Nescafe Classic

2. Nescafe Gold: Pure freeze-dried coffee. (Slideshare, 2018)

Figure 4: Nescafe Gold Blend

Total Quality Management in Nescafe