Saint Louis College

City of San Fernando, La Union

COLLEGE OF COMMERCE SECRETARIAL AND ACCOUNTANCY

Company Study: The Total Quality Management of Shakey’s

Submitted by:

DALMACIO, KRISTIAN

DIAZ, MA. JHELYN

EBRADA, MARK DANIELLE

Submitted to:

Caroline G. Pajimola, MBA

Course Facilitator

BSBA T/TH 1:00-2:30

April 25, 2019

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TABLE OF CONTENTS

CHAPTER 1: Introduction

A. Importance of the Study ……………………………………….…......4

B. History and Background ……………………………….……..………4

C. Mission ……………………………………………………….………..….7

D. Vision .………………………………………………………….……..…..7

E. Core Values ……………………………………………………………… 8

CHAPTER 2: Quality Management

A. Quality and Performance Excellence ………………….…………..9

B. Frameworks for Quality …………………………………….………..9

C. Tools and Techniques .…………………………………….……..…...9

D. Quality Improvement ………………………………………....……..10

E. Competitive Advantage ..…………………...………………....….…10

F. Customer Relationship ………………………………………....……10

G. Quality Teamwork ……………………………………………………..11

H. Engagement, Empowerment, and Motivation ……………………11

I. Company Improvement ……………………………………………….11

J. Awards …………………………………………………………………...11
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CHAPTER 3: SWOT Analysis

A. Strengths…………………………………………..…...……………….12

B. Weaknesses …………………………….…….……………….………..12

C. Opportunities…………………………………….……………………..13

D. Threats……………………………………………………..…………….13

SWOT Analysis table ……………………………………………….…………….14

CHAPTER 4: Conclusion and Recommendation

A. Conclusion…………………………………………….………………….16

B. Recommendation…………………………………….………………….16

CHAPTER 5: Appendices …………………………………….….………………17

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CHAPTER 1

INTRODUCTION

A. IMPORTANCE OF THE STUDY

This case study is a college student requirement intended to know

how a certain business operates and provides quality management. This

study can be a significant attempt in promoting quality management in

the workplace to improve quality service of the business. This study will

provide conclusions and recommendations on how to evaluate the

performance of a certain institution in accordance to the total quality

management.

B. HISTORY AND BACKGROUND

Shakey's Pizza was founded in Sacramento, California, on April 30,

1954, by Sherwood "Shakey" Johnson and Ed Plummer. Johnson's

nickname resulted from nerve damage following a bout of malaria

suffered during World War II. The parlor opened on a weekend, but since

the pizza ovens were not yet completed only beer was served. Shakey

took the profits from beer sales and bought ingredients for pizza the

following Monday. It was the first franchise pizza chain in the United

States. In 1968, the chain had 342 locations. The chain currently has

about 500 stores globally, and 51 in the United States. Shakey

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personally played dixieland jazz piano to entertain patrons, also hiring

the original members of the Silver Dollar Jazz Band, paying the

musicians $10 each plus all the beer and pizza they wanted. (Shakey

soon realized it was cheaper to pay the musicians scale). This brought

the music of Lu Watters to the Sacramento area and caused a local

sensation. Jazz historian K.O. Eckland has given this band the credit for

the jazz revival in Sacramento that extended to the formation of the

Sacramento Traditional Jazz Society. Shakey's also became known

outside Sacramento, not for its pizza, but for the jazz program it

sponsored on a regional radio network. Shakey Johnson is honored in

the American Banjo Museum in Oklahoma City, Oklahoma, for his

longtime use of banjo music at his pizza parlors. Other live music,

including piano, was also a staple in the old Shakey's parlors. The

original parlor (a remodeled grocery store) at 57th and J Streets in

Sacramento remained in business until the mid-1990s. The second

Shakey's Pizza Parlor opened in Portland, Oregon, in 1956. Shakey's

opened their third parlor in Albany, Oregon, in 1959, which was the first

building Shakey's actually owned and the first building to be built in the

distinct building style for which Shakey's is known. It now operates as a

used bookstore. According to Johnson, Shakey's Pizza engaged in little

market research and made most of its decisions on where to locate stores

by going where Kinney Shoes opened stores. By the time Johnson sold
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his interest in 1967, there were 272 Shakey's Pizza Parlors in the United

States. The first international store opened in Winnipeg, Manitoba,

Canada, in 1968. By 1975, the company had expanded to the Pacific

Rim, including Japan and the Philippines By the early 1970’s, Shakey’s

had become popular with families and youth sports groups in Southern

California. The long rows of picnic tables end-on-end facilitated large

groups. Youth sports teams would go to Shakey’s after their weekend

games, where the kids could eat pizza and have fun, and the parents

could drink beer and socialize. In fact, the advertising motto for Shakey's

was "We serve fun at Shakey's... also pizza". One of the features of

Shakey's was its large windows between the dining hall and the kitchen.

One could order pizza and then watch as the dough was prepared, sauce

and toppings added, and then pizza slid into the oven. Kids enjoyed

watching the process and running to tell their parents when the pizza

came out The brand became a well-established franchise in the

Philippines, where it began in 1975 under the ownership of the country's

largest food conglomerate, San Miguel Corporation, primarily promoting

their San Miguel draft beer. Beginning with a restaurant located in

Makati Avenue, Makati, the restaurant expanded rapidly in Metro

Manila, with most of its outlets offering live music. San Miguel had

difficulty maintaining the consistency of the branches, and ultimately

sold the franchise in 1987 to International Family Food Services, Inc.

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(IFFSI), a group led by the family of sports executive Leo Prieto. By 1997,

it had evolved into mostly a fast-food franchise. In 2003, the company

began "reengineering" the brand as a family-oriented casual dining

brand. In 2004, Shakey's partnered with Sports Vision for the launch of

the Shakey's V-League, one of the pioneering volleyball leagues in the

country. As of early 2015, there were 153 Shakey's outlets in the

Philippines, more than double the number remaining in the United

States

C. MISSION

“We are a guest centric organization. Our solid commitment to our

stakeholders to create superior value, results to enduring success.”

Mission to our guest: We genuinely care for our guests. We seek to know

their needs and wants and provide them high quality food products and

services that will exceed their expectations, thus, providing them superior

value for money.

D. VISION

“To be the preferred and dominant family casual dining restaurant in the

Philippines, and successful in our chosen overseas markets, serving pizza

as our core product.”

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E. CORE VALUES

G-uest Focused - All our actions are centered towards enhancing the
Shakey’s experience and value for all our guests (internal and external).

U-nderstanding & Respect. We have the humility to listen and ask

questions to understand the other person’s views and opinions; We are
open, fair and without bias in our judgment.

E-xcellence- We set high standards of performance by doing things better

than before, better than others and better than expected.

S-ense of Ownership. We take charge.We are proactive and have a strong

sense of accountability. Sense of “malasakit” is demonstrated through
prudent use of resources.

T-rustworthiness. We are ethical, honest and trustworthy; with

unquestioned integrity in words and actions.

1-Team, 1 Passion – We have shared vision and values, thereby

seeking the best from each

other toward achieving one goal. We continually communicate and

collaborate amidst diverse ideas and opinions.

S-trategic Thinking. We see the big picture, critically analyze key

assumptions and understand the relationship of its parts. We
anticipate the long-term impact, and strive for responsible and
sustainable growth.

T-enacity. We are resolute and persistent in the pursuit of goals. We

demonstrate grit and “gigil” and have the urgency to get things done
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CHAPTER 2

QUALITY MANAGEMENT

A. Quality and Performance Excellence

“More than seeing the values of our so-called QSCH (Quality,

Service, Cleanliness and Hospitality) as key generator of our day to day

resources, we commit ourselves to the idea of serving high quality products

and services to our guest thru consistent implementation and execution of

our company’s standardize procedures in terms of guest service

satisfaction and product to its preparations to distinct quality finish

products.”

B. Frameworks for Quality

“As we continuously provide quality and excellence to our guest, we

came to our appreciation that excellent guest service is fulfilled by the

philosophies of QSCH and to see it not just as a simple means of living, but

indeed, a life to us.”

C. Tools and Techniques

“Prior to store implementation, our company has its respective

departments conducting researches to improve and develop our services in

line to company’s Purpose, Mission, Vision and Values, as well as our Core
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Values which is GUEST 1ST. Moreover, considering also our guest needs

and wants, thus providing superior value for money.”

D. Quality Improvement

“Through consistent execution of our Standard Operating Procedure

and application of our Core Values in which we are also measured by

QSCH Task Force on the level of our performance and check the areas that

needs for improvement.”

E. Competitive Advantage

“One of our advantage is the commitment on Sustainable

Development engaging in social and environmental causes to promote

Quality of Life as our legacy to future generations.”

F. Customer Relationship

“We are a guest centric organization and we don’t treat them as

customer, instead we value them as guest in which we extend our

hospitality for them to feel that they are the most important people in our

business.”
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G. Quality Teamwork

“We ensure that all members or employees of the company

embraces our purpose and committed to their respective role to showcase

quality and excellent guest service.”

H. Engagement, Empowerment, and Motivation

“We nurture an environment where people are respected,

empowered to be their best, and rewarded for their contributions. We

create opportunities for personal and career growth so they may succeed

and gain a sense of achievement and pride.”

I. Company Improvement

“I believe that our company’s existence and the continuous

patronage are indicators to considered that we are successful and there’s

no need for any changes. What most important for now is the consistency

of implementation and execution of our standardize procedures.”

J. Awards

 Best In Labor Cost,

 Best In Food Cost last year systemwide.

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CHAPTER 3

SWOT ANALYSIS

A. STRENGTHS

a. Along the Highway

b. Accessible to all Travelers going North

c. Near Government Offices

d. Near to some of the Schools

e. Near to the Regional Hospital

B. WEAKNESSES

a. Minimal Parking area with 15 slots only.

b. Traffic jam area since it’s the only way going north and

near schools and big universities.

c. It is along the area of food chains that caters Filipino

cuisine.

d. Guests with small and lowered vehicles are having

trouble on the parking since the parking floor is not

aligned on the national road.

e. Prone to power interruption and has no own electric

generator.
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C. OPPORTUNITIES

a. Easy Access on Delivery using #77777.

b. Only Restaurant within the vicinity that offers pizza and

other food product that has a function hall.

D. THREATS

a. Increasing number of competitors within the area :

Dencios, Probinsyano and soon to open Gerry’s Grill.

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SWOT Analysis

STRENGHTS WEAKNESSES OPPORTUNITIES THREATS

Along the Minimal Parking Easy Access on Increasing

Highway area with 15 slots Delivery using number of

competitors within
only. #77777.
the area: Dencios,

Probinsyano and

soon to open

Gerry’s Grill.

Accessible to all Traffic jam area

travelers going since it’s the only

north. way going north and

near schools and big

universities.

Near It is along the area

Government of food chains that

Offices caters Filipino

cuisine.

Near to some of Guests with small and Only Restaurant

the Schools lowered vehicles are within the vicinity

having trouble on the
that offers pizza
parking since the
and other food
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parking floor is not product that has a

aligned on the function hall.

national road.

Near to the Prone to power

Regional interruption and has

Hospital no own electric

generator.
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CHAPTER 4

CONCLUSION AND RECOMMENDATION

A. CONCLUSION

 Shakey’s well implements their core values and also

commits themselves to serve only the best to have quality

and performance excellence.

 Shakey’s also makes sure that each of their employees

give their best and be always motivated for performance

excellence.

 Having no generator may affect their quality specially

during power interruptions.

B. RECOMMENDATION

 Shakey’s should own a generator so that during power

interruptions, they could still continue performing at its

maximum capacity.

 They should add new products to their menu as to the

increase of competitors with having a different product.

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CHAPTER 5

APPENDICES

DOCUMENTATION