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Midway USA 20 Midway USA is the world leader in its industry with $185 million in revenue

Management

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Midway USA ²⁰

Midway USA is the world leader in its industry with $185 million in revenue. It is a catalog and Internet retailer offering everything for shooters, , gunsmiths, and hunters. Midway USA has the vision to be the best-run business in America. To achieve this goal, the company adopted the Baldrige Core Values and Concepts and made them an integral part of the company’s culture. The values and concepts are displayed in 30 locations throughout the company. Midway USA’s quality efforts are customer focused. One of its core values is “customer-driven excellence.” This strategy resulted in a customer retention rate of 98% in 2009, an all-time high. To maintain a customer focus, Midway USA provides customers multiple opportunities to give feedback. Customers receive help through its complaint center. The company conducts surveys. Customers can also submit reviews of items and suggest new product lines. Midway USA understands the value of its employees. A component of quality customer service is employee interaction. Midway USA wants employees passionate about hunting, shooting, and so on. This passion can be felt when employees interact with customers. Also, the employees are able to offer personal insight and knowledge about products. Midway USA encourages its workforce to join the National Rifle Association and to participate in hunting and shooting events. This passion and level of interaction has contributed to a customer satisfaction rating of 93%. Midway USA takes a robust approach to assess its current and future needs. Information incorporated into these projections is regularly monitored. All processes are aligned to customer needs and the company’s goals. To meet production capability and capacity, the company maintains a skills inventory matrix. There are regular reviews of the company’s performance and results. With this systematic approach, Midway USA has exceeded its nearest competitor in multiple financial categories: gross sales, net income as a percentage of net sales, earnings distribution, and inventory turns. Midway USA’s customer focus and approach to quality position the company for continual sales growth.

Questions

1. How does Midway USA engage the customer in its focus on quality?

2. Midway USA has incorporated quality and customer focus into its culture. How does Midway USA ensure employees support the culture? Also, how do employees contribute to quality customer service? 3. Midway USA wants to be the best-run company in America. Is this a useful vision statement? Are there benefits to this vision instead of being the best-run company in the industry?

4. Effective quality and strategic planning are not a onetime event. In looking at Midway USA and other companies, what can companies do to make these a continual process?