This case is a difficult position of trying to do right by their customers and their employees, as the economic crisis hits home in 2008. Fifteen years ago, the Spanish supermarket chain adopted its own version of total quality management, called Total Quality Model, the transition from the traditional high-low prices in the industry "always low prices" and continuous improvement. These changes are called for a well-trained, authorized, and enthusiastically engaged employees are dedicated to providing the best products and services to its customers, who have always been seriously called "boss." Total quality model has been successful in terms of growth and profitability suffered unusually high success Mercadona investment in employee training and satisfaction. However, when sales growth slowed in 2008, CEO Juan Roig concluded that Mercadona have let their customers down, not keeping the prices low enough for these difficult times. Mercadona has begun to reduce its prices, reducing the range of products and reduce its financial targets for 2009. Of 9200 titles in the average store, the company decided to remove 1,000. Roig but had yet to decide what to do with the employee bonuses. With Mercadona did not meet the 2008 goal, the company's policy is that no one, not even the top management will get a bonus. But Roig knew that his staff worked well in 2008 and can not be held entirely responsible for the economic downturn or the management's refusal to respond quickly enough. "Hide
by Zeynep tons, Simon Harrow Source: Harvard Business School 25 pages. Publication date: April 14, 2010. Prod. #: 610089-PDF-ENG
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