QUESTION 2 Make No Mistake-At Eastman Chemical Although some companies may struggle with the appropriate role of quality in their strategic thinking, there is no such ambiguity at Eastman Chemical. Eastman Chemical, a $7 billion Ohio- based company, produces a wide range of products for the chemical, fiber, and plastics industries. The industry is very competitive, and the company's customers are becoming more and more demanding. As a result, although meeting customer needs has always been important to Eastman, the fervour attached to the issue has intensified over the past several years. Eastman knows that to achieve its vision of being the world's "Preferred Chemical Company," it must first meet its goal of producing high-quality products and delivering exemplary customer service. Eastman's commitment to quality began in the early 1980s, after the company saw its market share declined in the 1970s. The quality issue was brought to the forefront when a major customer cited poor quality as the reason for finding a new supplier. At that point, Eastman knew it had to improve quality or continue to decline as a corporation. In the 1990s, quality was placed in a strategic context with the development of a values statement referred to as the company's "Strategic Intent." This statement, which is prominently displayed throughout the company's many sites, indicates the strategic intent of the Eastman Chemical Company is to be the "World's Preferred Chemical Company" through an emphasis on quality (both product and service), the Eastman Way (strong corporate culture), and responsible care (continuous improvement in health, safety, and environmental performance). The prominent role of quality in this statement elevates the role of quality in achieving the company's ultimate goals and objectives. As a result, quality has become a key strategic and performance variable at Eastman Chemical. Eastman's decision to place quality in a strategic context has produced rich rewards. The company was the recipient of the Malcolm Baldrige National Quality Award in the manufacturing category. The company has won state quality awards in Tennessee, Texas, and Arkansas. Industry Week magazine named Eastman one of the world's 100 best-managed companies. More importantly, the company is working hard to achieve its goal of being the world's preferred chemical company. In customer surveys, more than 70% of Eastman's worldwide customers have rated the company as their number-one supplier. This level of success has opened new markets, and the company is expanding in the United States and abroad. Source: Managing Quality 2017 a) Discuss FOUR (4) principles of Total Quality Management (TQM) that have been applied in Eastman Chemical until they become the recipient of the Malcolm Baldrige National Quality Award in the manufacturing category. (10 Marks) b) Did Eastman make the right decision to define quality as a "strategic issue?" Defend your (5 Marks) answer. c) Eastman has made quality an important part of its overall mission or "Strategic Intent." As a way of drawing attention to the company's strategic intent, it is prominently displayed throughout the company's many sites. Why would Eastman display its strategic intent throughout the company? (5 Marks) *** END OF QUESTION PAPER *** 6 (Total: 20 Marks)