2.4.4 Quality Management

Question 1

How will the importance of quality differ from business to business?

Answer 1

-A business in a competitive market may focus more on quality than one in a less competitive market.
-A business that produces high-priced, luxury items will focus more on quality than one that produces cheap, disposable items.

Question 2

How can improving quality reduce business costs + increase revenue?

Answer 2

-Less raw material and worker/machinery time getting used up by mistakes.
-Less advertising material is needed to persuade shops to stock high quality products.
-Fewer complaints + refunds so employees can spend time on other things.
-Quality can act as a USP —> competitive advantage.
-Improve the image + reputation of the business = customers willing to pay more.
-Quality can be associated with consistency = customer loyalty.

Question 3

What are the drawbacks of producing high quality products?

Answer 3

-Can be difficult for businesses to improve the quality of their products efficiently.
-There’s a limit to how much quality can be improved.
-Trying to make every single product 10p% perfect could prove costly to the business.