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Mgt 449 Week 1 Dq

In: Business and Management

Submitted By pwilson6811
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What is poor quality? What are some effects of poor quality? How do the effects of poor quality affect an organization?
Poor quality is when the customer's expectations are not met. Per our reading material, this applies to products, services, people, processes, and environments (Goetsch, and Davis, 2010 p5). Quality itself is a moving target, this is apparent with a lot of the technology I work with as an example. A top of the line personal computer three years can't compete in terms of quality, performance, and features of one I could buy today.

Poor quality impacts the ability of a company to compete. Poor quality drives up costs, both traditional and hidden costs. Traditional costs fall under the category of waste and customer returns for example. Hidden costs include categories like overtime, and handling customer complaints. An organization that has competition and that does not maintain quality, will lose the ability to compete.

Here is kind of an odd example. We live in a tourist town of about 8,000 people. During the summer it swells to about 65,000 people. There is a restaurant that has poor service, the staff is not very friendly at all. There is such a large pool of people who need to come in and eat, and then they leave and new tourists come in like a revolving door. So, they have all the customers they can handle and they do not care about repeat business. So, they don't see a significant impact of poor quality - maybe on tips for the wait staff.

If they had a limited customer base and had to compete for repeat business - poor quality in terms of services would have people going elsewhere.

References
Goetsch, A. L., & Davis, S. (2010). Quality management for organizational excellence: introduction to total quality. Sixth edition. Prentice Hall.

What would the world be like without quality? What would be the impact on domestic and global markets?
Quality in its broad scope has forced organizations to seek ways to improve its products, services, and operating procedures. Therefore, a world without quality would be slow to innovate in my opinion. Consumers would have to accept, and live with whatever he or she get, which could become costly in the long run. Quality and the expectation of quality is why organizations take accountability for how products perform in its intended purposes. Therefore, quality also affects the global markets in a positive way by creating the atmosphere for fair competition. When a supplier wants to enter a market one of the criteria he or she looks at is how to improve the quality of what is already in the market. “Reducing the costs associated with poor quality is mandatory for companies that hope to compete in the global marketplace” (Goetsch & Davis, 2010, p. 28). Goetsch, D. L., & Davis, S. B. (2010). Quality management for organizational excellence: Introduction to total quality (6th ed.). Upper
Saddle River, NJ: Pearson.

Which factors of globalization are affecting quality?
Increased competition levels, technology, governmental taxation, societies standards of living, and trade.

According to Goetsch & Davis (2010), “Some international companies find the competition in the global market to be more intense than any they have ever encountered. Only companies who are able to produce world-class quality products can compete at the international level” (p. 27). Below are some of the changes I have witnessed or learned about in recent years relating to changes that involve quality.

*  Outsourcing labor has decreased the level of quality in some products. *  Internet purchasing has increased competition so much that businesses have to lower the product pricing to remain competitive, but in turn must find methods of cutting production cost, often resulting in more products with poor quality. *  Developments in technology allow for faster production methods that often reduce cost and improve product quality. *  Well-educated, well-trained, motivated members of the labor pool are sought to improve quality. *  Government involvement in helping to lower operational cost is desired by companies. Some methods of assisting businesses include: o Reducing health insurance cost o Reducing tariffs or taxation o Increasing citizen education *  Education of managers focuses on international strategies more than in past history.
Most international companies have integrated many new strategies into their business operations, decision-making, and managerial tactics. Computer software technology has allowed for the creation of many programs that help companies develop and maintain quality processes that help them remain competitive in the international market. Some computer and non-computer programs that companies now use are the Six Sigma, balanced scorecard, project management software, and customer relationship management (CRM) software.
According to Prit (2007), “Balance scorecards enable the companies to identify weaknesses and develop strategies to upgrade those performance deficiencies and to innovate new processes and its ability to innovate and commercialize new products on a continual basis, which is competitive in price and quality compared to its competitors” (p. 3).

Goetsch, D.L., & Davis, S.B. (2010). Quality Management for Organizational Excellence: Introduction to Total Quality (6th ed.). Retrieved from University of Phoenix.
Prit (2007). The factors affecting the competitiveness of companies in a country. Retrieved from http://bizcovering.com/business-and-society/the-factors-affecting-competitiveness-of-companies/3/

How might globalization affect your product or service and organization as it tries to achieve quality?
Globalization can affect products and service by being outsourced to other countries. For example, in the clothing industries there are certain brands that mass produce and use labor from other countries to keep the cost of making the product cheap. More often than not, the product made is less expensive and definitely low quality. I believe you pay for what you get especially when it comes to product and service. Another example is a business not allowing customers to return items because they do not stand behind their product. I will not and do not shop in places like that because I refuse to invest in something that may fall apart and not be able to exchange it for another one. An organization may try to achieve quality, but they must be conscious on how to save on overhead, and by doing so not affect the quality of the product or service they offer.

Goetsch, A. L., & Davis, S. (2010). Quality management for organizational excellence: introduction to total quality. Sixth edition. Prentice Hall.

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