Internationalisation: Effective Solutions for Quality Degradation

This report addresses the critical issue of quality degradation faced by international firms, primarily resulting from cost reduction strategies. It highlights how focusing solely on minimizing costs can lead to a decline in product or service quality, ultimately affecting market share and long-term sustainability. The report proposes solutions such as implementing mistake-tracking systems to identify and rectify quality deviations, investing in new technology to enhance production processes and cost-effectiveness, and establishing robust training programs to improve employee skills and commitment to quality standards. By prioritizing quality alongside cost management, firms can maintain a competitive edge, ensure customer satisfaction, and achieve long-term success in the global market. Desklib offers a wealth of similar resources for students and researchers.

Internationalisation

ABSTRACT
The key reason behind the major challenge faced by the firm is quality degradation. Fall
in quality is the result of firms focus on cost reduction. Poor quality is one of the key factor that
results in fall in the market share of the firm. There exists number of solutions applying which
firm can control the adverse effect. One such solution is tracking mistakes is to invest into new
technology which would help in improving the technology while helping the organization to be
cost-effective. Further another solution for dealing with quality issue is the implementation of
effective training system in order to improve the quality of the services.

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................2
MAIN BODY...................................................................................................................................4
Key problem faced by an international firm...............................................................................4
Addressing the problem with solutions.......................................................................................5
SUMMARY.....................................................................................................................................8
REFERENCES..............................................................................................................................10

MAIN BODY
Key problem faced by an international firm
The key problem faced by the company is quality issues. The company became prone to
this key issue while aiming at cost reduction. There are various reason for which the firm tries to
make its cost minimum. The major factors for which the firm opts for cost reduction techniques
or methodologies are firstly, reducing cost means that the firms overall cost of production
declines allowing it to earn more with the sell of the same products and services. Secondly,
reducing cost allows firm to offer products at low costs as compared to its competitors, ensuring
the competitive edge of the company in the market (Chiu, Zhao. and Gurari, 2020). Third,
consumers when provided with products or services at low cost tends to consume more
increasing the sales or turnover for the company. Fourth, when products are cheaper more
consumers in the market that are potential user for the firm’s goods or services initiate to
experience the services or products by the firm. Leading to increasing market share of the firm.
The above mentioned advantages fascinates the firm to reduce its cost by adopting
different strategies. The adoption of strategies entails more adverse effects to the firm in long
run. The implementation of such strategies are based on short term vision and leads to higher
cost in longer term. The low understanding among the staff member regarding the strategy of
the company results in creation of miss understanding affecting the activities in relation to the
production making the quality of the products being offered to consumers fall drastically
(Mulgund and et.al., 2020). The quality gets affected to a great extent. Further the implementation
of strategy through low involvement of senior or middle tier managers results in employees
belief that the strategy is not crucial enough for their efforts. Low efforts by the staff member
further degrades the quality of the product. The policy regarding cost reduction are generally
applied in the absence of proper consultation. Leading to poor commitments by the managers.
Absence of accountability regarding the same results in quality fall. Employees often miss
concepts the cost reduction with cost cutting. Cutting of cost results in lowering the quality.
Changing the processes to reduce cost results in creation of process that does not support quality
products. Reduction of costs often involve installation of solar panels or other sustainable
equipment that results in increase in one time costs of the company. Further non meeting the
quality that is provided by the competitors in the market results in the less market share of the
company (Augustin and et.al., 2021). Poor quality goods or services when offered in long run can

drastically affect the company in which a situation may be created leading to forced exist of the
firm from the industry. Quality is that key factor that can be both the reason behind the firm
being the benchmark of the industry and poor quality results in downfall of the firm.
Maintenance of certain quality standard is vital for every firm.
Addressing the problem with solutions
The quality issue related problem arising due to the strategy of the firm to reduce cost
must be addressed for maintain the profitability and competitive edge of the firm. One solution to
address the key problem that the firm is facing is through tracking the mistakes. The solution of
track the mistakes is implemented by the firm by firstly predetermining the standard of quality
the firm desires to offer its customers for the satisfaction of their needs and profit earning of the
firm. The standards are determined by answering the simple question by the firm regarding the
quality of the product, meaning what is the meaning of quality for the firm. Once the question is
answered by the firm based on the needs of the customers’ expectations regarding the quality
experience they want to have with the purchase of goods or service from the firm. The standards
are now set then the production processes are guided towards the fulfillment of the standards set
in the final product. The final products when produced are checked for the quality. The quality
check of each and every unit is not technically possible keeping in view the profitability and
efficiency of the firm. Hence sample is selected randomly for inspection of quality. Deviations in
the actual quality as compared to the standardized quality are find out. The reasons for the
quality difference are figured out by the firm. Production processes are accordingly changed for
meeting the quality standards.
Tracking mistakes for this organization would be a very effective way of mitigating the
issue related to the quality of its products. It can be said that with the help of which is related to
the issue in the quality of the product. In order to track the issue of quality understand the area in
which the error is occurring in the quality of the product. For this solution tracking of the errors
can be done with the help of new strategies that can provide the solutions which allows in
management issue. This is considered to be the practice which will allow the organization to
develop a clear understanding of how to improve the business operations. In this organization the
quality of the operation can be helpful for the business can help in the management of the new
ideas which can bring growth to the operations. Being able to manage the performance of the
organization it is very important for the business to create the operations that are related to the

study which can bring operational growth. By managing the quality in the cost effective strategy
this organization will be able to increase its profit generated and be able to gain profit.
Utilization of new technology
Generally it has been found that the quality of the product in the organizations and its
operations depend on the technology that is used by the business. Utilization of this technology
effectively is the practice which is able to create new strategies that will help of using the digital
technologies. This is also known as the complex process that has been able to increase the
productivity and profitability of the organization (Tolf and et.al.,2020). However, it has been
found that the organization when is able to stream line the use of new technology with the
complex process it is able to develop new strategies that are effective growth of the product. It
can be said that the business is able to develop its operations when it is able to bring quality into
the product. This is considered to be very helpful for the business in the management of the
operations. Through improvement in the technology the company can find way in which it can
implement cost-effectiveness while being able to improve the quality of the production.
This has been considered to be the factor which is directly linked with the improvement
of efficiency of the plant in the terms of the increasing the productivity and also reduction of the
waste from the productions. This is also considered to be the strategy that is responsible for the
management of the plant for increasing the productivity and also being able to manage the waste.
Reducing the waste has always helped in the organization to develop the strategies for increasing
their effectiveness. Introduction of the speed and value of communication between the
production and engineering terms are the factors that are able to develop the front of the house
sales team. Focusing on the management is very important for the analysation of the
performance of the past and also being able to improve the speed and performance of the time
and resources. This is the strategy that has been effective for many businesses in the past in
which the new technology has helped the organization in being able to streamline their process
for better quality and cost-effectiveness (Xu and et.al., 2020).
Investing into a new technology will allow this organization to improve the process and
procedures for having the software that is integrated for the monitoring and controlling of the
operations for the different industrial process that are applicable for the business. Increasing the
performance helps the business in better communication with the managers for allowing the
software for being associated with the industry relevant devices. This is going to provide the

business even more scope for the improving the quality. These factors are considered to be able
to benefit from the areas that will allow them to be aware of the latent issues that can benefit
from the organization and its operations that can mitigate the issues and also be able to diagnose
the capabilities for ensuring the mitigation of the potential issues (Using technology to improve
your manufacturing processes, 2017). Embracing of new technology in the manufacturing allows
the business to also be able to manage the data without further complexities and help in
analysing the corporate data with the forecasting of the overall productivity and profitability
trends.
Implementation of training program
Further with the analysis of the simulation game result it was evaluated that there were
many different issues being faced by the company relating to the quality. Hence, for improving
the issue relating to quality another solution being available to the company is to design a robust
training program for the employees. This solution is very important to be implemented within the
company because in case it will not be implemented then this will be affecting the working
efficiency of the employees (Muxtorov, 2021). In case when the employees will be having
knowledge relating to all the changes taking place within the external environment then it will be
improving their capability to work. Also when the employees will be having proper knowledge
relating to using the latest technology then this will be improving the working efficiency of them
and will be working in better and effective manner.
Thus, for improving the quality of the company and its operations it is very important for
the management of the company that they must implement good training session and plans so
that employees can inculcate all the latest working. Similarly, when the employees will be
working in proper manner then this will automatically improve the quality performance and will
be resulting in attainment of the business in proper manner (Mihai and Popovici, 2020). This is
crucial for the development of the business as fully knowledge people will be working in better
and effective manner and this will also provide a competitive advantage. This is also very
necessary to a have good training system because in case there is any change which need to be
implemented very urgently then with good training team it is possible and in better and effective
manner.
Also, in addition to the changes within the external environment there are also some of
the changes in the internal environment that can affect the quality of the product and services.

Hence, it is the responsibility of the company and the training team that they must be
continuously work on improving the internal environment as well. this is very important for the
reason that in case it will not be done then it will be affecting the working efficiency of the
employees and overall company as well. Along with this there are also many different small
changes and that need to be implemented within the company and for this employees might need
guidance. Also, in case of improving the quality the setting up of training team is very important.
This is because of the reason that they are responsible for continuously searching the different
methods through which knowledge of other can be improved and how the changes can be
implemented within the company.
This is crucial for the reason that when the quality need to be improved then the first
thing essential is to have a robust training committee. The reason underlying this fact is that
when the members of this team will not be good and effective then this will be resulting in
decline in quality of the company and its services (Gunasekaran, Subramanian and Ngai, 2019).
Hence, with the simulation game result it is clear that as the expenses in research and
development was increased the company started facing loss. On the other hand, in case the
company would have focused on improving the training and its techniques then this would have
resulted in improving the performance and quality of the company.
Also, for getting successful it is also very crucial for the training team to take the frequent
feedback from the people. This is necessary in order to improve the quality of the services of the
company. This is crucial for the business as it will outline the different base and changes which
need to be implemented in order to improve the performance. also, when the feedback will be
taken then this will be improving the working efficiency of the business and these can be
implemented within the company for improving quality of the company (Dahlgaard and et.al.,
2019). Also, effective training session will result in improving the skill and knowledge of each
employee and they will be working in better and effective manner. This is important in order to
improve the quality and the working efficiency of the business to a great extent. hence, it can be
stated that the use of good and robust training system will help the company in improving the
quality of the work and ultimately the profits of the company.
SUMMARY
With the overall analysis of the working it is clear that for getting successful the most
important element is to use the good quality product and services. This is very necessary for the

reason that when the business will not be having good quality services then this will be affecting
the sales and profitability of the business. Thus, the above report summarised the fact that
decline in quality was the major issue being faced by the company during the simulation game.
This was due to the reason that company tried to decline the cost and in result of this the quality
of the product and services also declined. Further different solution was outlined for improving
the quality of the of the company and its operations. With the analysis it was clear that the
solution of using the effective training system will be assistive to the company in improving the
working of the company. This is will be resulting in better outcome and ultimately it will be
increasing the quality of the product. Also, another solution taken by the company was to learn
from the past mistake which the company made while managing the quality. This is also an
important strategy in order to improve the quality. This is because in case company will learn
from their mistake then they will not be repeating it and will improve working efficiency of the
business.

REFERENCES
Books and Journals
Augustin, C. and et.al., 2021. Pathways to Increasing Trust in Public Health Data: An
Exploratory Analysis of Quality Issues and Potential Remediation for Data Collected
Using the Community Health Toolkit. CHANCE. 34(3). pp.24-32.
Chiu, T. Y., Zhao, Y. and Gurari, D., 2020. Assessing image quality issues for real-world
problems. In Proceedings of the IEEE/CVF Conference on Computer Vision and Pattern
Recognition (pp. 3646-3656).
Dahlgaard, J. J. and et.al., 2019. Evolution and future of total quality management: management
control and organisational learning. Total quality management & business
excellence. 30(sup1). pp.S1-S16.
Gunasekaran, A., Subramanian, N. and Ngai, W.T.E., 2019. Quality management in the 21st
century enterprises: Research pathway towards Industry 4.0. International journal of
production economics. 207. pp.125-129.
Mihai, C. and Popovici, N., 2020. Strategies to Improve the Quality Management of Hotel
Services in Romania. Ovidius University Annals, Economic Sciences Series. 20(2). pp.733-
740.
Mulgund, P. and et.al., 2020. Data quality issues with physician-rating websites: systematic
review. Journal of Medical Internet Research. 22(9). p.e15916.
Muxtorov, S. K., 2021. IMPORTANT ISSUES TO IMPROVE THE QUALITY OF TRAINING
OF HIGHER EDUCATIONAL SPECIALISTS. Scientific progress. 2(3). pp.487-494.
Tolf, S., and et.al.,2020. How can technology support quality improvement? Lessons learned
from the adoption of an analytics tool for advanced performance measurement in a
hospital unit. BMC health services research. 20(1). pp.1-12.
Xu, X., and et.al., 2020. CRISPR/Cas9-mediated gene-editing technology in fruit quality
improvement. Food Quality and Safety. 4(4). pp.159-166.
Online
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