Importance of Quality Systems in Business Organizations - Report

This report provides a comprehensive analysis of the significance of quality within business organizations, using Tesco as a case study. The introduction defines the role of business organizations in meeting customer needs and highlights the importance of effective decision-making and employee freedom. The main body delves into the critical importance of quality management, emphasizing its role in customer satisfaction, long-term revenue generation, and maintaining a strong brand reputation. The report explores how quality meets customer expectations, differentiates services in a competitive market, and establishes a positive company image. Furthermore, it discusses the advantages and disadvantages of implementing quality systems in both private and public businesses, considering factors such as employee resistance, cost implications, production disruptions, and the impact on creativity. The report concludes by summarizing the key takeaways, reinforcing the critical role of quality management in achieving sustainable business success. This report is designed to help students understand the practical implications of quality management in a real-world business context and is available on Desklib, a platform offering past papers and solved assignments for students.

Business Organisations

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain why quality is important in an organisation..............................................................1
Discuss the advantage and disadvantage of working towards a quality system.....................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation is being more entity that will work with the aim to provide the
goods and services so as to meet the need and requirement on the customer that will get carry out
by commercial enterprises (Bastas, 2018). It is the overall process of an organisation that has
been taken to make the effective decision making and under this the sufficient freedom will get
provided to the employee that allows them to work with freer mindset and also enhance the
growth and development. It will also help to increase the working capacity of the business by
which better revenue will get earned and there are different type of business organisation that are
as sole proprietorship, partnership and corporation. This report is based on Tesco that is the
British multinational company of retailing merchandiser and groceries and includes the
importance of quality with its advantage and disadvantage towards quality system.
MAIN BODY
Explain why quality is important in an organisation
The quality management is being more vital within the business and with this the satisfied
services will get provided to the customers and helps to retain them for the longer period of time
by which the long term sustainability will get maintained in the future period of time. The quality
products and services will be more important as it wills the systematic contribution in the long
term revenue generation and the productivity by which more profit will get maintained by which
the company will offer the suitable charges by which the better price will get maintained (Berg,
2018). As there are more options provided to the customer in the market and thus the company
will only get the benefits by wondering the customer by providing the quality services as it is the
one that matter the most. The quality will raise the standard and reputation of the company on
continuous basis and the better experience will get delivered to the customers. In this to manage
the quality is also be more important for the Tesco it helps to maintain the large and the loyal
customer base by which the strong accountability will get maintained and the accreditation will
get recognised the standardised of quality. There are some different importances of the quality
within the Tesco and that is as defined below as:
Meet Customer Expectations: It is the major aspect and with this the company will work
with more regardless in their involving process by which the customer will gone to choose the
product based on the process but more often that is based on the quality. The customer’s are
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ready to pay the better amount but beside that the quality will get maintained and fulfil the
standardised services and in this the delivery of services will always be as per the expectation of
the customers (Chaplin, 2018).
Quality is more crucial and satisfies the customers: It is most for the business that they
get maintains the quality services by which the customer expectation will get meet for the longer
period of time. If the customer will not get satisfied then they could easily switch to the other
businesses as they have a lot of alternatives thus to maintain the quality is even more crucial so
as to retain the customer by which they continue buy the services in future period of time.
Quality is the one key factor that get differentiate the different services of the company in this
competitor marketplace and with this Tesco will always get maintain the quality by making
continuous innovation and creativeness.
Establish the reputation and image of company: The quality is the one that get shows
and reflect the reputation of the business and with this the support of the social media the
prospect of the customer will get shared on the basis of the in favourable basis and as per the
criticism as well. In this the customer will easily share their viewpoint as by filling the quality
forum and that is on the product review and the social networking sites as like the Twitter,
Facebook etc. The strong reputation of the brand services will differentiate the services and bring
more competition by which the product that are poor in quality and it generate the negative
publicity by which the brand reputation and the image will get spoiled. In this Tesco will make a
promise with the customer by which the social media platform will get praises and thus more
brand awareness will get developed in this “Fear of Missing Out” risk will also get resolved in
effective manner (Escrig-Tena, 2018). It is the key aspect under which the offered product and
services will boost up the sales and profit of the business on repetitive manner.
Meet or exceed the customer and company standards: In this the recognised standard
of the quality will get adhere as it is more essential for the deal with the potential customers by
which the companies have comply their business with the legislation basis. In this Tesco will
insist they will accredited the quality by selling the regular product and services in the market as
like food, books, groceries, merchandise, accessories etc by managing the standardised designed
the health and safety by which the better protection of the consumer will get maintained (Zhang,
2019). It will help the business to make the entry in the newer market as well by which ability to
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supply the better quality products will get served by which effective profitability of the business
will get developed.
Manage the cost effectively: If the company will serve the products and services at
minimum prices without maintaining the quality than after the period of time the suitable loss
will get offered (Fundin, 2018). Thus it is more important to get manage the effective control on
the quality that will incur the analysing the overall production cost. In this to provide the good at
appropriate price it is must that the non conforming goods will get determine and in this the
company will retest the products and rework in them by making the modernism and originality.
In this Tesco will scrap up the defective goods and replace them by managing the additional
costing and in this the reach towards the customer will get enhanced and thus the return on the
investment will be more increased.
Ensures increased revenues and higher productivity:
The business earning and selling will get directly depend of the different offered products
and services and with its quality management. In this the employee also play the vital role and
with this the Tesco will provide the adequate amount of salary to them and release that on time
by which the frustration level of employee remain more composed as the money is the impactful
factor on the motivation of the employee. The employee will get implement the quality
management within the product and services by using the different tools and with this ensure that
the higher quality services will get provided and in this the better decision will get induced to
manage the quality by which the cash flow of the business will also get developed and with the
employee will also get satisfied a lot (Gelderblom, 2019). The revenue of the business will get
developed and in this the waste management will also get controlled under which the unneeded
elements will get removed by which the better contribution will get developed so as to manage
the productivity of the business and in this better services get provided within the assigned
period by which the customer will also get products with on time delivery.
Discuss the advantage and disadvantage of working towards a quality system
Advantage and disadvantage in private business
Private businesses are those that could sell its own share and not get listed in the stock
exchange and they have to manage the security of the business by its own members as well. In
this Arnold Clark and its owner Sir John Arnold Clark will expand the business worldwide and
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become the worldwide chain of the motor dealership and its advantage and disadvantage are as
defined below as:
Advantage
Emphasizing the needs of the market: The quality will get focus the standardisations of
the task by which the business will get ensure that the consistent creativeness and the innovation
will get implemented (Honarpour, 2018). In this the newer ideas will enhance the capability of
business with this the productivity of the business will get improvised on continuous manner.
Assures better quality in every sphere of activity: The quality system will bring the
non participative attitude of the workers by which more success and growth will get induce that
brings more advancement. It will also get improvise the working culture and the team work will
also get satisfied.
Disadvantage
Employee Resistance: The quality management will get change the attitude, behaviour,
mindset and the different methods through which the performance related to the job will get
managed (Stverkova, 2018). In the quality perception towards the company will not get
effectively communicate the overall strategy so that the team will get worked with better
efficiency thus the employee become more fearful and the employee resistance will get develop.
If the employee working ability will get resist thus the morale of the employee will get and
productivity of business will get reduces.
Quality is Expensive: The quality of the business is more expensive to get make the
better implementation so as it include the additional training cost, development cost of the team,
infrastructural cost, consultant fees and many other cost as well by which to manage the quality
the profitability will get decreased (Kahn, 2018).
Advantage and disadvantage in Public business
The public businesses are getting listed in the recognised stock exchange and their
security will get traded publicity. In this Tesco will get considered and as its advantage and
disadvantage are as defined below as:
Advantage
Helps in checking non-productive activities and waste: All the public companies has
worked with the aim to advance the productivity by which the production cost will get reduced
by which more profit will get maintained. It will get reduce the wastage in which the
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insufficiency will get bring in which the systematic implementation and execution will get
induced so that more sales will get generated (Li, 2018).
Helpful in meeting the competition: The quality process will be more helpful so as to
make better understanding about the market competition by which the combating strategy will
get implement in effective manner. As the market has huge cut throat competition by which to
make the long term survival the Tesco get manage the quality as per their competitors by which
more profit will get gained.
Disadvantage
Production Disruption: The implementation of the quality system in the business
requires the training to the employees and in this the day to day target and activities will get
achieved. In this the improvement and the innovation will reduces the leading time by which the
waste will get eliminate by which in parallel the productivity will get improvised (Peršič, 2018).
The employee output will get reduces by managing the production but it is the major breakdown
of the business and include different factor as like fire, a machine breakdown, quality issues,
natural disaster etc.
Discourages Creativity: The quality standard will focus the standardisation to get ensure
the consistency and the innovation that get discourage by which the newer ideas will get possible
improvised. As to manage the quality the skills ideas are must to get implement by which more
values will get transmit but continuous inducement will dishearten the imagination.
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CONCLUSION
It has been concluded that the quality management within the business organisation that
get used by the company so as to make the better quality of product and services. It is being more
important that the quality will emphasise the effectual development in the services by which the
customer will get better services by which the more revenue will get generated by the business
on continuous basis.
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REFERENCES
Books and Journals
Bastas, A. and Liyanage, K., 2018. Sustainable supply chain quality management: A systematic
review. Journal of cleaner production, 181, pp.726-744.
Berg, C., Davidson, S. and Potts, J., 2018. Outsourcing vertical integration: Distributed ledgers
and the v-form organisation. Available at SSRN 3300506.
Chaplin, L. and O’Rourke, S.T., 2018. Could lean and green be the driver to integrate business
improvement throughout the organisation?. International Journal of Productivity and
Performance Management.
Escrig-Tena, A.B. and et. al., 2018. The impact of hard and soft quality management and
proactive behaviour in determining innovation performance. International Journal of
Production Economics, 200, pp.1-14.
Fundin, A. and et. al., 2018. Challenges and propositions for research in quality management.
International Journal of Production Economics, 199, pp.125-137.
Gelderblom, O. and Trivellato, F., 2019. The business history of the preindustrial world:
Towards a comparative historical analysis. Business History, 61(2), pp.225-259.
Honarpour, A. and et.a l., 2018. Total quality management, knowledge management, and
innovation: an empirical study in R&D units. Total Quality Management & Business
Excellence, 29(7-8), pp.798-816.
Kahn, M.S., 2018. Coaching on the axis: Working with complexity in business and executive
coaching. Routledge.
Li, D. and et. al., 2018. Impact of quality management on green innovation. Journal of Cleaner
Production, 170, pp.462-470.
Peršič, A., Markič, M. and Peršič, M., 2018. The impact of socially responsible management
standards on the business success of an organisation. Total Quality Management &
Business Excellence, 29(1-2), pp.225-237.
Stverkova, H. and Pohludka, M., 2018. Business organisational structures of global companies:
Use of the territorial model to ensure long-term growth. Social Sciences, 7(6), p.98.
Zhang, M. and et. al., 2019. Linking supply chain quality integration with mass customization
and product modularity. International Journal of Production Economics, 207, pp.227-
235.
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