Quality Management on Domestic and Term Paper
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Also in addition to this, there are a series of general quality requirements raised by the market in case.
Furthermore, each company establishes a set of quality objectives that must be met by their services. Based on these quality objectives, the companies are then able to determine the costs that will be required by their services. Based on these calculations, the companies can establish financial target, sales targets, and can estimate the probable income for the following periods of time.
One of the differences between the two companies in relation with the implementation of the quality management system is represented by the equipment in which each of these companies has invested. The types of equipment used in the quality management process include R&D equipments, test equipment, measure equipment, and public equipment.
Given the size of the international airlines company, it has the financial capability of using expensive, efficient equipments that help implementing quality standards within the company. Although the domestic company uses a set of equipment, the company cannot afford to use high quality equipment like the international company does. As a consequence, the results will not be as impressive as more expensive equipment were used.
The quality objectives are established based on these results. Therefore,
the domestic company will not benefit from the same results as the international one, determining lower quality services for its customers. In other words, in order to achieve high quality services, the company's investments must be in accordance with this. The domestic company does not present the financial capability that would allow for such investments, settling for less important ones.
Quality management favors larger companies that activate on international level, because of the fact that their financial power allows them to invest in high quality products and services (Easton & Jarrell, 1996). Companies that only activate on domestic level address a certain category of customers that are not particularly interested in high quality services, but in lower prices for the products and services they purchase. Quality management has a direct effect on competition, especially in the case of companies that activate on international level. By providing higher quality products and services, companies determine their competitors to invest in achieving at least similar levels of quality.
1. Quality Management Systems (2010). Department of Trade and Industry. Retrieved March 18, 2010 from http://www.businessballs.com/dtiresources/quality_management_systems_QMS.pdf.
2. Easton, G.S. & Jarrell, S.L. (1996). The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation. Emory University, Department of Decision and Information Analysis. Retrieved March 18, 2010 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=8061.
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