Managing Quality (Edexcel GCSE Business)

The Importance of Quality Management

• Quality considers the characteristics and features of a product that satisfy the needs of customers

• Businesses need to maintain a level of quality that continues to attract and retain customers

• There are a number of approaches to managing quality in the production process

Approaches to Managing Quality

Competitive Advantage from Quality Management

• The quality of a businesses products can provide a competitive advantage

  • Unit costs are likely to be low if a business takes a preventative approach through the use of quality assurance

    • Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals

  • Increased finance may be available to fund marketing activity to improve brand recognition and attract new customers 

  • High levels of quality can be used in promotional activity and provide a unique selling point for businesses in competitive markets

  • Successfully developing a USP for quality can ease expansion into new markets as a result of the positive reputation it creates