The Importance of Quality (Edexcel IGCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
Quality & Competitive Advantage
Quality considers the characteristics and features of a product that satisfy the needs of customers
Customers may consider products or services to be of good quality if they
Look good and are sold by a reputable business or brand
Are reliable and durable
Are safe and fit for purpose
Receive good customer service, including after-sales service
The quality of a businesses products can provide a competitive advantage
Attract and retain loyal customers
High quality and minimal defects lowers business costs allowing lower selling prices to better compete with rivals
Better quality reduces wastage and returns from unsatisfied customers
Build the reputation of the business or brand
High 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 improve business reputation and ease expansion into new markets
If quality is not maintained, then businesses may be at risk of
Losing their competitive advantage and customers to other brands who offer better quality goods/services
Experiencing higher costs due to having to replace faulty or defected goods
Gaining a poor reputation as customers spread poor reviews about the business to others
In some countries laws protect consumers so businesses need to ensure that the products it sells are free of faults or defects to avoid harming customers or their reputation
Examiner Tips and Tricks
‘Quality’ does not necessarily mean producing a high-priced, excellent product
How quality is defined depends upon the industry in which the business operates, the product and price. It will also be the subjective opinion of customers
For example, if you buy a low-priced remote controlled toy drone would you expect it to work as well as an expensive toy drone. The answer will probably be based on your expectations of quality and price, but you would want it to work and be free of faults
Approaches to Managing Quality
Quality Control
Quality control is a traditional method of checking quality at the end of the production process using quality inspectors to find faults
It is not possible to achieve perfection in every production process
E.g. There will always be some variation in terms of materials used, production skills applied, reliability of the finished product
Benefits & Drawbacks of Quality Control
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Total Quality Management (TQM)
Total quality management is a whole-business approach to ensuring quality, with the aim of eliminating problems before they occur
All employees are involved in ensuring quality is achieved in every business process
Inefficiency and wastage is removed from every business activity or function - including those that are not directly related to production
Features of TQM include
Teamwork as a key way to solve problems
Zero defects, the business culture of ‘getting it right first time’
Ongoing monitoring of quality standards using statistical techniques
A focus on meeting changing customer needs
Committed workers who receive ongoing training
Advantages & Disadvantages of TQM
Advantages | Disadvantages |
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