Quality standard iso 9000 certification to 2tw, Marketing Management

Assignment Help:

The company 2TW manufactures and sells products overall Europe and is organised into dozens of strategic business units (SBUs). SBU managers, who report to regional directors, have for more years been paid bonuses on total SBU sales generated. This has led to a fast growth in overall turnover but 2TW has experienced declining profitability over the past few years, and the Chief Executive fears a loss of control over SBU operations. As a result, six months ago 2TW's Chief Executive used management consultants to conduct a whole organisational review. The management consultants have now reported that:

  • inadequate quality control systems exist within the company, which has led to differing operating efficiencies between SBUs;
  • there are significant numbers of returned goods which needs replacement or reworking;
  • current incentives for SBU managers are inappropriate given 2TW's declining profitability.

Describe the potential benefits of quality standard ISO 9000 certification to 2TW. 

 

The International Standards Organisation (ISO) issues standards that are globally recognised, and include the ISO 9000 series. ISO 9000 gives a systematic approach to managing business processes to manufacture products that conform to customer expectations. The Chief Executive believes that significant advantages to 2TW might arise by gaining the quality standard ISO 9000 certification.

Overcoming internal weaknesses 

Currently 2TW has inadequate quality control systems which have led to differing operating efficiencies among SBUs and there are significant numbers of returned goods which needs replacement or reworking.

Customer satisfaction

The significant numbers of returned goods mean that customers are not at present receiving products of the quality they expect.

Enhanced company reputation

If 2TW customers are not at present receiving products of the quality they expect then this can be very damaging to the company's reputation.

Improved sales

Organisational growth could arise as sales improve by:

  • Repeat purchases by satisfied customers.
  • New customers attracted by the recommendation of existing customers.
  • New customers attracted by a growing reputation and a guarantee of quality by ISO accreditation.

 


Related Discussions:- Quality standard iso 9000 certification to 2tw

Pricing and factors influencing pricing, Q. Describe briefly the concept of...

Q. Describe briefly the concept of pricing and the factors that influence pricing. Ans.:   Price is all around us. We pay rent for our apartment, tuition for our, railways, ed

What are the basic styles of negotiation, Question 1: (a) What are the...

Question 1: (a) What are the basic styles of negotiation? (b) Explain the implication of Prisoner's Dilemma game? (c) Describe why people act in Red style to protect th

Direct marketing, DIRECT MARKETING: Meaning: direct marketing (DM) is...

DIRECT MARKETING: Meaning: direct marketing (DM) is the process by which a firm approaches its customers on one to one basis and markets its products directly to them. In con

What is meant by inventory, Question: (a) What is meant by inventory? ...

Question: (a) What is meant by inventory? (b) Name the typical items carried in inventory. (c) What are the assumptions for the Economic Order Quantity (EOQ)? (d) What

Explain about the product levels in briefly, Explain about the product leve...

Explain about the product levels in briefly. Product levels in marketing are specified in below: a. First and more basic level is core benefit implies basic services custo

Explain product strategy for ensuring growth of the firm, Question 1: Y...

Question 1: You have been approached by a firm of your choice. You are to provide advice on its marketing planning. Write a report that includes: a. an evaluation of its cu

Explain about the product assortment in briefly, Explain about the product ...

Explain about the product assortment in briefly. “A product mix (also termed as product assortment) is the set of all products and items which a particular sellers offers for s

Explain selling of product correspond to views of customers, Explain the se...

Explain the selling of a product correspond to the views of customers. In condition, the company is preparing an offering mix of products, prices and services and utilizing a c

Value and satisfaction, Value and Satisfaction Customer value: it is t...

Value and Satisfaction Customer value: it is the difference between the values that the customer achieves from owning and by using a product and the costs of getting the produ

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd