Challenges with Growth and Maintaining Quality

I made this on "Challenges with Growth and Maintaining Quality" to help me with my exams, hope it helps you guys.

HideShow resource information
Preview of Challenges with Growth and Maintaining Quality

First 332 words of the document:

Challenges of Growth & Maintaining Quality
Diseconomies of scale
Bigger the firm, the harder to manage it
Decisions take more time to reach the whole workforce as there are more of them.
Workers at the bottom of the hierarchy may feel insignificant.
Workers may get demotivated and productivity may decline
The process that controls production may get more complex and therefore be harder to
coordinate; So different departments may work on a similar project unaware.
As a bigger business it is harder to organize
With it being a big business a small fault in the network of the business may cause a
huge delay in the daily working of the business
A business' outputs get higher and quality is harder to monitor
A business may "cut corners" to get more output
The business may be expensive to make all of the quality inspections
One solution is to take on more employees, but it takes time to train new workers, while
this is happening businesses must be careful to ensure that standards don't fall in the
A business can get another business to check their quality but it is expensive and
getting a cheaper business to do it may result in quality slipping
Poor quality
Products fail
Products do not perform as promised (or what the customer thought was promised)
Product is delivered late
Poor instructions/directions make using the product difficult for frustrations
Unresponsive customer service
Measuring quality
Customers can judge quality
A business can employ mystery shoppers to check quality and gain feedback
Staff who make and sell product
Why is quality important?
Customer loyalty
Strong brand reputation
Retailers want to stock product
The product is seen as better
The business can charge more
Few returns and replacements


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »