Quality Management on Domestic and Global Competition Term Paper

Pages: 3 (895 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

¶ … Quality Management on Domestic and Global Competition Paper

Effects of Quality Management

The globalized economy that characterizes the world nowadays has led to increased competition in all business areas, on domestic and international level. This situation helped large corporations increase their customer base at the expend of smaller companies that started to lose more and more ground on the market, being unable to keep up with their competitors.

Companies that activate on international level are obviously favored than those who activate on domestic level only. The airlines industry makes no exception. In this sector of activity, economic agents provide similar types of products. The difference between their products is represented by quality. This is where quality management interferes.

There are slight differences between domestic airlines operators and global ones. As a consequence, the manners in which they approach business processes, including quality management are different.

The domestic company has a smaller customer base, and it employs a smaller number of people. Also, the range of products is not diversified, since the company only offers local flights for its customers. The wages received by the company's employees are smaller than those earned by employees working in international airlines companies, and so are the performance bonuses.

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In opposition, the global airlines company has more customers than the domestic one, and it also employs a greater number of people. The company also covers a larger geographical market due to its capabilities.

The international airlines company can afford to pay higher salaries, keeping employees motivated in order to maintain customer satisfaction. Due to the fact that the customer base is larger, the company can afford to lower prices for its products, without decreasing the quality level.

Term Paper on Quality Management on Domestic and Global Competition Assignment

In such a market, with numerous operators that offer similar products and services, the competitive advantage is created by quality. In both companies' cases, the effects of quality management are represented by creating and delivering value to customers. Basically, both companies aim at improving existing processes in order for the outputs of these processes to meet the requirements of potential and existing customers.

Although both companies implement quality management strategies, their implementation is different. The quality management system developed by the global airlines company is more complex and more elaborated than that of the domestic one.

However, there are also several similarities between the quality management approaches of the two companies. For example, both companies rely on developing and implementing a strict quality policy. The quality policy is composed of a general quality policy, quality objectives, and department quality objectives in the case of the global airlines company (DTI, 2010).

The general quality policy is similar for both companies. Given the industry in… [END OF PREVIEW] . . . READ MORE

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