Quality and Global Competitiveness - Palompon Institute of Technology

Republic of the Philippines **PALOMPON INSTITUTE OF TECHNOLOGY** Palompon Leyte Telephone: (053) 555-9841 Fax: (053) 338-2501 Email: College of Arts and Sciences Bachelor of Science in Business Administration Chapter 2 QUALITY AND GLOBAL COMPETITIVENESS Submitted to:...

Republic of the Philippines **PALOMPON INSTITUTE OF TECHNOLOGY** Palompon Leyte Telephone: (053) 555-9841 Fax: (053) 338-2501 Email: College of Arts and Sciences Bachelor of Science in Business Administration Chapter 2 QUALITY AND GLOBAL COMPETITIVENESS Submitted to: Mrs. Anchessa Derecho Submitted by: Andaya, Jericah Mae Epe, Cristine Mae Ompod, Naneth Vargas, Rosemarie **QUALITY AND GLOBAL COMPETITIVENESS** **QUALITY** *Quality* refers to the degree of excellence or superiority of something. It's about how well a product, service, or process meets expectations and standards. Quality refers to the standard of something, how good or bad it is. It's about how well something meets expectations or performs its intended purpose. For example, a high-quality product is durable, reliable, and performs well, while a low-quality product might break easily or not work as expected. ** DIMENSION OF PRODUCT QUALITY** There are 9 dimension of product quality and these are: 1. *Performance* -- consist of the primary operating characteristics of a product. 2. *Features* -- added characteristics that boost the attraction of the product or service to the user. 3. *Reliability* -- is the likelihood that a product will not fail inside a particular time of period. 4. *Failure rate* -- the frequency with which a component fails, expressed in failures per unit of time. 5. *Conformance* -- depicts to what extent a product design and operating characteristics meet established standards. 6. *Durability* -- is a measure of how much use a person to gets from a product before it breaks down to such a point that replacement makes more sense than continual repair. 3 types of Durability testing ✓ *Vibration testing* -- the vibration of environment to which product will be expose to in real used is produced. Products are tested this environment to judge their durability or check for improvements. ✓ *Shock testing* -- replicates events to determine if structure can withstand sudden applied forces. Shocks are characterized by their short duration and sudden occurrence. ✓ *Climate Testing* -- materials can deteriorate over time, ageing prematurely due to either high or low temperature extremes. 7. *Serviceability* -- involves the customer ease of obtaining repair service like access to serve centers and/or ease of self-service 8. *Aesthetics* -- means how a product looks, feels, sounds, tastes, or smell. It's obviously an issue of personal judgement and an indication of individual preferences. 9. *Perceived quality* -- is the individuals subjective appraisal of products or services attributes; indirect measures may be their only basis for comparing brands. **DIMENSION OF SERVICE QUALITY** Service is normally described as an experience felt by the customer. There are 5 types of dimension of service quality and these are; 1. *Tangibles* -- dimension of quality is associated to the environment in which the service is rendered to the customers. 2. *Assurance* -- defined as employees knowledge of courtesy and the ability of the firm and its employees to inspire trust and confidence. 3. *Responsiveness* -- the willingness to help customers and provide prompt service. This dimension emphasize attentiveness in dealing with customers requests. 4. *Service Reliability* -- is the ability to perform the promise service dependably and accurately to customers on specific service. 5. *Empathy* -- refers to caring attitude that an organization provides toward customer. Service quality calls for individual attention to customers. **GLOBAL COMPETITIVENESS** *Global competitiveness* is a country's ability to create and sustain an advantage in the global marketplace. It is about: ✓ *Productivity* -- how efficiently a country uses its resources. ✓ *Innovation* -- the ability to develop new ideas and technology. ✓ *Infrastructure* -- the quality of a country's transportation, communication, and energy systems. ✓ *Education and skills* -- the quality of a country's workforce. ✓ *Business Environment --* the ease of doing business in a country. ✓ *Global Policies* -- policies that support economic growth and competitiveness. **QUALITY AND GLOBAL COMPETITIVENESS** Small/big companies which used to compete on local/regional/national level have now to compete against other companies throughout the world. Only those companies which are able to produce world class quality can compete. The focus is on "best cost" and "best quality". ✓ *THE RELATIONSHIP BETWEEN QUALITY AND COMPETITIVENES* - Quality and competitiveness are closely linked. When a company produces high-quality products or services, it stands out from competitors. This strong reputation attracts customers, leading to increased sales and market share. In turn, this boosts the company's competitiveness, allowing it to thrive in the market. ✓ **HOW QUALITY AND COMPETITIVENESS ENCOURAGE JOB SATISFACTION AND FINANCIAL BENEFIT** - High quality products and services, along with a competitive edge, lead to more customers and greater success for a company. This success translates into job security, better pay, and opportunities for growth. Employees feel valued when they contribute to excellence, leading to increased job satisfaction and financial benefits. ✓ **COST OF POOR QUALITY AND COMPETITIVENESS** - The cost of poor quality is like a hidden weight dragging down a business. It includes wasted materials, rework, customer complaints, and lost sales. Competitiveness is about how well a business can compete in the market. Poor quality hurts competitiveness because customers choose products they trust and that work well. If a business has a reputation for low-quality products, it loses customers and struggles to survive. **IMPACT OF COMPETITIVENESS ON A QUALITY OF LIFE** A country's competitiveness directly impacts its citizens' quality of life. Here's why: - *Economic Growth:* A competitive country attracts investments and businesses, creating more jobs and opportunities for citizens. This leads to higher incomes, better living standards, and more resources for essential services. - *Innovation and Technology:* A competitive environment encourages businesses to innovate and adopt new technologies. This translates to better products, services, and jobs for citizens, improving their lives and boosting the economy. - *Government Investment:* A competitive country needs a strong government that invests in education, infrastructure, and healthcare. These investments benefit citizens directly by providing access to quality services and opportunities. - *Social Well-being:* A competitive country prioritizes social well-being, ensuring its citizens have access to education, healthcare, and social safety nets. This leads to a healthier, safer, and more prosperous society for everyone. **FACTORS INHIBITING COMPETITIVENESS** Business and Government Related Factors - *High Costs:* Things like excessive healthcare costs, expensive litigation, and burdensome regulations can make businesses less competitive compared to those in other countries. - *Short-Term Focus*: Companies that prioritize short-term profits over long-term investments in research, development, and employee training can fall behind in the global marketplace. - *Lack of Government Support:* Insufficient investment in infrastructure, education, and research and development can hinder a country's ability to compete globally. - Corruption: Bribery, nepotism, and lack of transparency can discourage foreign investment and make it difficult for businesses to operate fairly. Family Related Factors - *Lack of Parental Support for Education:* When parents don't prioritize education or have low expectations for their children's success, it can negatively impact their children's academic achievement and future opportunities. - *Limited Access to Quality Childcare:* The availability of affordable and high-quality childcare can impact parents' ability to work and contribute to the economy. - *Social and Cultural Barriers:* Discrimination, prejudice, and lack of opportunities for certain groups can limit their potential and hinder a country's overall competitiveness Education Related Factors - *Inadequate Education Systems:* Poorly funded or outdated education systems can produce graduates who lack the skills and knowledge needed to succeed in a competitive global economy. - *Limited Access to Higher Education:* High costs, limited scholarships, and insufficient university capacity can restrict access to higher education for many individuals. - *Lack of Focus on STEM Fields:* Insufficient emphasis on science, technology, engineering, and mathematics can lead to a shortage of skilled workers in these critical areas.