There are many employees who at times do not take adequate measures in order to maintain proper quality. Therefore, in this regard, it can be demonstrated that such an attitude may lead to loss of the customers. On the flip side, the competitors may take advantage of the market needs. It has been viewed that most of the flourishing companies have identified the role of the customers-defined quality on the business. As a consequence of this, most of the companies have focused their attention on quality standards. The two successful companies that have identified customer satisfaction as their topmost priorities are Honda Motor Company and Ford Motors.
Quality is one of the primary aspects that each and every organization aspires to maintain their products and offerings. Quality in their offerings can offer an organization with the added competitive advantage. The definition of the factor quality in business management context generally relies upon the position of the people defining it. There isn’t any single description of quality. However, according to certain people, the term quality can be understood as “Performance to Standards”. In short, the term quality can be comprehended as the degree of excellence (John Wiley &. Sons, “Total Quality Management”).
It can be revealed that the term quality tends to have an impact upon all the aspects of the organization and it also has cost implications. It has gained importance as in due course of time organizations have realized that poor quality might result in high costs. The greatest loss to the company can result when the poor standards of quality transpire to discontented customers. This can ultimately result in a loss of consumer as well as business. The term quality can be associated with a few other costs. One group of the cost is referred to as the cost of quality control whereas the other group of cost can be referred to as the prevention and appraisal cost. .