TOTAL QUALITY MANAGEMENT

TOPIC REVIEW 2
(Quality and Competitiveness Advantage)

Topic Review Question

Topic 2: (Total:18 Marks)

1. Explain how a total quality perspective can support the six characteristics of
competitive advantage introduced at the beginning of the chapter. (3 Marks)

A : Total quality is an approach to doing business that attempts to maximize an

organization’s competitiveness through the continual improvement of the quality
of its product, services, people, process and environment. All the six
characteristics of competitive advantage have similarity with total quality where
both have the same goals which is to views continuous improvement.
Competitive advantage is a firm’s ability to achieve market superiority over its
competitors. One of six characteristics of competitive advantage is driven by
customer want and needs where company provide value to its customers that
competitor do not.

2. Discuss the three basic types of competitive advantage. Can a company achieve all of
them? (3 Marks)

A : 1. Is driven by customer wants and needs

2. Makes significant contribution to business success
3. Matches organization’s unique resources with opportunities

3. What is the importance of total quality to achieving competitive advantage? (3 Marks)

A : Competitive advantage denotes a firm's ability to achieve market superiority

over its competitors. In the long run, a sustainable competitive advantage
provides above-average performance. The characteristics relate to quality, quality
can be an important means of gaining competitive advantage.

4. Explain how quality affects profitability. (3 Marks)

A : Quality affects a company in a variety of ways, from productivity

and profitabilityto customer satisfaction and public perception. In addition, quality
affects the overall operating costs of a company. Focusing on quality helps keep
a company strong in all areas.

5. How is agility a source of competitive advantage? What relationships does agility have
with quality? (3 Marks)

1
A : Agility is the ability to adapt to changing environment conditions such as changes in
technology or changes in consumer demands. It also relates to variety or the ability to
offer a wide range of products and options.

6. What is the role of quality in innovation? (3 Marks)

A : A personal creativity of individual inventors has always played a

prominent role in the field of innovation. Quality means the degree to fulfill
someone's needs and expectations. It is recognised that the availability of
information and information management tools and leadership style can all have
major impacts on the effectiveness of innovation processes.