The Effects of Quality Management on Competition
According to the book Quality management for organizational excellence: Introduction to total quality (6th ed.), “Superior value consists of superior quality, cost, and service” (Davis & Goetsch, 2010, “p”. 29) and is central to an organization becoming a formidable competitor in both markets, foreign and domestic. American businesses have had a difficult time incorporating these ideas into their operations and following World War II, the USA began to lose its lead in the global and domestic markets and by the 1960s lost the world marketing lead entirely (2010). Since the beginning of the 21st century “though”, many American companies have realized just how important quality management is and have started implementing changes that bring about these conditions. This process is slow to be adopted by the businesses in America because many are still focusing only on short-term profit, instead of seeing the big picture. This gives those companies constantly improving in the present and making plans for the company and its direction in the future a competitive edge over those that see only immediate profits. The concept of quality management can differ from company to company, even among organizations within the same industry, but they also have similarities. Two of these organizations are Hewlett-Packard (HP), an American business and NEC headquartered in Japan and even though both companies compete in the global and domestic markets, I have chosen to explore HP’s methods of quality management in the global market, and then examining NEC’s management techniques in their domestic market of Japan.
Hewlett-Packard and Nippon Electric Company, Ltd whose name was changed to just NEC in 1983 (NEC, 2011), are equally ethical and reputable electronics organizations that manufacture computers, software, printers, etc. HP headquarters are stationed at Palo Alto, California, whereas the head office of NEC is in Tokyo,...
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