4.2 Quality of goods and services ocr gcse business

Open Ended

What is quality?

Multiple Choice

The concept of quality requires a business to:

• Produce goods that are better than the competition

• Produce goods that are reasonably priced

• Provide services that are fit for prupose

• Provide services that are value for money?

​Complete the M&S question (3 MARKS)

#1 MARK FOR UNDERSTANDING

#1 MARK FOR APPLICATION

#1 MARK FOR ANALYSIS

Understanding (1)

 to maintain reputation

 to sell more products

 to reduce returns

 to make more profit

 to create brand loyalty

Application (1)

 M&S has ‘high quality, own brand-food, clothing & home products’

 Food must be of a minimum legal quality

 Some ‘home’ items are covered under minimum legal requirements (ie electrical home goods)

 Standards across 283 food factories

 Ethical programme – poor quality increases waste

Annalysis (1)

 Increased costs from products that do not meet standards

 Increased time from having to return orders

 Lost sales from unhappy customers/poor reputation

 Increased costs from legal disputes

Exemplar response

Ensuring quality is vital to M&S as it maintains reputation (U) because M&S has a reputation for high quality products (APP) which directly links to demand/sales and company profits (AN).

Open Ended

What are the two methods of ensuring quality?

Multiple Choice

Which of the following would be an example of quality assurance activity for a car manufacturer?

• Driving every tenth car to test that the brakes are working correctly

• Holding a meeting with production operatives on how to improve the manufacturing process

• Increasing the amount of money that the operations function can spend

• Visually inspecting two cars of each colour for defects in the paintwork

Multiple Choice

A manufacturer makes chocolate bars. All of the chocolate bars are passed through a machine to check for production mistakes before being boxed.

• product development

• product recall

• quality assurance

• quality control