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澳洲论文代写Business Strategy的本科留学生论文代写范例节选

澳洲论文代写Business Strategy的本科留学生论文代写范例节选
  • 国家 : 澳洲
  • 级别 : 品牌一
  • 专业 :
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详细描述

 

1.      Introduction

 

Usually, the Product Profits of a company are determined by two aspects: the Sales and the Costs of the products (i.e., Profits equal Sales minus Costs) (Chen, 2011). Through constantly promoting the sales and reducing the costs, a company could acquire enough profits to sustain its development (Carbaugh, 2006). Therefore, this essay will examine to what extent the improvements in product quality could help the corporation to boost its sales and profits, and whether the development in productive process could lead to a reduction in production costs and a promotion in product quality (hence the boost of sales and the increase of profits).

 

This essay will be divided into two parts. In the first part, the effects of improving product quality on the promotion of sales and profits will be investigated. Subsequently, the relationship between the improvements in productive flow with the control of costs and the developments in product quality (hence the boost of sales and profits) will be explored.

 

2.      2.Product Quality Improvements and the Boost of Sales and Profits

 

In order to maintain large market shares of their products, many world or local leading companies endeavor to promote their product quality, since developments in product quality are claimed to be associated with increased profits (Jacobson and Aaker 1987; Barney et al., 1989). In this section, three famous corporations will be investigated to help us to form a rough idea that quality is associated with the promotion of sales and profits (Oppenhem et al. 2004).

 

Haier --- one of the most famous Chinese suppliers in electronic appliances --- has implemented a strict quality control process. Specifically, it carried out a method named 6 σ i.e. 99.999997% of their products should have qualified standards; also, it has explicit rewarding and publishing rules to guide the behaviors of their employees to guarantee the quality of their products (e.g., the salary of an employee would be substantially reduced if the inspectors indentify some serious problems in the products he/she is responsible for); in addition, Total Quality Management is also put into effects in Haier (Dang, 2006). These endeavors benefit Haier a lot in terms of profit making. For example --- in 1989 --- when all electronic companies suffered from price reduction --- Haier even increased its price by 10%, and with the market requirements of their products exceeded their offerings in domestic markets (Dang, 2006). Until 2012 (see: www.haier.com) , the productions of Haier account for 40% of the sales in Chinese markets and it opened its market in approximately 100 countries including some developed countries like America, UK, Australia, etc. In general, Haier benefits from its long-term strategy of High Quality in expanding its domestic as well as international markets hence boost its sales and profits.

 

Similar examples include Motorola and Apple. When being trapped in a dilemma in 1985 (with high risks of Bankruptcy due to poor management and bad quality, etc.), Motorola implemented its quality control method --- 6 σ. During the period of this application of 6 σ (i.e., from 1987-1997 under the leadership of their CEO --- Bob Galvin), the sales of their products have a five-time promotion, with an average 20% increase of profits per year (Oppenhem et al. 2004). Also, Apple is a company that is famous for its high quality, and it always endeavors to produce their products according to the most advanced technologies and the highest quality standards (Oppenhem et al. 2004). Although the price of Apple products are always higher than most of their competitors, it always maintain good sales and profits due to its outstanding quality. For example, during the second quarter of 2012, 35,100, 000 iPhones, 11, 800,000 iPads, 4, 000, 000 Macs as well as 7, 700, 000 iPods were sold by Apple, with a profit of 11.6 billion dollars (i.e. 94% increase when compared to the profits during the same periods 2011 --- 6.0 billion dollars) (Apple, 2012). Both these two world leading companies also gained their sales and profits with constantly endeavors in maintaining high qualities.

 

3.      3.Productive Flow Improvements and Promotion in Quality and Profits

 

Productive Flow can be defined as the process between the input of materials and the output of products (Szewieczek et al., 2008). The products are processed subsequently in a specific order through machines and labors, while all steps are logically connected (Szewieczek et al., 2008). Developments in productive flow could be considered as one important measure to improve the quality of products and control their costs (hence make profits for the company) (Szewieczek et al., 2008).

 

Haier knows how to control their costs by improving their productive flow. They believe that the costs of the company could be substantially reduced if the qualities of the products could be controlled during the process of production rather than after production --- when low-qualified products have been produced and sold to their customers so they need to pay the prices of repairing (Dang, 2006). By employing a system called Statistical Process Control (SPC), Haier could supervise the quality of its products through computers, and any concerns about the quality could be broadcasted live to their inspectors. This could be served as a scientific and advanced technique in quality control, as well as an improvement in productive process, since every work of the employees would be under supervision. In this way, the efficiency of the employees would be boosted, while at the same time the production of low-qualified products will be reduced, hence the costs of the company might also decrease. After the application of SPC, the number of low-qualified products has reduced 47% (Dang, 2006). This method employs the concepts of Taylor Management Theory (Carl and Briggle, 2005), and its implementation helps Haier to develop its product quality and reduce its costs (hence boost its profits).

 

Toyota also believes that --- in order to maintain a minimum cost --- unnecessary steps in productive flow need to be avoided to control the waste of resources. Therefore, they implemented a method called Toyota Production System (TPS). TPS has a different way to understand profits. Instead of using the common formula Sales less Costs to calculate Profits, TPS slightly transforms this formula i.e. Profits = (Price per product – Cost per product) * the Number of products. So the Profits would be promoted by the increase of price, the boost of sales and the reduction in costs (Oppenhem et al. 2004). Since the first two items are determined by the market, the last item i.e. the costs would be the item that is easy to be controlled by the improvement of the productive flow. So they believe improving the quality of the products and controlling their costs could facilitate the boost of profits.

 

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