QUALITY AND SYSTEMS MANAGEMENT

Strategic Quality and Systems Management (Unit 11)



Strategic Quality and Systems Management (Unit 11)

Task 1

Question 1.1

The operation management of all the organizations is important because the operations of the organization are directly related to its cost. To start the business globally it is important for the companies to do a proper market research and to review the business plan properly. And use that business plan to judge the suitable areas for the expansion of the business. The companies need to evaluate their financial stability that the company has a sufficient financial fund to develop its operations into the new market that they are going to enter, and also it is important for the company to check that if they had enough funds to expand their business in the long run (Klassen 2006, pp. 1).

The Coca Cola Company Limited is the biggest beverage firm of the world. It is one of the leading and most innovative brand for producing soft drinks. Company spends billions of dollars in research and development for competing in the market, the huge budget of research and development helps coca cola for designing the new product in order to gain a higher margin. Other than the Research and development Coca-Cola also invests a huge amount in many marketing campaign for supporting their brands. This campaigning helps the coca cola to improve their consumer preference and awareness for particular brand. These initiatives have helped coca cola to maintain their long-term profit margin and provide access to the larger market share around the world amongst the beverage market. Many CSR initiatives from Coca Cola have been taken to make the environment greener.

Question 1.2

Some of the important aspects of operations management include quality, revenue and value. In modern operations management, there is a great emphasis on the quality of products. The concept of quality has also undergone some changes. Nowadays, the demand is not for the best quality but for the quality which is most suited for the purpose. Revenue is also an important concern for operations management. Operations management is satisfied as long as revenue is more than the cost. The modern operations management has realized that it is the value of products rather than the cost which is important.

Coke has a very good system for maintain the quality of their product the global quality management system used by the coke is known as TCCMS Evolution3. Under this system a standard is set to which all bottlers around the world has to comply. The three standards consist of the International Management standards for quality (ISO-9001), Environmental management (ISO-14001), and occupational health and safety (OHSAS 18001). Five manufacturing sites located at Great Britain are certified to these standards including the ISO 14001 certification, the sixth site is located at Morphett is still in process for implementing these standards to make sure the product quality and environmental management standards. The Coca Cola Company has very active policy for Corporate Social Responsibility; Coca-Cola has been very effective ...