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Educating the world for a better change
,Elite Academic Institute 068 053 513 262 1185
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Educating the world for a better change
, Elite Academic Institute 068 053 513 262 1185
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Question 1[42 marks]
1.1. By globalising, organisations considerably change their physical
environment, the task environment, and the social environment. Explain the
social environment of a globalising organisation. (2)
The social environment in a globalising organisation encompasses cultural elements
such as language, customs, values, consumer behaviours, and communication styles.
These cultural variables significantly influence how organisations interact with
international stakeholders and adapt their operational strategies. For example,
differing workday structures or negotiation norms can complicate international
operations. Cultural complexity often poses challenges for quality management and
customer satisfaction, necessitating culturally sensitive strategies for success in global
markets (Evans & Lindsay, 2020). It comprise of cultural variables like language,
business culture, consumer preferences, and style of communication. These variables
complicate operations and influence the reception and administration of quality in
various countries.
1.2. Describe the difference between prevention, appraisal, and failure (PAF)
costs. (3)
PAF costs form part of a quality cost framework that organisations use to manage
quality-related expenditures. Prevention costs are incurred to prevent defects, such
as training and process improvement. Appraisal costs relate to the evaluation of
products and services to ensure conformity to quality standards. Failure costs are
divided into internal (e.g., rework, scrap) and external (e.g., warranty claims, product
recalls) categories, depending on whether defects are discovered before or after
delivery to the customer (Slack et al., 2022). This model helps companies focus on
proactive rather than reactive quality management strategies.
Thus; the PAF paradigm groups costs associated with quality into three groups based
on when and why they occur:
Educating the world for a better change