Chinese businesses should adopt Total Quality management (TQM) If they are to succeed internationally

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Chinese businesses should adopt Total Quality management (TQM)

If they are to succeed internationally

Nowadays a large number of Chinese companies are willing to develop their business scope in international markets. Their main competitive superiority exclusively depends on the low price strategy based on cheap labors. However, this merely advantage couldn’t go down well in the overseas markets. Global competition has forced Chinese manufacturing firms to operate on the basis of not only cost advantage. The high quality which they need to rely on would improve their global competitiveness through customer satisfaction. To meet this challenge, many Chinese firms are currently striving to implement TQM with relevant strategies in order to explore the global markets. Yet the opposite viewpoint think TQM is not quite appropriate to Chinese firms due to Chinese special situation. (quote “Quality Management Practice In China”, Yu, C.S., Cochran, D.S.D, pp 91) The object of this study is to analyze which benefits and possible drawbacks TQM will bring and discuss whether Chinese businesses should adopt Total Quality Management.  

Total quality is a philosophy and way of conducting business which focuses on several specific areas. (Oakland, J, 2000) It will bring Chinese companies many benefits in every aspect.

Firstly, Customer Relationship Management will be paid more attention to compared with Chinese firms’ previous strategies. As a saying, “without your customers, you will have no business.” Every organization depends on their customers and therefore should meet customer’s requirements and strive to exceed customer expectation. (“Total Quality Management”, Oakland, J, 2000,pp192) TQM thoroughly changes the Chinese traditional production and sales model. Chinese corporations would diverse and increase the spectrum of their commodities because their customers are in different countries and have their special taste and requirements with complicated background. In addition, thanks to keen competition in global market, any hesitation may lead business opportunities missed. TQM will apply companies to be more flexible and prompt responses to the market.

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 Many Chinese multinational corporations have adopted systematically managing customer relationship which is a crucial and primary process in TQM. This process helps company to measure customer satisfaction and act on the results. The success of Lenovo group Corporation is a good prototype in this field. At the beginning of this century, this Chinese leading electronic company was in a critical stage of its development. Their overseas sales volumes which were affected by the world-wide economic downturn declined largely. But this company hasn’t adopted the measure of cutting down the price to keep the regular customer and attract more new customers. ...

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