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

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Introduction

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. ...read more.

Middle

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. It accomplished establishing more than 100 customer service centers all over the world. (quote lenovo.com,2004) As well as being responsible for repair, their centers try to get an appointment and contracting for service. In the communication with customers, they collect the data about their products from users and research it through statistical process. Ultimately any defects with products and inconsiderate service will be improved. Therefore Lenovo builds a good brand image in many customers' mind. Customers are more likely to stick Lenovo's personal computers and subsequently the company got rid of the crisis. Secondly, by using TQM, the organization can hone a set of consistent, reliable processes to build a quality product. ("Total Quality Management", Oakland, J, 2000, pp201) We can find out the means of Chinese firms to appeal customers is on the basis of cutting costs. This action directly leads to the shrink of profit. ...read more.

Conclusion

(home.pacific.net, Marina Chan, 2004) People would rather sacrifice high quality for higher productivity and cheaper price. On the other hand, the implementation of TQM demand sufficient funds supported. So it is not suitable for small-scale firms to adopt TQM for the reason of limited funds and inadequate technology. It is no doubt that TQM could attribute Chinese companies to enter the global market. Quality management would create new strategies by improving skills and developing resources that allow firms to take advantage of opportunities and avoid risks. But we must make constant efforts to adapt ourselves to TQM so that it can be successfully affected. Although Chinese government has lain down some policies and regulations to promote the TQM, they should remove the fear among the managers and make them believe the resource invested on quality will one-day increase productivity and profit. In short, there are many benefits for Chinese companies to implement TQM. In my point of view, Chinese businesses should adopt Total Quality Management if they are to succeed internationally. And I'm sure that the fierce competition arising from global market will make more and more Chinese enterprises take and fully implement TQM. ...read more.

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