Full Assignment

Suhail Barber A37

Task 1

Describe and explain PEP’s business objectives, using its mission statement and other information

Evaluate and explain how successful PEP appear to be in meeting each of these objectives.

A mission statement is a written statement setting out the general aims of a business. This is also known as a business objective.

PEP is a business, which has been set up to produce good quality products and excellent customer service, as most businesses have aims and objectives. Examples below show some basic aims and objectives a business might have:

Make a profit
Provide goods and services for their customers
Survive and expand the business
Improve the quality of goods and services
Compete against other businesses
To be environmentally friendly

PEP is a family business with a good history that provides good quality products to customers. PEP has issued a mission statement that shows what the business is aiming for. These are listed below,

Preserve a good family atmosphere in keeping with our great tradition
Achieve increasing profit to reward our shareholders and reinvest in our business
Produce the best electrical appliances to the UK and export markets
Provide excellent service to our customers

PEP’s need to maintain a good family atmosphere to meet their objectives because… if the business starts to disagree with their employees then the employee might decide to leave which could cause a disturbance in the business. If PEP begins to lose their employees, the business could risk failure. To prevent this from happening, the employees should communicate with each other either internally or externally and be friendly. People can communicate with each other in many ways e.g. internal or external meaning in or outside of the business, up, down and across the business hierarchy and formal or informal.

Motivating the workforce can be a massive advantage for PEP because motivating by making them feel valued and part of a team means the employees the workforce can work better which means improved quality of product or service to customers and therefore improve results for PEP.

All businesses need to make a profit or a surplus. Profit is the money left over after all the expenses has been paid. Profit provides money for further growth, investment and rewarding the owner(s) as well as their shareholders.

PEP need to increase their sales and market shares in order to make a profit. Shareholders are people who have a share in the business, they have invested money into the business so if the business does not do well the shareholders lose out. Therefore, it is vital for the business to increase the profit. If PEP keeps their shareholders happy, more shares will be sold, and as a result PEP will encourage more people to invest money into the business. In addition, if PEP’s increase their profit, they can reinvest some of it back into the business. In this way, the owner is happy and so are the shareholders. If the shareholders are happy then more investors will invest in the business, which will lead to growth of the business. The more shareholders PEP has the more income therefore the business being successful the business will be able to grow.

As one of their business objectives is to provide the best electrical appliances if they provide good quality products and services they can to keep the customers happy. Quality products are often a key element to success, as customers tend to buy good quality products. If the goods are not to their customer satisfaction then goods can be returned or exchanged for another. Some businesses also have a policy of a money back guarantee.

Total Quality Management (TQM) is the policy, which aims to ensure a high level of quality in an organisational product and procedures.

Skilled workforces are needed to produce good quality products and services. A quality manufactured product or trained employees (for that necessary work) can only provide a good or service which they have been trained for. Businesses that offer services need to ensure that their employees are fully trained and qualified to give good quality advice to their customers. This can be an objective for PEP too.

Excellent customer service is the bread and butter of the business. This is because customer service is a process that provides employees with the information they need to know their customers' wants and needs, which will build a relationship between the company and its customers.

Good customer service helps to identify and target their customers to provide them with the information that they need about the goods or service.

Benefits of good customer service are:

To be nice to the customers and to ensure that the information given is accurate and what the customers expect
It is cheaper to keep existing customers than it is to attract new customers, therefore it is important to keep a good relationship with the customers
If the customers are happy with the customer service provided by PEP then they will come back to the business. This is a benefit for PEP as more customers will equal more income
Good customer service is to identifying possible customer needs and to measure their views on a product or a service and thereafter developing appropriate actions to keep their customers happy

I am going to evaluate and explain how successful PEP is in meeting each of these objectives.

I think PEP’s did not keep up with their family tradition because they employed Keith Parker as a Managing Director who had no connection with the family, so they broke their first mission objective. PEP employed Keith Parker because they wanted someone who was an expert to improve their business expertise due to pressure from banks. This was because, before Keith Parker, there was no team spirit therefore the workforces were not motivated which affected the quality of goods. This is why PEP employed Keith Parker, who will motivate the workforce, make PEP work as a team.

PEP is not increasing their profit. This is because they are not providing the right standard or quality products to their customers. PEP is not meeting their deadlines, which is causing the business problems such as lack of movement and communication between departments.

There also many people leaving PEP, which means there is a high level of staff turnover meaning new recruits has to be made which is costing the business money in training them and motivating the staff to do the job.

There has been arguments between the Pearson brothers which means that they are incapable in controlling the business and also in broad meeting it shows that they don’t know what they are doing and unable to run the business.

Producing the best electrical appliances is what all businesses want to do. PEP started of, at first, selling things like kettles, coal buckets etc and grew up to become a limited company (LTD). This is how at first PEP began to trade and now they are a well – known company supplying electrical appliances.

Providing excellent customer service depends on how the business is doing. Business reputation is also important because if the business is doing well and customers are commenting upon the business then more customers will come to that business. PEP did not achieve excellent customer service partly because of a lot of complaints, which means that PEP cannot get a big contract.

PEP is not achieving this aim due to the number of complaints they are receiving therefore this could lead to not getting a bigger contract in the long term.

Task 2

What are the possible advantage and disadvantage to PEP of becoming a private limited company in 1965?

Discuss whether PEP would benefit from becoming a PLC with a stock exchange share listing

There are different types of ownership and they all operate in the private sector. They are:

Sole Trader
Partnership
Limited Company
Co-operative
Franchise

In 1965, PEP became a private limited company (Ltd). There are 2 sectors organisations can be classified in, which are the private and the public sector. A LTD will fall into the private sector because it is a private limited business. All LTD are incorporated which means the business exist as a company, and that the business has registered to the registrar if company and completed financial documents such as a Memorandum of ...

This is a preview of the whole essay

There are different types of ownership and they all operate in the private sector. They are:

Sole Trader
Partnership
Limited Company
Co-operative
Franchise

Advantages of LTD

Advantage of being a LTD is that the shareholders have limited liability, which means if the comp-any goes burst the owners (shareholders) will only lose the money invested. If PEP were a sole trader or a partnership then would have unlimited liability, so if the business when bankrupted the owner could lose all the personal possession e.g. house, car etc except for the clothes they are wearing and their tools of trade.

It is easier for PEP to attract extra shareholders to invest money into the business because of limited liability. This means the company can expand which is another advantage of being a private limited company.

A Ltd is always incorporated which basically means it exist as a company, so if PEP loose one or two owner they can still keep the company up and running whereas if PEP were a sole trader or partnership they wont be able to continue there business.

PEP can raise extra finance by selling shares privately to their employees. There is no limit to the number of shareholders.

Disadvantages of LTD

Disadvantages of being a Ltd is the profit that they make is shared between the owners, (dividends) so if there are a lot of owners (shareholders) all the profit will have to shared between them.

Incorporated also have disadvantages within a business because legal procedures have to be followed which takes time and money. There are two main documents, which are necessary whiles registering the company at the Companies House, these documents are

Memorandum of Association

Article of Association

As a Ltd company PEP cannot sell their shares on the stock market partly because they are a private limited company which can only sell their shares to friends and family.

All type of paper work and financial documents costs money so it is very important that the finance id there. This will take time for the paper work to go through and the process if registering the company will also take time.

LTD company’s like PEP cannot sell their shares on the stock market because they are a private limited company, which can only sell their shares to close friends, family and employees. This will slow down the income of the business com pared to a PLC. This will restrict the amount of capital they can raise to invest in PEP.

Task 2B

There are two sectors within the economy. A PLC falls into the private sector. All PLC’s are incorporated which means the business exist as a company and they have registered with the registrar of company and successfully completed important financial documents like the one’s I have stated in task 2A. a public limited company will have many advantages and disadvantages

Advantages of PLC

PEP would benefit from becoming a PLC with the stock exchange share listing because they will be able to sell their share on the stock market and raise vast amount of capital. This could benefit PEP as well as the people buying the shares so that they will recognise their shareholders and them and might be interested in PEP so might their shares on the market. In a LTD only the close friends, family and employees are allowed to buy the shares whereas in a PLC anyone can buy the shares so finance is not a problem
Vast amount of capital can be raised via the stock exchange. If the production costs are low, PEP will benefit from the economy of scale which tent to be large so they can be competition with other large competitive companies like Virgin, British Gas etc.

If one or two owners die or something happens, the business will continue. This is because one shareholder will not make a different if there are many shareholders within the business. This is an advantage for a PLC compared to a sole trader or a partnership.

Disadvantages of PLC

Information of the company has to be made available for the public so that they know how good or dreadful the company is doing. If the business is doing good, raising the capital, and keeping the shareholders happy, then more people might want to buy shares on the stock market. If PEP is doing really badly the pubic will pick this up. The company might lose some of their shareholders, which might cause the business to burst.

It has been stated, that some shareholders in a PLC are only interested in making sort-term profit. They are not interested in long-term views. Therefore, the company is discourages from investing money into the business, which will be profitable in the long-term but not in the short-term.

In a PLC the profit, have to be shared between the shareholders because they have invested money into the company, so if there are a lot of shareholders in a business then all the money will have to be shared amongst them.

Bad press could lead impressions of a business. This could affect the day-to-day running of the business. It gives a bad reputation to the customers and the business, so it is very important to keep the customers happy.

Conclusion

After looking at both a PLC and a LTD company and looking at the advantage and disadvantages of each companies, I think that PEP would benefit from becoming a PLC. This is because they can have many as many shareholders as they want and can raise vast amount of capital. This can help PEP to expand the company as well as improve the quality of the product.

Task 3

Describe the functions involved in the organisation and how they each contribute to the helping the business meet their objectives

There are many tasks every business needs to do if it is going to succeed. Each of these tasks described the functions of a business. The following is a brief introduction to each of the functions:

Administration Department
Production Department
Finance Department
Human resources
Marketing and Sales Department

Administration and ICT

This department supports and ensure the smooth running of the business on a day-to-day basis. They have responsibility for clerical duties, cleaning, computer and software support, security and health and safety. They also keep customer and staff details so that they can find out which customer are good and bag for the business. By doing this, PEP will be able to meet one of their business objectives which is to ‘provide excellent customer service’.

Not only this, this department must also keep the business on the safe side of the law, which are set by the government. If they fulfil these rules and regulation then PEP will have a very good reputation and preserve a good family atmosphere, which is their business objective.

Production (operation) Department

Here they have the task of producing the goods or service in the most efficient way. This is done by making best use of the business’s staff, machinery, building and raw materials.

This functional area aims to produce the goods or service in the most efficient and effective way. This is done by making best use of the business's workers, machinery, buildings and raw materials. By this PEP will hit another of their business objectives which is to ‘produce the best electrical appliances in the UK and export market’.

Finance Department

They will keep a record of all money coming in and going out of a business. They have responsibility for securing finances for future expansion and paying staff and suppliers.

In PEP, this entire department manages the money coming in and out of the business and keep records the number of hours each employee has done over an era so that this department can pay them. In order for PEP to hit their second business objective, which is ‘to achieve increasing profit to reward the shareholders and invest into the business’, they must make sure that they make more money then money going out of the business.

Human resources

The Human Resources department ensures that the business has the best staff for the job and that they are able to work effectively in a safe environment.

The department within a business, which is responsible for its personnel, for example, ensuring the business, recruits the best staff for the job and that they are able to work effectively in a safe environment. The workforce must be motivated to get the best out of them. If someone is recruited without any qualification or skills for the job then human resources must provide training for them in order for them to have the qualifications and the skills to the job professionally and successfully. By this PEP will be able to hit their first business objective, which is to ‘preserve a good family atmosphere in keeping with our great tradition’

Marketing and Sales Department

In this department, they will help the business remain competitive by developing new goods and services and updating the existing ones.

This functional area's aim is to maximize the level of sales by carrying out market research, promoting the goods or service and having a motivated sales team. They must also market research what the customers needs are in order for them to make a profit by selling the customer needs. However, before market research is to be underway, it is very important to find out what the customer needs are prior to production. If they do and later find out that its going to no use then business will lose critical money, which could have been used on something that could benefit PEP. If they go market research and if it is successful, they PEP can achieve one of their business objectives, which is ‘to achieve increasing profit to reward the shareholders and invest into the business

Task 4

Describe the management style and business culture of PEP. Using the examples of other businesses explain why they may be preventing the business from achieving its objectives.

Management style and the culture of a business in this case PEP, means the way in which PEP is controlled and managed. Culture can have different means but in business, culture means the attitude, value and belief of the employees of a business. This is also known as corporate culture. The list below shows the influence on cultures:

Economic – the need to make profit and to be efficient
Social – to serve the local communities and society

There are different types of management styles

Autocratic – manager makes all the decisions
Democratic – manager and the workers are able to make decisions
Laissez faire – manager makes little decisions, worker get to do all

Autocratic

Autocratic is where all the decisions are made by the manager. Objectives have to be met by the workforce, which means the commands have to be completed. Therefore, the employees are likely to be less stimulated. This type of style is in a hierarchical structure e.g. in PEP, before K Parker was introduced to the business, the manager made all the decisions and the employees had to complete it. The manager did not motivate the staff therefore employees were only bothered their own work not others e.g. in the case study its says that ‘I do my job right. That’s what I care about’. By this, we know have evidence that the staff were only concerned about their own work and nothing else.

Democratic

Democratic is where the managers and the employees can take part in decision-making. So that the employees are more than encouraged them which will affect the way they work in order to met their objectives. This type of style is found in a more flat structure e.g. PEP when they were in a partnership. After K Parker was introduced to the business, PEP from being autocratic came down to democratic. This is because K Parker tried to mix the employees decisions with the manager’s decisions and getting everyone in the business to work as a team. When K Parker was a Production Director, he came up quality circles and self-inspections to get the workforce to come up with ideas that will help PEP to maintain quality products and to come up with new product ideas.

Laissez faire

The workers make most of the decisions. The employees are likely to be doing their basic work, which means that the business might struggle to achieve its objective. This type of style will match a small structure.

PEP’s management style is an autocratic because when James Pearson recruited Keith Parker, he was shocked to see that the employees could not negotiate their work and had to do what they were told to do in addition to they could not state their views. Therefore, the employees were not motivated in doing their jobs correctly which lead to unauthorised absences that caused PEP to find it difficult to raise finance. Due to this the employees where only bothered about their work. ‘I do my job right. That’s what I care about’. So there used to arguments between departments. Even the Pearson brothers go to arguments with their employees and during board meetings.

Pep’s Management Styles

Pep has an autocratic management style because they have a very strict hierarchical structure. This means that the manager makes all the decisions, which the workforce has to carry out without discussing the decisions with their employees. By this, we know that the organisation has no interest in whether the workforces are motivated or not, they just want the job done. Therefore, the employees are not motivated which means that PEP will experience lack of work done by the employees, which lead to high number of staff turnover. This type of structure will be best for fire station and army forces.

Business culture of PEP

PEP has a traditional culture and wants to safeguard a good family impressions in keep their great tradition. This means that PEP would like to carry on trading in the same way as they did when they first started. There are four main styles of culture, they are:

Role culture
Task culture
Power culture
person culture

A role culture would be suitable for a hierarchical structure in the public sector. It shows an understandable chain of command, which is easy to follow. The responsibilities are identified to the workforce. There are rule and regulation, has to be followed. In this culture all, the tasks are evidently explained to the workforce so that they know what they have to do overall. In PEP, there is evidence of role culture because the workforce all has a clear job role and task to achieve. This is a benefit for PEP because their aim is to produce quality products; to hit this objective if the workforce has clear job roles then PEP will successfully fulfil their business objectives.

A task culture might suit a matrix structure because in a matrix structure is all about teamwork. This applies to businesses that are in highly competitive and innovative. There are no proper pecking orders, but tasks have to complete quickly without any difficulties. All the tasks have to be completed by the workforce without doubts. There is some evidence of PEP using task culture to some extent such as self-inspection where all the people check the product at every stage of production so that if there are any faults or damages then they know about it and can improve it.

PEP used to be a power culture; businesses with this type of culture tend to be small with strong powerful leaders such as James Pearson in PEP who makes all the decisions for them. Their objectives are the objective of the business and they represent the business.

A power culture is when a person such as James is the central figure. He makes decisions and creates ideas within the business to help staff and help achieve customer’s needs and help the business as a whole.

Person culture best suits individual professionals because there are no structures. There is evidence in PEP of person culture as James Pearson is a professional central figure of the business and Keith Parker who is a professional when he was a production director as he introduced self-inspection and quality circles to give confidence to the employees to come up with ideas for new products and production techniques.

Task 5

Describe the effectiveness of PEP’s use of information and communications technology, (ICT). This should include a description of the use of internal and external communication within the business.

The use of information and communication technology, (ICT) is not very effective within the organisation. Businesses need to communicate either internally and externally. Internal communication means to communicate within the business e.g. employees. External communication means to communicate outside of the business e.g. suppliers. Effective communication is essential if the business wants to be successful. Information and communication technology (ICT) has been introduced so the types of communication have changed.

In PEP they do not use ICT internally and externally as they use standard alone IBM computers. There is no IT network around the business therefore no e-mail system or sharing of data around the business e.g. electronic mail send to employees or up to date stock record. Instead, PEP uses memos, telephone, meetings to give information to the workforce or negotiate.

Externally PEP uses fax, letter, and telephone to communicate with suppliers, shareholders, customers. Because some of the information can get lost in the communication, therefore ICT is required in the process. For example if Keith Pearson tells an employee to order stock and later claims he didn’t order the stock when the stock was low then if the e-mailing system is used, the e-mail can be used as proof.

There are different ways and methods of communicating internally throughout the organisational structure, such as giving orders to the workforce or negotiating. There are many ways of communicating e.g. E-Mail, Face to Face, telephone, Memos inside the organisation. Nowadays majority of the organisations have access to ICT, which has helped them a lot i.e. communication. ICT has made it more convenient and reliable way of communicating because it is fast and multipurpose method of communicating. The internet is one way used in everyday life because it is very quick, reliable and easy to use.

The E-mailing system is also used because it is in demand as everyone uses it. Many businesses also use the E-mailing system to communicate, as it is very quick and easy to use because messages can be sent on a click of a button. E-mails can be checked at any time of the day without any problems also e-mails can be sent to any part of the world whenever necessary.

The Intranet a website developed by the organisation, which has a restriction those only members of the organisation, can access it. This is a private website, which is designed to suit the company’s needs.

There are different ways and methods of communicating externally, such as customers and suppliers. There are many ways of communicating outside the business e.g. E-mailing system, telephone, video conference, and fax.

Fax could be used internally as well as externally because letters or documents can be sent from one fax machine to another fax machine through the telephone line inside the organisation. Fax can be used externally as official documents can be faxed quickly and easily. The document will be received immediately whereas if it were posted then it would take one or two days before it was received.

Video conference is a very useful tool of communication because with video conference we can actually see the person who you are having a conversation with face to face. This is very good because then people do not get misunderstandings. Video conferencing can be very useful if the person you are communicating with is abroad as you can see the person who you talking to.

E-mail is another very important aspect of communication because e-mails can be sent to any part of the world. Not only this but if PEP wanted to order electrical appliances from abroad then a detail description messages can be e-mailed which could also contain an attachment with a photo of the goods.

PEP are not currently making effective use if ICT within the organisation therefore they introduced Lisa Hartley as PEP secretary to manage all the current admin problems. In the admin department problems that has occurred due to lack of communication is that PEP are frequently running out of stock, customers are being quoted unrealistic delivery dates therefore customer complaints is increasing. In link with complaints of customers, PEP is also missing delivery dates even for urgent and short notice orders. By having the above problems in the admin department, PEP is not getting large contracts to increase their sales figures. The admin department are not communicating with the production department to let them know when the product will be ready so that it can be delivered and the production department not letting the admin department know when they are running out of stock so that they can make arrangements with the suppliers for the stock to be delivered. PEP is frequently making mistakes in the invoices, VAT and PAYE deductions, which can be taken care of if PEP computerises all their accounts and manage them on a computer database. This will save time in calculating all the VAT and PAYE deductions also all the accounts, can be obtained whenever it is required. Mistakes made on invoices can be corrected automatically by the computers without having to do them all over again. PEP sends out memos and reports between departments which are getting lost and taking too long to be read in the process. If PEP introduces e-mailing system, all memos and reports can be e-mailed which is must faster and efficient. When e-mails are sent, copies can be kept for business purpose and records. E-mails can be sent to more then one person at a time.

ICT can have an effect on the external communication as well because if stock runs out or about to run out, the production department can e-mail the admin department to let them know that stock needs ordering when orders are coming in from customers. By this, the customers will be given an accurate production and delivery dates. Many large businesses operated online to offer their customers quality products and let customers know that they have in offer. In link with this, PEP could also benefit from this, as the internet would enable customers to keep up to date of what they have to offer. Customer complaints can be handled online as well as telephone so that complaints can be dealt with quickly. When PEP receives an order they need to have three copies of the order. The person who takes the order keeps one; the other two are sent to the production and account departments which can sent by e-mail or fax.

Task 6

Using the example from other companies, explain how a quality control system such as that used by PEP may help to add value to and ensure high quality manufactured products.

In a traditional business such as PEP, quality control is a process in the chain of production. For example, PEP designed a product, which also includes details of the materials to be used to produce the product. Then this is handed over to the production department of PEP how decides how the product should be made. The design, the materials and the production method helps to determine the quality of the product.

At PEP, the finished product has to be checked by the quality controller to check if the product is of good quality standards and if not then that product can be sold at a lower price or else thrown away.

Added value

Adding value to a product at each stage of production meaning to produce a product, which is sold for more than it costs to make. In doing this the PEP will take raw materials and convert them into a finished product. Added value occurs during this process. The aim is to produce a product, which is sold for more than it cost to produce.

For example, at PEP an electrical appliance, which costs £50 to manufacture, which includes all the royalties. However, PEP sold the appliance for round about £135. This means every electrical appliance sold has added value of £85.

When Keith Parker was a production director, he wanted other employees to give their opinion and techniques about the product so he can get an idea of how to make the product of better quality. By making the product of high standards, PEP is adding value to that product. So a product which originally costs £10 was put in a presentation box now costs £15. By putting the product in a box, it has added value the customer might think this product is good and will buy it. With other companies, only the production department will suggest how good the product is. This is not always true because the quality of the product also depends on hoe good the product is.

Quality control

Quality control is very essential within a business especially if they produce goods e.g. PEP. This is because, in order to be successful, they need to offer their customers the best quality products possible. By doing this PEP will add value to their product so that, the products are different to their competitors. All the employees must take part in quality control at each stage of production so that if there are any faults in the product, it can be dealt with.

Quality control can improve customer service because if the product meets customer needs then there will be less customer complaints. On the other hand, if the purchase does not meet the requirement of the customer then it will lead to bad reputation of customer service. For example if a product is damage or faulty.

Quality circles

This is getting all the employees together in making business decisions. Regular meetings with the workforce in discussing problems find solutions for the problems, which will help the business make less mistakes and errors. Employees require good knowledge, experience for them to make vital decisions to make them feel part of the workforce and team.

In order to achieve this, employees require training and development to have a good understanding of quality circles before quality circle can benefit the business. Training includes:

Brief orientation programme for top management.
Programme for middle level executives.
Training of facilitators.
Training for Circle leaders and members.

(Above bullet points are obtained from http://www.mahapwd.com/isoandqualitycircle/qc.htm)

Benchmarking

Benchmarking is to motivate the workforce. If other departments doing better then another department, they will what do the same. There are a number of stages in benchmarking. They are:

deciding whether the business needs benchmarking
to compete with other businesses benchmarking and doing better
collecting information about standards of excellent
Making sure everyone in the business knows about the standards.

Benchmarking is a management device that involves comparing aspects of businesses performance with the “best practice” performers in the same industry. The business will then change some or all of its practices to match the best company.

Self-Checking

Self-checking is to check the product if there are any damages or faults to the product so that they can be removed to keep the customer satisfied with their purchase. The downside of self-checking is that each product has to be checked before they are delivered which, is time consuming. Advantage of self-checking is that each individual product is checked to make sure of less customer complaints.

Total Quality Management

Total Quality Management (TQM) is the policy, which aims to ensure a high level of quality in an organisational product and procedures.

PEP has a well-planned quality control system, which ensures that the product is of good quality. In addition, PEP has introduced self-inspection and quality circles, which encourages employees to have their own say of the product. Al the moment PEP are not managing their business very well as PEP are not obtaining large contacts even though PEP produce high quality products they are still having problems in the admin department. If PEP were to increase their sales and keep customers happy with quality products then PEP could obtain ISO 9000, which is a series of international standards that provides quality management leadership and identifies quality system elements at PEP. A business i.e. PEP must develop a quality system that meets the requirements for the ISO standard to be able to get the standard, which can benefit in many ways.

The benefits of the ISO is that it provides a well structured and organised approach in managing the business in linked with quality product or service to meet customer expectations. It gives customers guarantee that the product or service provided by the business it of high standards and that it reduces customers complaints and increase sales figures.

BS 5750

BS 5750 is another section of ISO 9000, which specifies requirements for a Quality Management System overseeing the production of a product or service. It is not a standard for ensuring a product or service is of quality.

Below is a table that identifies the difference between TQM and BS 5750

Table above obtained from:

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