Competitiveness In The Business World

In such a fast paced world, there hardly seems like there is time for you to breathe while you are so busy trying to make your place in the business market. You want to make a name for yourself you have to be prepared to sweat it out there and join in the rat race to be one of the top contenders.

You can’t get tired easily and you can’t give up easily. You have to be strong enough to hold your place in the contest and come out on top. But what actually determines if you are one of those top dogs?

Customer satisfaction
The number of happy customers that walk out your door are directly proportional to your annual profit. Therefore customer satisfaction is a great way of measuring your road to success and to keep yourself on track. Most successful firms continue to please their customers because they tend to spend on appraisal and prevention costs. Appraisal costs include those involved with inspections, lad testing and ISO 9001 transition or different quality evaluation tests. They help companies appraise the quality of the products that are being produced. They are a direct evaluation of your product.

Prevention costs are involved with preventing production of defective products. Such costs include the implementation of a core trade training course whereby the staff are trained continuously to be kept up to date with the latest developments and technologies that need to be implemented in order to keep an efficient system on the run.

Then companies also spend on something called a failure cost which helps them assess both internal and external failures. Internal failures are those that occur during the process of production while external failures are those that are incurred after the process of production is completed.

Companies need to asses why these failures have occurred and also put into action the necessary actions to prevent such failures in the future.

Because companies cannot afford to undergo such failures often.

All these costs put together will help us ensure the quality products are always being sent out to customers to their satisfaction and they feel like they have bought something that is worth the money they have spent on it. It is one of the reasons why people always tend to purchase items from trusted names even if they have to spend a little extra compared to the newer brands because they know that the little extra money they spend now will help them in good stead for many years to come.