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The Effects of TQM on Performance of a Car Dealer: An Empirical Investigation
Pages 32 (8032 words)
Abstract Total quality management (TQM) has been extolled as a key route to business success. In Hong Kong, 70% of the motor authorised dealers have TQM implemented in their companies whereas the rest 30% have only limited quality measure in their daily operations.
This paper aims to find out the effects on the performance of the Service Department of a motor dealer after TQM has adopted and discuss if it is worth to implement for the motor service industry. The outcomes of the study indicate that Employee Satisfaction overall is acceptable two years after TQM has been implemented. However, in terms of the financial and operational indicators measured in the study, only the fix-it-right-the-first-time rate has garnered positive outcomes. Sales turnover and retention rate have both declined from 2007 to 2009. Chapter 1 Introduction 1.1 Background of the Study Due to the increase of global competition over the past decades, the quality of goods and services has become top priority for businesses all over the world. As asserted by Eugenia (2010), the quality of commodities is highly influenced by the customers, thus making customers the primary factor for creating competition among companies. Moreover, due to the experience and perception of customers, organizations are encouraged to improve on the quality of their goods and services. To gain competition entails companies in identifying and addressing the needs and preferences of their customers. Indeed, customers have been considered as the starting point of a successful business instead of its end point (Reid and Sanders, 2007). ...
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