BUSINESS GENERAL Flashcards
(128 cards)
1
Q
Employment Contract
A
Job Title
Job Description
Benefits
Leave
Hours of Work (Overtime)
Signature of Employee
2
Q
next
Legal Req of Employment Contract
A
E+e must both sign contract.
Must include code of conduct & ethics.
E+e must agree to any changes to the contract.
No party can change aspects of the e.c.
3
Q
Reasons for Terminating Employment Contract
A
- e. decides to leave voluntarily & resign.
- e. may have reached pre-d age for r
- E. may retrench some e.s due to insolvency.
- E. may d- e. for valid misconduct reasons.
4
Q
Benefits of Induction
A
- Increase QOP.
- Allows new e. to settle in quickly & work efficiently.
- Ensure that new e. understand rules in business.
- New e. build relationships with fellow e.s at the office.
5
Q
Purpose of Induction
A
- Give new e. info on the layout of the office.
- Familiarize new e. with Supervisors.
- Make new e. feel welcome by introd- to physical workspace.
- Allow new e. opps to ask questions.
6
Q
Contribution of Purchasing Function
A
- Buy raw materials in bulk
- Good underst. of S-C management.
- Ensure that there is no break in production due to stock shortages
7
Q
Contribution of Market Function
A
- Increasing market share
- Constantly reviewing value issues
- Using pricing techniqs to ensure comp-advantage
8
Q
Contribution of Financial Function
A
- Draw up accurate financial statements regularly
- Obtain capital from the most reliable source
- Analyze data to increase profits.
- Accurately analyze and interpret financial info
9
Q
TQM Elements
A
- Total customer satisfaction
- Continuous SD
- Adequate FC
- Continuous improvement to PS
- Monitoring evalution of quality performance
10
Q
Impact of continuous improvement to process systems
A
Positives
- Large biz have more resources to check quality parts in each biz function.
- Large biz have a team dedicated to improvement of P+S
Negatives
- Large scale manufacturing can complicate quality control.
- P+S take T+ effort to implement in large business.
11
Q
Impact of total customer satisfaction.
A
Positives
- May lead to increased profitability.
- Continually promote a p+ company img.
- Large biz gain access to global market.
Negatives
- Not all e. may be committed to total C-S
- Monopolistic companies have an increased bargaining power, so they don’t have to please customers.
12
Q
Application of the PDCA improving quality of products
A
Plan
- The biz must identify the problem.
- Plan the method & approach.
Do
- Biz must implement change on small scale.
- Implement the process & systems.
Check
- Check whether processes are working properly.
- Determine whether it made a difference.
Act
- Continuously revise the process.
- Devise strategy to continue improvement.
13
Q
Technological Challenges and Recommendations
A
Challenges
- May not keep up with latest tech.
- May not be able to afford new tech
Recommendations
- Biz must be geared up for online trading.
- Compare prices for new equipment.
14
Q
Environmental Challenges and Recommendations
A
Environmental Challenges
- Chemicals in biz may be harmful to customers.
- Measures to dispose of biz wastes.
Recommendations
- Implement recycling to prevent pollution.
- Use packaging that is recyclable.
15
Q
Types of Integration Strategy
A
Forward integration
- Biz combines/becomes involved with or takes over its distribution.
- Expansion of biz activities.
Backward integration
- Aims at decreasing biz dependency on suppliers.
- Enables biz to cut costs and have influence over the prices.
Horizontal integration
- Biz takes control over other bizs in the same industry.
- Aim is to reduce the threat of competition.
16
Q
Sources of Internal Recruitment
A
- Word of mouth
- Notice board
- B.Z newsletter
- Internal Emails
17
Q
Impact of External Recruitment
A
Positives
- Larger pool of candidates
- New candidates bring new ideas to business
- May help business hit BBBEE targets
Negatives
- Info on CVs may not be reliable
- New candidates take longer to adjust to new work environment.
18
Q
Sources of External Recruitment
A
- Billboards
- Networking
- Walk-ins
- Recruitment agencies
19
Q
Contribution of Administration Function
A
- Fast & Reliable data capturing processing systems
- Use modern tech efficiently
- Handle complaints quickly & effectively
20
Q
Strategic management process
A
- PESTLE analyse
- Monitor strat to take corrective action
- Formulate alt strat to respond to the challenges.
- Review M&V statement
21
Q
Steps in developing a strategy
A
- Evaluation of Strat.
- App of SWOT analysis.
- Implement Strat using action plan.
- Formulate Strat to meet objectives.
22
Q
Power of buyers
A
- buyers buying in bulk can bargain for prices in their favour.
- biz must assess how easy it is for buyers to drive prices down.
23
Q
Threat of substitutes
A
- Power depended on how easy it is for new biz to enter market
- Substi prod. might cause biz to lose its market share
24
Q
Threat of Barriers
A
- The Power will depend on how easy it is for new biz to enter market
- If barriers are low then it is easy for new biz to enter market.
25
Salary Determination Methods
Piecemeal
- Workers are paid according to the number of items.
- Mostly used in factories in the tech industry.
Time related
- Workers are paid for the amount of time spent at work.
- Many private & public sector businesses use this method.
26
Impact of Fringe benefits
Positives
- Businesses save money as benefits are tax deductible.
- Can be used as leverage for salary negotiations.
Negatives
- Decrease biz profits because incentives are higher.
- Leads to corruption if fringe benefits aren't allocated fairly.
27
Impact of Internal Recruitment
Positives
- Quicker to fill spots.
- Prvds opps for career paths within the biz.
Negatives
- e. who aren't promoted may feel demotivated.
- May close door to new ideas from outsiders.
28
Advantages of Intensive Strategies
- Gain **loyal customers** through **effective** promotion campaigns.
- Biz have **more ctrl** over the **prices of prod**.
- Improved **service delivery** may improve **biz img.**
29
Advantages of Diversification Strategies
- **Increase sales** and **biz growth.**
- Improve **biz brand and img**.
- **Reduce risk of relying** on one **product**.
30
Role of SETAs
- Allocate grants to employees.
- Register learnership programs.
- Promote and establish learnerships.
- Report to the Director General.
- Collect levies and payout grants.
31
Steps in Evaluating a Strategy
1. Decide on **desired outcome**.
2. Set **specific dates** for **control** and **follow-ups**.
3. Examine underlying basis of business strategy.
4. Draw up **table of targets** and **methods of a strat**.
32
Employment Contract
Job Title
Job Description
Benefits
Leave
Hrs of Work (Overtime)
Signature of e.
Level of Employment Contract
Both must sign contract
Must include code of conduct & ethics.
e. must agree to any changes to the contract
No party can change aspects of the employment contract
33
Reasons for Terminating Employment
- Decides to leave voluntarily & resign
- May have reached pre-det age for retirement
- May retrench some e. due to insolvency
- May dismiss e. for valid misconduct reasons
34
Purpose of Induction
- Give new employee info on layout of office
- Familiarize new employee with supervisors
- Make new employee feel welcome by introduction to physical workspace
- Allow new employee opportunities to ask questions
35
Benefits of Induction
- Increase quality performance
- Allows new e. to settle in quickly & work effectv
- Ensure that new e. understand rules in business
- New e. establish relationships with fellow e. at distance
36
Importance of Quality Circles as part of continuous improvement to Process & Systems
- **Reduce costs of redundancy** in long run
- Improves e. **morale**
- Reduces **wasteful efforts** in long run
- Greater **harmony** & **high performance** in the workplace
37
Impact of TQM if poorly implemented by business
- Setting unrealistic deadlines that may not be achieved.
- Decline in productivity, because of stoppages
- Decline in sales as more goods are returned by unhappy customers
- Biz img may suffer becoz poor quaity goods
38
Ways in which TQM can reduce the cost of Quality
- Schedule activities to eliminate duplication of tasks
- Work closely with suppliers to improve the quality of raw materials.
- Share responsibility for quality output among management & workers.
- Duplicate work systems that empower employees to find new ways of improving quality
39
Contribution of HR Function to Success of a business
- Good relationship with employees
- Low rate of staff turnover in business
- Ensures a fair & equitable selection process
- Makes sure that a good recruitment policy attracts best employees
40
Market Penetration
- Growth strat where business focuses on s**elling existing** products to **existing markets**.
- **New products** penetrate the existing market at a **low price** until well known.
41
Types of Intensive Strategies
Market Penetration
Market Development
Product Development
42
Disinvestment
- Biz may sell **divisions.**
- **Unproductive assets** are sold to pay off debts.
43
Types of Defensive Strategies
Disinvestment
Retrenchment
Liquidation
44
Retrenchment
- Decreasing number of **product lines**.
- **Terminating** e.c. contracts due to operational reasons.
45
Liquidation
- Selling the entire biz in order to pay all liabtys.
- All assets are sold to pay creditors due to lack of capital.
46
Examples of Fringe Benefits
- Medical Aid
- Pension fund
- Funeral Benefits
- Bonus Shares
- Staff discount
- Car allowance
47
Quality Assurance
- Carried out during the prod. process to ensure regulatory standards are met at every stage.
- building in of q. as opposed to checking for q.
48
Quality Control
- Inspection of final product to ensure it meets reqs.
- Includes setting targets and taking corrective measures.
49
Quality Management
- Tools used to design the quality of the product.
- Can be used for recognition with each business function.
50
Quality Performance
- Total perf of each dept measured against specified standards.
- Can be obt'd if all depts work together towards some quality.
51
Advantages/benefits of a good Quality Management system
- Biz **goals** may be **achieved efficiently**.
- **Time** and **resources** may be optimized.
- Biz has a **competitive +adv** over its **competitors**.
- Improves **biz morale** as there are **fewer rejections**.
- **Productivity** increases through **high-quality resources**.
52
Implications of the following BBBEE pillars for businesses.
-OWNERSHIP-
- Biz should **include black ppl in partnerships**
- Biz may find it **difficult to find suitable black** partners
- More **opps for black ppl** to **become owners**
53
Product Development
- Biz **generates new ideas** & **dvps new products.**
- Growth strat where biz aims to introduce **new products** into **existing markets**.
54
Market Development
| intensive strat
- Growth strat where business aims to **sell existing products** in **new markets**.
- Strat involves finding **new markets** & **new ways to distribute products.**
55
Outline the role of SETAs in supporting the Skills Development Act.
* **Register** **learnership agreements**.
* **Promote** and **establishes** **learnerships.**
* **Report** to the **Director General.**
56
Explain the purpose of the National Skills Development Strategy.
* **Improves skills** of **public sector** to **improve service delivery**.
* It makes **better use** of workplace – based **skills development**.
* Aims to **address** the **low level** of **language and maths** skills amongst the **youth and adults**.
57
Suggest ways in which businesses can comply with the SDA.
* Biz should r**egister** with the **relevant SETAs**
* **Prvd** all e. with the **opps** to **improve skills**.
* Employees who collect **S-D-L** should **register** with **SARS.**
58
Impact of the SDA on businesses.
*Positives*
* **Invest in education and training** of workers.
* **Encourages biz to improve skills** of workers.
* **Encourages workers** to participate in **learning
prgms**
Negatives
* **Implementation of the SDA** can be **difficult** to
**monitor and control**.
* **Increases cost** as the process requires a **large
amount of paperwork**.
* **S-D** may not always **address
training needs** of employees
59
BCEA PROVISIONS
-leave
-working time: overtime
-termination of employment
-rest periods
-sick pay
60
Selection Procedure
- **Evaluate cv** & **create shortlist**
- Check **cv info** & **contact ref**
- Conduct **interview** with **shortlist candi**
- **Offer emplyment** in
**writing** to **selected candi**
61
Role of Interviewer BEFORE
- Inform shortlist candi on date&place
- Book&Prep venue
- Ensure that all intervws take place same date
62
Rights of employers according to LRA
* Form and join **E. orgs** to **rep interests**.
* Estbl and **participate in barg. councils** for c**ollective agreements.**
* **Lock out e.** engaging in **illegal strikes** or actions.
* **Dismiss e.** involved in **unprotected strikes** or misconduct.
* **Withhold pay** from e. **for work not done** during strikes.
63
Quality CTRL VS Quality Assure
**Quality Control:**
1. Ensures final product quality through inspection.
2. Verifies finished product meets required standards.
3. Focuses on consistent manufacturing to high standards.
4. Involves setting targets, measuring performance, and correcting issues.
5. Checks raw materials, processes, and workmanship for quality.
**Quality Assurance:**
1. Monitors quality during and after production.
2. Ensures standards are met at every process stage.
3. Aims to minimize defects and delays.
4. Focuses on getting it right the first time.
5. Builds quality into the process rather than just checking it.
64
Integration Strats
- **Horizontal** (aim to reduce competition)
- **Forward vertical** (gain ctrl of distribution)
- **Backward vertical** (decrease dependency on supplier)
65
Piecemeal
- Workers are paid according to the number of items.
- Mostly used in factories in the tech industry.
Time related
- Workers are paid for the amount of time spent at work.
- Many private & public sector businesses use this method.
Salary Determination Methods
66
**Job Title**
**Job Description**
**Benefits**
**Leave**
**Hours of Work (Overtime)**
**Signature of Employee**
Employment Contract
67
E+e must **both sign contract**.
Must include **code of conduct & ethics.**
E+e must **agree to any changes** to the contract.
No party can **change aspects** of the e.c.
# next
**Legal Req of Employment Contract**
68
- e. decides to leave **voluntarily & resign.**
- e. may have reached **pre-d age for r**
- E. may **retrench** some e.s due to insolvency.
- E. may d- e. for valid **misconduct reasons.**
**Reasons for Terminating Employment Contract**
69
- Increase **QOP.**
- Allows **new e. to settle in quickly & work efficiently.**
- Ensure that **new e. understand rules in business.**
- **New e. build relationships** with fellow **e.s at the office.**
**Benefits of Induction**
70
- Give **new e.** info on the **layout of the office.**
- **Familiarize new e.** with **Supervisors.**
- Make **new e. feel welcome** by **introd- to physical workspace.**
- Allow **new e. opps** to **ask questions.**
**Purpose of Induction**
71
- Buy **raw materials in bulk**
- Good **underst.** of **S-C management.**
- Ensure that there is **no break in production due to stock shortages**
Contribution of Purchasing Function
72
- Increasing **market share**
- Constantly **reviewing value issues**
- Using **pricing techniqs** to ensure **comp-advantage**
Contribution of Market Function
73
- Draw up **accurate financial statements** regularly
- **Obtain capital** from the most **reliable source**
- **Analyze data** to **increase profits**.
- Accurately **analyze and interpret financial info**
Contribution of Financial Function
74
- Total customer satisfaction
- Continuous SD
- Adequate FC
- Continuous improvement to PS
- Monitoring evalution of quality performance
TQM Elements
75
Positives
- **Large biz** have **more resources** to check **quality parts** in each biz function.
- **Large biz** have a **team** dedicated to **improvement** of **P+S**
Negatives
- **Large scale manufacturing** can **complicate quality control**.
- **P+S** take **T+ effort** to **implement** in large business.
Impact of continuous improvement to process systems
76
Positives
- May lead to **increased profitability**.
- Continually **promote a p+ company img.**
- Large biz **gain access to global market.**
Negatives
- Not **all e. may be committed** to total **C-S**
- **Monopolistic companies** have an increased **bargaining power**, so they don't have to **please customers.**
Impact of total customer satisfaction.
77
Plan
- The biz must identify the problem.
- Plan the method & approach.
Do
- Biz must implement change on small scale.
- Implement the process & systems.
Check
- Check whether processes are working properly.
- Determine whether it made a difference.
Act
- Continuously revise the process.
- Devise strategy to continue improvement.
Application of the PDCA improving quality of products
78
Challenges
- May not keep up with latest tech.
- May not be able to afford new tech
Recommendations
- Biz must be geared up for online trading.
- Compare prices for new equipment.
Technological Challenges and Recommendations
79
Environmental Challenges
- Chemicals in biz may be harmful to customers.
- Measures to dispose of biz wastes.
Recommendations
- Implement recycling to prevent pollution.
- Use packaging that is recyclable.
Environmental Challenges and Recommendations
80
Forward integration
- Biz combines/becomes involved with or takes over its distribution.
- Expansion of biz activities.
Backward integration
- Aims at decreasing biz dependency on suppliers.
- Enables biz to cut costs and have influence over the prices.
Horizontal integration
- Biz takes control over other bizs in the same industry.
- Aim is to reduce the threat of competition.
Types of Integration Strategy
81
- Word of mouth
- Notice board
- B.Z newsletter
- Internal Emails
Sources of Internal Recruitment
82
Positives
- **Larger pool of candidates**
- **New candidates** bring **new ideas** to business
- May help business **hit BBBEE targets**
Negatives
- **Info on CVs** may not be **reliable**
- **New candidates take longer to adjust** to new work environment.
Impact of External Recruitment
83
- Billboards
- Networking
- Walk-ins
- Recruitment agencies
Sources of External Recruitment
84
- **Fast & Reliable** data capturing **processing systems**
- Use **modern tech efficiently**
- Handle **complaints quickly & effectively**
Contribution of Administration Function
85
- PESTLE analyse
- Monitor strat to take corrective action
- Formulate alt strat to respond to the challenges.
- Review M&V statement
Strategic management process
86
- **Evaluation** of Strat.
- App of **SWOT** analysis.
- **Implement Strat** using action plan.
- **Formulate Strat** to meet objectives.
Steps in developing a strategy
87
- buyers **buying in bulk** can **bargain for prices** in their **favour**.
- biz must **assess how easy** it is for **buyers** to **drive prices down**.
Power of buyers
88
- Power depended on how easy it is for new biz to enter market
- Substi prod. might cause biz to lose its market share
Threat of substitutes
89
- The **Power** will depend on **how easy** it is for **new biz** to enter market
- If **barriers are low** then it is **easy for new biz** to enter market.
Threat of Barriers
90
Positives
- Businesses save money as benefits are tax deductible.
- Can be used as leverage for salary negotiations.
Negatives
- Decrease biz profits because incentives are higher.
- Leads to corruption if fringe benefits aren't allocated fairly.
Impact of Fringe benefits
91
Positives
- Quicker to fill spots.
- Prvds opps for career paths within the biz.
Negatives
- e. who aren't promoted may feel demotivated.
- May close door to new ideas from outsiders.
Impact of Internal Recruitment
92
- Gain **loyal customers** through **effective** promotion campaigns.
- Biz have **more ctrl** over the **prices of prod**.
- Improved **service delivery** may improve **biz img.**
Advantages of Intensive Strategies
93
- **Increase sales** and **biz growth.**
- Improve **biz brand and img**.
- **Reduce risk of relying** on one **product**.
Advantages of Diversification Strategies
94
- Allocate grants to employees.
- Register learnership programs.
- Promote and establish learnerships.
- Report to the Director General.
- Collect levies and payout grants.
Role of SETAs
95
1. Decide on **desired outcome**.
2. Set **specific dates** for **control** and **follow-ups**.
3. Examine underlying basis of business strategy.
4. Draw up **table of targets** and **methods of a strat**.
Steps in Evaluating a Strategy
96
Job Title
Job Description
Benefits
Leave
Hrs of Work (Overtime)
Signature of e.
Level of Employment Contract
Both must sign contract
Must include code of conduct & ethics.
e. must agree to any changes to the contract
No party can change aspects of the employment contract
Employment Contract
97
- Decides to leave voluntarily & resign
- May have reached pre-det age for retirement
- May retrench some e. due to insolvency
- May dismiss e. for valid misconduct reasons
Reasons for Terminating Employment
98
- Give new employee info on layout of office
- Familiarize new employee with supervisors
- Make new employee feel welcome by introduction to physical workspace
- Allow new employee opportunities to ask questions
Purpose of Induction
99
- Increase quality performance
- Allows new e. to settle in quickly & work effectv
- Ensure that new e. understand rules in business
- New e. establish relationships with fellow e. at distance
Benefits of Induction
100
- **Reduce costs of redundancy** in long run
- Improves e. **morale**
- Reduces **wasteful efforts** in long run
- Greater **harmony** & **high performance** in the workplace
Importance of Quality Circles as part of continuous improvement to Process & Systems
101
- Setting unrealistic deadlines that may not be achieved.
- Decline in productivity, because of stoppages
- Decline in sales as more goods are returned by unhappy customers
- Biz img may suffer becoz poor quaity goods
Impact of TQM if poorly implemented by business
102
- Schedule activities to eliminate duplication of tasks
- Work closely with suppliers to improve the quality of raw materials.
- Share responsibility for quality output among management & workers.
- Duplicate work systems that empower employees to find new ways of improving quality
Ways in which TQM can reduce the cost of Quality
103
- Good relationship with employees
- Low rate of staff turnover in business
- Ensures a fair & equitable selection process
- Makes sure that a good recruitment policy attracts best employees
Contribution of HR Function to Success of a business
104
- Growth strat where business focuses on s**elling existing** products to **existing markets**.
- **New products** penetrate the existing market at a **low price** until well known.
Market Penetration
105
Market Penetration
Market Development
Product Development
Types of Intensive Strategies
106
- Biz may sell **divisions.**
- **Unproductive assets** are sold to pay off debts.
Disinvestment
107
Disinvestment
Retrenchment
Liquidation
Types of Defensive Strategies
108
- Decreasing number of **product lines**.
- **Terminating** e.c. contracts due to operational reasons.
Retrenchment
109
- Selling the entire biz in order to pay all liabtys.
- All assets are sold to pay creditors due to lack of capital.
Liquidation
110
- Medical Aid
- Pension fund
- Funeral Benefits
- Bonus Shares
- Staff discount
- Car allowance
Examples of Fringe Benefits
111
- Carried out during the prod. process to ensure regulatory standards are met at every stage.
- building in of q. as opposed to checking for q.
Quality Assurance
112
- Inspection of final product to ensure it meets reqs.
- Includes setting targets and taking corrective measures.
Quality Control
113
- Tools used to design the quality of the product.
- Can be used for recognition with each business function.
Quality Management
114
- Total perf of each dept measured against specified standards.
- Can be obt'd if all depts work together towards some quality.
Quality Performance
115
- Biz **goals** may be **achieved efficiently**.
- **Time** and **resources** may be optimized.
- Biz has a **competitive +adv** over its **competitors**.
- Improves **biz morale** as there are **fewer rejections**.
- **Productivity** increases through **high-quality resources**.
Advantages/benefits of a good Quality Management system
116
- Biz should **include black ppl in partnerships**
- Biz may find it **difficult to find suitable black** partners
- More **opps for black ppl** to **become owners**
Implications of the following BBBEE pillars for businesses.
-OWNERSHIP-
117
- Biz **generates new ideas** & **dvps new products.**
- Growth strat where biz aims to introduce **new products** into **existing markets**.
Product Development
118
- Growth strat where business aims to **sell existing products** in **new markets**.
- Strat involves finding **new markets** & **new ways to distribute products.**
Market Development
| intensive strat
119
* **Register** **learnership agreements**.
* **Promote** and **establishes** **learnerships.**
* **Report** to the **Director General.**
Outline the role of SETAs in supporting the Skills Development Act.
120
* **Improves skills** of **public sector** to **improve service delivery**.
* It makes **better use** of workplace – based **skills development**.
* Aims to **address** the **low level** of **language and maths** skills amongst the **youth and adults**.
Explain the purpose of the National Skills Development Strategy.
121
* Biz should r**egister** with the **relevant SETAs**
* **Prvd** all e. with the **opps** to **improve skills**.
* Employees who collect **S-D-L** should **register** with **SARS.**
Suggest ways in which businesses can comply with the SDA.
122
*Positives*
* **Invest in education and training** of workers.
* **Encourages biz to improve skills** of workers.
* **Encourages workers** to participate in **learning
prgms**
Negatives
* **Implementation of the SDA** can be **difficult** to
**monitor and control**.
* **Increases cost** as the process requires a **large
amount of paperwork**.
* **S-D** may not always **address
training needs** of employees
Impact of the SDA on businesses.
123
-leave
-working time: overtime
-termination of employment
-rest periods
-sick pay
BCEA PROVISIONS
124
- **Evaluate cv** & **create shortlist**
- Check **cv info** & **contact ref**
- Conduct **interview** with **shortlist candi**
- **Offer emplyment** in
**writing** to **selected candi**
Selection Procedure
125
- Inform shortlist candi on date&place
- Book&Prep venue
- Ensure that all intervws take place same date
Role of Interviewer BEFORE
126
* Form and join **E. orgs** to **rep interests**.
* Estbl and **participate in barg. councils** for c**ollective agreements.**
* **Lock out e.** engaging in **illegal strikes** or actions.
* **Dismiss e.** involved in **unprotected strikes** or misconduct.
* **Withhold pay** from e. **for work not done** during strikes.
Rights of employers according to LRA
127
**Quality Control:**
1. Ensures final product quality through inspection.
2. Verifies finished product meets required standards.
3. Focuses on consistent manufacturing to high standards.
4. Involves setting targets, measuring performance, and correcting issues.
5. Checks raw materials, processes, and workmanship for quality.
**Quality Assurance:**
1. Monitors quality during and after production.
2. Ensures standards are met at every process stage.
3. Aims to minimize defects and delays.
4. Focuses on getting it right the first time.
5. Builds quality into the process rather than just checking it.
Quality CTRL VS Quality Assure
128
- **Horizontal** (aim to reduce competition)
- **Forward vertical** (gain ctrl of distribution)
- **Backward vertical** (decrease dependency on supplier)
Integration Strats
