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Discuss how stock control and quality control achieve efficiencies for a business such as M6 Motors. - Leaving Cert Business - Question B - 2022
Question B
Discuss how stock control and quality control achieve efficiencies for a business such as M6 Motors.
Worked Solution & Example Answer:Discuss how stock control and quality control achieve efficiencies for a business such as M6 Motors. - Leaving Cert Business - Question B - 2022
Step 1
Stock Control
Answer
A business needs to control its stock to ensure it has optimum stock levels to meet customer demand at all times.
Maintaining adequate stock levels can prevent issues such as obsolescence. For M6 Motors, having too much stock can lead to outdated cars that are hard to sell, which increases storage and insurance costs. This ties up capital and increases the risk of financial loss.
Conversely, too little stock can harm customer loyalty and lead to lost sales opportunities. If customers frequently find that the desired car is unavailable, they may turn to competitors, resulting in a negative impact on revenue and brand perception.
Step 2
Quality Control
Answer
The aim of quality control at M6 Motors is to ensure that all products meet a specific standard set by the business, industry, or regulatory organizations.
This can be achieved by appointing a Quality Controller, who conducts physical inspections and ensures that all cars meet required standards before reaching customers. Such systems not only guarantee car reliability but also enhance customer satisfaction.
Additionally, implementing quality standards can help the business to apply for awards such as the Q mark or ISO 9000, which can improve market competitiveness and credibility.