Reliance Control Systems is a large manufacturer of control systems for the electrical power generation and distribution industry. Over the past few years, Reliance has watched overseas competitors take away market share with products that are priced lower and that, at the same time, have developed a reputation for better reliability. The company is not in a dangerous position yet, but the board of directors wants to see a concerted effort to improve the company’s competitive posture. In addition, the board wants to solve the quality problem that is gradually arising in the implementation of their control systems. System glitches have been evident in several projects of the company which strongly affect the company’s overall reliability to their clients. During the discussion of the senior management, a proposal to implement quality standards of ISO 9000 was considered. However, the CEO of the company is not at all convinced that mere application of quality standards will solve their organizational problem and will result to a greater market share for the company. If you are part of the senior management team of Reliance Control Systems, how will you convince the CEO that implementing the quality standards of ISO 9000 will solve the organizational problem and will result in achieving a greater market share for the company?
Reliance
distribution industry. Over the past few years, Reliance has watched overseas competitors take away market
share with products that are priced lower and that, at the same time, have developed a reputation for better
reliability. The company is not in a dangerous position yet, but the board of directors wants to see a
concerted effort to improve the company’s competitive posture. In addition, the board wants to solve the
quality problem that is gradually arising in the implementation of their control systems. System glitches have
been evident in several projects of the company which strongly affect the company’s overall reliability to
their clients. During the discussion of the senior management, a proposal to implement quality standards of
ISO 9000 was considered. However, the CEO of the company is not at all convinced that mere application of
quality standards will solve their organizational problem and will result to a greater market share for the
company. If you are part of the senior management team of Reliance Control Systems, how will you convince the
CEO that implementing the quality standards of ISO 9000 will solve the organizational problem and will
result in achieving a greater market share for the company?
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