Business studies (tourism )

Internal Factors

Things inside the business it can control (e.g.

staff, leadership, innovation, operations, finance)

Interaction

How two or more internal factors work together

or impact each other (positively or negatively)

Global Context

The business must sell its product/service

internationally (not just operate in NZ)

Quality Control (QC)

Quality Control is checking the product after production to find defects or errors. Usually done by inspectors.

Benefits of QC

Stops faulty products reaching the customer
Maintains brand reputation
Easy to implement in production lines

Costs of QC

Wastage if products fail checks

Doesn’t prevent errors during production

Can cause delays in shipping

Quality Assurance

(QA)

Quality Assurance (QA) is built into the production process. Staff follow systems to make sure each step meets standards.

Benefits of QA

Reduces the chance of errors happening in the first place
Builds customer trust (especially in global markets)

Costs Of QA

Staff need training
Slower start-up if systems are complex
Ongoing monitoring required

 Total Quality Management (TQM)

Total Quality Management is a business wide approach where everyone is responsible for quality, not just inspectors or managers.

Benefits of TQM

Creates a quality-first culture
Continuous improvement mindset
Boosts teamwork and motivation

Costs of TQM

Time-consuming to implement

Requires full buy-in from all staff
Can be costly to train and maintain

Kaizen

Kaizen is a Japanese approach where small, regular changes are made by staff at all levels to improve processes.

Benefits of Kaizen

Staff feel valued and engaged
Problems are solved before they grow
Saves money in the long run

Costs of Kaizen

Needs ongoing commitment
Can seem slow to show results
Management must support ideas from the bottom up

Quality Circles

Quality Circles are small groups of employees who meet regularly to discuss and solve quality-related issues.

Benefits of Quality Circles

Encourages teamwork and staff voice
Improves morale and productivity
Identifies practical, frontline solutions

Costs of Quality Circles

Needs time during work hours
May require facilitation or training

Not all ideas may be implemented

Explain the difference between quality control (QC) and total quality management (TQM) in the context of a business like Fonterra.

Quality Control at Fonterra involves inspectors at the end of the production process, detecting any faults after they have appeared. This involves checking the milk temperature and the bacteria count after processing. Overall, Quality control is milk tested after the collection. In contrast, Total Quality Management at Fonterra involves everybody in each step. This includes every staff member from farmers monitoring the feeds and milking routines to the factory workers and transport teams, as well as checking tanker hygiene. This means all the responsibility is shared across all departments, preventing any faults before they happen. As also the company has also considered changing to advanced production technology. The main difference is that Quality Control happens at the end of the production process and TQM occurs throughout the whole thay throughout.

Benefits of shifting to TQM

Fewer product recalls, improved global trust

Stronger team culture and ownership

Faster innovation across the supply chain

Costs of shifting to TQM

Training required for all levels (farmers to factory)

Resistance to change from staff used to QC

Takes time to embed a new culture across a

massive organisation

how QUALITY CIRCLES work and why they support TQM

Quality circles work by encouraging teamwork and staff voice, and identifying practical, frontline solutions. They support Total Quality Management by involving employees in the continuous improvement process. They ensure a culture of continuous improvement, enhance employee engagement, and improve problem-solving and decision-making skills within the busines which all all of which are core principles of TQM.

Innovation

introducing new ideas, products, or

processes

Product Innovation

New goods/services

Process Innovation

Improved ways to produce or

deliver

Why do businesses innovate?

Stay competitive

Improve efficiency

Reach new markets

INNOVATION OPPOURTUNITES

Competitive edge

Access new markets

Better customer experience

INNOVATION Risk

Costly if it fails

Staff resistance

Slower productivity at first

What Makes Change Successful?

Clear communication

Staff involvement

Training + support

Leadership backing

Change management

structured approach businesses use to transition individuals, teams, and organisations from a current state to a desired future state. It involves planning, implementing, and monitoring changes to ensure the business adapts successfully.

Why is a Change Management Process Necessary

Minimises Disruption

Manages Resistance

Ensures Resources Are Used Wisely

Ensures Resources Are Used Wisely

Planning helps allocate time, money, and effort efficiently, avoiding costly mistakes or wasted effort.

Manages Resistance

People naturally resist change due to fear of the unknown or loss of control. A process addresses concerns, communicates clearly, and involves employees to gain support.

Why do people resist to change

Fear of the Unknown

Loss of Control
Poor Communication:

How to overcome resistance

Communicate Clearly

Involve Employees

Provide Training

Costs of Change Management

Financial Costs

Time Costs

Productivity Loss

Benefits of Change Management

Improved Efficiency

Competitive Advantage

Better Customer Satisfaction