A recent newspaper article stated that The price of gasoline had risen leading to a decrease in the demand for gasoline. Do you agree with this statement? Explain.

A recent newspaper article stated that The price of gasoline had risen leading to a  decrease in the demand for gasoline. Do you agree with this statement? Explain.

Why increase in price of gasoline leads to decrease in demand

Arguably, the statement that the increase in the price of gasoline had resulted into a reduction in demand is true. Based on demand laws, changes in prices might result into changes in demand. Conversely, a reduction of price of products or services leads to an increase in demand. Many factors contribute to the above changes. For instance, it means that customers did not expect that price increase. In situations where customers are aware of future price increase, the change in demand would not be affected even if the prices were increased. Demand might also have reduced because there are other substitutes and cheap products like diesel and jet fuel in the market. It seems majority of the clients low and middle class individuals hence increasing the price of gasoline would mean that they most of them would not afford thereby reducing demand.

The other reason that might have led to the decrease in demand is the change in preferences. For instance, customers might have developed a preference to another similar product. Therefore, customers might have just used the increase in price as a scapegoat. As an important reminder, the decrease in this context might come because of the decline in the number of gasoline users. Moreover, in case there are other superior products than gasoline, the demand would definitely decrease even if customers’ income had increased. In case gasoline is a normal product, then the decrease in demand came because of the decrease in income. This implies that the customers are not able to afford the increased price of gasoline.

Quality Awards- 1. Introduction
2. Quality Awards
a. Malcom Baldrige National Quality Award
b. European Quality Award
c. Deming Application Prize
d. Canadian Quality Award
e. Australian Quality Award
3. History
4. Strategy
5. Values
6. Comparison of the above awards
7. References

Introduction

Quality has a pragmatic interpretation in manufacturing, engineering, and business. It can be defined as superiority and non-inferiority of a good or service. It can also be defined as the fitness for purpose. Quality has a subjective, conditional, and perceptual attribute in different people. Producers measure the conformance aspect of quality, consumers measure the specification aspect of quality, and support personnel view quality as sustainable, maintainable, or reliable. In the business world, quality of a good or service is ability to suit the intended purpose or ability to perform satisfactorily. There are five quality aspects in business world. They include quality assurance, quality management and quality control, checking, and producing. Quality assurance is obtaining confidence that service or good will be satisfactory to the intended consumers (Baldrige National Quality Program 2). Quality management is act of directing a business organization in order to optimize its performance through improvement and analysis. Quality management standards are measures put in place to ensure that organizations are producing better goods and service. Most organizations concentrate on improving quality in order to grow and survive the stiff competition in their industries. The contemporary meaning of quality is the degree to which a good or service meets the needs of the consumers. Some scholars argue that quality is subjective, conditional, and perceptual attribute of a good or service. Quality drives profitability and productivity up in business. Improved quality is a source of increased technological advances, employment opportunities, and greater profits and revenues. Quality is certified, tested, and regulated using diverse standards, models, and methods. For instance, the quality of electrical appliances is measured using   FFU (fitness for use). FFU certifies the durability and quality of electrical appliances. This essay will focus on various quality awards, their comparison, values, strategy, and history (Baldrige National Quality Program 4).

Malcom Baldrige National Quality Award

In the early and mid-80s, the government and industry leaders saw the need for improving quality in the competitive, expanding, and expanding world market. Baldrige Quality Award was started in 1987 to assist American organizations to come up with a standard of excellence for excellent quality. The quality standard is used worldwide to measure quality excellence. The Baldrige criteria is employed by thousands of American companies to improve performance and stay ahead of increasing competition. In the current government, non-profit, education, health care, and business environment, the quality measure is used assist firms to respond to current problems; of capitalizing knowledge assets and rapid innovation, need to create value for businesses and consumers, transparency and openness in ethics and governance. Baldrige criteria   enables multi-nationals, small-scale and medium scale business entities, non-profit and profit organizations to plan and achieve in the highly volatile and uncertain environment. Baldrige criteria is based on correlated concepts and core values present in successful organizations.  The Baldrige concepts are categorized into various categories, namely, workforce focus, results, customer focus, knowledge, leadership, analysis, strategic planning, measurement management, and process management. Baldrige criteria is instrumental in organizations that are interested in improving their overall performance. In addition, it helps the organizations to address opportunities, market challenges, and economic challenges. The criteria concentrates on areas of organizational performance in order to ensure that all strategies are in equilibrium. Secondly, it employs adaptable and non-prescriptive approaches, which are flexible and creative in nature in order to foster improvement. Thirdly, the criteria supports all the systems that steer and maintain the organization to success pathway. The goals of the criteria include; facilitating personal and organizational learning, contributing to market place success, delivering improved value to customers, and improving overall capabilities and effectiveness of an organization.  For an organization to receive this award, it should demonstrate  effective and efficiency operations, establish a way of responding and engaging employees and consumers, and have role management that ensure  continuous improvement in service and good delivery (Baldrige National Quality Program 3).

Baldrige award results help in examination of improvement and performance of organization using key business ideas, such as leadership, operational and product effectiveness, market place and financial performance, and customer satisfaction. Secondly, process management helps in examining the key support, delivery and production processes and the way they are improved, managed, and designed.  Thirdly, workforce focus helps in examining how an organization develops, manages, and engages all individuals actively involved in its success and how the employees are aligned with goals and objectives of the organization. Knowledge, analysis, measurement management examines improvement, analysis, use, and management of information and data that support the key operations and processes of the organization. In addition, it helps the organization to review its performance. Customer focus helps in examining how the   company determines expectations and requirements of markets and customers. Strategic planning examines how the company deploys key action plans and set strategic directions. Leadership examines how the management sustains and guide the organization. In addition, it examines community, legal, and governance responsibility.

 

 

Analysis and knowledge management

 

Organizational profile :challenges, relationships, and environment

 

results

 

leadership

 

Customer focus

 

Process management

 

Strategic planning

 

Workforce focus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

European Quality Award

European quality award is a quality award that recognize European organizations for sustainable and excellent results and application of total quality management principles. The award was established in 1991 in Belgian capital, Brussels (Dibley 5). The award focus purely on subsidiary business units, independent SMEs, public sector, operational units, operational unit, and large organizations and business units.  European quality award’s assessors spend over 500 hours on each organization conducting interviews and reviewing documentation. The European quality award’s model provides organizations with holistic overview of how effectively it develops and deploy strategic plans in line with expectations and needs of the shareholders. The award tales place annually. It is designed only recognize the best performing profit and non-profit organizations in Europe. The award is supported by very complex and rigorous assessment procedures, which are in line with EFQM model. To win the prestigious award, an organization must surpass other competing organizations in terms of performance. The winner of the award must demonstrate the best behavior in  the following organizational concepts, namely sustaining outstanding results, succeeding through talent of the persons, leading with integrity, inspiration, and vision, harnessing innovation and creativity, corporate social responsibility, developing organizational capability, creating a sustainable future, and adding value to the customers. The role of EQA is to attract organizations to EFQM as members, identify good practices that other organization will learn from, identify role models that other organizations will learn from and identify with, and promote the fundamental beliefs in EFQM model (Dibley 6).

 

                   Leading with integrity, inspiration, and vision                                                                                                                

                                                                                              

Corporate social responsibility

                                                                                                 Harnessing innovation and creativity

                                                                                                                   

Adding value to the customers

                                                                                                      Sustaining outstanding results,   

 

 

Creating a sustainable future                                           succeeding through talent of the persons                               

                      

                                                    

 

                                         Developing organizational capability  

  

 

Deming Application Prize

Deming application award is the oldest award in the business world. The award recognizes organizations and individuals in Japan for their contributions to total quality management. Edward Deming was invited by the JUSE (union of Japanese engineers and scientists) to create statistical quality control criteria.  Edward Deming play a huge role in building quality control for Japan made products. Initially, the quality control award was meant to reward Japanese organizations for quality improvement. Currently, the award recognizes even non-Japanese organizations for their contributions and advancement of quality. Deming application award is the most oldest and prestigious quality award in the world. Over ten business organizations in India have won the award due to quality excellence (Vokurka, Stading and Brazeal). The award is awarded to companies with practice techniques, concepts, and principles of total quality management.  Companies, which apply for the award, must have sought new strategies for quality management.  Through witnessing success of Deming winners, other companies tend to be inspired to create their own quality management mechanisms. Quality management is an important aspect in challenge of the prize and business success. Deming assessors do not require applicant companies to conform to the model provided by the Deming committee but rather to think outside the box and establish their own objectives and themes according to their situations. Deming examiners evaluate companies that apply quality control themes according to their situations or circumstances.  Deming award committee view Deming examination process as mutual development. This is because no organization can build excellent management and quality systems by just solving other organizations’ problems.  Organizations are required to drive themselves, set lofty goals, and think on their own in order to achieve goals (Vokurka, Stading and Brazeal). Japanese organizations use Deming criteria to transform and improve their business management.  Organizations based in Japan can apply for the award regardless of whether they are overseas, domestic, small, large, private or public in nature. The following criteria is used to examine the applicant organizations; applicants should have customer oriented and challenging business strategies and objectives, which reflect their business environment, scope, business, industry, and management principles. Secondly, their total quality management should be implemented to achieve business strategies and objectives. Thirdly, they should have outstanding results obtained for business strategies and objectives obtained in the first item. Effects of Deming application prize include total quality management by improvement of organizational culture and total participation, realization of top management’s plans, enhanced market share, customer delight, higher profits and sales, cost reduction, productivity improvement, quality improvement and stabilization (Deming Organization 6).

Canadian Quality Award for excellence

Canada awards of excellence are quality control and management awards that are awarded to Canadian firms for outstanding performance in terms of total quality management. The awards were started in the year 1984 by Industry Canada. The National Quality Institute administers the awards. The original intentional of the awards was to acknowledge the performance of profit making organizations in Canada but now they have extended to government and nonprofit making institutions. Canadian quality award relies on organizations’ continuous improvement rather than the award criteria framework. Canadian organizations are acknowledged by the award for their healthy workplace, customer service, and quality excellence. According to Allan Ebedes, CEO of the NQI, the Canadian quality awards are given to public and private sector organizations, which are excellent in terms of healthy workplace, customer service, and quality excellence. The award helps organizations to implement excellence programs. National quality awards works closely with Canadian organizations to develop improvement programs, review business processes, and manage self-assessment programs. Due to the presence of the awards, Canadian public and private sector organizations are increasingly adopting healthy work places in order to attract and retain best employees. Canadian quality award model provides progressive excellence program   for Canadian based organizations to use in meeting the award’s criteria.  In addition, the organization guides the organizations to implement the quality management system of their choice. The model is designed to have the following; representation during the assessments, customized employee orientation and staff training, documentation support, such as procedures and policies,  personal coaching of staffs and leaders, facilitation and development of  Business excellence model components, setting up of implementation schedule and team, and identification of opportunities and strengths (HUMAN CANADA). Baldrige quality award used Canadian quality assurance as the blueprint for its development and moderation. Canadian quality award is the second oldest quality award after Deming prize. The award uses key drivers to access the organizations. They include organizational performance, supplier focus, process management, people focus, customer focus, planning, and leadership (Vokurka, Stading and Brazeal).

 

Australian Quality Award

The Australian awards were established in year 1988 by the AQC (Australian Quality Council). The awards were later acquired by the Standards Australian international in 2002. The major goal of the awards is to recognize the productivity and quality improvement and increase quality awareness of the management. In addition, Australian quality award provides quality benchmark for Australian private and public sector organizations. The award raises quality awareness and consciousness among the citizens and industrialists by sharing the best business experiences and practices. Quality management is extensively practiced by Australian organizations that deal with highly competitive export market. Quality is viewed as the management philosophy that propels business excellence by Australian organizations. A study was conducted on Australian quality award winners, which are listed at the Australian stock exchange. It was discovered that the award winners achieve sustainable productivity results and generate higher returns. This shows that the award pays.  Australian quality award uses a framework that tracks performance of poor performers against award winners. A survey conducted by the Australian quality council shows that award winners tend to outperform other organizations in terms of costs, sales, operating income, and stock returns.

Comparison of the awards

Prize	country	Year established	Administrating organization
Deming application prize   Canada Quality award Australian Quality award Malcom Baldrige National Quality Award European Quality award	Japan   Canada Australia USA   European Union	1951   1983 1988 1989   1990	Japanese Union of engineers and Scientists National Quality Institute Australian Quality council Department of Commerce, National Institute of Standards European foundation for quality management

 

Deming application award is the oldest award followed by Canadian quality control, Australian quality award, Malcom Baldrige and finally, European quality award. Emergence of quality awards was heavily inspired by the performance of Japanese companies in terms of quality. The countries from which these awards are administered control a huge segment of the world market due to competitiveness of their products. Research shows that those countries control over 70% of the global national product.  The awards are administered by different organizations in their respective countries. For instance, EQA is administered by the Foundation for Quality Management, National Institute of Standards administers Baldrige Quality Award, Canada Quality award is administered by National Quality Institute, Deming application prize is administered by Japanese Union of engineers and Scientists (Deming Organization). All these quality award programs share various similarities. Both award programs are administered after every one year to successful organizations.  Secondly, the major role of the award programs is to facilitate personal and organizational learning, contribute to market place success, deliver improved value to customers, and improve overall capabilities and effectiveness of organizations. Thirdly, the award programs benefits organizations through  total quality management by improvement of organizational culture and total participation, realization of top management’s plans, enhanced market share, and customer delight, higher profits and sales, cost reduction, productivity improvement, quality improvement and stabilization. Fourthly, both award programs allow governmental, non-profit, and profit making organizations to apply and participate without biasness. Fifthly, the five award programs use continuous improvement as principle of creation of quality model and benchmarks for quality management systems. Lastly, both award programs recognize companies with principles, practice technique, and concepts of quality management (Baldrige National Quality Program).

Conclusion

Quality can be defined as superiority and non-inferiority of a good or service. In addition, it can also be defined as the fitness for purpose. There are five quality aspects in business world. They include quality assurance, quality management, and quality control, checking, and producing. Most organizations concentrate on improving quality in order to grow and survive the stiff competition in their industries. Quality is certified, tested, and regulated using diverse standards, models, and methods.

  Baldrige Quality Award was established in 1987 to assist American organizations to come up with a standard of excellence for excellent quality. The quality standard is used worldwide to measure quality excellence. European quality award is a quality award that recognize European organizations for sustainable and excellent results and application of total quality management principles. The award was established in 1991 in Belgian capital, Brussels.

Deming application award is the oldest award in the business world. The award recognizes organizations and individuals in Japan for their contributions to total quality management. Deming award is awarded to companies with practice techniques, concepts, and principles of total quality management. Deming examiners evaluate companies that apply quality control themes according to their situations or circumstances.  Canada awards of excellence are quality control and management awards that are awarded to Canadian organizations for outstanding performance in terms of total quality management. The awards were started in the year 1984 by Industry Canada. The original intentional of the awards was to acknowledge the performance of profit making organizations in Canada but now they have extended to government and nonprofit making institutions. The Australian awards were established in year 1988 by the AQC. The awards were later acquired by the Standards Australian international in 2002. Australian quality award provides quality benchmark for Australian private and public sector organizations. In addition, the award raises quality awareness and consciousness among the citizens and industrialists by sharing the best business experiences and practices.