Impact of NOT maintaining quality

Cards (3)

  • Impact of not maintaining quality
    1. Ruins reputation
    2. Increases costs due to recalls
    3. Leads to customer refunds
    4. Reduces cash flow
    5. Increases waste
    6. Results in legal action
    7. May force business to stop trading
  • Increased costs due to not maintaining quality
    Opportunity cost as the money could have been used for other purposes like research and development
  • Opportunity cost of not maintaining quality
    Missed opportunity to invest in research and development for future products, leading to potential increase in profits and share prices for public limited companies