Description
ASSIGNMENT 08
C01 Introduction to Business
Directions:Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.
Part A
- The text says that Toyota has focused on quality as its operations capability. Describe two (2) ways that Toyota's operations might have changed if it had focused on low cost instead of quality.
- FedEx and the U.S. Postal Service compete for many of the same customers. Describe two (2) ways that their strategies for attracting customers are different.
Part B
Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice.
- Rolanda suggests that Mary Ann may benefit from the services of a noncertified public accountant. Describe two (2) types of services that could be provided.
- The auditor's report has come back and Mary Ann is reviewing the financial statements. The current balance sheet shows that the business has more liabilities than assets. Why would this explain the need to sell the business? Provide two (2) supporting facts.
- Rolanda suggests that, even with the negative owners' equity, this business might still be worth buying. Describe one (1) other indicator, a financial term found within the auditor's report that they should consider for this decision.
Explanation & Answer
Attached.
Running Head: INTRODUCTION TO BUSINESS
Introduction to Business
Student’s Name:
Instructor’s Name:
Course:
Date:
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INTRODUCTION TO BUSINESS
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Part A
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The text says that Toyota has focused on quality as its operations capability. Describe
two (2) ways that Toyota's operations might have changed if it had focused on low
cost instead of quality.
Quality may be defined as the standards of production of a certain product. Quality
production aims at defect free, durable and efficient products. More so, it is a critical part for
organizational success, which includes customer satisfaction and profitable returns. If Toyota
had previously focused on production of low cost automotive instead of quality, there could
have been subsequent consequences. In return, poor quality products could have resulted into
poor customer satisfaction and low profit returns as explained by, (Cooper, & Kleinschmidt,
1996)
Customer dissatisfaction relates directly to low quality products and poor services. If a
customer purchases a low-quality product, which in return serves the customer at undesired
expectations, the customer feels dissatisfied. This results into a negative feedback and lower
ranking of the company and notably unfavorable referral to other potential customers, by
already dissatisfied clients. Lower ranking occurs due to market surveys and negative reports
by automotive websites or journals. Customer dissatisfaction also builds the clients mistrust
and lack of confidence which discourages customer retention. In addition, client dissatisfaction
builds a non- stable market for products and services leading to poor returns.
Poor quality products are not durable and therefore not cost effective, this discourages
customers as they opt for better options. In contrary, the cost of production may b...
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