UNIT III

2.1 Strategy and Strategic Quality Management

Strategic management is defined as a systematic and planned approach for setting
and achieving quality objectives throughout an organization. The quality management is an
essential element of successful achievement of competitive advantage over the business
competitors by any organization.

Strategic quality planning (SQP) is a systematic approach to defining long-term

business goals, including goals to improve quality and the means (i.e., the plans) to achieve
them. Many organizations have created a vision “to be the best,” toward a goal of outperforming
competitors

Total Quality Management focuses the organization's goals on a system of quality and
meeting the needs of the customer. Strategic planning is a tool that helps to prioritize the
efforts of the organization in the implementation of a Total Quality Management approach.

Concept of Strategic Quality Management:-

A strategy as defined by porter is the process of applying resources to pursue the
objectives of organization’s policy. The strategy has two important elements of reasoning and
conversion of the vision into effective plans that lead to the vision realization. Thus strategic
quality management involve the aggregation of quality as well as continuous improvement with
the organizational transformation so as to make the objectives an integral part of the way
business in conducted. Most organizations treat Total Quality management as being added to
the culture of an organization. However, SQM fully integrates the TQM into the business
operation and strategy. Strategic Quality Management is" attained when strategic planning and
quality planning have merged into one seamless process, owing to a free flow of information
between strategic planners and quality planners" (Leonard & McAdam, 2002).

The importance of strategic management is that it enables an organization achieve total

quality for absolute customer satisfaction. The success of any organization lies on the
customers who are the core stakeholders. With customer satisfaction, there will be consistent
improvement in their loyalty. The eventual customer loyalty guarantees an organization the
future business prospects which indicate the sustainability of the business in the long term.