Impact of ISO 9000 certification on the business

Impactof ISO 9000 certification on the business

Nameof the institution

12November 2015

Impactof ISO 9000 certification on the business

Overthe past years, more than one million organizations have achieved theISO 9000 certification and its requirements. ISO 9000 is arguably oneof the most recognizable certification across the globe, and it isfundamentally adopted by nearly all industries from small business tolarge business and from local organizations to internationalbusinesses. Importantly, ISO 9000 as a quality management systemsstandard is designed to assist business in ensuring that customers’needs and the related stakeholders’ needs are met.

Assuch, scholars argues that with the increased customer demand,quality awareness is necessarily important, and every manager shouldmake it the primary target of the business. The implementation of ISO9000 will ensure that the quality standards as a target by thebusiness managers are certified and accepted. In recent studies donedifferent scholars, in particular about the connection between ISO9000 and the overall financial performance of the business, it isclearly indicated ISO 9000 is important to the financial managementof any organization either large or small. Therefore, this paperfocuses on discussing and exploring the concept of ISO 9000 and theway it is related to the financial performance of any organizationeither local or international.

Keyconcept and explanation on ISO 9000

Forthe last two decades, ISO 9000 was arguably unknown component in theworld of business. It is in the current economic condition the wholeidea of ISO 9000 have widely been recognized and, for this reason,companies have been forced to implement ISO 9000 since it is entirelybeneficial to the business performance. Ideally, ISO 9000 is anessential component of the business. Regarding its relationship withthe financial performance of a business, ISO 9000 improves theoverall financial performance of an organization. Chatzoglou,Chatzoudes, &amp Kipraios, (2015)States that ISO 9000 can influence the financial performance of thebusiness as it makes the financial reporting effective.

Onthe other hand, implementing ISO 9000 in large and small businessesis influence the financial performance of both businessesdifferently. The topic ISO 9000 is an interesting subject to manypeople especially to those who are interested in understanding itsconcept and its purpose to the world of business. The topic isacademically important because one understand different componentthat influences the financial performance of the business.

Comparingthe topic and what have been studied in class

Researchingon the ISO 9000 topic can essentially broaden an individualunderstanding regarding the topic, and one can observe a clearsimilarity with what has been studied in class and what the researchmaterials highlights. Controlling service quality is something thatany business strives for and in most cases it is difficult forbusiness to achieve control the quality of services it is offering toits customers. Studies learned state that ISO 9000 is the qualitymanagement standard that will enhance the business to efficientlycontrol its quality service and make the customers satisfied.Similarly, according to (Chatzoglou,Chatzoudes, &amp Kipraios, 2015)for a business to achieve quality control on its services andproducts ISO 9000 is the answer. The article further articulates thatISO 9000 has one major goal to embed the quality of the services thata company is providing to its customers.

Furtherstudies learned says that controlling service quality is a setup ofguidelines that assist an organization in establishing, maintainingand improving the quality system of the business(Gray, Anand, &amp Roth, 2014).This is a similar case with ISO 9000 as one essential aspect of theISO 9000 is that it is process oriented, and it focuses on helpingthe organizational departments and individuals working in thebusiness to ensure that quality is the top target of each departmentand individuals.

Articlesummary (the impact of ISO 9000 certification on the businessfinancial performance)

Inthe article, Theimpact of ISO 9000 Certification on the business financialperformance(Chatzoglou,Chatzoudes, &amp Kipraios, 2015)argues that ISO 9000 certification has in the current world ofbusiness become a progressively popular option for the organizationsacross the globe. The author of the article believes that iforganizations are seeking to improve their internal management andbecome competitive, ISO 9000 necessary. The current study that(Chatzoglou,Chatzoudes, &amp Kipraios, 2015)conducted explores that there is a positive relationship betweenbusinesses financial performance and ISO 9000 certification.

Inthe article, regarding the financial performance as identified by(Chatzoglou,Chatzoudes, &amp Kipraios, 2015)ISO 9000 certification determines the conditions be used in themanagement of the quality associated processes in the business. ISO9000 certification provides the businesses with different processesthat enhance the management of quality rather than targeting thequality products and services. The article further articulates thatISO 9000 has vital impacts on the financial performance of anybusiness. According to (Briscoe,Fawcett, &amp Todd, 2015)ISO 9000 is an investment that lead an organization to have improvedproduction processes, marketing benefits, increase market share andimportantly improves the long-term financial performance of thebusiness. Moreover, the article indicates that ISO 9000 impact thebusiness financial performance in three ways as such, implementingISO 9000 makes the business financial performance become efficiencyand growth in sales (Chatzoglou,Chatzoudes, &amp Kipraios, 2015).Lastly, the article discloses that ISO 9000 has a higher impact onthe profit margin of the business as it tends to increase thefinancial returns of the business.

Biblicalintegration and ISO 9000

Currently,the use of the system like ISO 9000 is being referred as a way ofensuring that businesses are doing their part to enhance that thingsare carried out properly regarding the quality assurance to thecustomers. Therefore, scholars claim that it the duty of employees toensure that one do what is necessary for the business to have utmostquality. For instance, integrating such statement with the biblicalapproach, (Proverb 20:28 New International Version), “A faithfulman will abound with blessings, but whoever hastens to be rich willnot go unpunished.” Referring to this verse to the world ofbusiness, it clear outlines that business practices are carried outin a moral way that will positively influence the achievement of thebusiness. Relating the verse to ISO 9000 context, the twoincorporates in a way that the biblical verse requires people toethical and do the right thing, whereas ISO 9000 is all aboutbusiness doing their part in a proper way so as to attain qualityreassurance.

Furthermore,more biblical verses can be related to the system of ISO 9000 in thebusiness. For example, in the book of Luke one can relate the verseto today’s business practices. (Luke 6:31 New InternationalVersion), “And as you wish that others would do to you, do so tothem.” Referring the biblical verse with the ISO context in thebusiness, it is always best for the business to conduct it tasks theright way from the start and businesses with ISO 9000 certificationis held to a higher standard and the benefits are clearly indicated.Lastly, from the biblical perspective the business people are alwaysrequired to do the right thing so as to achieve the right goals andISO 9000 facilitate the conduct of the business toward achieving itsgoals. For example, (Romans 12:21 New International Version), “Donot be overcome by evil, but overcome evil with good.”

Applicationof ISO 9000 to the business world

Chatzoglou,Chatzoudes, &amp Kipraios, (2015)state that ISO 9000 is an identified standard that is used bybusinesses across the world so as to establish and implement qualitymanagement system. With scholars trying to relate ISO 9000 with thedaily business practices, ISO 9000 within the today’s businesspractices it is very effective. More so, ISO 9000 has enabled thebusiness to have set a standard of a quality systems in thebusinesses. With the quality standard in the business, the likelyresults are customer satisfaction and as well employees motivation.More so, implementing ISO 9000 ensures that the business has aquality of work, increased returns, and the sales are up to thestandard to where they should be.

Conclusion

Inconclusion, therefore, ISO 9000 is a process that is derived fromcertain principles. Such principles act as guidelines that are set toenhance implementation of ISO 9000 in the organizations. Suchprinciples include customer focus, quality approach management,leadership and as well the involvement of the people mostly theemployees. Having management approaches such as ISO 9000 will helpthe business in plan and manage the financial system. Apart fromenhancing financial performance in the business, ISO 9000 help inimproving the integrity and the value of the business. More benefitthat will be experienced as a result of ISO 9000 includes anybusiness implementing ISO 9000 will be in a good position to documentit process, and improve the quality of the services offered by abusiness. Lastly, ISO 9000 I a good system that organizations can useto reshape their reputation regardless of any business situation.

AnnotatedBibliography

Chatzoglou,P., Chatzoudes, D., &amp Kipraios, N. (2015). The impact of ISO 9000certification on firms’ financial performance. InternationalJournal Of Op &amp Prod Management,35(1),145-174. http://dx.doi.org/10.1108/ijopm-07-2012-0387

Inthis article, the author discusses the connection between the ISO9000 and the financial management or rather financial performance ofthe business. Chatzoglou, Chatzoudes, &amp Kipraios, (2015)assesses the benefits that a business will have as a result ofimplementing ISO 9000 system. In the article, the author hasidentified that ISO 9000 certification make the organizationfinancial management effective and efficiency. More so, the articlearticulate that ISO 9000 system make is beneficial to theorganization as the business will have increased returns. Lastly, theauthor claims that ISO 9000 is related to the aspect of making thebusiness improve and develop the financial department and as well asthe financial performance.

Briscoe,J., Fawcett, S., &amp Todd, R. (2015). The Implementation and Impactof ISO 9000 among Small Manufacturing Enterprises. JournalOf Small Business Management,43(3),309-330. http://dx.doi.org/10.1111/j.1540-627x.2005.00139.x

Inthe article, the author has identified the impact that a smallorganization will enjoy as a result implementing ISO 9000 systems.Briscoe, Fawcett, &amp Todd, (2015) claims that for small businessesto competitive and achieve their goals ISO 9000 is necessary. In hisstatements, the author argues that implementing ISO 9000 make a smallbusiness offer quality product and services to the customers. Also,implementing the ISO 9000 system make the small enterprise motivateits employees. Usually, in the article (Briscoe, Fawcett, &amp Todd,2015) believes that ISO 9000 is one of the most vital systems insmall businesses across the world.

Gray,J., Anand, G., &amp Roth, A. (2014). The Influence of ISO 9000Certification on Process Compliance. ProductionAnd Operations Management,24(3),369-382. http://dx.doi.org/10.1111/poms.12252

Inthe article, TheInfluence of ISO 9000 Certification on Process Compliancethe author evaluate the way ISO 9000 certification influences thecompliance of the production processes in the current world ofbusiness. More so, the article focuses mostly on the manufacturingbusinesses. In the article, (Gray, Anand, &amp Roth, 2014) describeISO9000 as the management standard that is designed so as to ensurethat the business processes that are created by any organizations areconsistency, and they meet the customer needs. More from the articleis that the author believes that ISO 9000 is a key requirement forthe business, and it should be treated as a regulatory requirements.

Lakhal,L., &amp Pasin, F. (2010). The direct and indirect impact of productquality on financial performance: A causal model. TotalQuality Management &amp Business Excellence,19(10),1087-1099. http://dx.doi.org/10.1080/14783360802264293

Inthis article, the author tries to explore the idea of ISO 9000 andits relationship with total quality Management System. In the article(Lakhal, &amp Pasin, 2010) highlights that ISO 9000 is the worldlargest developer of international standards. As such, the authorclaims that TQM and ISO 9000 should be directly interrelated so as toenhance good business practices. The author of the article furtherstate the ISO affect the business in a direct and indirect way inboth quality improvement and financial performance.

Heras‐Saizarbitoria,I. (2011). Internalization of ISO 9000: an exploratory study.IndustryManagemen &amp Data Systems,111(8),1214-1237. http://dx.doi.org/10.1108/02635571111170776

Inthe article, the author arguably claims that quality management andISO 900 are the most influential factors in the success of thebusiness in this competitive world of business. In the article(Saizarbitoria,2011) believes that the practices that are connected with ISO 900 inthe business should be internalized. Furthermore, the author claimsthat ISO 9000 is best suited for both international businesses andlocal organizations. The article present research that was carriedout and showed the impact of internalization of ISO 9000 system tothe business.