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MGT601 - SME Management - Lecture Handout 31

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This lecture is dealing with the quality standardization under WTO.

Quality Control Programs in Developing Countries

  • Establish Strong National Leadership & Q.C Society.
  • Create Govt. & Commercial Compulsion for Reasonable levels of Quality.
  • Establish a Media For Exchange.
  • Establish an Extensive Program for Training.
  • National Standardization Efforts.
  • Public Awareness.

International Quality Standards

If each country had its own set of standards, companies in selling in international markets would have difficulty in quality documentation standards in the countries where they did business.

ISO 9000

It is set of standard governing documentation quality program. Proving to a qualified external examiner that they have completed with the entire requirement certifies companies. Once certified, companies are listed in a directory so that potential customers can see which companies have been certified and to what level. Compliance with ISO 9000 standards says nothing about the actual quality of a product. Rather, it indicates to customers that companies can provide documentation to support whatever claims they make about quality.

Five Documents of ISO 9000

ISO 9000 actually consists of five documents;

  1. ISO 9000
  2. ISO 9001
  3. ISO 9002
  4. ISO 9003
  5. ISO 9004


  1. ISO 9000
    ISO 9000 is an overview Document, Which Provide Guideline for use and selection of other standards.
  2. ISO 9001
    ISO 9001 is a Standard that focuses on various aspects of design, produce, install and service products. It also includes management responsibility, quality System, purchasing, product design, and inspection, training & Corrective action.
  3. ISO 9002
    ISO 9002 covers same area as 9001 for companies that produce to customer's design or have their design and service activities.
  4. ISO 9003
    ISO 9003 is most limited in scope and addresses only production process.
  5. ISO 9004
    ISO 9004 contains Guidelines interpreting other standard.

ISO 14000

ISO 14000 requires participating companies to keep track of their raw material use and their generation, treatment and disposal hazardous wastes. ISO 14000 is a series of five standards that cover a number of areas, including the following.

  • Environment Management System. Requires a plan to improve performance in resource use and pollutant output.
  • Environment Evaluation Program. Specifies guidelines for the certification of companies.
  • Environment Labeling. Defines terms such as recyclable, energy efficient, and safe for the ozone layer.
  • Life Cycle Assessment. Evaluates the lifetime environmental impact from the manufacture, use, and disposal of a product.

To maintain their certification, companies must be inspected by outside, private auditors on a regular basis.

ISO 17025

The main area under WTO comes under quality control in laboratory standards and the standard that deals with it is ISO 17025. The laboratory for testing under this standard for quality control is not available in Pakistan. The need is to have a new one or up gradation of existing labs so that we can meet the requirements of WTO.

Role of Marketing

Improved marketing is central to a small firm’s industrial strategy. Unfortunately, many small firms assume that the only requirement for success is to open and wait for customers. Perhaps, it is due to severe limits on their resources. It is seldom recognized that marketing is a complex process affected by internal external factors. Internal variable includes firm’s financial position, management capability personnel resources, products offered. External variable includes general economic conditions, characteristics of population, social and cultural factors, competition, government regulations etc. Small firms success depends on the ability to plan organize staff and control marketing activity in relation to internal and external environment. Marketing is the performance of business activities that direct the flow of goods and services from the producer to consumer.

Small firm’s Advantage

Advantages enjoyed by small firm in the field of, marketing include realistic marketing planning, shorter lines of communication, flexibility, and ability to act quickly.

Related Content: MGT601 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of SME Management