The impact of Total Quality Management (TQM) on organisational profitability. Case of Dairibord Zimbabwe Ltd.
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The study seeks to determine the impact of total quality management on organisational profitability, case of Dairibord Zimbabwe Ltd. Theory says, if well implemented and handled, total quality management can be one of the important factors for an organisation to improve its performance such as profitability. The study used secondary data obtained from Dairibord Zimbabwe Ltd (DZL). In pursuit to meet the objectives the study used the Ordinary Least Squares (OLS) estimation method. The dependent variable was profitability and the independent variables were quantity and price of own good, quality of the product, and a dummy variable measuring total quality management (TQM). The results of the estimation model show that there is a positive relationship between quality, quantity and profitability. A negative relationship was found between price of own product and profitability. Thus, the researcher recommends that Dairibord Zimbabwe Ltd (DZL) Dairibord should maintain the TQM system and possibly improve on other areas of the system that they were not fully implementing to realise better returns in terms of profitability. In addition other companies within the dairy sector that have not yet adopted TQM should adopt it as it yields better performance in as far as profitability is concerned.
- Department of Economics