obj. 2.05

Obj. 2.05Grades and Standards

• Why learn about Standards and Grades?

• How do Standards and Grades effect YOU?

Grades and Standards

• What did you eat for Breakfast or Lunch?

Grades and Standards

• How did Grades and Standards effect your food?

MilkInspected

EggsQuality

Fresh Fruit

Appearance and Condition

Grades and Standards

Other Examples of How Companies Use Grades and Standards

• Specific tire sizes to fit our specific cars

• ALL children’s fever-reducing medicine contains:• same ingredients• same doses

(regardless of what brand it is)

Other Examples of How Companies Use Grades and Standards

• Movies:–Ratings

Rated: R

•Restaurants:–Ratings

Andy’sRated: 97.5

What Are Grades and Standards?

• Grades: Ratings assigned to products that tell to what extent standards were met

• Standards: Specifications that are used as a basis for comparing or judging goods or services

Grades and Standards

• What are some standards being used in your classes?

A = Excellent!

•What do you have to do to earn a good grade?

Grades and Standards

• These requirements now become your standards that the teacher uses as her evaluation tool

• Your work compared to standards = GRADE

Grades and Standards• How do Businesses use Grades and

Standards?

– Standards are set

–Products are rated against standards and assigned a grade

Grades and Standards

• What do businesses do with products that fail to meet lowest standards?

– Products are thrown away, revamped or sold at discounted prices

Grades and Standards

• Why do we use grades and standards?

– To make sure products are reliable

– How to use a product correctly and safely

– Where certain products can be sold

Grades and Standards

• Do you think the GAP will offer low grade clothes at their store?

NO!

• What would the GAP do with these clothes?

Sell at Outlet or Old Navy

Grades and Standards

• How do Grades and Standards aid in the buying and selling process?

Speeds things up!

Consumers do not have to inspect. We know what products rank higher than others.

Grades and Standards

• How are grades and standards important in a Global Market?

–By using certain requirements, products are known safe to use internationally.

–The standard is known as 1S0 9000

Grades and Standards

• What groups develop grades and standards?– Government Agencies: ex. food, medicines, fair

advertising

– Professional Organizations: ex. Triple A, Rate Hotels

– Businesses

Grades and Standards

• What are 4 types of standards that businesses use?

2. Quality

1. Quantity - ex. how much will be produced in 1 day

3. Time

4. Cost

Grades and Standards• Examples of Graded Products

1. Agricultural raw materials- like cotton

2. Food Products:a. USDA- Meatb. Dairyc. Fresh Produced. Fish

3. Oil- Graded according to its thickness

4. Fuel- Graded according to its octane rating

5. Coal- Graded according to its carbon and sulphur content

6. Lumber- Hardwoods are graded according to size, quality, and type of wood

Sources

• Marketing Essentials

MBA-LAPS-PM-008-CS