Which term describes the way in which a business manages its resources to ensure quality?

The term that describes the way in which a business manages its resources to ensure quality is Total Quality Management. This approach emphasizes a continuous improvement process aimed at enhancing quality in all aspects of a business's operations. Total Quality Management involves every employee in the organization and integrates quality processes into the planning and operations, thereby fostering a culture that prioritizes quality at every level.

By focusing on customer satisfaction and using data-driven management techniques, businesses implementing Total Quality Management aim to significantly reduce defects, improve quality, and consequently enhance operational efficiency. This holistic approach not only addresses production quality but also considers how effective resource management impacts overall performance and customer satisfaction.

In contrast, cost-cutting measures typically focus on reducing expenses rather than enhancing quality. Resource allocation refers to the distribution of resources but doesn’t directly imply a framework for quality management. Competitive strategy involves positioning a business in relation to competitors, with a broader focus on market positioning rather than the specific management of resources to ensure quality.