The document discusses how grades and standards are used by businesses and consumers to evaluate products and services. Grades are ratings assigned to products based on how well they meet certain standards or specifications, and standards provide a basis for comparing goods and services. The use of grades and standards helps ensure reliability, proper use, and international compatibility of products while aiding the buying and selling process.

1. Obj. 2.05
Grades and Standards

2. Grades and Standards
• Why learn about Standards and Grades?
• How do Standards and Grades effect YOU?

3. Grades and Standards
• What did you eat for Breakfast or Lunch?

4. Grades and Standards
• How did Grades and Standards effect your
food?
Fresh Fruit
Milk
Inspected
Eggs
Quality Appearance
and Condition

5. 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)

6. Other Examples of How Companies
Use Grades and Standards
• Movies: •Restaurants:
– Ratings –Ratings
Andy’s
Rated: R Rated: 97.5

7. 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

8. Grades and Standards
• What are
some •What do
standards you have to
being do to earn a
used in good grade?
your
classes?
A = Excellent!

9. Grades and Standards
• These requirements now become
your standards that the teacher uses
as her evaluation tool
• Your work compared to standards =
GRADE

10. Grades and Standards
• How do Businesses use Grades and
Standards?
– Standards are set
– Products are rated against standards and
assigned a grade

11. 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

12. 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

13. 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

14. 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.

15. 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

16. Grades and Standards
• What groups develop grades and standards?
– Government Agencies: ex. food, medicines, fair
advertising
– Professional Organizations: ex. Triple A, Rate
Hotels
– Businesses

17. Grades and Standards
• What are 4 types of standards that businesses
use?
1. Quantity
- ex. how much will be produced in 1 day
2. Quality
3. Time
4. Cost

18. Grades and Standards
• Examples of Graded Products
1. Agricultural raw materials- like cotton
3. Food Products:
a. USDA- Meat
b. Dairy
c. Fresh Produce
d. 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

19. Sources
• Marketing Essentials
MBA-LAPS-PM-008-CS