Question A)
You will clearly need to consider relevant theories relating to both product quality and service quality in order to identify what these challenges might be. Once identified, do make sure that you are answering the question - you are asked to evaluate them, not simply list them.
Offering examples is one good way of demonstrating your understanding (although this is not compulsory), and it is essential to refer to appropriate theory throughout.
Question B)
Sources:
You are strongly advised to start with the company website (if they have one) and other published material, to gather first-hand data on their current approach (although it might be interesting to investigate whether this has changed over preceding years).
It would then be advisable to consider other, objective views, whether through formal academic sources such as journal articles and case studies, or ‘quality' press sources (such as The Financial Times and other quality newspapers, or periodicals such as The Economist)
Google Scholar is recommended as a search engine for safe academic sources
Approach:
Simple reproduction of theory/module material and company material will not be sufficient to earn a pass. Many companies (eg Coke and Toyota) devote significant space on their websites to quality. Accepting this - highly partial - material at face value is poor academic practice. You must show judgement in your choice of company and appropriate theory, and understanding through critical application of the theory to the company.
Some suggestions (NOT requirements!) to get you started:
Does the company claim to be implementing any formal quality theory? If so, do the claims stand up to scrutiny?
Do the company's claims regarding quality match the reality?
Would any other theory introduced on the module appear to be more suited to their current circumstances? Why?