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Case – Hightone Electronics, Inc.

1. Explain why operations management is critical to the success of a business. Why would developing an Internet-based business require different operations considerations for HEI? Is George Gonzales correct in his assessment that this would not be “business as usual”?

Operation Management is the business function that plans, Organizes, coordinates and controls the resources needed to produce a company’s goods and service. It involves managing people, equipment technology, information and many other resources. It is responsible for orchestrating all the resources needed to produce the final product. This includes designing the product; deciding what resources are needed; arranging schedules, equipment and facilities, managing inventory controlling quality; designing the jobs to make the product; Basically, operations management isresponsible for all aspects of the process of transforminginputs into outputs. As proper management of operations can lead to company success, improper management of operation scan lead to failure. So, the operations management is critic alto the success of a business. The web-based age has created a highly competitive world of on-line shopping that poses special challenges for operations management. The web can be used for on-line purchasing of everything from CDs, books and groceries to prescriptionmedications and automobiles. Whereas the internet has given customers flexibility, it has also created one of the biggest challenges for companies; delivering exactly what the customer ordered at the time promised, making promises onweb site is one thing; delivering on those promises is yetanother. Ensuring that orders are delivered from “mouse to house” is the job of operations and is much more complicatedthat might seem. That is why it always requires different operations consideration for HEI. Yes, George Gonzales correct in his assessment that this would not be “business as usual”.2....