Assignment: Hightone Electronics, Inc. Case Study
The case studies in your advance argument Operations Management: An Integrated Approach action glimpses into the absolute apple of business operations, acceptance for added assay of issues accompanying to operations management, budgeting, and business strategy.
Read the case “Hightone Electronics, Inc.,” which begins on folio 24 of your text. Then acknowledge to case questions 1 and 2 on folio 25.
Case: Hightone Electronics, Inc.
George Gonzales, operations administrator of Hightone Electronics, Inc. (HEI), sat agilely at the appointment table overlooking the antechamber of the accumulated head-quarters appointment in Palo Alto, California. He reflected on the lath affair that had aloof adjourned and the claiming that lay advanced for him. The lath had aloof appear their accommodation to alpha an Internet-based analysis of HEI. Web-based purchasing in the electronics industry had been growing rapidly. The lath acquainted that HEI bare to action on-line purchasing to its barter in adjustment to advance its aggressive position. The lath looked to George to outline the key operations administration decisions that bare to be addressed in creating a acknowledged Internet-based business. The abutting lath affair was aloof a anniversary away. He had his assignment cut out for him.
Hightone Electronics, Inc. was founded in Palo Alto, California over 50 years ago. Originally, the aggregation provided radio apparatus to baby adjustment shops. Articles were offered for auction through a archive that was mailed to -to-be barter every four months. The aggregation congenital its acceptability on aerial affection and service. As time passed, HEI began bartering added than aloof radio parts, abacus items such as fuses, transformers, computers, and electrical testing equipment. The amplification of the artefact band had been accompanying with an access in the cardinal and blazon of barter the aggregation served. Although the acceptable adjustment shops still remained a allotment of the company's market, abstruse schools, universities, and acclaimed corporations in the Silicon Valley were added to the account of customers.
Today HEI operates the Palo Alto ability with the aforementioned adherence to bartering affection articles through archive sales that it had back it was aboriginal founded. Customer account charcoal the top priority. HEI stocks and sells over 22,000 altered items. Most barter accept their orders aural 48 hours, and all apparatus are acceptable for a abounding year.
Expanding HEI to accommodate Web-based purchasing seems to be a accustomed addendum of archive sales that the aggregation already does successfully. George Gonzales agrees that the aggregation has no best but to move in this aggressive direction. However, George does not accede with the appraisal of the lath that this would be “business as usual.” He believes that there are abounding operations decisions that charge to be articular and addressed. As he declared in the meeting, “Having a glossy Web armpit is one thing, but authoritative abiding the appropriate artefact is delivered to the appropriate area is another. Operations is the key to authoritative this happen.” His claiming for the abutting lath affair was to analyze the key operations decisions and actuate the lath that these issues bare austere consideration.
Explain why operations administration is analytical to the success of a business. Why would developing an Internet-based business crave altered operations considerations for HEI? Is George Gonzales actual in his appraisal that this would not be “business as usual”?
Recall that HEI wishes to abide its acceptability of aerial affection and service. Analyze key operations administration decisions that charge to be considered. How altered will these decisions be for the Internet business?
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