1. Explain why operations management is critical to the success of a business. Why would developing an Internet-based business require different operations consideration for HEI? Is George Gonzales correct in his assessment that this would not be "business as usual"?
2. Recall that HEI wishes to continue its reputation of high quality and service. Identify key operations management decisions that need to be considered. How different will these decisions be for the Internet business?
George Gonzales, operations director of Hightone Electronics, Inc. (HEI), sat quietly at the conference table overlooking the lobby of the corporate headquarters office in Palo Alto, California. He reflected on the board meeting that had just adjourned and the challenge that lay ahead for him. The board had just announced their decision to start an Internet-based division of HEI. Web-based purchasing in the electronics industry had been growing rapidly. The board felt that HEI needed to offer on-line purchasing to its customers in order to maintain its competitive position. The board looked to George to outline the key operations management decisions that needed to be addressed in creating a successful Internet-based business. The next board meeting was just a week away. He had his work cut out for him.