When Hewlett-Packard buys electronic components and assembles them into computers, the activities that guide this process are known collectively as operations management/ automation/ supply chain management/ total quality management.

Imagine that you have been hired as a consultant for a large public utility. The company sells and distributes electricity and natural gas to residential and commercial customers. It also repairs household appliances throughout its service area. Customers can pay to have a particular appliance repaired as needed, or they can subscribe to the repair service for a monthly fee, which is added to their utility bill. The CEO is examining the role of operations management in the company and has some questions for you.

What type of strategy makes operations management most important?

a. Operations management is more important when an organization has a differentiation strategy than a low-cost strategy.

b. Operations management is more important when an organization has a low-cost strategy than a differentiation strategy.

c. Operations management is important whether the strategy is low cost or differentiation.

d. Operations management is never very important because it simply involves carrying out whatever strategy has been decided.