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Analyzing this case, please help for the SWOT and ACA of this case Case: Hightone Electronics, Inc. George Gonzales, operations director of Hightone The company

Analyzing this case, please help for the SWOT and ACA of this case

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Case: Hightone Electronics, Inc. George Gonzales, operations director of Hightone The company built its reputation on high quality and Electronics, Inc. (HEI), sat quietly at the conference service. As time passed, HEI began supplying more table overlooking the lobby of the corporate head- than just radio parts, adding items such as fuses, trans- quarters office in Palo Alto, California. He reflected formers, computers, and electrical testing equipment. on the board meeting that had just adjourned and the The expansion of the product line had been coupled challenge that lay ahead for him. The board had just with an increase in the number and type of customers announced their decision to start an Internet-based the company served. Although the traditional repair division of HEI. Web-based purchasing in the elec- shops still remained a part of the company's market. tronics industry had been growing rapidly. The board technical schools, universities, and well-known corpo- felt that HEI needed to offer on-line purchasing to its rations in the Silicon Valley were added to the list of customers in order to maintain its competitive posi- customers. tion. The board looked to George to outline the key Today HEI operates the Palo Alto facility with the operations management decisions that needed to same dedication to supplying quality products through be addressed in creating a successful Internet-based catalog sales that it had when it was first founded. Cus- business. The next board meeting was just a week tomer service remains the top priority. HEI stocks and away. He had his work cut out for him. sells over 22,000 different items. Most customers receive Hightone Electronics, Inc. was founded in Palo Alto, their orders within 48 hours, and all components are California, over 50 years ago. Originally, the company warranted for a full year. provided radio components to small repair shops. Prod- Expanding HEI to include Web-based purchasing ucts were offered for sale through a catalog that was seems to be a natural extension of catalog sales that the mailed to prospective customers every four months. company already does successfully, Georg George Gonzales agrees that the company has no choice but to move in Case Questions this competitive direction. However, George does not 1. Explain why operations management is critical to agree with the opinion of the board that this would be the success of a business. Why would developing an "business as usual." He believes that there are many Internet-based business require different operations operations decisions that need to be identified and considerations for HEI? Is George Gonzales correct addressed. As he stated in the meeting, "Having a slick in his assessment that this would not be "business Web site is one thing, but making sure the right product as usual"? is delivered to the right location is another. Operations 2. Recall that HEI wishes to continue its reputation of is the key to making this happen." His challenge for the high quality and service. Identify key operations man- next board meeting was to identify the key operations agement decisions that need to be considered. How dif- decisions and persuade the board that these issues ferent will these decisions be for the Internet business? needed serious consideration

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