Use your understanding of how organizations transform resources into products and services to complete the sentence.

When Hewlett-Packard buys electronic components and assembles them into computers, the activities that guide this process are known collectively as .

Management at Work

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.

Should the utility’s strategy drive operations, or should operations determine strategy?

Operations should drive strategy.

Strategy and operations need to work together.

Financial management should drive both strategy and operations.

Strategy should drive operations.