Case: Hightone Electronics, Inc

I. Executive Summary
The goal of this case study is to investigate the operational difficulties Hightone
Electronics, Inc. (HEI) had while developing a fruitful Internet-based division. The board
of HEI has decided to start an online business in order to stay competitive given the rise
in popularity of Web-based shopping in the electronics sector. The operations director,
George Gonzales, believes that many operational choices need to be recognized and
handled for a successful Internet-based firm, but HEI lacks past experience in this field.
The key problems highlighted in this case include maintaining the company's reputation
for quality and service, adapting to changing market trends, ensuring timely delivery, and
addressing logistics and supply chain management issues. The executive summary of the
case underscores the need for the board to pay serious attention to these operational
issues to ensure the success of the new division.
II. Time Context
The case takes place sometime after the growth of web-based purchasing in the
electronics industry, which had been growing rapidly at the time of the board meeting.
The case also mentions that Hightone Electronics, Inc. (HEI) has been in business for
over 50 years and has expanded its product line to include items such as computers and
electrical testing equipment, suggesting that the case takes place in a period after the
company's initial focus on radio components.
III. Point of view
The key problems in this case are related to the decision of Hightone Electronics, Inc.
(HEI) to start an Internet-based division to maintain its competitive position in the
electronics industry. The company has no prior experience in this area and needs to
identify and address various operational decisions to ensure the success of this division.
Additionally, HEI needs to adapt to changing market trends and ensure timely delivery of
orders while maintaining its reputation for quality and service. The logistics and supply
chain management issues related to Web-based purchasing also need to be addressed to
handle online orders efficiently and reliably.
IV. Statement of the problem
Major Problem:
 The major problem facing HEI is the need to establish a successful Internet-based
division to maintain its competitive position in the electronics industry. The company has
no prior experience in this area and needs to make significant operational decisions to
ensure the success of this division.

Minor Problems:
a) Operational Decisions: HEI needs to identify and address key operational
decisions, such as logistics and supply chain management, to ensure the success
of the Internet-based division.
b) Reputation: HEI needs to maintain its reputation for quality and service through
catalog sales while expanding into Web-based purchasing.
c) Adapting to Market Trends: HEI needs to adapt to changing market trends, such
as the growing popularity of Web-based purchasing, to remain competitive.

V. Statement of the objectives

1. To examine the operational challenges faced by Hightone Electronics, Inc. (HEI)
in creating a successful Internet-based division.
2. To identify the key operations management decisions that need to be addressed
for a successful online business.
3. To propose solutions for the identified problems.

VI. Areas of Consideration (SWOT)

Table 1. SWOT Analysis

Strengths Weaknesses Opportunities Threats

Established Lack of experience in Growing demand for Increasing

reputation for high Internet-based business Web-based purchasing competition in the
quality and service electronics industry
through catalog sales
Wide range of Need for significant Potential to expand the Dependence on
electronic products operational decisions customer base through timely delivery and
offered for the new division online purchasing warranty policies

Efficient logistics Possible resistance Ability to reach a Cybersecurity

and supply chain from current customers global market through threats and data
management for to switch to online online sales breaches
catalog sales purchasing

Experienced and Possible need for Potential to increase Dependence on

knowledgeable staff additional resources revenue and reliable and
in the electronics and investments for the profitability through efficient website
industry new division online sales and e-commerce
platform

Established Dependence on third- Potential to reduce Potential for

relationships with party vendors and operational costs negative impact on
suppliers and technology providers through online sales catalog sales
manufacturers for website and e-
commerce platform

Strong financial Ability to track and Changes in

position and history analyze customer data consumer
of profitability for targeted marketing preferences and
and sales strategies buying behaviors
 Table 2. Cause and Effect Relations

Cause Effect

Lack of experience in internet-based business Failure of the new division

Inefficient supply chain system Delayed or incorrect delivery

Poor quality control Decreased customer satisfaction

Inability to adapt to changing market trends Loss of market share

Insufficient investment in technology Outdated systems and decreased competitiveness

Lack of staff training Decreased productivity and efficiency

Poor communication between departments Increased errors and delays

Inadequate customer support Decreased customer retention

VII. Alternative Courses of Action (ACA)
The possible solutions for the problem are:
1. Outsource logistics and supply chain management
HEI can outsource logistics and supply chain management to a third-party
provider with expertise in this area. This will allow the company to focus on its
core competencies while ensuring timely delivery and efficient supply chain
management. However, it may increase costs and reduce the company's control
over the process.
2. Hire an experienced e-commerce manager
HEI can hire an experienced e-commerce manager to oversee the Internet-based
division and ensure that operational decisions are identified and addressed. This
will provide the company with the necessary expertise and experience to succeed
in the online market. However, it may increase personnel costs and require
additional resources for training and development.
3. Develop a comprehensive online purchasing platform
HEI can invest in developing a comprehensive online purchasing platform that
addresses the operational decisions needed for successful Internet-based business.
This will allow the company to differentiate itself from competitors and capture
market share. However, it may require significant investment and development
time, and there is a risk that the platform may not be successful.

VIII. Conclusion
In conclusion, the case of HEI shows the need for companies to adapt to changing market
trends to maintain their competitive edge. The main problem faced by HEI is the need to
establish a successful internet-based division, and the company needs to address the
operational decisions required to ensure the success of this division. HEI needs to
maintain its reputation for quality and service, ensure timely delivery, and address
logistics and supply chain management issues.
IX. Recommendation
Based on the SWOT analysis and cause-and-effect analysis, the company can consider
several alternative courses of action to address these issues, such as:

1. Partnering with an experienced e-commerce company to establish the internet-

based division and manage the logistics and supply chain operations.
2. Investing in employee training to build in-house expertise in internet-based
operations and supply chain management.
3. Utilizing customer feedback to improve the website's user experience and product
offerings.

The company needs to take a strategic approach to address these challenges and ensure
that it remains competitive in the electronics industry. By taking the necessary steps, HEI
can establish a successful internet-based division that provides customers with a
convenient and reliable purchasing experience while maintaining the company's
reputation for quality and service.
Case: Creature Care Animal Clinic

I. Executive Summary
This case study analyzes the problems faced by Dr. Julia Barr, owner of Creature Care
Animal Clinic. Despite being in business for three years, Dr. Barr is overwhelmed by
various business issues. The clinic faces inventory management problems, excess
inventory, and unexpected stock-outs. Dr. Barr also struggles to manage the workload and
scheduling of his staff. The purpose of this study is to examine the cause-and-effect
relationships of these problems and provide possible solutions.
II. Time Context
The time context of the case is set three years after Dr. Julia Barr opened Creature Care
Animal Clinic, a veterinary clinic specializing in the care of dogs and cats in a suburban
area. Dr. Barr started the clinic with the goal of providing quality veterinary care for pets,
but she found herself overwhelmed with business problems that were hindering the
clinic's success. The clinic operates on a schedule from Monday to Friday during regular
business hours, with half-days on Saturday and extended hours on Wednesday evenings.
Dr. Barr hired another full-time veterinarian, a staff of three nurses, an office manager,
and an office assistant to manage the operations of the clinic. However, after a few
months, problems started to arise with inventory management, scheduling, and staff
workload. This suggests that the time context of the case is in the present, three years
after the clinic was opened, and the problems have been ongoing for some time.
III. Point of view
Dr. Julia Barr opened Creature Care Animal Clinic three years ago with the aim of
providing quality veterinary care for dogs and cats in the suburban area. However,
despite her passion and dedication, the clinic has been facing several business problems.
These problems include poor inventory management, excess inventory of certain items,
multiple brands of the same product, frequent expiration of medications, and unexpected
shortages of supplies. These issues have resulted in additional costs and inefficiencies in
the clinic's operations.
Another problem that the clinic is facing is scheduling. Dr. Barr initially set up a schedule
based on a clinic she observed as a resident. The schedule involves rotating shifts for
doctors and nurses and extended hours on Wednesdays and Saturdays. However, the
 demand for services on Saturdays has increased rapidly, and the current schedule is not
sufficient to provide adequate coverage. Additionally, the clinic experiences a high
demand for services on Fridays, resulting in the staff having to stay late to attend to
patients. On Wednesdays, there is little demand, leaving Dr. Barr with initial office tasks.
IV. Statement of the problem
Major Problem:
Poor management of stocks, leading to medication expiration and the need for rush
orders, which can result in additional costs and operational inefficiencies.

Minor Problems
a) Inefficient scheduling of doctors and staff causing overload and burnout.
b) Lack of clear roles and responsibilities causing confusion and duplication of tasks.
c) Inadequate staff to handle increasing demand for services and manage paperwork.
V. Statement of the objectives
1. To examine the operational challenges faced by Creature Care Animal Clinic in
managing their veterinary practice effectively.
2. To identify the key operations management decisions that need to be addressed
for a successful animal clinic.
3. To propose solutions for the identified problems.

VI. Areas of Consideration (SWOT)

Table 1. SWOT Analysis

Strengths Weaknesses Opportunities Threats

- Experienced and - Lack of inventory - Growing demand for - Increasing

qualified staff management system veterinary services competition from
members nearby clinics

- Specialization in - Insufficient staffing - Expansion to new - Economic downturn

care for dogs and for paperwork services such as pet affecting pet
cats grooming and boarding ownership and
spending

- Flexible working - Dependence on Dr. - Adoption of digital - Changes in

hours for clients Barr for weekend and tools for appointment regulations and
evening coverage booking and billing policies affecting
veterinary clinics

- Strong - Limited marketing - Partnership - Difficulty in hiring

relationships with and promotional opportunities with local and retaining
suppliers and activities pet-related businesses qualified staff
vendors members

Table 2. Cause and Effect Relations

Cause Effect

Lack of inventory Excess inventory of certain items, multiple brands of the same product,
management system expired medications, unexpected stockouts

Inadequate scheduling Overcrowded Friday afternoon schedule, inadequate coverage on

of staff Saturdays, excessive workload for staff, Dr. Barr working on paperwork
on Wednesday evenings
 Lack of marketing Low awareness of clinic, inability to attract new clients, limited growth
strategy opportunities

VII. Alternative Courses of Action (ACA)

The possible solutions for the problem are:
1. Implement a formal inventory management system: This would involve setting up
a system to track inventory levels, expiration dates, and ordering quantities for all
medical supplies, medications, and other items. The clinic could hire a part-time
inventory manager or assign the responsibility to an existing staff member.
2. Adjust the schedule to meet demand: The clinic could hire an additional
veterinarian and nurse to cover the increasing demand on Saturdays and Friday
afternoons. This would allow for more flexibility in scheduling and ensure that
the staff does not have to work overtime frequently.
3. Outsource paperwork tasks: The clinic can outsource non-medical tasks, such as
paperwork and other administrative duties, to a virtual assistant or part-time office
worker. This would free up time for doctors and nurses to focus on patient care
and reduce the workload of office managers and assistants.
VIII. Conclusion
The clinic faces several operational challenges that need to be addressed to ensure its
success. The major problem is the scheduling issue that results in long waiting times for
clients and staff overwork. The three minor problems are lack of proper inventory
management, understaffing during peak hours, and inadequate staff for doing paperwork.

In order to address these problems, several alternative courses of action have been
proposed, including hiring more staff, implementing a proper inventory management
system, reorganizing the scheduling system to reduce waiting times, and outsourcing
paperwork to a third party. It is important for the clinic to carefully consider these options
and their potential benefits and drawbacks before making a decision.
 To ensure a successful online business, it is necessary to identify the key operations
management decisions that need to be addressed. These include establishing a clear value
proposition, determining the target market, selecting appropriate marketing channels,
developing a user-friendly website, and ensuring efficient logistics and customer service.
By addressing these issues, the clinic can successfully create an online presence and
expand its customer base.

In conclusion, Creature Care Animal Clinic must take immediate action to address its
operational challenges and improve its overall performance. By implementing effective
solutions and making informed decisions, the clinic can ensure its continued success and
provide high-quality care to its clients and their pets.

IX. Recommendation
Based on the analysis and evaluation of the alternatives, the best course of action for
Creature Care Animal Clinic would be to implement a formal inventory management
system. This would address the major problem of inventory stockouts and expiration of
medications and supplies, which can negatively impact the quality of care and reputation
of the clinic. It would also help reduce costs and improve efficiency by ensuring that
supplies are ordered in a timely manner and in appropriate quantities.

Adjusting the schedule to meet demand and outsourcing paperwork tasks can also be
beneficial for the clinic. Hiring an additional veterinarian and nurse to cover busy times
would improve patient care and reduce the workload of existing staff. Outsourcing
paperwork tasks can free up time for doctors and nurses to focus on patients, and reduce
the workload on the office manager and assistant.

Dr. Barr should carefully evaluate each option and consider the potential benefits and
drawbacks before making a decision. By implementing an inventory management system
and considering the other alternatives, Creature Care Animal Clinic can continue to
provide quality care to its patients while improving efficiency and reducing costs.