Importance of operations management decisions to success of a business.
Introduction
Operations management decisions are critical to the success of a business, because these decisions include decisions on management of raw materials and personnel; their pivotal job is in oversight of inventory, budgeting, controlling costs setting goals for various departments among other roles (Berger, 2011). It makes the decisions of the operational manager paramount in any organization.
Background
The HEI board meeting is seeking to offer an online platform to sell its products. The web-based sales platforms have been increasing rapidly in the recent past. As the web-based purchases have since increased competition and any company left behind may not beat their competitors. Due to this reason, the board has already committed itself to undertaking such investments.
The HEI had been relying on catalogue sales since its beginning. However, its customer base has been expanding over the period it has been in operation. In addition, the company has since diversified its goods from basic radio repair to include computers, fuses, as well as other electrical products. The time it takes for a customer to receive ordered goods has been forty-eight hours after ordering. It is, therefore, not as compromised as one might think in terms of delivery.
Setting an internet-based business would require different operations decisions for HEI. First, it would require designing a good website. Such shall require employing a web designing consultant or contracting one. There would also be a need to develop platforms for social media marketing for the organization. It includes developing a Facebook and a twitter account for the organization. The company will have to put a lot of resources to market a web based business.
There is also the challenge of creating a web catalogue and make the goods appealing to the customers so as to be able to withstand competition (Berger, 2011). There is also a need to employ customer support personnel that can respond to customer concerns as they do online purchases. All these will have an effect as it involves employing new personnel or retaining old staff. It shall not be “business as usual “because online businesses will shorten the time between when customers place orders and when they receive them, when successful it will increase customer base as with proper advertising more customers are reached through the internet and this presents unique logistical challenges. Quick customer interaction on the web-based platform may also attract more clients since customers like quick services.
Recommendations
Key operations management decisions to be considered by HEI and how different these decisions will be for internet business.
A major challenge that faces George Gonzales is how to realign the staff at HEI to embrace and successfully run the online store due for develpemnt. To maintain the organizations reputation for high quality and service, he must ensure that the website is well run and it is always up to date, and there should always be customer support personnel to help customers keep track of their orders and follow delivery of their goods. There is also the risk of dealing with fraudsters that operate online, and the company must invest in security measures in every stage of the business transaction.
Conclusion
In conclusion, there are other costs associated with web-based marketing and operations that should not be ignored. If care is not taken, the company may incur huge loses in the event of fraudsters.
Reference List
Berger, A. (2011). Operations Management: IKEA. München: GRIN Verlag GmbH.
