Question: Identify how changes in the external environment affect the OM strategy for a company. For instance, discuss what impact the following external factors might have on OM strategy:
a) Major increases in oil prices.
b) Water- and air-quality legislation.
c) Fewer young prospective employees entering the labor market.
d) Inflation versus stable prices.
e) Legislation moving health insurance from a pretax benefit to taxable income.
a) Select all of the correct impacts that major increases in oil prices might have on OM strategy below. (Check all that apply.)
___A. For the energy inefficient company, change in the cost structure, result in higher selling prices.
___B. For a producer with high energy costs, change in the cost structure, result in higher selling prices.
___C. For the energy inefficient company, change in the competitive position.
___D. For a producer with high energy costs, change in the competitive position.
b) Select all of the correct impacts that? water- and? air-quality legislation might have on OM strategy below. (Check all that apply.)