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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

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.Part 2a) Select all of the correct impacts that major increases in oil prices might have on OM strategy below. (Check all that apply.)

A.

For a producer with high energy costs, change in the competitive position.

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 the energy inefficient company, change in the cost structure, result in higher selling prices.

Part 3b) Select all of the correct impacts that water- and air-quality legislation might have on OM strategy below. (Check all that apply.)

A.

Closing of numerous plants including paper mills and steel mills.

B.

Difficulty in using the specific technologies.

C.

Increasing production cost.

D.

Difficulty in predicting both the cost of production and the market demand.

Part 4c) Select all of the correct impacts that fewer young prospective employees entering the labor market might have on OM strategy below. (Check all that apply.)

A.

High unemployment rates.

B.

Added capital investment for new equipment or processes.

C.

Tighter job market.

D.

Change in the income of employees in the lower pay classifications.

Part 5d) Select all of the correct impacts that inflation versus stable prices might have on OM strategy below. (Check all that apply.)

A.

Change in the income of employees in the lower pay classifications.

B.

The manufacturing process stabilizes.

C.

The OM function focuses on more standardization.

D.

Difficulty in predicting both the cost of production and the market demand.

Part 6e) Select all of the correct impacts legislation moving health insurance from a pretax benefit to taxable income might have on OM strategy below. (Check all that apply.)

A.

Operations managers get pressure to increase wages of employees in the lower pay classifications.

B.

Change in the income of employees in the lower pay classifications.

C.

Decrease in the take-home pay of employees by the amount of the taxes.

D.

Increase in the take-home pay of employees by the amount of the taxes.

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