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 a producer with high energy costs, change in the cost structure, result in higher selling prices. B. For a producer with high energy costs, change in the competitive position. 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. b) Select all of the correct impacts that water- and air-quality legislation might have on OM strategy below. (Check all that apply.) A. Difficulty in using the specific technologies. B. Closing of numerous plants including paper mills and steel mills. C. Difficulty in predicting both the cost of production and the market demand. D. Increasing production cost. c) 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. Change in the income of employees in the lower pay classifications. B. Tighter job market. C. High unemployment rates. D. Added capital investment for new equipment or processes. d) Select all of the correct impacts that inflation versus stable prices might have on OM strategy below. (Check all that apply.) A. The manufacturing process stabilizes. B. The OM function focuses on more standardization. C. Change in the income of employees in the lower pay classifications. D. Difficulty in predicting both the cost of production and the market demand. e) 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. Decrease in the take-home pay of employees by the amount of the taxes. B. Change in the income of employees in the lower pay classifications. C. Increase in the take-home pay of employees by the amount of the taxes. D. Operations managers get pressure to increase wages of employees in the lower pay classifications