The new president of the Sawtooth division of the Waterhouse Company is complaining about the limitations that the CEO of Waterhouse Company has placed on him. The Sawtooth division is composed of several logging mills in the Pacific Northwest of the United States. These mills were designed to cut large ‘old growth’

logs. Recent environmental and conservation regulations and policies to address climate change have curtailed the cutting of almost all old growth forests. The mills are struggling to get a sufficient supply of logs to operate. The president is being evaluated based on the profit of the logging mills and if things continue the way they are now, a loss is inevitable. The president’s main complaint is that he doesn’t have the right to change the logging mills to accommodate smaller logs or move into a secondary wood products field, such as the manufacture of wood trim or pre-fabricated houses.

Does the president of the Sawtooth division have a reasonable complaint?