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 $2$

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

A$.$

For a producer with high energy$$ costs, change in the cost$$ structure, result in higher selling prices.

B$.$

For the energy inefficient$$ company, change in the cost$$ 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.

Part $3$

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

A$.$

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

B$.$

Increasing production cost.

C$.$

Closing of numerous plants including paper mills and steel mills.

D$.$

Difficulty in using the specific technologies.

Part $4$

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

A$.$

High unemployment rates.

B$.$

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

C$.$

Tighter job market.

D$.$

Added capital investment for new equipment or processes.

Part $5$

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

A$.$

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

B$.$

The manufacturing process stabilizes.

C$.$

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

D$.$

The OM function focuses on more standardization.

Part $6$

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

A$.$

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

B$.$

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

C$.$

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

D$.$

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