Identify how changes in the external environment affect the OM strategy for a company.

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 str

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 highe

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 se