Explain impact of given external factor on om strategy

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Reference no: EM131878592

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

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

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

Reference no: EM131878592

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