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QUESTION

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  1. 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:
    1. Major increases in oil prices.
    2. Water- and air-quality legislation.
    3. Fewer young prospective employees entering the labour market. d) Inflation versus stable prices.
    4. Legislation moving health insurance from a pretax benefit to taxable income.
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