The Changes in the Environment Affect Into Operations
The Changes in the Environment Affect Into OperationsMGT-534 Operations Management and Strategy 3B
Winter 2012 Librado Gonzalez
Masters in Business Administration
Northern California University
How do changes in the environment such as demand changes, new pollution control laws, the changing value of the dollar, and price changes affect operations? Name specific impacts on operations and the supply chain for each change. Support your response with references to the text or websites. Include the reference documentation in the response.
Give examples of a global business located in your country with which you are familiar. How has globalization of this business affected operations and its supply chain? Describe the business, what countries are they located, products, services? What is meant by ‘supply chain’? Submit your response via a word doc. Save as yourname_week1DQ12
Ther changes in the environment affect into operations
Supply and demand
Supply and demand is a fundamental factor in shaping the character of the marketplace, for it is understood as the principal determinant in establishing the cost of goods and services. The availability, or "supply," of goods or services is a key consideration in determining the price at which those goods or services can be obtained. For example, a landscaping company with little competition that operates in an area of high demand for such services will in all likelihood be able to command a higher price than will a business operating in a highly competitive environment. But availability is only one-half of the equation that determines pricing structures in the marketplace. The other half is "demand." A company may be able to produce huge quantities of a product at low cost, but if there is little or no demand for that product in the marketplace, the company will be forced to sell units at a very low price. Conversely, if the marketplace proves receptive to the product that is being sold,...