1. The internal environment is a major factor in determining a firm’s operations strategies. Select one of the four possible internal changes below that could might occur in Regal’s internal environment and suggest how Regal might adapt to that strategy.

In a short paragraph, be specific: clearly identify what action Regal might take, and why your suggestion would be appropriate for a company like Regal Marine:

a) The increased use of Local and Wide Area Networks (LANs and WANs between Regal’s production plants and its dealer base.

b) A survey from Regal Boat Dealers that they planned on stocking 20% less inventory due to rising average cost per unit on new Regal boats.

c) Regal’s increasing difficulty in recruiting a more diverse workforce, reflecting changes in the Orlando, Fla plant location.

d) The seemingly increasing rate at which both internal and external environments change.

2. The external environment is a major factor in many firm’s operations strategies. Select one of the five external changes below that could occur in Regal’s external environment and suggest how Regal might adapt to that strategy.

In a short paragraph, be specific: clearly identify what action Regal might take, and why your suggestion would be appropriate for a company like Regal Marine:

a) The occurrence of a major storm or hurricane.

b) The much discussed decrease in the quality of American primary and secondary school systems.

c) Increasing gasoline prices, with marina prices averaging $.75 over pump prices.

d) The rapid rate at which the cost of health insurance is increasing.

e) Increased demand by customers to buy direct through the Internet.