Chrysler's dilemma was to alarge degree created by its environment- aggessive foreign competition, OPEC nations that had run up the price of gasoline during the 1970s, and the U.S. government's determination to fight inflation by keeping interest rates high. Suchenvironmental forces had hit hard at Chrysler's product line, which, through most of the 1970s, was made up of large, expensive, highfurl-consuming automobiles. Although General Motors and Ford faced the same environment, they had a large volume of sales over which to spread the investment of billions of dollars necessary to retool and produce smaller and more efficient cars. GM and Ford also had substantially stronger financial positions. So Chrysler was clearly affected by its environment. But interestingly, the relationship between Chrysler and its environment was two-way. Suppliers, the state of Michigan, the United Automobile Workers union, and the federal government (by way of loan guarantees) were all affected by chrysler's problems. While few organizations have the impact on their environment of a Chrysler Corporation, the fact remains that all open systems affect their environment to some degree.