Chapter 9: Production and Operations Management - McGraw-Hill Introduction to Business

Popcorn Farmers Look for New Markets as Theater Business Dwindles

September 24, 2020

With audiences largely reluctant to return to the movies, it’s not just theater chains that are struggling to adapt to life during the pandemic. Farmers who supply theaters with popcorn have seen orders for their product almost disappear as retail suppliers have seen sales surge. While Orville Redenbacher, Jolly Time, and Pop Secret have benefited from consumers staying home, the Preferred Popcorn company in Nebraska has millions of tons of unsold kernels on hand.

Preferred Popcorn primarily supplies snack distributors Continue reading →

Entertainment, Supply chains, Packaging, Product Distribution, Movies, Operations Management, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution

Movie Studios Hold Back Major Releases as Theaters Stay Empty

September 22, 2020

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On August 27th, Warner Bros. began gradually releasing the movie Tenet in theaters that had been closed for months due to the pandemic. After more than two weeks on American screens, though, the $200 million film has only earned $29.5 million domestically. As a result, Hollywood studios may hold back on releasing major titles until audiences are ready to return. “You can’t do it. The economics won’t allow you to do it,” said one studio executive. “We can’t give [theaters] Continue reading →

[VIDEO] Durable Goods and What They Say About the Economy

September 18, 2020

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In order to assess the state of the economy, analysts often examine how many long-lasting goods are being ordered by retailers and manufacturers. The idea is that companies who are confident enough to stock up on durable goods like appliances and cars are anticipating a consumer base that’s eager to purchase them. This video looks at the durable goods indicator and explains how investors often look beyond it to get a better sense of where the economy is headed.

Questions: Continue reading →

Manufacturing, Product Distribution, Supply & Demand, Economics, Global

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Videos

Airlines Ease Fees in Effort to Attract Travelers

September 10, 2020

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With Labor Day weekend come and gone, airlines have entered the period of the year where business travelers usually make up the bulk of their flights rather than tourists. But as the pandemic continues to disrupt life throughout the U.S., almost nothing is proceeding like normal in the air travel industry. All told, the nation’s carriers are losing $6 billion per month and have laid off more than one-fifth of workers as the industry desperately looks for ways to cut Continue reading →

Promotions, Marketing, Health, Operations Management, Travel, Global, Product Distribution, Coronavirus, Airlines

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion

How Domino’s Pizza Adapted to the Pandemic

September 8, 2020

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More than 15,000 restaurants have closed permanently since the start of the pandemic, and not all of them are small independent operations. NPC international, a major franchisee of Pizza Hut and Wendy’s locations, recently filed for bankruptcy protection as sales across all stores dropped 37 percent compared to the previous year. But while much of the restaurant industry has struggled, one chain has managed to thrive: Domino’s Pizza sales have increased by 16 percent since March.

By focusing on Continue reading →

Franchising, Innovation, Product Distribution, Coronavirus, Marketing, Product Development, Operations Management, Promotions

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

[VIDEO] The Robot Revolution Has Arrived

August 20, 2020

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As companies across all industries look for ways to reduce contact between employees during the pandemic, many are turning to automated labor as a way both to stay safe and trim costs. This video looks at how advanced robotic technology could change workplaces in the long term while also examining the potential limitations of automation.

Questions:

Why are many companies investing in automated labor during the pandemic?
What are the advantages and disadvantages of automation?

Operations Management, Ethics, Health, Human Resources, Automation, Manufacturing, Labor Relations, Coronavirus, Organizational Culture

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 8: Organizational Culture and Structure, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Bonus Chapter B: Technology and New Media, Videos

Italy’s Renaissance-Era Wine Windows Return to Use

August 18, 2020

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The ongoing coronavirus pandemic has forced countless companies around the world to come up with new ways to sell products or else risk going out of business. For instance, many bars and restaurants have made the switch to carry-out service and installed take-out windows to easily access waiting customers. For some lucky Italian entrepreneurs, though, their businesses come with built-in to-go kiosks constructed more than 500 years ago.

Known as “buchette del vino,” or “little wine holes” in English, these Continue reading →

Food & Drink, Coronavirus, Operations Management, Promotions, Global, Italy, Entrepreneurship, Health, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Chapter 16: Place and Promotion

AMC Theatres Plans for August 20th Reopening with 15 Cent Admission

August 17, 2020

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With hundreds of American movie theaters closed since March, the film exhibition industry has made several attempts to return to business only to reverse course soon after. AMC Theatres, for instance, announced plans to reopen on July 15th but scrapped that idea as coronavirus cases spiked across the U.S. Despite these setbacks, though, the nation’s largest theater chain has now set August 20th as its return date. What’s more, AMC plans to charge just 15 cents per admission on the Continue reading →

[VIDEO] How Airlines Can Survive the Pandemic

August 7, 2020

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Airline passenger volume has plummeted by 95 percent during the coronavirus pandemic, wiping out tens of billions of dollars in revenue in the process. This video looks at how airlines are fighting to survive these unprecedented times by furloughing employees, limiting flight capacity, and retiring old aircraft like the Boeing 747.

Questions:

What measures are airlines taking to cut costs during the pandemic?
What are the potential long term consequences of furloughing employees like pilots?

Health, Travel, Operations Management, Product Distribution, Human Resources, Supply & Demand, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 15: Distribution

Clorox Wipes Will Not be Widely Available Until 2021

August 6, 2020

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Global sales of household cleaning products and disinfectants have skyrocketed since the start of the coronavirus pandemic. As a result, supplies of some products have become increasingly strained as even the biggest brands struggle to keep up with demand. For example, Clorox CEO Benno Dorer said that the company will not be able to fully stock grocery store shelves with disinfectant wipes until at least 2021.

Clorox has also been running low on many of its most popular items, Continue reading →

Supply & Demand, Manufacturing, Coronavirus, Clorox, Supply chains, Health, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution