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

[VIDEO] Why Filming Fast Food Commercials Can Cost a Fortune

February 21, 2024

Fast food companies pour billions of dollars into marketing every year, and a big portion of those costs come from expensive video shoots for commercials. This video takes a detailed look at the extraordinary skill that goes into seemingly simple fast food ads, from hand-painting burger patties to moving items precisely with the help of robot technology.

Questions:

1. Why do fast food companies spend so much money to make their menu items appear realistic on camera?
2. How does Continue reading →

Marketing, Product Development, Entrepreneurship, Advertising, Social Media, Automation, Robotics, Promotion, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, 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, Videos

Food Prices Remain High Even as Inflation Falls

February 7, 2024

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American consumers first encountered rising prices shortly after the pandemic, when supply chain problems and labor shortages sent costs soaring for all sorts of goods. Fortunately, prices have finally started to fall again for products like appliances, used cars, and gasoline as well as services like health insurance. Still, inflation has not decreased evenly across the board, and the prices for some goods remain stubbornly high. Perhaps the clearest example of increasing costs occurs at the grocery store, where food Continue reading →

Food & Drink, Supply & Demand, Inflation, Pandemic, Operations Management, Pricing, Global, Product Distribution, Ethics

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 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

[VIDEO] The Soaring Costs of Creating Hot Air Balloons

February 2, 2024

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Large hot air balloons can cost as much as $160,000, requiring huge amounts of high quality materials and lots of time. This video focuses on the Spanish company Ultramagic Balloons, which employs large sewing teams as well as engineers to produce flawless balloon-based aircraft.

Questions:

Why does Ultramagic Balloons prioritize quality control throughout its production process?
What are some factors that contribute to the high costs of hot air balloons?

Product Development, Operations Management, Transportation, Global, Entrepreneurship, Air Travel, Manufacturing

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

Century-Old Stanley Becomes a Social Media Sensation

January 31, 2024

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Founded in 1913, the Stanley company has sold steel-insulated mugs for more than a century, operating for much of that time as a niche brand with a small but loyal customer base. Over the last few years, however, Stanley tumblers have become ubiquitous products thanks to the company’s canny use of social media. Their brightest moment in the spotlight happened last November when a TikTok user posted a video showing how her Stanley mug survived a car fire with the Continue reading →

Product Development, Manufacturing, Promotions, Product Distribution, Food & Drink, TikTok, Marketing, Ethics, Entrepreneurship, Social Media

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, 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] How the Alaska Airlines Incident Could Affect Boeing

January 24, 2024

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Two weeks ago, we looked at the terrifying incident that passengers experienced on an Alaska Airlines flight when a door suddenly blew open during takeoff. The incident placed Boeing under renewed scrutiny for its Max line of aircraft, which could have big repercussions for the company going forward. This video looks at the potential consequences Boeing could face, from losing airlines’ confidence to ceding market share to competitors like Airbus.

Questions:

How could airlines’ loss of confidence in Boeing Continue reading →

Regulation, Global, Air Travel, Ethics, Safety, Manufacturing, Supply & Demand, Airlines, FAA

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, Bonus Chapter A: Business Law, Videos

[VIDEO] How Aldi Shapes Its Stores for Success

January 19, 2024

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The German company Aldi is the fastest growing grocery chain in the U.S., expanding at a rate of about 100 stores a year. The following video explains how Aldi keeps prices low by stocking a limited number of products and designing stores for maximum efficiency.

Questions:

How do Aldi’s store layouts help the company keep expenses low?
Why does Aldi stock significantly fewer products than most supermarkets?

Supply & Demand, Aldi, Marketing, Product Development, Global, Pricing, Entrepreneurship, Product Distribution, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

FAA Grounds Some Boeing 737 MAX Jets after Emergency Landing

January 12, 2024

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Last week, passengers on an Alaska Airlines flight endured a disaster that every traveler fears as a door blew wide open while the plane was 16,000 feet in the air. Fortunately, pilots performed an emergency landing that ultimately kept the number of injuries low. Once the plane reached the ground, however, airline regulators demanded an explanation of how this incident could occur. Then they found out the make and model of the faulty plane: the Boeing 737 Max 9, a Continue reading →

Regulation, Transportation, Air Travel, Global, Safety, Ethics, Boeing, Manufacturing

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Bonus Chapter A: Business Law

Red Sea Crisis Could Send Inflation Soaring

January 10, 2024

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After enduring years of rising prices, consumers finally began to see some relief at the register as inflation cooled down toward the end of 2023. The recent global increase in prices was due in no small part to supply chain problems that stemmed from the pandemic, causing shipping costs to spike as transport times slowed to a crawl. It also didn’t help when an enormous container ship got stuck in the Suez Canal in 2021, which blocked trade on the Continue reading →

Product Distribution, Ethics, Crisis management, Supply & Demand, Supply chains, Transportation, Global

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 14: Product and Price, Chapter 15: Distribution

[VIDEO] How Zildjian Cymbals Has Thrived for Over Four Centuries

January 3, 2024

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According to the consultancy firm McKinsey, most mid-sized businesses have an average lifespan of about 18 years as companies change hands and markets evolve. That makes the achievement of the cymbal maker Zildjian all the more impressive: for more than four centuries, the company has served countless musicians across a wide variety of styles and eras. Along with providing a comprehensive overview of Zildjian’s storied history, the video below also examines the company’s fascinating production process and quality control procedures. Continue reading →

Marketing, Global, Product Development, Entrepreneurship, Entertainment, Manufacturing, Music, Product Distribution, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

European Authorities Seize 68,000 Gallons of “Unfit” Olive Oil

December 6, 2023

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A few months ago, we looked at the hardships facing the European olive oil industry as unpredictable weather led to poor harvests and diminishing supplies over the last year. Not only have olive oil prices risen across the globe as a result, but this production crisis has also given fraudsters a golden opportunity to exploit the lack of supply. For instance, this week authorities in Italy and Spain seized more than 68,000 gallons of olive oil that was deemed “unfit Continue reading →