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

[VIDEO] How To Grow The Perfect Christmas Tree

December 19, 2018

With December 25th less than a week away, twinkling Christmas trees are currently illuminating homes across the country. And while these festive firs will only stand for a couple of weeks, their journey from farms to family rooms takes more than a decade. This video about the production process on Christmas tree farms looks at why they must follow strict logistical schedules or else face disastrous consequences in the long term.

Questions:

Why are logistics so important for Christmas tree Continue reading →

Production, Christmas, Operations Management, Holidays, Global, Product Development, Product Distribution

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

AM Radio Doesn’t Work in New Electric Cars

December 11, 2018

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For most of the 20th century, the AM radio band served as the country’s main source for mass media. And while broadcasters eventually moved on to higher quality options like FM and satellite radio, the AM dial remains packed with all sorts of talk, sports, and music programs. And just like in the early days, anybody can tune in as long as they own a radio. That is unless you want to listen while riding in your Tesla or Chevrolet Continue reading →

Radio, Tesla, Manufacturing, Product Development, Cars, Transportation, Electric cars

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Bonus Chapter B: Technology and New Media

Amazon Chooses Two Cities for Its New HQ Locations

November 15, 2018

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Last year, Amazon announced that it would build a second headquarters somewhere in the United States. Known as “HQ2,” the project generated instant interest among dozens of cities that wanted to attract the e-commerce giant to their communities. After all, Amazon said the headquarters would bring in at least 50,000 high-paying tech jobs, which could have a significant economic impact anywhere in the country. Cities then offered generous benefits and tax breaks in an effort to woo the company. While Continue reading →

Ethics, Facility Location, Human Resources, Regulation, Legal, Motivation, E-commerce

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Bonus Chapter B: Technology and New Media

Thousands of Marriott Workers Go on Strike

November 1, 2018

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With about 6,700 hotels operating under 30 brands in more than a hundred countries, Marriott International is by far the world’s largest hotel chain. Last year the company earned profits totaling $1.37 billion as guests from around the globe checked in and out of properties like Sheraton, Ritz-Carlton, and Westin. Over the last few weeks, however, 23 hotels owned by Marriott have not been operating as usual. That’s because since October 8th the employees at these locations have been on Continue reading →

Travel, Operations Management, Automation, Ethics, Sustainability, Unions, Hotels, Labor Relations, Strikes, Marriott

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

[VIDEO] How IKEA Gets You to Impulsively Buy More

October 26, 2018

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We’ve all been there before: you go to the store with a carefully prepared shopping list only to walk out with tons of stuff you had no previous intention to buy. These types of impulse purchases are such a vital source of revenue that some retailers design their store layouts to encourage as much emotion-driven buying as possible. This video looks at how IKEA depends on winding pathways and strategic lighting to do just that.

Questions:

How does IKEA’s store Continue reading →

Product Distribution, IKEA, Marketing, Store Layout, Operations Management, Retail

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

Toys ‘R’ Us Bankruptcy Hurts Sales at Hasbro

October 23, 2018

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Earlier this year, Toys ‘R’ Us announced that it would be closing most of its U.S. stores after filing for bankruptcy in 2017. And while this was certainly bad news for anyone who loved the store “where a kid can be a kid,” it was especially unpleasant for toy manufacturers like Hasbro and Mattel. These companies depended on large holiday orders from Toys ‘R’ Us to fund operations throughout the entire year. Without a big retailer to sell to, though, Continue reading →

Bankruptcy, Toys ‘R’ Us, Operations Management, Hasbro, Retail, Supply chains, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter A: Business Law

Why Coca-Cola Tastes Better at McDonald’s

October 19, 2018

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Although Americans can buy a Coke just about anywhere, no other place seems to make the soft drink better than McDonald’s. And that’s not an accident: the company has had a special connection with Coca-Cola since the burger chain’s founding in 1955. Back then, McDonald’s boss Ray Kroc struck a handshake deal with a local Coke supplier, establishing a close business relationship that continues to this day. “Those two companies helped each other grow and expand around the globe,” said Continue reading →

Product Distribution, Food & Drink, Operations Management, Product Development, McDonald’s, Coca-Cola

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

The Shipping Industry Faces Costly Fuel Restrictions

October 18, 2018

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Every day, thousands of huge cargo ships criss-cross oceans delivering products to markets all over the globe. But that’s not the only thing these vessels bring to port: they also emit sulfuric gases and fine particles that settle over cities as smog. In order to combat all this toxicity, a couple of years ago the United Nations passed a resolution to reduce the amount of sulfur content in maritime fuels. According to the guidelines, by 2020 shippers must switch to Continue reading →

Shipping, Regulation, Supply chains, Transportation, Global, Sustainability, Ethics, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter A: Business Law

Robots Replace 90 Percent of Staff at a Uniqlo Warehouse

October 16, 2018

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The Japanese clothing retailer Uniqlo has steadily grown into an international brand known for its inexpensive but stylish designs. As you might expect, maintaining this image requires the company to strike a delicate balance between creating interesting products and keeping costs low. That’s why Uniqlo recently announced that robots have replaced 90 percent of the staff at one of its warehouses.

Along with drastically cutting costs, the company’s newly automated warehouse will also be able to operate 24 hours a Continue reading →

Clothing, Retail, Operations Management, Automation, Global, Product Distribution, Ethics, Japan, Partnerships, Uniqlo

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 9: Production and Operations Management, Bonus Chapter B: Technology and New Media

[VIDEO] Six Big Changes NAFTA’s Replacement, the USMCA, Makes

October 12, 2018

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Last week representatives from the U.S., Mexico, and Canada reached an agreement to update NAFTA, the international trade deal that went into effect in 1994. Now known as the USMCA, this video looks at how the new deal could affect various industries throughout North America. Click here to watch it.

Questions:

Which industries will be most affected by the USMCA?
What is the purpose of international trade deals like NAFTA or the USMCA?

Photo by Nicoguaro.

Free Trade, Operations Management, Tariffs, Global, USMCA, Regulation, NAFTA

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Bonus Chapter A: Business Law, Videos