Chapter 1: Taking Risks and Making Profits - McGraw-Hill Introduction to Business

Multi-Level Marketing: Safe or Scam?

October 5, 2014

Since the onset of the financial crisis of 2008, millions of Americans have looked for ways to earn additional income. For some, multi-level marketing companies like Avon and Herbalife presented a good avenue for making extra cash. In these types of operations, individuals pay the company for a bulk amount of goods that they then sell to other people. According to multi-level marketing firms and their trade groups, the system allows consumers to purchase their favorite products at a Continue reading →

Distribution, Direct Selling, Marketing, Herbalife, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter A: Business Law, Bonus Chapter C: Managing Risk

The Downside of Entrepreneurial Passion

October 2, 2014

NickelsMcHughMcHugh

Passion and confidence are essential traits for any entrepreneur, but these same qualities can also lead aspiring business owners to ruin. If entrepreneurs are too assured and optimistic, they risk losing sight of the enormity of the task they have undertaken. For instance, passionate people can believe so deeply in their business idea that they become blinded to its actual market viability. They are driven by the notion that since they would love to buy this particular product or Continue reading →

Startups, Financial Planning, Management, Entrepreneurship, Innovation, Value

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership

Eliminating Waste Through Reselling

September 20, 2014

NickelsMcHughMcHugh

Although many Americans make sure to recycle their plastic bottles and aluminum cans, they’re less careful to do so with their more functional possessions. Ninety percent of the nation’s mobile devices get thrown in the trash rather than the recycling bin. The gadgets are joined there by 40 percent of the food produced each year in the U.S., along with the 12 million tons of textiles that get tossed annually.

Over the last few years, a number of new companies Continue reading →

Innovation, Startups, Sustainability, Resale, Entrepreneurship, Social Media

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Bonus Chapter B: Technology and New Media

TJ Maxx Defies the Odds with Sustained Success

September 17, 2014

NickelsMcHughMcHugh

Although nothing in business is a sure thing, few industries are more volatile than apparel retail. In this unpredictable world, it can be almost impossible to guarantee success for a brand. For instance, Target and Kmart spent years dueling for dominance until the former won out with its more upscale marketing. However, long-term prosperity grants no safety net. Abercrombie & Fitch ruled the preppy clothing market for more than a decade, but now sales are falling as younger consumers view Continue reading →

Promotions, Retail, Pricing, Distribution, TJ Maxx, Marketing

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

One-Cent Sale Costs Staples Millions

September 14, 2014

NickelsMcHughMcHugh

Last year the retail chain Staples signed a contract to become the State of New York’s official office-supplies vendor, which looked like quite a coup at the time. After all, the agreement put Staples in direct contact with city halls, schools, police departments and charities across the state. In fact, the company was so desperate to tap this lucrative market that it pledged to sell a number of products for just a penny apiece. While this bold promise helped Staples Continue reading →

Promotions, Retail, Pricing, Staples, Marketing

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion

Bathroom Beacons Let You Know Where to Go

September 6, 2014

NickelsMcHughMcHugh

Nobody likes to wait in line for the bathroom, but sometimes that’s just the way things are at big, busy venues like stadiums and airports. Entrepreneur Allen Klevens couldn’t accept this fact of life, however, and set out to fix it with his new product Tooshlights. These small beacons rest at the top of a bathroom stall door and glow red if the space is occupied or green if it’s free. Klevens hopes this clever stop-and-go system will drastically speed Continue reading →

Innovation, Tooshlights, Entrepreneurship, Product Development, Sports

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 14: Product and Price

America’s Impending Clown Shortage

August 30, 2014

NickelsMcHughMcHugh

In the Internet age, people don’t need to leave their homes in order to access near limitless choices of entertainment. Although convenient for consumers, this cultural shift has sent attendance at many theaters and symphonies across the country on a downward spiral. But it’s not just highbrow pursuits that have seen a drop in public interest. In fact, circuses are in such a dire state that industry insiders fear their decline will lead to a nationwide decline in the number Continue reading →

Human Resources, Unemployment, Entertainment, Demographics, Clowns

Chapter 1: Taking Risks and Making Profits, Chapter 11: Human Resource Management

The Myth of the Labor Skills Gap

August 26, 2014

NickelsMcHughMcHugh

Economists have long argued that a skills gap is growing among the American workforce. Hundreds of businesses both large and small have echoed this sentiment, claiming that there aren’t enough qualified people to perform certain jobs. However, in most cases this line of thinking simply doesn’t add up. According to the Bureau of Labor Statistics, the number of unemployed people exceeds the number of jobs available in every industry. In durable goods manufacturing, for instance, there are approximately 576,000 idle Continue reading →

Ethics, Training, Manufacturing, Labor Relations, Unemployment, Compensation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 11: Human Resource Management

Turning Caregiving into a Franchise

August 23, 2014

NickelsMcHughMcHugh

In order to turn a successful business into a successful franchise, an entrepreneur needs a strong concept along with good people to implement it. That’s exactly what Allen Hager set out to do when he launched his home health care company, Right at Home, as a franchise nearly 20 years ago. By expanding the business plan and setting strict hiring policies, Right at Home has grown into a company with nearly 400 locations across the world and $265 million Continue reading →

Right at Home, Ethics, Franchising, Entrepreneurship, Seniors, Health

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 14: Product and Price

Starbucks Reinvents to Stay Relevant

August 19, 2014

NickelsMcHughMcHugh

When Howard Schultz first joined Starbucks as marketing director in 1982, the small Seattle company made most of its money selling coffee-making equipment. Once Schultz landed the CEO position, however, matters changed drastically. Looking to bring the European café experience to American shores, Schultz transformed the regional chain into an international behemoth within two decades.

Starbucks changed again when Schultz stepped down as CEO in 2000. After a rapid expansion saw the company grow to more than 15,000 stores Continue reading →

Starbucks, Marketing, Product Development, Branding, Innovation

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 10: Motivation, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution