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

Fourth of July Cookouts Could Cost More this Year

July 2, 2024

In a few days, millions of Americans will ignite their grills and barbecue up a storm in a grand Independence Day tradition enjoyed from coast to coast. Thanks to inflation, though, this year’s celebrations may be pricier than in years past. While Fourth of July favorites like hot dogs and potato salad remain affordable, prices for items like ground beef, pork chops, and lemonade have risen dramatically.

According to the American Farm Bureau Federation (AFBF), an average cookout for 10 Continue reading →

Pricing, Product Distribution, Agriculture, Marketing, Holidays, Operations Management, Food & Drink, Supply & Demand

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

How Rent the Runway Lost Over 90 Percent of Its Value

June 14, 2024

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The fashion startup Rent the Runway seemed destined for long-term success when it launched as an industry-disrupting force in the late 2000s. As this video shows, though, not even a $1 billion IPO could save the company from established competitors and the impact of a global pandemic.

Questions:

How did the pandemic affect Rent the Runway’s business?
What advantages do established competitors like Urban Outfitters have over startups like Rent the Runway?

Entrepreneurship, Product Development, Promotions, Product Distribution, E-commerce, Supply & Demand, Pandemic, Marketing

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, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Spending on Scent: The Appeal of Costly Candles

June 12, 2024

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Although some consumers are becoming wary of the rising cost of fast food, there’s one product that a growing number of people are willing to splash extra cash on: candles. Over the last year, Americans have spent $222 million on candles at upscale department stores and beauty retailers as well as online outlets. Sales of candles that cost more than $75 have increased by 25 percent, representing a small but expanding segment of the market. For instance, the singer Continue reading →

Product Development, Marketing, Product Distribution, Entrepreneurship, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, 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

Cash-Strapped Consumers Label Fast Food as a Luxury

June 5, 2024

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The fast food industry has long depended on affordability as one of its key selling points, offering customers quick meals that are easy on their wallets. Those days might be in the past, however, as inflation and other factors have sent fast food prices soaring in recent years. According to Finance Buzz, average prices at the country’s most popular chains have increased by as much as 100 percent over the last decade. The 31 percent rise in inflation over the Continue reading →

Promotions, Pricing, Fast food, Product Distribution, Marketing, Food & Drink, Supply & Demand, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] Why Gold Is More Valuable Than Ever

May 29, 2024

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Demand for gold has been rising across the globe, defying economists’ expectations and sending prices soaring to new heights. The video below looks at how the gold trade has changed in recent years as everyday consumers enter the market alongside major investors. Costco, for example, sells $200 million worth of gold bars every month to members on the lookout for what they consider to be stable investments.

Questions:

Why have gold prices been rising across the globe recently?
Do you Continue reading →

Commodities, Supply & Demand, Costco, Gold, Retail, Marketing, Global, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Videos

AAA Expects Record Amount of Memorial Day Travelers

May 22, 2024

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Memorial Day represents the start of summertime for many Americans, who often use the long weekend to hit the road and go on a trip. According to AAA, that statement will ring especially true this year as a record number of travelers will trek across the country over the coming days. Between Thursday and Monday, an estimated 43.8 million people will travel at least 50 miles, marking a four percent increase over 2023. In fact, this weekend could equal the Continue reading →

Entertainment, Transportation, Travel, Product Distribution, Holidays, Supply & Demand

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

Apple Apologizes for iPad “Crush” Commercial

May 15, 2024

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When Apple releases a new iPad, the company tends to spend big on a slick commercial that shows off the device’s new features. Product launches like these can garner lots of attention from both consumers and tech media, which hopefully then turns into sales for Apple. This time around, though, the tech giant’s latest iPad ad started trending on social media for all the wrong reasons. The spot centers on a trash compactor-like machine that crushes an array of creative Continue reading →

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, 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 Endless Shrimp Almost Sank Red Lobster

May 10, 2024

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In the late 1990s, the seafood chain Red Lobster was one of the fastest growing restaurants in the nation as it earned billions of dollars in annual revenue from more than 700 locations. As the years went by, though, poorly planned promotions and wider economic factors took their toll on the company. This video looks at how the pandemic and an endless shrimp promotion brought Red Lobster to the brink of bankruptcy.

Questions:

How did Red Lobster’s endless shrimp promotion Continue reading →

Marketing, Product Development, Social Media, Promotions, Pricing, Product Distribution, Food & Drink, Supply & Demand, Inflation, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Discovering New Ideas by Reaching out to Customers

May 8, 2024

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Business is all about giving the customer what they want, but sometimes it can be difficult to figure out exactly what that is. Some brands get to know their fans by giving them a platform that directly asks for their input, providing companies with much-needed ideas while customers feel included in the development process. For example, in 2008 Lego launched its initiative Lego Ideas where builders submit original designs to be evaluated among a wider community of enthusiasts. If an Continue reading →

Product Distribution, E-commerce, Product Development, Marketing, Branding, Entrepreneurship, Entertainment, Lego

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Zara Attempts to Rebrand as a Luxury Fashion Line

May 3, 2024

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The fashion company Zara became a multi-billion dollar force in the industry thanks to its unique ability to churn out stylish clothing at low prices. Of course, critics of the Spanish firm would not likely call its business model “unique”: Zara has long been accused of ripping off its designs from luxury fashion houses. Those days might be in the past, however, as the company looks to reinvent itself as a high-end brand working with some of the world’s top Continue reading →

Management, Marketing, Global, Ethics, Branding, Entrepreneurship, Fashion, Zara

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion