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

Direct-to-Consumer Company Brandless Closes Down

February 13, 2020

In 2017, the home goods company Brandless launched with a novel way to take on Amazon as well as other big-box retailers. The direct-to-consumer startup sold high-quality, organic versions of everything from toilet paper to beauty products in simple, no-frills packaging. Brandless claimed that this eliminated the so-called “BrandTax” levied by many companies, which could account for as much as 40 percent of the product’s actual cost. With little money spent on traditional marketing, Brandless initially charged just $3 for Continue reading →

Chinese Factories and Retailers Struggle due to Coronavirus Fears

February 11, 2020

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A few weeks ago, the coronavirus outbreak in China caused countless businesses to shutter as the government also restricted travel throughout the country. Many companies announced plans to stay closed during an extended Lunar New Year holiday, which was supposed to end yesterday. But with many workers still unable to leave their hometowns, a number of manufacturers are pushing that date back. Volkswagen, for instance, will only reopen some of its plants in about a week due to complications with Continue reading →

Operations Management, Global, Human Resources, Manufacturing, China, Supply chains, Health, Product Distribution, Crisis management, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 15: Distribution

[VIDEO] How Ads Follow You Around the Internet

February 7, 2020

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Targeted advertising has become the economic engine of the Internet for big companies like Facebook and Google that collect all sorts of data about their users. This video details how tech giants track people online in order to gather information for advertisers, a widespread practice that is nevertheless hugely controversial.

Questions:

How has the use of cookies changed from the early days of the Internet to today?
Do you think legislators should regulate how companies track people online for Continue reading →

Marketing, Ethics, Silicon Valley, Google, Promotions, Advertising, Facebook, Security, Privacy, Targeted Advertising

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media, Videos

Macy’s Will Close 125 Stores and Lay Off 2,000 Employees

February 6, 2020

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As the country’s largest department store chain, Macy’s has hundreds of locations nationwide and earned more than $25 billion in sales in 2018 alone. Still, the last few years have not been easy for the retailer as more consumers turn to e-commerce outlets like Amazon for their shopping needs. Meanwhile, discount retailers like TJ Maxx and fast-fashion brands like H&M are also winning over shoppers with wide selections and great deals. After struggling to keep up with all of this Continue reading →

Operations Management, Human Resources, Retail, Pricing, Product Distribution, Layoffs, E-commerce

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Chipotle Fined $1.3 Million for Child Labor Violations

February 4, 2020

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The national unemployment rate is currently at 3.5 percent, its lowest point in decades. As a result, retailers and restaurant chains across the country are having a difficult time finding workers to fill low-wage positions. “Understaffing is a massive problem,” said Jonathan Maze, executive editor of Restaurant Business Magazine. “You have companies that are stressed to try to fill hours and keep people on, and it can lead to violations.”

According to a recent ruling from a Massachusetts court, Continue reading →

Ethics, Franchising, Human Resources, Labor Relations, Chipotle, Regulation, Legal, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Bonus Chapter A: Business Law

Coronavirus Outbreak Could Have Major Economic Impact

January 31, 2020

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Last week, the world learned that a deadly, fast-moving disease called the coronavirus had appeared in several Chinese cities. The mysterious illness has already killed more than a hundred people and infected thousands more, leading the World Health Organization to declare the coronavirus a global health emergency. Despite its potentially worldwide implications, though, right now the disease is primarily localized in China. Along with placing entire cities on quarantine, Chinese authorities have also extended the annual Lunar New Year holiday Continue reading →

Operations Management, Global, Ethics, Human Resources, Manufacturing, China, Health, Crisis management, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management

Food Delivery Services Anger Unsuspecting Restaurants

January 30, 2020

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Last weekend during a busy dinner service, San Francisco restaurant owner Pim Techamuanvivit received a strange phone call. The caller wanted to know when the delivery he ordered through Seamless would turn up since he had already waited 45 minutes for it. “I think you must be confused, because I don’t do delivery,” replied Techamuanvivit. The frustrated person on the other line then asked why her business was listed on Seamless. Upon further investigation, Techamuanvivit discovered that both Seamless and Continue reading →

Operations Management, Ethics, Entrepreneurship, Pricing, Legal, Product Distribution, California, Food & Drink, Grubhub, Seamless

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media

ClassPass Grows into $1 Billion Company

January 28, 2020

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In 2013 the fitness startup ClassPass launched as a way to help gyms and workout studios fill open spaces in exercise classes. Through the ClassPass app, users can browse a list of available classes in their area and book times that fit within their schedule. They also don’t need to sign up for a variety of different gym memberships since ClassPass now partners with more than 30,000 fitness centers in 28 countries. The company’s growing global reach has attracted interest Continue reading →

Marketing, Global, Entrepreneurship, Pricing, Venture Capital, Startups, Unicorn, Fitness, ClassPass

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 18: Financial Management, Bonus Chapter B: Technology and New Media

[VIDEO] Nike’s Vaporfly Running Shoe Causes Controversy

January 24, 2020

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Last year, the Kenyan long-distance runner Eliud Kipchoge completed a marathon in under two hours, a feat that was once thought to be impossible. But along with his considerable athletic skills, Kipchoge also had help from a revolutionary new product: Nike’s Vaporfly running shoes. This video takes a look at the sudden dominance of the Vaporfly and how regulators could possibly ban the shoe if it proves to give runners too much of an advantage.

Questions:

Do you think Nike Continue reading →

Marketing, Global, Ethics, Product Development, Sports, Regulation, Nike, Footwear

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Bonus Chapter A: Business Law

New York Grocery Chain Fairway Files for Bankruptcy

January 23, 2020

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In 1933 Nathan Glickberg opened a fruit and vegetable stand in Manhattan before eventually moving into a nearby storefront. His grandson Howie expanded the store in the 1970s, adding more groceries and specialty items as well as a new name: Fairway. In the years since, the store became a staple for many New Yorkers drawn by Fairway’s low prices and wide selection of quality products. Then in the early 2000s a private equity firm bought a controlling stake in the Continue reading →

Marketing, Ethics, Branding, Retail, Amazon, Product Distribution, Bankruptcy, New York, Food & Drink, Forms of Ownership, Private Equity

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 13: Marketing, Chapter 14: Product and Price, Bonus Chapter A: Business Law