Chapter 2: Economics - McGraw-Hill Introduction to Business

Venture Capital Firms Invest Heavily in Mental Health Startups

May 10, 2022

The Covid-19 pandemic took an enormous toll on people’s mental health. The World Health Organization estimates that the prevalence of anxiety and depression increased by 25 percent during 2020. Meanwhile, the Centers for Disease Control and Prevention found that one-third of Americans have recently reported symptoms of anxiety or depression. Some patients struggle to book appointments with therapists, however, either because their insurance doesn’t cover their specific needs or because demand for mental health services has skyrocketed.

“Since Covid, Continue reading →

Product Development, Marketing, Startups, Ethics, Product Distribution, Entrepreneurship, Supply & Demand, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Stocks Dropped Last Month to Lowest Levels since March 2020

May 4, 2022

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Share prices plummeted across all three major stock indexes last Friday, wrapping up a terrible month that brought markets to their lowest levels since the start of the pandemic. On that single day, the Dow Jones Industrial Average fell 939 points while the S&P 500 dropped 155 points, amounting to respective contractions of 2.8 percent and 3.6 percent. Worst of all was the Nasdaq, which shrank by 4.2 percent after dropping 536 points.

The numbers look even worse when Continue reading →

Dow, Nasdaq, Product Distribution, Marketing, Federal Reserve, Securities Markets, Supply & Demand, Global, Stock markets

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

Netflix Stock Tanks after Drop in Subscribers

April 26, 2022

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Netflix revolutionized the entertainment industry after the company launched its streaming service in 2007, creating an on-demand platform that was soon imitated by many competitors. Although Netflix still has the largest audience in the industry with 220 million subscribers, the company faces strong competition from services like Disney+, HBO Max, and many others. No longer the only game in town, over the years Netflix has spent big on original television series and movies in order to stand out from this Continue reading →

Promotions, Entertainment, Marketing, Netflix, Streaming, Product Distribution, Food & Drink, Supply & Demand, Product Development

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, Bonus Chapter B: Technology and New Media

Shipping Companies Ignore Farmers in Pursuit of Greater Profits

April 21, 2022

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Before the pandemic, enormous shipping vessels bound for the West Coast of the U.S. from Asia usually took the same predictable and profitable voyages. After docking in either the port of Los Angeles or Long Beach, the ships would unload their cargo and then head up north to Oakland, where they stocked up on agricultural goods from California’s expansive farmland. This cargo would ultimately end up in markets around the world after journeying across the Pacific and disembarking in Southeast Continue reading →

Food & Drink, Supply & Demand, Ethics, Regulation, Entrepreneurship, Supply chains, Manufacturing, Transportation, Product Distribution, Agriculture, Shipping

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter A: Business Law

While Other Prices Rise, AriZona Iced Tea Remains 99 Cents

April 19, 2022

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As companies continue to face climbing costs, many businesses are responding by either raising prices themselves or reducing the size of their product offerings. But there’s at least one company who hasn’t surrendered to the effects of inflation: 23-ounce cans of AriZona iced tea remain 99 cents, the same price as when they hit the market 30 years ago. So is AriZona somehow immune to recent price increases? Not in the least, considering that the cost of aluminum has Continue reading →

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

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] Shrinkflation May Leave Fewer Chips in Your Bag

April 15, 2022

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As businesses across the globe contend with rising inflation, many companies are cutting costs by reducing the size of consumer goods and hoping buyers don’t notice. This video looks at this growing trend of “shrinkflation” and the risks that companies take when they downsize snacks.

Questions:

Why are many companies responding to rising costs with “shrinkflation?”
What risks do companies take when they alter the packaging or size of consumer goods like snacks?

Branding, Pricing, Packaging, Marketing, Ethics, Product Distribution, Food & Drink, Supply & Demand, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

Prices for Gas, Food, and Shelter Continue to Climb

April 12, 2022

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According to the Bureau of Labor Statistics, in March 2022 consumer prices rose by 8.5 percent compared to the same period last year, amounting to the largest increase since 1981. Not only must businesses contend with pandemic-related supply chain issues that have persisted for well over a year, but also Russia’s invasion of Ukraine has led to spiking fuel and food costs. As a result, inflation continues to rise alongside prices for essential goods like housing, groceries, and gasoline. Continue reading →

Ethics, Product Distribution, Oil, Ukraine, Supply & Demand, Gas prices, Pricing, Russia, Operations Management, Supply chains, Global, Energy

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 15: Distribution

Businesses Suffer Blowback from Russia Sanctions

April 5, 2022

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After the invasion of Ukraine last month, thousands of companies around the world either ceased operations in Russia or started divesting from the aggressor nation. This corporate response to the invasion followed a string of sanctions by governments around the world who intended to deal an economic blow to Russia. But cutting financial ties with the country has also led to some unexpected ripple effects on small businesses as well as multinational companies who must adjust to this complicated situation. Continue reading →

Operations Management, Global, Retail, Ethics, Russia, Entrepreneurship, Product Distribution, Manufacturing, Ukraine, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 15: Distribution

[VIDEO] The Big Business of Growing and Selling Houseplants

March 31, 2022

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Sales of houseplants skyrocketed during the onset of the pandemic, and ever since growers around the world have struggled to keep up with ever-increasing demand. Not only are they reaching production capacity, but growers are also in a race against time to get their plants to market before they die on store shelves. This video takes a detailed look at the advanced growing techniques used on modern houseplant farms as well as the flood of TikTok-driven demand that growers must Continue reading →

Gas Prices Increase at Fastest Rate on Record

March 25, 2022

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Anyone who’s had to fill up their car lately knows how the cost of gas has shot through the roof in recent weeks. According to the U.S. Energy Information Administration (EIA), the average price per gallon increased to $4.24 on Monday, the highest rate in more than four decades. Although the inflation-adjusted price does not quite reach the heights of the 1970s energy crisis, consumers must nevertheless deal with the largest month-to-month gas price increases on record.

Some parts Continue reading →

Oil, Operations Management, Ukraine, Global, Supply & Demand, Manufacturing, Russia, Energy

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