Chapter 2: Economics - McGraw-Hill Introduction to Business

Lack of Growth Convinces Lego to “Reset”

October 3, 2017

The last decade has been a good one for the Danish company Lego. After surviving a brush with bankruptcy in 2004, the famous toymaker regrouped and pursued an aggressive sales strategy focused on creating popular product lines. The plan worked as brands like Lego Architecture and the Mindstorms series attracted thousands of fans both young and old. By 2010 profits had quadrupled from the same time two years before. The company has since released two hit movies while continuing to Continue reading →

Product Development, Innovation, Lego, Management, Toys

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price

Hurricane Maria Deals Major Damage to Puerto Rico

September 28, 2017

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Over the last month hurricanes have torn through America’s southern coast, inflicting massive amounts of damage to Texas, Florida, and other states in the region. Of course, the U.S. mainland is far from the only place that’s been harmed by these major weather emergencies. Along with devastating Caribbean islands like Barbados and Barbuda, recent tropical storms have also hammered the American territory of Puerto Rico. First it had to endure Hurricane Irma, which only clipped the island’s northern portion Continue reading →

Natural Disasters, Risk Management, Hurricanes, Hurricane Maria, Puerto Rico, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Bonus Chapter C: Managing Risk

Massive Debts Force Toys ‘R’ Us to File for Bankruptcy

September 19, 2017

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The decline of brick and mortar retail has been one of the biggest business stories of the year, with formerly successful chains like HH Gregg, Payless and others filing for bankruptcy. And this week Toys ‘R’ Us became the latest company to join this unfortunate group. Like so many other traditional retailers, Toys ‘R’ Us couldn’t keep up with the growing dominance of Amazon. The company’s CEO said it would need to slash prices in order to stay afloat, Continue reading →

Retail, Amazon, Product Distribution, Bankruptcy, E-commerce, Debt, Toys ‘R’ Us

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 15: Distribution, Chapter 19: Securities Markets, Bonus Chapter B: Technology and New Media

[VIDEO] Tulip Mania: The First Bubble

September 15, 2017

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In the 17th century citizens of the Netherlands enjoyed an historic era of art and prosperity known as the Dutch Golden Age. Wealthy merchants spent lavishly on all sorts of luxuries, including a new flower imported from Turkey called the tulip. Demand for tulips reached incredible heights until the bottom suddenly fell out of the market. This short video looks at what many economists consider to be the first market bubble to burst.

Questions:

How does the Dutch tulip craze Continue reading →

Value, Economics, Product Distribution, Global, Market Bubble, Netherlands, Tulip Mania, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets

Poor Harvests Send Avocado Prices Soaring

September 12, 2017

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One hundred years ago hardly any Americans outside of California had ever seen an avocado, let alone ate one. Then during the 1920s a Los Angeles postal worker named Rudolph Hass planted an avocado seed in his backyard that eventually grew into a highly productive tree. His children raved about how their father’s flavorful fruit beat out any competitors at the local market, eventually convincing him to patent the Hass Avocado in 1935. Soon growers across the region began to Continue reading →

Avocados, Product Development, Supply chains, Economics, Product Distribution, Food, Agriculture

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, Chapter 16: Place and Promotion

Consumers Accuse Businesses of Price Gouging during Harvey

September 5, 2017

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Since Hurricane Harvey made landfall in Texas a couple of weeks ago, the region has been hit with devastating floods that have upended the lives of millions. And although the waters are finally starting to recede in cities like Houston, that just means the serious cleanup work is about to begin. The financial forecasting firm Moody’s Analytics now estimates that Harvey inflicted as much as $108 billion in damage to the region. Thankfully, dedicated volunteers have been working around the Continue reading →

Pricing, Regulation, Supply chains, Legal, Product Distribution, Ethics, Natural Disasters, Hurricane Harvey, Price-Gouging

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

Bitcoin Users Become Targets for Hackers

August 22, 2017

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When Bitcoin launched in 2008, a single unit of the mysterious cryptocurrency was worth just a little more than half a cent. Bitcoin’s value remained under a dollar for years afterward, leading many to wonder why anyone would invest in a strange new currency that couldn’t be controlled by any government or company. Besides being seemingly worthless, Bitcoin also operated through a decentralized network of computers whose owner was impossible to verify. This anonymity extended to Bitcoin’s users as well, Continue reading →

Security, Smartphones, Ethics, Mobile, Cyberattack, Bitcoin, Innovation, Currency

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 20: Money and Financial Institutions, Bonus Chapter B: Technology and New Media

Restaurants Serve Up Jobs Across the Country

August 10, 2017

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The U.S. economy has managed to add thousands of jobs so far this year thanks to big gains in industries like construction and health care. But even these substantial sectors can’t compare to the robust growth of the restaurant industry, which has gained nearly 200,000 new jobs in 2017 alone. And unlike manufacturing or construction work, these jobs aren’t localized to a few lucky cities scattered across the nation. Instead, nearly every American metropolis has seen a boom in restaurant Continue reading →

Human Resources, Service Industry, Manufacturing, Economics, Restaurants, Food, Job Creation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 15: Distribution

[VIDEO] Stress Test: What Is Bank Capital?

August 4, 2017

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Since the passage of the Dodd-Frank financial reform act, banks have been required to keep a certain amount of cash on hand relative to their assets. Legislators put the rule in place so that institutions would have enough money in their vaults to bail themselves out in the event of another credit crisis. This video explains the concept of bank capital and why these regulations have caused some frustration in the finance industry.

Questions:

Why are banks required to keep Continue reading →

Banking, Finance, Regulation, Economics, Dodd-Frank, Capital

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

Netflix Piles on Debt to Create Original Content

August 1, 2017

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Since launching 20 years ago, Netflix has transformed from a DVD-by-mail service into the undisputed king of streaming video. The company now has more than 104 million subscribers across the world, a 25 percent increase since last year and quadruple the number of customers from 2012. On any given evening in North America, Netflix streaming accounts for more than a third of all download Internet traffic. The company’s lineup of original shows and movies are also a hit with critics Continue reading →

Innovation, Netflix, Streaming, Television, Financing, Debt, Product Development, Entertainment

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 7: Management & Leadership, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 18: Financial Management, Bonus Chapter B: Technology and New Media