Chapter 3: Globalization - McGraw-Hill Introduction to Business

Coronavirus Outbreak Could Have Major Economic Impact

January 31, 2020

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

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

Dairy Industry Puts Its Hope in Icelandic Yogurt

January 16, 2020

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Earlier this week, we took a look at how the nation’s two largest milk processors filed for bankruptcy due to declining demand and volatile pricing. But fluid milk isn’t the only sector of the dairy market that’s currently struggling. In 2019 U.S. yogurt sales dropped by more than three percent, continuing a downward slide that’s been happening since 2014. The introduction of Greek yogurt gave many hope that this protein-packed snack would save the industry. Unfortunately, though, Greek yogurt’s popularity Continue reading →

Marketing, Global, Product Development, Food & Drink, Dairy

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price

Poor Potato Crop Leads to Fears of French Fry Shortage

December 6, 2019

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This week, multiple news outlets reported about a poor potato crop in Canada and the U.S. that could potentially affect the nation’s French fry supply. With winter weather arriving early throughout North America, potato growers lost thousands of acres of crops due to freezing temperatures. As a result, the U.S. Department of Agriculture estimates that American spud production will drop by six percent this year. And since potatoes used for French fries tend to be harvested later in the season, Continue reading →

Canada, Supply chains, Weather, Product Distribution, Agriculture, Supply & Demand

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

European Protesters Target Amazon on Black Friday

December 3, 2019

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Analysts at Adobe estimate that consumers spent more than $29 billion online last week between Thanksgiving and Cyber Monday. Although brick-and-mortar sales rose slightly as well, e-commerce sales surged to record highs as consumers increasingly turned to online retailers for their holiday shopping needs. In fact, experts predict that companies like Amazon earned as much as $9.4 billion on Cyber Monday alone.

But while Amazon enjoyed another successful start to the festive season in the U.S., the e-commerce giant Continue reading →

Global, Ethics, Promotions, Regulation, Amazon, Product Distribution, Black Friday, E-commerce, Strikes, Cyber Monday

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 12: Labor Management and Unions, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media

Fashion Brands Start Selling Virtual Clothing

November 22, 2019

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Yesterday, we looked at how video game companies earn billions of dollars annually by selling virtual products to an ever-growing market. Inspired by the success of this unusual industry, some clothing companies have started selling digital outfits that don’t exist in the real world. For instance, the fashion label The Fabricant recently sold a virtual dress for $9,500 to the wife of a San Francisco tech executive. Although she cannot actually put on her expensive new outfit, she can Photoshop Continue reading →

Marketing, Global, Entrepreneurship, Clothing, Product Development, Promotions, Fashion, Product Distribution, Virtual Goods, Scarcity

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, 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

[VIDEO] Why Spend Money in Video Games?

November 21, 2019

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Analysts estimate that last year consumers spent more than $50 billion on virtual items in video games like Counter-Strike and World of Warcraft. This lengthy but highly informative video explains why the market for virtual items has grown bigger than global box office returns for the movie industry.

Questions:

How are in-game economies similar to real-world economic systems?
What are the advantages and disadvantages of online marketplaces that sell virtual goods?

Arenas Can Earn More Money from Concerts than Sports

November 19, 2019

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Thanks to the popularity of streaming services like Spotify and Apple Music, some lucky musicians can go viral and attract large fan bases very quickly. In the past, artists often had to tour across the country for years playing small clubs before they got noticed by major record labels. That’s not the case these days, though. For instance, the teenage singer-songwriter Billie Eilish released her debut album less than a year ago and has already sold out a stretch of Continue reading →

Global, Entrepreneurship, Product Development, Sports, Entertainment, Streaming, Music, Product Distribution, Spotify, Arenas, Stadiums

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Self-Ordering Kiosks at McDonald’s Lack Cash Capabilities

November 14, 2019

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Earlier this year, McDonald’s spent $300 million acquiring a data analysis and artificial intelligence startup called Dynamic Yield. Along with providing the fast food chain with tons of information about its operations, this new technology will also help the company upgrade its growing fleet of self-ordering kiosks. Customers can place orders on these large touchscreens rather than wait in line, which the company claims improves efficiency and increases sales. As a result, McDonald’s wants to place these machines in as Continue reading →

Operations Management, Global, Ethics, Retail, McDonald’s, Regulation, Legal, Product Distribution, Cash, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media