Chapter 9: Production and Operations Management - McGraw-Hill Introduction to Business

How Tariffs Could Change Popular Korean Skincare Products

April 15, 2025

Korean beauty products have exploded in popularity in the U.S. thanks to their high quality formulas and affordable prices. Brands like Laneige, Cosrx, and Innisfree are now household names, especially for their sunscreens and serums that use cutting-edge ingredients not available in American-made skincare. In 2024, the U.S. imported $1.7 billion worth of cosmetics from South Korea—more than even France. But that could change fast. Under a new trade plan, these imports could be hit with a 25% tariff. Business Continue reading →

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 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Chipotle Sets off on Global Search for Avocados

April 10, 2025

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For a company whose guacamole has become a signature item, Chipotle can’t afford to take avocados for granted. Each year, the fast-casual chain uses over 130 million pounds of the fruit across its more than 3,700 locations—nearly 5% of all avocados consumed in the U.S. But climate variability, pandemic-era disruptions, and trade tensions have exposed the fragility of global food systems. As a result, Chipotle recognized the risks of relying too heavily on a single source country. Mexico, which once Continue reading →

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

[VIDEO] Why Costco Went All in on Kirkland

April 4, 2025

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In 1995, Costco took a big risk by creating its own private label, Kirkland Signature, to compete against name brands in numerous product categories. As this video explains, though, the warehouse retailer’s gamble paid off handsomely. Kirkland earned more than $86 billion in sales last year, and now other retailers are following Costco’s lead by expanding their own private labels.

Questions:

What are some advantages that private label products give to retailers? What are some drawbacks?
Why did Continue reading →

Marketing, Product Development, Branding, Retail, Pricing, Product Distribution, Supply & Demand, Costco

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, Videos

[VIDEO] Forever 21 Goes Bankrupt Again

March 21, 2025

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Way back in 2019, we looked at how Forever 21 filed for bankruptcy after expanding too rapidly and spending too little on e-commerce technology. Although a buyout from a licensing firm kept the company afloat for a few years, this video looks at how Forever 21 has struggled to compete with global powerhouses like Shein and Temu, leading to yet another bankruptcy.

Questions:

How did Forever 21’s enormous stores go from a selling point to a burden on the Continue reading →

Marketing, Clothing, Retail, Fashion, Pricing, Product Distribution, E-commerce, Supply & Demand, Forever 21

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos

Strategic Missteps Led to the Downfall of Walgreens

March 14, 2025

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Do you live within five miles of a Walgreens? If you’re like almost 80 percent of the U.S. population, the answer is yes. The Walgreens Boots Alliance has grown its pharmacy chain into a massive conglomerate since Walgreens’ founding in 1901. Less than a decade ago, it officially became America’s largest drugstore chain with more than 13,000 stores all the way from Norway to Chile, Alaska to Thailand. Its stock was so successful that the Dow Jones Industrial Average chose Continue reading →

Operations Management, Global, Product Development, Retail, Walgreens

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Southwest Airlines Lays Off Employees for the First Time

March 12, 2025

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Air travel is one of the most volatile industries in the global economy, and airlines routinely lay off hundreds of employees at once to balance budgets after major upheavals. One exception to this rule has long been Southwest Airlines. The Dallas-based carrier hasn’t laid off any staffers in its more than five-decade history. Even after the 9/11 terrorist attacks when revenue dried up and other airlines initiated mass layoffs, Southwest avoided forced job cuts thanks to employees who donated part Continue reading →

Demand from Young People Opens New Market For Hand Sanitizer

March 6, 2025

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Hand sanitizer is one of the products that saw a dramatic spike in consumer demand during the pandemic, with sales peaking at $52 million each week in July 2020. The increased demand should have led to big business for Andrea Lisbona, who moved to the U.S. in 2018 to launch her hand sanitizer brand called Touchland. But the pandemic also upended the global supply chain, which meant she could not get the packaging and materials she needed to ship her Continue reading →

Marketing, Entrepreneurship, Product Development, Branding, Promotions, Supply chains, Product Distribution, Supply & Demand, Pandemic

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

[VIDEO] Cheesemakers Worry about Brie Mold Going Extinct

March 4, 2025

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To produce fine French cheeses like brie and camembert, you need milk, time, and one especially important ingredient: mold. For decades, farmers around the world have produced cheese by cloning the mold Penicillium camemberti, but now some are worried that it could become extinct. Along with providing an in-depth look at how brie and camembert are made, this video examines the ways that some cheesemakers are responding to the uncertain future of their business.

Questions:

Why are brie and Continue reading →

Operations Management, Global, Entrepreneurship, Product Development, Food & Drink, Supply & Demand

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, Videos

How E-commerce Made In-Store Shopping Worse

February 25, 2025

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Although online shopping has been the norm for decades, oftentimes consumers still want to visit a physical store. Whether it’s trying on different sizes, comparing colors and styles, or simply browsing, there are some shopping activities that people prefer to do in person. When the pandemic upended supply chains, retailers responded by cutting back on the amount of inventory that went out to individual stores. Instead, they centralized inventory at distribution centers to make it easier and cheaper to respond Continue reading →

Marketing, Operations Management, Entrepreneurship, Retail, Product Distribution, E-commerce, 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, Bonus Chapter B: Technology and New Media

[VIDEO] How NFL Stadiums Are Engineered to Maximize Profit

February 14, 2025

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For decades, American stadium designers aimed to pack as many spectators into a space as safely as possible. In recent years, though, amenities like upscale concession stands and luxury boxes have become increasingly important to the financial health of American sports venues. This video looks at how the Superdome in New Orleans was rebuilt to make as much money as possible, from streamlined snack bars and walking paths to pricey club seating and suites.

Questions:

Why are modern stadiums Continue reading →

Marketing, Operations Management, Product Development, Sports, Entertainment, Pricing, Product Distribution, Supply & Demand, Stadiums

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, Bonus Chapter B: Technology and New Media, Videos