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

[VIDEO] Why Oboes Are So Expensive

October 7, 2022

This fascinating video takes a close look at the painstaking process for making oboes, a woodwind that stands out as one of the most expensive instruments in any orchestra. The artisans depicted below must contend with costly and dwindling supplies as well as limited demand from a small and selective market, factors that make this specialty business even more complicated.

Questions:

Why are the material costs for oboes so high compared to other instruments like flutes and clarinets?
How does Continue reading →

Music, Global, Product Distribution, Manufacturing, United Kingdom, Supply & Demand, Artisanal production, Labor costs, Product Development, Entertainment

Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Videos

Counterfeits Threaten Multi-Billion Dollar Sneaker Market

October 5, 2022

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The global sneaker market has grown into a massive $72 billion industry where collectors often accumulate hundreds of pairs of limited-edition shoes from giants like Nike and Adidas. Some lines go on to command huge prices on the resale market, such as a collaboration between Nike and ice cream maker Ben & Jerry’s called Chunky Dunky. Originally sold for $100, these shoes now sell for as much as $1,000. High price tags like these don’t just attract the attention of Continue reading →

Coca-Cola Bottler Replaces Plastic Six-Pack Rings

September 30, 2022

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For decades, conservationists have warned drink companies about the dangers of plastic ring packaging commonly used for six-packs of cans. Once these rings find their way into the ocean, they turn into a lethal danger for birds, turtles, and other marine life who can become ensnared in the plastic. In fact, the World Wildlife Federation estimates that plastic products like these kill as many as 100,000 marine animals annually. Drink rings also contribute to the growing global problem of ocean Continue reading →

Product Distribution, Food & Drink, Product Development, Promotions, Ethics, Packaging, Manufacturing, Sustainability, Coca-Cola

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

California Passes Law Regulating Fast Food Industry

September 7, 2022

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Last week, California’s legislature passed a bill that will bring sweeping changes to fast food chains operating in the state. After being signed into law by the governor on Monday, the new legislation effectively sets a minimum wage for the industry while also establishing new safety and anti-discrimination requirements. California will create a 10-person council composed of restaurant workers and employer representatives along with two state officials, who will all review pay and safety standards across the state’s restaurant industry. Continue reading →

Motivation, Operations Management, Ethics, Franchising, Food & Drink, Human Resources, Labor Relations, Compensation

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions

Closed Baby Formula Plant Resumes Production

August 31, 2022

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Earlier this year, we looked at how the nationwide shortage of baby formula was poised to continue for months after Abbott Nutrition shut down a Michigan plant in February. An inspector from the Food & Drug Administration (FDA) discovered a leaking roof in the facility, pools of water on the floor, and cracks in production equipment used to produce the brand Similac. FDA commissioner Dr. Robert Califf described the conditions as “egregiously unsanitary” while acknowledging that the federal agency should Continue reading →

Entrepreneurship, FDA, Manufacturing, Food & Drink, Supply & Demand, Operations Management, Global, Ethics, Regulation

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

[VIDEO] How Supply-Chain Bottlenecks Shifted to East and Gulf Coast Ports

August 26, 2022

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Global supply chains have been all out of sorts since the start of the pandemic, but for the most part traffic and delays have been isolated to ports on the Pacific. As the video below explains, though, bottlenecks have now moved to East and Gulf Coast ports that are unprepared for this influx of ships and container boxes.

Questions:

What are some reasons why shipping traffic and delays have moved from Pacific ports to East and Gulf Coast ports? Continue reading →

Supply chains, Transportation, Product Distribution, Shipping, Operations Management, Supply & Demand, Pandemic

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

[VIDEO] The Fall (and Rise?) of Unions in the U.S.

August 12, 2022

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Thousands of workers at Amazon warehouses and Starbucks stores across the country have voted to unionize in recent months, potentially reversing decades of declining union membership in the U.S. This video takes a close look at the history of unions in postwar America, examining the reasons why service industries largely stayed unorganized and how that could change in the coming years.

Questions:

Why did union membership start to decline in the 1970s and 1980s?
Do you think U.S. legislators Continue reading →

Motivation, Global, Ethics, Human Resources, Manufacturing, Unions, Labor Relations, Compensation

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Videos

Thousands of Flights Delayed or Canceled over Holiday Weekend

June 22, 2022

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Americans traveled in droves over the busy Father’s Day and Juneteenth holiday weekend, leading to widespread delays and cancellations at airports despite the best efforts of carriers. All told, airlines canceled more than 5,000 flights over the weekend while almost a third of all arriving flights on Friday were delayed. Travelers experienced similar moments of chaos at airports over Memorial Day weekend, reflecting an industry struggling to return to normal after the pandemic.

According to airlines, poor weather and high Continue reading →

Operations Management, Global, Transportation, Ethics, Travel, Unions, Supply & Demand, Compensation, Airlines, Pandemic

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 11: Human Resource Management, Chapter 12: Labor Management and Unions

Fashion Brands Receive Criticism for Depending on Plastic

June 15, 2022

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In recent years, fashion brands and retailers like H&M, Nike, Amazon and Target have responded to consumer calls for environmental sustainability by following an influential material rating system called the Higg Index. Introduced in 2011 by a group of companies led by Walmart and Patagonia, this metric is intended to help businesses shrink their environmental footprints by eliminating toxic chemicals and cutting down on water usage during production. According to critics, however, the Higg Index strongly recommends the use of Continue reading →

Global, Product Development, Ethics, Fashion, Manufacturing, Regulation, Sustainability, Marketing, Clothing

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

[VIDEO] How Inflation Impacts U.S. Households

June 10, 2022

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Over the last year, Americans have seen prices skyrocket for everything from food to fuel, leading to higher bills and strained budgets. This video looks at how inflation has played out across the economy, from increased costs for consumer staples like meat and eggs to rising rents that are a result of low housing supplies.

Questions:

What long term economic factors have led to increased meat prices in recent months?
How has a lack of housing construction since the 2008 Continue reading →

Supply chains, Operations Management, Energy, Global, Manufacturing, Product Distribution, Petroleum, Ukraine, Food & Drink, Supply & Demand, Housing, Russia

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, Videos