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

Chinese Factories Produce Knockoffs at Record Speed

October 25, 2016

Israeli entrepreneur Yekutiel Sherman had a great idea for a product: a selfie stick that folded seamlessly into the back of a smartphone’s case. He spent a year carefully designing his idea, producing prototypes and securing small investments from family and friends. By December 2015 Sherman launched a Kickstarter campaign in order to finish funding the item, now called Stikbox. But while the project immediately attracted investors, his popular crowdfunding campaign also caught the attention of Chinese bootleg manufacturers. Within Continue reading →

Ethics, China, Manufacturing, Supply chains, Product Distribution, Knockoff products, Operations Management, Global, Product Development

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 15: Distribution, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media

Poultry Plant Employees Endure Inhumane Working Conditions

October 18, 2016

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The grisly nature of the meat industry practically ensures that the business will never be pretty. Still, conditions in a slaughterhouse can always get worse if management marginalizes their workforce. According to the global development agency Oxfam America, that’s precisely what’s happening at a number of U.S. poultry plants. In facilities owned by big names like Tyson, Perdue and Pilgrim’s Pride, workers complained that superiors regularly denied them bathroom breaks. Some even reported wearing diapers while working on the line. Continue reading →

Poultry, Management, Tyson, Ethics, Perdue, Food, Employee Mistreatment, Labor Relations

Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 8: Organizational Culture and Structure, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions

[VIDEO] Automating the Grocery Warehouse

September 23, 2016

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Although drone deliveries are still a few years away from becoming a reality, automated machines are already having a big impact in other parts of the supply chain. This short but visually rich video takes a look at the robots made by a company called Symbiotic and the ways that they have streamlined operations at a grocery warehouse.

Questions:

What makes Symbiotic’s robots more efficient than human workers?
Will worker robots from companies like Symbiotic eventually replace human labor?

Product Distribution, Robots, Symbiotic, Warehousing, Supply chains, Automation

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos

Quest for Perfection Causes Farmers to Discard Tons of Produce

September 20, 2016

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The family-owned berry grower Driscoll’s is looking to become more of a household name. With new packaging and a retooled online presence, the company wants to let the U.S. know why their berries are unique. “You have to find a way to say this strawberry is different from that strawberry, which isn’t necessarily an easy thing to do,” said executive vice president Soren Bjorn. “But our strawberries actually are different — no one else grows the strawberries we grow.” Along Continue reading →

Agriculture, Marketing, Waste, Food, Driscoll’s, Supermarkets, Product Distribution

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

Shipping Company Bankruptcy Strands $14 Billion in Cargo at Sea

September 8, 2016

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Almost 95 percent of all manufactured goods arrive at their destinations in shipping containers. These freight boxes often begin their journeys aboard enormous cargo ships that transport items around the globe. Normally this process is simple enough: a ship pays a docking fee upon arrival along with additional charges for unloading and container storage. In the case of South Korea’s Hanjin Shipping Company, however, this common process has been halted. After filing for bankruptcy protection last week, ports across the Continue reading →

South Korea, Global, Supply chains, Transportation, Product Distribution, Shipping

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

Urban Farmers Wrangle with Red Tape and High Costs

April 28, 2016

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The rising demand for locally sourced food has placed some major cities in an awkward position. While farm-to-table eating interests many consumers in major urban centers, their location away from rural areas can sometimes make it difficult to obtain the right ingredients. To fix this supply problem, in recent years enterprising farmers have been moving into cities to cultivate their crops in unconventional places. Gotham Greens, for instance, operates four rooftop greenhouses located throughout New York City, including one that Continue reading →

Washington D.C., Product Development, Sustainability, Operations Management, Agriculture, Food, New York, Urban Farming

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Low Renewable Energy Costs Encourage Companies to Go Green

April 22, 2016

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In recent years companies have been under increasing public pressure to ditch fossil fuels and switch to renewable energy sources like wind or solar power. Although this idea may be easy to accept from an ethical standpoint, the high costs associated with such a drastic change have sometimes prevented companies from taking action. This excuse isn’t as reliable as it used to be, however. In the past year renewable energy prices have fallen worldwide. As a result, more companies than Continue reading →

Sustainability, Wal-Mart, Energy, Solar Power, Ethics, Wind Power, Renewable Energy, Green, General Motors, Texas

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Bonus Chapter B: Technology and New Media

Alamo Drafthouse Cinema Relies on Movie Lovers

April 21, 2016

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For many modern Americans, going to the movie theater just doesn’t hold the same appeal as in years past. After all, consumers can easily access thousands of films from the comfort of their couches. Those especially fortunate individuals enjoy their media on 70-inch, surround-sound enabled televisions, further undermining the attraction of the theater experience. With these factors in mind, last week the CEO of AMC Theaters said that the company was considering lifting its ban on texting during screenings. Internet Continue reading →

New Media, Alamo Drafthouse Cinema, AMC Theaters, Texas, Entertainment, Marketing, Product Distribution, Movies

Chapter 1: Taking Risks and Making Profits, 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, Bonus Chapter B: Technology and New Media

Etsy Eyes Expansion with Mass Produced Items

March 14, 2016

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In 2005 the website Etsy launched as an online marketplace where artisans across the country could sell their wares. The Brooklyn-based company quickly established itself as a destination for handcrafted items that shoppers wouldn’t find in any stores. As the years progressed Etsy’s army of craft sellers grew into the thousands, with women accounting for a whopping 85 percent of them. The company marked a major milestone in 2012 when it became a certified benefit corporation. By 2015 Etsy’s stock Continue reading →

Marketing, Operations Management, Ethics, Product Development, Manufacturing, Etsy, E-commerce

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Bonus Chapter B: Technology and New Media

Fast Food’s Intensifying Battle for Breakfast

March 11, 2016

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After enjoying decades of almost constant growth, the last few years have seen many fast food chains become stuck in a sales rut. Not only have consumer tastes changed dramatically, but people also have an array of affordable dining options to choose from. This increased competition has left the industry scrambling for ideas. Taco Bell took action in 2014 by introducing a breakfast menu, a move that some at the time viewed as unappetizing and desperate. The gamble worked, however, Continue reading →

Taco Bell, Operations Management, Product Distribution, Food, Breakfast, Product Development, McDonald’s

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