Chapter 14: Product and Price - McGraw-Hill Introduction to Business

Soaring Chocolate Prices Impact Businesses around the Globe

November 8, 2024

A few weeks ago, we looked at how rising cocoa prices led to price increases for chocolate just before the Halloween season. The video below examines this global issue in great detail, from the struggles of cocoa farmers in Ghana to the effects of rising costs both on independent operators and major candy producers like Mars Wrigley.

Questions:

What are some of the issues affecting the livelihoods of Ghanaian cocoa farmers?
How are independent businesses like Li-Lac Chocolates responding Continue reading →

Nobody Knows What to Do with Bankrupt Redbox’s Rental Kiosks

November 5, 2024

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Redbox launched its video rental kiosk business back in the early 2000s when the industry was still dominated by chains like Blockbuster. While brick-and-mortar stores charged $2 to $5 per night, customers could rent movies at Redbox for just $1 since the kiosks were much cheaper to maintain than physical locations. Customers also liked that Redbox operated 24/7, functioning more like a vending machine than a retailer. By 2007, the company had more U.S. locations than Blockbuster. Redbox peaked in Continue reading →

Rising Costs and Reluctant Customers Hurt Music Festivals

October 29, 2024

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With sunny weather, beautiful views, and lots of open space, California is one of the country’s most popular settings for music festivals. Thousands of people travel to the Golden State every summer to attend dozens of festivals — including Coachella, the most-attended annual music festival in North America. However, it’s getting more expensive to run a music festival in California as the cost of living keeps going up. Prices for transportation, accommodations, labor, and refreshments have skyrocketed above the typical Continue reading →

Promotions, Entertainment, Marketing, Pricing, Entrepreneurship, Music, Product Distribution, Supply & Demand, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Outbreak at Boar’s Head Disrupts America’s Deli Industry

October 25, 2024

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Before causing the worst listeriosis outbreak in the U.S. since 2011, Boar’s Head was best known as one of the most recognizable — and most ruthless — deli-meat brands at the supermarket. The company started in 1905, when founder Frank Brunckhorst started selling deli meats out of a horse-drawn carriage in Brooklyn, New York. As it expanded into a $3 billion per year business, Boar’s Head made aggressive moves to protect its reputation for high quality. The company sued competitors Continue reading →

Product Distribution, Marketing, Food & Drink, Operations Management, Ethics, Manufacturing

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

[VIDEO] Why Walgreens And CVS Are Shutting Down Thousands Of Locations

October 24, 2024

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Walgreens and CVS stores are common sights on American street corners, but in the coming years there will be significantly fewer of them around. The video below takes a detailed look at the recent struggles faced by U.S. pharmacy chains as they plan to shut down thousands of locations nationwide.

Questions:

Why are Walgreens and CVS closing thousands of stores over the coming years? What are some factors that have contributed to their problems?
How can entrepreneurs help prevent “pharmacy deserts”?

Chocolate Prices Are Scarily High This Halloween

October 22, 2024

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For millions of Americans, Halloween is all about eating candy. And there’s no variety of candy more beloved than chocolate. According to national surveys, the average American’s favorite Halloween candy is a chocolate treat like M&Ms, Snickers, or Reese’s Peanut Butter Cups. But this year, you may notice less chocolate in your family’s trick-or-treat stash. That’s because cocoa prices are at record highs after three years of poor crops. The price of cocoa has doubled since the start of 2024 Continue reading →

Product Development, Promotions, Supply chains, Packaging, Marketing, Product Distribution, Agriculture, Halloween, Holidays, Food & Drink, Supply & Demand

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

Limp Bizkit Sues Record Company for $200 Million

October 17, 2024

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In the 1980s, record companies started releasing music on compact discs after a century of producing vinyl albums. Driven by new digital technology, the music business soon exploded into a billion dollar industry. But with big budgets came big fights over profits between record companies and recording artists. For example, the R&B group TLC blamed an unfair contract with their record label when they filed for bankruptcy in the 1990s despite selling 65 million records. Musical innovator Prince temporarily changed Continue reading →

Ethics, Labor Relations, Product Development, Compensation, Streaming, Product Distribution, Motivation

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 10: Motivation, Chapter 12: Labor Management and Unions, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

23andMe Struggles to Turn Customers Into Subscribers

October 15, 2024

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Since the discovery of DNA’s structure in the 1950s, scientists have predicted a future where doctors could analyze a patient’s genes to identify and even prevent certain diseases. The medical industry seemed to be moving closer to that goal in 2007 when 23andMe became the first company to release a direct-to-consumer genetic test. Named for the 23 pairs of chromosomes in human DNA, 23andMe analyzed saliva samples from customers to show their ancestry and predispositions to diseases like cancer and Continue reading →

Product Development, Marketing, Pricing, Ethics, Startups, Entrepreneurship, Product Distribution, Subscriptions, Genetics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

[VIDEO] How Kodak Invented the “Snapshot”

October 10, 2024

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Photography was once a specialized field where only trained professionals had the expertise to shoot and develop prints. Then in the late 19th century, Kodak released the first of many “point-and-shoot” cameras that would change the industry forever. The video below explores the fascinating history behind the “snapshot” and how technological innovations can bring niche products to a wider market.

Questions:

How did the introduction of point-and-shoot cameras change the photography market?
Do you see any similarities between the Continue reading →

McDonald’s Tests Cash-Enabled Ordering Kiosks

October 8, 2024

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In 2016, McDonald’s attempted to speed up customer wait times by using touchscreen kiosks to take orders, but guests paying with cash still had to go to the register at the counter. After eight years of waiting, though, the fast food chain is finally testing kiosks that can also accept cash and make change. The cash kiosks are optional for McDonald’s franchisees, who own and manage 95 percent of the company’s more than 14,000 U.S. locations. So far, only 2 Continue reading →

Promotions, Marketing, McDonald’s, Operations Management, Product Distribution, Food & Drink, Product Development

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, Bonus Chapter B: Technology and New Media