Chapter 18: Financial Management - McGraw-Hill Introduction to Business

Bed Bath & Beyond Goes Bankrupt

April 26, 2023

On Sunday, the once mighty home goods retailer Bed Bath & Beyond declared bankruptcy after years of poor sales and mounting debt. The company will start closing its 360 locations today and has stopped accepting the big blue coupons that made the brand famous in better days that have long gone. In recent times, Bed Bath and Beyond faced increasingly choosy consumers who avoided the retailer in favor of competitors with better selections and e-commerce capabilities. The company enjoyed a Continue reading →

Bankruptcy, E-commerce, Entrepreneurship, Marketing, Operations Management, Product Development, Product Distribution, Promotions, Supply & Demand

Bonus Chapter B: Technology and New Media, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 18: Financial Management, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management

[VIDEO] Apple vs. Banks: The Digital-Wallet War

April 13, 2023

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Since launching its digital payment system in 2014, Apple has steadily increased its market share in a space traditionally dominated by big banks. This video looks at how Apple Pay has frightened Wall Street stalwarts like JPMorgan Chase and caused financial institutions to expand their own digital payment efforts in order to compete.

Questions:

What advantages and disadvantages does Apple Pay have compared to traditional financial firms?
Do you prefer to pay with cards or digital platforms like Apple Pay?

Apple, Apple Pay, Credit Cards, Currency, Debit cards, Digital payments, Finance, Silicon Valley, Wall Street

Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Videos

[VIDEO] How the FDIC Insures Customers’ Deposits

March 24, 2023

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The Federal Deposit Insurance Corporation (FDIC) does not get much attention unless something goes drastically wrong in the financial world, such as the recent collapse of Silicon Valley Bank (SVB). This video explains how the organization covers customers’ deposits in order to prevent bank runs, and how the fall of SVB presented the FDIC with some unique challenges.

Questions:

Why was the FDIC formed, and how does it protect customers’ deposits?
How did the FDIC’s handling of the SVB collapse Continue reading →

Bailout, Economics, Ethics, FDIC, Federal Reserve, Financial Crisis, Regulation, Securities Markets, Stock Market, SVB

Bonus Chapter A: Business Law, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Videos

[VIDEO] How SVB Collapsed in 36 Hours

March 16, 2023

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The video below provides an in-depth look at Silicon Valley Bank’s downfall, from its heavy investments in bonds to the bank run that has sent shockwaves through the market. (For more information on investigations into potential misconduct at SVB, check out this video.)

Questions:

How did SVB’s substantial investments in bonds backfire on the bank?
Do you think federal regulators should place limits on how much money banks like SVB can invest? Why or why not?

Banking, Ethics, FDIC, Federal Reserve, Financial collapse, Regulation, Stock markets, Supply & Demand

Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Videos

FDIC Intervenes after Silicon Valley Bank Failure

March 14, 2023

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Last Friday, a combination of imprudent decision-making and panicked customers led to the collapse of Silicon Valley Bank (SVB), a 40-year-old financial institution based in Santa Clara, California. The Federal Deposit Insurance Corporation (FDIC) stepped in to prevent further fallout, putting nearly $175 billion in customer deposits under the regulator’s control. SVB’s meltdown represents the second largest bank failure in U.S. history, and the largest one since the 2008 financial crisis. As a result of this chaotic situation, stock prices Continue reading →

Banking, Ethics, FDIC, Federal Reserve, Financial collapse, Regulation, Stock markets, Supply & Demand

Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility

Warner Bros. Scraps Release of Batgirl

August 3, 2022

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Last year, the movie studio Warner Bros. announced that it was working on a slate of films created specifically for the streaming service HBO Max. Among these titles was Batgirl, whose budget ballooned to more than $90 million after completing most of the film. But rather than release this star-studded adaptation of a DC Comics character, Warner said yesterday that the movie would never stream online nor would it ever appear in theaters.

Along with ditching Batgirl, Continue reading →

Accounting, Advertising, Entertainment, Ethics, HBO Max, Hollywood, Marketing, Movies, Product Distribution, Promotions, Streaming

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Chapter 18: Financial Management, Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization

[VIDEO] Why China’s Evergrande Has Global Markets on Edge

October 8, 2021

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For weeks, stock markets across the globe have become increasingly volatile as investors await the fate of Evergrande, an enormous Chinese real estate company with more than $300 billion in debt. Analysts predict that the property developer will not be able to pay back what it owes, which would likely have damaging ripple effects across the global economy. The video below looks at Evergrande’s current debt debacle and the possible ways that this situation could be resolved.

Questions:

Why are Continue reading →

China, Corporate bailouts, Credit crunch, Debt crisis, Economics, Ethics, Global, Real Estate, Stock markets

Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Videos

Direct-to-Consumer Company Brandless Closes Down

February 13, 2020

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In 2017, the home goods company Brandless launched with a novel way to take on Amazon as well as other big-box retailers. The direct-to-consumer startup sold high-quality, organic versions of everything from toilet paper to beauty products in simple, no-frills packaging. Brandless claimed that this eliminated the so-called “BrandTax” levied by many companies, which could account for as much as 40 percent of the product’s actual cost. With little money spent on traditional marketing, Brandless initially charged just $3 for Continue reading →

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 →

ClassPass, Entrepreneurship, Fitness, Global, Marketing, Pricing, Startups, Unicorn, Venture Capital

Bonus Chapter B: Technology and New Media, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 18: Financial Management, Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship

Tech Giants Attempt to Break into Banking

November 15, 2019

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This week, Google announced that it’s launching a banking service next year that will offer “smart checking” accounts to mobile-focused customers. Known as Cache, the program is the result of a collaboration between the search giant and two banks: Citigroup and Stanford Credit Union. Although details of the partnership remain limited at this time, Google eventually wants Cache to become an extension of its Google Pay app. The company also claims that customers will “benefit from useful insights and budgeting Continue reading →