April 19, 2022

As companies continue to face climbing costs, many businesses are responding by either raising prices themselves or reducing the size of their product offerings. But there’s at least one company who hasn’t surrendered to the effects of inflation: 23-ounce cans of AriZona iced tea remain 99 cents, the same price as when they hit the market 30 years ago. So is AriZona somehow immune to recent price increases? Not in the least, considering that the cost of aluminum has Continue reading

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April 15, 2022

As businesses across the globe contend with rising inflation, many companies are cutting costs by reducing the size of consumer goods and hoping buyers don’t notice. This video looks at this growing trend of “shrinkflation” and the risks that companies take when they downsize snacks. 

Questions:

  1. Why are many companies responding to rising costs with “shrinkflation?” 
  2. What risks do companies take when they alter the packaging or size of consumer goods like snacks?
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April 12, 2022

According to the Bureau of Labor Statistics, in March 2022 consumer prices rose by 8.5 percent compared to the same period last year, amounting to the largest increase since 1981. Not only must businesses contend with pandemic-related supply chain issues that have persisted for well over a year, but also Russia’s invasion of Ukraine has led to spiking fuel and food costs. As a result, inflation continues to rise alongside prices for essential goods like housing, groceries, and gasoline. Continue reading

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April 8, 2022

The e-commerce giant Amazon is the second largest private employer in the U.S., with more than 1 million employees working in fulfillment centers and corporate offices around the country. For years, labor activists have sought to unionize this enormous workforce, but past efforts largely failed to gain traction. That may be starting to change, however, if recent developments at New York’s largest Amazon warehouse are any indication. 

Last week, staff at the JFK8 facility on Staten Island voted 2,654 Continue reading

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April 5, 2022

After the invasion of Ukraine last month, thousands of companies around the world either ceased operations in Russia or started divesting from the aggressor nation. This corporate response to the invasion followed a string of sanctions by governments around the world who intended to deal an economic blow to Russia. But cutting financial ties with the country has also led to some unexpected ripple effects on small businesses as well as multinational companies who must adjust to this complicated situation. Continue reading

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March 11, 2022

Earlier this week, we looked at how some companies faced increasing pressure from consumers to halt their operations in Russia during the ongoing invasion of Ukraine. While chains like McDonald’s eventually listened to the outcry and shut down their Russian locations, other companies could not join the “corporate exodus” as easily. Burger King, for instance, has about 800 locations in Russia that are owned by independent franchisees, meaning the company cannot shut them down directly.

But with the eyes of Continue reading

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March 8, 2022

Last week, we looked at how retailers like H&M and Nike as well as major corporations like Apple and ExxonMobil suspended their operations in Russia due to the invasion of Ukraine. And while this list of companies is long and full of prominent names, it does not include major American brands like Coca-Cola, Starbucks, KFC, and many others that continue to operate in Russia. As a result, users on social media have recently piled criticism onto these companies to pressure Continue reading

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March 4, 2022

The appalling invasion of Ukraine has convinced many companies to halt their operations in Russia during this catastrophic event. Last week, for instance, the clothing company H&M announced that it would close its 170 Russian stores while Nike shuttered its 116 retailers in the country. Other big brands like Apple, T.J. Maxx, and Ikea followed with announcements that laid out similar plans to close stores during this frightening time.

“The devastating war in Ukraine is a human tragedy, and our Continue reading

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March 2, 2022

For years the home workout company Peloton promised customers that it provided more than just a stationary bicycle–it was a way of life. But while Peloton thrived during the height of the pandemic as people stayed indoors, the video below shows how this once promising brand collapsed due to falling demand and mismanagement. 

Questions:

  1. What sort of customers did Peloton initially market its product to? How did this change over time?
  2. How did the pandemic benefit Peloton, and why Continue reading
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February 25, 2022

In theory, overdraft fees charged by banks are meant to be a “convenience” for customers so that their purchases are not declined when they are unknowingly low on funds. In practice, however, these fees have become a major revenue generator for banks that charge an average of $33.58 for each overdraft. That means consumers can be hit with multiple fees if they accidentally make numerous purchases while past the limits of their account. Studies show that this practice particularly harms Continue reading

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