Facility Location - McGraw-Hill Introduction to Business

[VIDEO] Why Arizona Is Becoming a Logistics Hub

October 19, 2022

On a stretch of highway near Phoenix, property developers have constructed dozens of industrial warehouses with millions of square feet in storage. These enormous Arizona facilities are attracting big companies like Amazon, UPS, Walmart, and many more tenants that are looking to avoid California supply chain bottlenecks. This video looks at the reasons why some businesses are starting to center their logistical operations in the American Southwest.

Questions:

What are the benefits and drawbacks for companies that use storage facilities Continue reading →

Arizona, Facility Location, Global, Logistics, Operations Management, Product Distribution, Supply & Demand, Supply chains, Warehouses

Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Videos

Average American Commute Climbs to Record Levels

October 10, 2019

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In 2018 Americans spent an average of 27 minutes commuting one-way to work, an increase of about two minutes since 2009. While that may not sound too significant, it causes commuters to spend 20 more minutes per week on the road. That adds up to 17 additional hours a year compared to just a decade ago. In total, the average American worker spent 225 hours commuting in 2018, amounting to more than nine calendar days.

Analysts attribute this recent Continue reading →

Commuting, Facility Location, Human Resources, Office Culture, Sustainability, Telecommuting, Transportation

Bonus Chapter B: Technology and New Media, Chapter 11: Human Resource Management, Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management

Legendary New York Retailer Barneys Files for Bankruptcy

August 6, 2019

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Last week, we took a look at how online shopping and rising rents are causing many retailers to reassess the worth of their flagship stores. Among the companies mentioned was Barneys, a Manhattan mainstay that used the success of its nine-story flagship to expand across the world. The retailer first became famous for its flashy Madison Avenue window displays that drew countless people inside over the years. By the late 1990s, Barneys became an almost sacred destination for shoppers Continue reading →

Barneys, E-commerce, Facility Location, Marketing, New York, Product Distribution, Retail

Bonus Chapter B: Technology and New Media, Chapter 13: Marketing, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management

Retailers Start to Close Flagship Locations

August 1, 2019

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For many years, shoppers flocked to destinations like Madison Avenue in Manhattan and Chicago’s Magnificent Mile to experience the best that American retail had to offer. Home to flagship locations from Macy’s, Barneys and many others, these enormous stores acted as potent marketing tools as much as places to buy products. The rise of online shopping changed all that, however, causing multi-floor department stores to lose their appeal.

As a result, many top retailers are closing the doors on Continue reading →

E-commerce, Facility Location, Flagships, Macy's, Marketing, New York, Product Distribution, Retail

Bonus Chapter B: Technology and New Media, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management

Airports Gradually Allow Non-Travelers into Terminals

July 9, 2019

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In the years before the Transportation Safety Administration (TSA) and heightened security measures, airports opened their doors to pretty much anybody who wanted to come in. Of course, most of the non-travelers who spent time in terminals were people waiting for passengers to disembark. After all, 20th century airports didn’t have much else besides a few newsstands and small restaurants.

Nowadays, though, many airport concourses are starting to look more like resorts than travel hubs. For instance, Tampa International Continue reading →

Airports, Facility Location, Global, Marketing, Product Distribution, Travel

Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 9: Production and Operations Management

[VIDEO] Why Amazon Is Gobbling Up Failed Malls

May 9, 2019

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Although some brick and mortar retailers are managing to thrive in the age of e-commerce, many others haven’t been able to compete against rivals like Amazon. This includes a good portion of America’s once mighty malls that now either struggle to keep tenants or have shuttered completely. In an ironic twist, however, abandoned malls are currently being purchased by Amazon and other companies to serve as product distribution centers. This video details why the location and size of Continue reading →

Amazon, E-commerce, Facility Location, Malls, Operations Management, Product Distribution, Transportation

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

Amazon Cancels Plans for New York City HQ

February 19, 2019

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In 2017 Amazon announced that it would open a second headquarters somewhere in the U.S., setting off a bidding war between cities all across the country. Then this past November the e-commerce giant shared its decision with the public: the new HQ would be split in two between New York City and Arlington, Virginia. But while many politicians and business leaders celebrated the announcement, activists, unions, and some local lawmakers in New York blasted the decision to give Amazon nearly Continue reading →

Amazon, E-commerce, Ethics, Facility Location, Human Resources, Legal, Tax Incentives, Unions

Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management

Amazon Chooses Two Cities for Its New HQ Locations

November 15, 2018

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Last year, Amazon announced that it would build a second headquarters somewhere in the United States. Known as “HQ2,” the project generated instant interest among dozens of cities that wanted to attract the e-commerce giant to their communities. After all, Amazon said the headquarters would bring in at least 50,000 high-paying tech jobs, which could have a significant economic impact anywhere in the country. Cities then offered generous benefits and tax breaks in an effort to woo the company. While Continue reading →

E-commerce, Ethics, Facility Location, Human Resources, Legal, Motivation, Regulation

Bonus Chapter B: Technology and New Media, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management

“Hyperscale” Data Centers Give New Life to Small Town

March 9, 2018

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With a userbase of more than 2 billion people, Facebook drives an astonishing amount of Internet traffic every day. So how exactly does the social network manage to succeed without collapsing under the weight of all that data? Like other tech giants, Facebook depends on enormous data centers packed with computer servers to keep the constant stream of information flowing. In fact, these “hyperscale” structures are just as important to the tech industry as factories or mines are to manufacturers. Continue reading →

Apple, Facebook, Facility Location, Innovation, Operations Management, Oregon, Silicon Valley

Bonus Chapter B: Technology and New Media, Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management

Cities Offer Huge Incentives to Amazon for New HQ

November 30, 2017

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Although many retailers enjoyed a sales boost during Thanksgiving Weekend, no other company can rival Amazon’s stellar start to the holiday season. The e-commerce outlet brought in 45 percent of all online purchases on Thanksgiving along with nearly 55 percent of Black Friday’s total Internet transactions. Plus, Amazon announced that Cyber Monday was the company’s biggest sales day ever, boasting that customers had purchased “hundreds of millions of products” throughout the weekend.

Along with putting Amazon’s huge influence with customers Continue reading →

Amazon, Black Friday, Cyber Monday, E-commerce, Ethics, Facility Location, Legal, Regulation, Retail

Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 13: Marketing, Chapter 16: Place and Promotion, Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management