Operations Management - McGraw-Hill Introduction to Business

How the Global Tech Outage Affected Businesses Big and Small

July 24, 2024

Over the weekend, businesses around the world scrambled to recover after a faulty software update caused one of the biggest IT outages in history. The Texas-based cybersecurity firm Crowdstrike released a security update last Thursday that was supposed to protect computers from malware and cyber attacks. Instead, the flawed update caused Microsoft Windows to crash and impacted more than 8.5 million computers. The global tech meltdown disrupted nearly every aspect of society, especially healthcare and transportation. Hospitals canceled procedures, and Continue reading →

Operations Management, Information Technology, Global, Entrepreneurship, Product Distribution, Crisis management

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Fourth of July Cookouts Could Cost More this Year

July 2, 2024

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In a few days, millions of Americans will ignite their grills and barbecue up a storm in a grand Independence Day tradition enjoyed from coast to coast. Thanks to inflation, though, this year’s celebrations may be pricier than in years past. While Fourth of July favorites like hot dogs and potato salad remain affordable, prices for items like ground beef, pork chops, and lemonade have risen dramatically.

According to the American Farm Bureau Federation (AFBF), an average cookout for 10 Continue reading →

Pricing, Product Distribution, Agriculture, Marketing, Holidays, Operations Management, 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

Baltimore Bridge Collapse Disrupts Shipments and Insurers

April 12, 2024

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On the morning of March 26th, the Dali, an enormous container ship, crashed into one of the supporting structures of Baltimore’s Francis Scott Key Bridge, which collapsed soon after. This tragic incident killed six workers on site and caused at least one major injury, along with an economic impact that spans the globe. The Port of Baltimore must remain closed for a few more weeks while the wreckage is cleared, which will require at least seven container ships and hundreds Continue reading →

Operations Management, Supply chains, Global, Transportation, Ethics, Insurance, Product Distribution, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter A: Business Law, Bonus Chapter C: Managing Risk

[VIDEO] Meal Kit Companies Struggle to Keep Customers

March 29, 2024

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Although meal kit services like HelloFresh and Blue Apron both enjoyed a boom in business during the pandemic, only one of those companies continues to thrive today. The video below explores the growing dominance of HelloFresh in the meal kit industry even as it struggles to keep customers, who mainly tend to cancel their subscriptions once the sign-on deals end.

Questions:

What are the benefits and drawbacks of HelloFresh’s strategy of using discounts to attract customers?
Why is it Continue reading →

Food & Drink, Supply & Demand, Marketing, Product Development, Operations Management, Promotions, Entrepreneurship, Pricing, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, 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, Videos

Canadian Maple Syrup Reserve Hits Historic Low

March 27, 2024

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If you enjoy pouring maple syrup over your pancakes on a Saturday morning, then you have Canada to thank for it. The North American nation accounts for 75 percent of the world’s maple syrup production, with the vast majority coming from the province of Quebec. Along with serving as home for 90 percent of Canada’s maple syrup industry, Quebec is also the location of the country’s syrup reserve. This facility is designed to hold as much as 133 million pounds Continue reading →

Canada, Product Distribution, Food & Drink, Supply & Demand, Operations Management, Global

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

[VIDEO] Temu Attracts Millions of Customers with Rock-Bottom Prices

March 19, 2024

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With more than 51 million monthly active users in the United States, the Chinese e-commerce outlet Temu has expanded significantly in recent years thanks to its huge selection of cheap goods. This video looks at the platform’s low-price strategy and how it’s winning customers the world over in spite of reports of poor quality products and possible ethical issues.

Questions:

Why do you think Temu’s business model is appealing to customers?
Which e-commerce strategy do you think is most effective Continue reading →

Boeing Faces Criminal Investigation for Alaska Airlines Incident

March 13, 2024

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Earlier this year, we posted a video looking at the potential consequences that Boeing could face as a result of a door explosion on an Alaska Airlines flight. While that video primarily explored the business ramifications of this terrifying incident, last week the public learned about the first legal repercussions against Boeing. According to the Wall Street Journal, the Justice Department (DOJ) is investigating the aviation firm to see if it has complied with the requirements of a settlement made Continue reading →

Product Development, Operations Management, Regulation, Ethics, Transportation, Manufacturing, Product Distribution, Air Travel, Boeing, Quality control

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law

AT&T Reimburses Customers After Wireless Service Outage

March 6, 2024

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Last week, tens of thousands of AT&T customers lost cell phone service for about seven hours in a nationwide outage. While some feared that the company’s network went down because of a cyberattack, AT&T clarified that the outage was caused by “the application and execution of an incorrect process used as we were expanding our network.” Of course, the reason for the failure did not really matter to people who were unable to use their phones during an important time Continue reading →

Marketing, Product Distribution, Operations Management, AT&T, Ethics, Telecommunications, Refunds, Pricing

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, Bonus Chapter B: Technology and New Media

Food Prices Remain High Even as Inflation Falls

February 7, 2024

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American consumers first encountered rising prices shortly after the pandemic, when supply chain problems and labor shortages sent costs soaring for all sorts of goods. Fortunately, prices have finally started to fall again for products like appliances, used cars, and gasoline as well as services like health insurance. Still, inflation has not decreased evenly across the board, and the prices for some goods remain stubbornly high. Perhaps the clearest example of increasing costs occurs at the grocery store, where food Continue reading →

Operations Management, Pricing, Global, Product Distribution, Ethics, Food & Drink, Supply & Demand, Inflation, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

[VIDEO] The Soaring Costs of Creating Hot Air Balloons

February 2, 2024

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Large hot air balloons can cost as much as $160,000, requiring huge amounts of high quality materials and lots of time. This video focuses on the Spanish company Ultramagic Balloons, which employs large sewing teams as well as engineers to produce flawless balloon-based aircraft.

Questions:

Why does Ultramagic Balloons prioritize quality control throughout its production process?
What are some factors that contribute to the high costs of hot air balloons?

Product Development, Operations Management, Transportation, Global, Entrepreneurship, Air Travel, Manufacturing

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Videos