Supply & Demand - 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 →

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

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

[VIDEO] Why Oboes Are So Expensive

October 7, 2022

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This fascinating video takes a close look at the painstaking process for making oboes, a woodwind that stands out as one of the most expensive instruments in any orchestra. The artisans depicted below must contend with costly and dwindling supplies as well as limited demand from a small and selective market, factors that make this specialty business even more complicated.

Questions:

Why are the material costs for oboes so high compared to other instruments like flutes and clarinets?
How does Continue reading →

Global, Manufacturing, Product Development, Entertainment, Music, Product Distribution, United Kingdom, Supply & Demand, Artisanal production, Labor costs

Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Videos

Counterfeits Threaten Multi-Billion Dollar Sneaker Market

October 5, 2022

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The global sneaker market has grown into a massive $72 billion industry where collectors often accumulate hundreds of pairs of limited-edition shoes from giants like Nike and Adidas. Some lines go on to command huge prices on the resale market, such as a collaboration between Nike and ice cream maker Ben & Jerry’s called Chunky Dunky. Originally sold for $100, these shoes now sell for as much as $1,000. High price tags like these don’t just attract the attention of Continue reading →

[VIDEO] Elasticity: Determining How Companies Price Products

September 28, 2022

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In recent months, CEOs at leading corporations have been talking a lot about “elasticity” with their shareholders. As Americans contend with rising prices due to inflation, companies are concerned with just how elastic their pricing practices can be. This video examines the concept of elasticity and the role it plays in determining how companies price products.

Questions:

What is price elasticity, and how is it affected by inflation?
What are some ways that companies like Procter & Gamble try Continue reading →

Marketing, Product Development, Branding, Pricing, Product Distribution, Supply & Demand, Inflation, Elasticity

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

Airbnb Guests Face Stress from Long Lists of Chores

September 23, 2022

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When Airbnb launched in 2008, the short-term rental company marketed itself as an easy alternative to hotels that had supposedly become too restrictive for the modern traveler. 14 years after its founding, however, many guests are heading back to hotels because of extensive cleaning requirements from Airbnb hosts. For example, teacher Christina Marie recently booked a short-term rental house on Lake Tahoe with her family of six. She spent the last day of her vacation cleaning and ensuring that her Continue reading →

Closed Baby Formula Plant Resumes Production

August 31, 2022

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Earlier this year, we looked at how the nationwide shortage of baby formula was poised to continue for months after Abbott Nutrition shut down a Michigan plant in February. An inspector from the Food & Drug Administration (FDA) discovered a leaking roof in the facility, pools of water on the floor, and cracks in production equipment used to produce the brand Similac. FDA commissioner Dr. Robert Califf described the conditions as “egregiously unsanitary” while acknowledging that the federal agency should Continue reading →

Operations Management, Global, Ethics, Entrepreneurship, Manufacturing, Regulation, FDA, Food & Drink, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter A: Business Law

[VIDEO] How Supply-Chain Bottlenecks Shifted to East and Gulf Coast Ports

August 26, 2022

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Global supply chains have been all out of sorts since the start of the pandemic, but for the most part traffic and delays have been isolated to ports on the Pacific. As the video below explains, though, bottlenecks have now moved to East and Gulf Coast ports that are unprepared for this influx of ships and container boxes.

Questions:

What are some reasons why shipping traffic and delays have moved from Pacific ports to East and Gulf Coast ports? Continue reading →

Operations Management, Supply chains, Transportation, Product Distribution, Shipping, Supply & Demand, Pandemic

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

The Dollar Soars as Global Currencies Struggle

July 22, 2022

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The U.S. dollar is the world’s most important currency, serving as one side of 90 percent of all foreign exchange transactions. Before the pandemic, the U.S. dollar accounted for $6 trillion in daily activity as everyone from tourists to multinational corporations depended on this customarily stable currency. After the turmoil of the last few years, however, the dependable dollar has skyrocketed in value to its highest level in 20 years.

The value of the dollar has jumped 10 percent Continue reading →

Global, Ethics, Currency, Federal Reserve, Supply & Demand, Inflation, Bonds

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Pilots Demand Big Changes from Airlines

July 12, 2022

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Since the start of the summer travel season, air carriers have canceled thousands of flights as they grapple with bad weather, high fuel costs, and rampant inflation. Along with these problems, airlines are also encountering increased resistance from one of their most important groups of employees: pilots. Faced with large workloads and an unpredictable post-pandemic environment, pilots are demanding substantial wage increases as well as quality of life benefits from their employers.

According to analysts, airlines are likely to Continue reading →

Motivation, Global, Human Resources, Unions, Labor Relations, Travel, Supply & Demand, Airlines, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions

[VIDEO] Why Tech Stocks Are Dropping

June 24, 2022

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Last week, we looked at how declining stock prices are signaling to analysts that an economic recession could be on the horizon. This video looks at how the recent downturn has been especially grim for tech companies, whose shares are down significantly due to rising interest rates and global instability.

Questions:

What are some factors that have caused tech stocks to fall sharply in recent months?
How have hiring decisions by companies like Facebook contributed to the tech stock downturn

Securities Markets, Supply chains, Hiring, Product Distribution, Federal Reserve, Supply & Demand, Stock Market, Tech sector

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Videos