Supply & Demand - McGraw-Hill Introduction to Business

Thousands of Flights Delayed or Canceled over Holiday Weekend

June 22, 2022

Americans traveled in droves over the busy Father’s Day and Juneteenth holiday weekend, leading to widespread delays and cancellations at airports despite the best efforts of carriers. All told, airlines canceled more than 5,000 flights over the weekend while almost a third of all arriving flights on Friday were delayed. Travelers experienced similar moments of chaos at airports over Memorial Day weekend, reflecting an industry struggling to return to normal after the pandemic.

According to airlines, poor weather and high Continue reading →

Operations Management, Global, Ethics, Unions, Compensation, Transportation, 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 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions

Dropping Stocks Bring Fears of Recession

June 17, 2022

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Yesterday, the S&P 500 dropped more than 3 percent, continuing a long decline for stocks despite investors’ hopes for a rally. This places the index down 24 percent from its previous highs in January, further pushing stocks into bear market territory. Stock markets turn from bulls to bears once they drop more than 20 percent from recent peaks, potentially indicating that the economy is headed towards a recession. In fact, if losses continue at this rate, the S&P could experience Continue reading →

Securities Markets, Ethics, Supply chains, Product Distribution, Federal Reserve, Recession, Supply & Demand, Stock Market, S&P 500

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

[VIDEO] How Inflation Impacts U.S. Households

June 10, 2022

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Over the last year, Americans have seen prices skyrocket for everything from food to fuel, leading to higher bills and strained budgets. This video looks at how inflation has played out across the economy, from increased costs for consumer staples like meat and eggs to rising rents that are a result of low housing supplies.

Questions:

What long term economic factors have led to increased meat prices in recent months?
How has a lack of housing construction since the 2008 Continue reading →

Operations Management, Global, Manufacturing, Russia, Supply chains, Energy, Product Distribution, Petroleum, Ukraine, Food & Drink, Supply & Demand, Housing

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, Videos

Baby Formula Shortage Could Continue for Months

May 31, 2022

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Since the beginning of the year, parents around the country have struggled to obtain baby formula due to a nationwide shortage. Although Covid-related supply chain snags have contributed to the problem, matters became considerably worse once the formula manufacturer Abbott Laboratories instituted a recall in May. The company produces brands like Similac at its plant in Sturgis, Michigan, which shut down following the recall. Consumers filed formal complaints with the Food & Drug Administration (FDA) about infant illnesses, leading to Continue reading →

Operations Management, Global, Ethics, 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 9: Production and Operations Management, Chapter 15: Distribution

High Gas Prices Will Make Summer Travel Expensive

May 24, 2022

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Fuel costs continued to climb last week, reaching a national average of $4.59 per gallon. According to AAA, this represents a 50 percent increase from last year when many drivers chose to stay at home rather than travel the country on road trips. That won’t be the case this year, however, even as gas prices rise to their highest levels since 2008. Many Americans who have spent the past two years stuck in the same place are looking to hit Continue reading →

Operations Management, Global, Russia, Transportation, Travel, Product Distribution, Ukraine, Supply & Demand, Pandemic, Automobiles

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution

[VIDEO] Why Electricity Costs Could Keep Climbing

May 12, 2022

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Although electricity prices usually tend to increase alongside the temperature, this summer Americans could see their utility bills rise to record levels. The video below explains how climbing natural gas costs have made air conditioning more expensive than ever, a situation made worse by tangled supply chains and the war in Ukraine.

Questions:

How do rising natural gas prices impact utility costs for consumers?
Do you think utility providers should invest more in renewable energy sources to reduce their Continue reading →

Operations Management, Global, Ethics, Supply chains, Sustainability, Energy, Natural Gas, Product Distribution, Ukraine, 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, Videos

Venture Capital Firms Invest Heavily in Mental Health Startups

May 10, 2022

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The Covid-19 pandemic took an enormous toll on people’s mental health. The World Health Organization estimates that the prevalence of anxiety and depression increased by 25 percent during 2020. Meanwhile, the Centers for Disease Control and Prevention found that one-third of Americans have recently reported symptoms of anxiety or depression. Some patients struggle to book appointments with therapists, however, either because their insurance doesn’t cover their specific needs or because demand for mental health services has skyrocketed.

“Since Covid, Continue reading →

Marketing, Ethics, Entrepreneurship, Product Development, Startups, Product Distribution, Supply & Demand, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Stocks Dropped Last Month to Lowest Levels since March 2020

May 4, 2022

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Share prices plummeted across all three major stock indexes last Friday, wrapping up a terrible month that brought markets to their lowest levels since the start of the pandemic. On that single day, the Dow Jones Industrial Average fell 939 points while the S&P 500 dropped 155 points, amounting to respective contractions of 2.8 percent and 3.6 percent. Worst of all was the Nasdaq, which shrank by 4.2 percent after dropping 536 points.

The numbers look even worse when Continue reading →

Marketing, Securities Markets, Global, Product Distribution, Federal Reserve, Supply & Demand, Stock markets, Dow, Nasdaq

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Netflix Stock Tanks after Drop in Subscribers

April 26, 2022

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Netflix revolutionized the entertainment industry after the company launched its streaming service in 2007, creating an on-demand platform that was soon imitated by many competitors. Although Netflix still has the largest audience in the industry with 220 million subscribers, the company faces strong competition from services like Disney+, HBO Max, and many others. No longer the only game in town, over the years Netflix has spent big on original television series and movies in order to stand out from this Continue reading →

Marketing, Product Development, Promotions, Entertainment, Netflix, Streaming, Product Distribution, Food & Drink, Supply & Demand

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, Bonus Chapter B: Technology and New Media

Shipping Companies Ignore Farmers in Pursuit of Greater Profits

April 21, 2022

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Before the pandemic, enormous shipping vessels bound for the West Coast of the U.S. from Asia usually took the same predictable and profitable voyages. After docking in either the port of Los Angeles or Long Beach, the ships would unload their cargo and then head up north to Oakland, where they stocked up on agricultural goods from California’s expansive farmland. This cargo would ultimately end up in markets around the world after journeying across the Pacific and disembarking in Southeast Continue reading →

Ethics, Entrepreneurship, Manufacturing, Regulation, Supply chains, Transportation, Product Distribution, Agriculture, Shipping, 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