Supply & Demand - McGraw-Hill Introduction to Business

Soaring Chocolate Prices Impact Businesses around the Globe

November 8, 2024

A few weeks ago, we looked at how rising cocoa prices led to price increases for chocolate just before the Halloween season. The video below examines this global issue in great detail, from the struggles of cocoa farmers in Ghana to the effects of rising costs both on independent operators and major candy producers like Mars Wrigley.

Questions:

What are some of the issues affecting the livelihoods of Ghanaian cocoa farmers?
How are independent businesses like Li-Lac Chocolates responding Continue reading →

Nobody Knows What to Do with Bankrupt Redbox’s Rental Kiosks

November 5, 2024

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Redbox launched its video rental kiosk business back in the early 2000s when the industry was still dominated by chains like Blockbuster. While brick-and-mortar stores charged $2 to $5 per night, customers could rent movies at Redbox for just $1 since the kiosks were much cheaper to maintain than physical locations. Customers also liked that Redbox operated 24/7, functioning more like a vending machine than a retailer. By 2007, the company had more U.S. locations than Blockbuster. Redbox peaked in Continue reading →

Rising Costs and Reluctant Customers Hurt Music Festivals

October 29, 2024

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With sunny weather, beautiful views, and lots of open space, California is one of the country’s most popular settings for music festivals. Thousands of people travel to the Golden State every summer to attend dozens of festivals — including Coachella, the most-attended annual music festival in North America. However, it’s getting more expensive to run a music festival in California as the cost of living keeps going up. Prices for transportation, accommodations, labor, and refreshments have skyrocketed above the typical Continue reading →

Marketing, Entrepreneurship, Promotions, Entertainment, Pricing, Music, Product Distribution, Supply & Demand, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Chocolate Prices Are Scarily High This Halloween

October 22, 2024

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For millions of Americans, Halloween is all about eating candy. And there’s no variety of candy more beloved than chocolate. According to national surveys, the average American’s favorite Halloween candy is a chocolate treat like M&Ms, Snickers, or Reese’s Peanut Butter Cups. But this year, you may notice less chocolate in your family’s trick-or-treat stash. That’s because cocoa prices are at record highs after three years of poor crops. The price of cocoa has doubled since the start of 2024 Continue reading →

Marketing, Product Development, Promotions, Supply chains, Packaging, Product Distribution, Agriculture, Halloween, Holidays, 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

U.S. Port Strike Ends Quickly but Could Come Back

October 11, 2024

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Over the last few months, companies around the globe kept a close eye on American ports as a key union agreement neared its expiration date. The International Longshoremen’s Association, a union representing 50,000 members, demanded wage increases that met resistance from management. Unable to reach an agreement, the union went on strike at the beginning of last week.

But not for long. Just three days after longshoremen at East and Gulf Coast ports walked out on their jobs, employers represented Continue reading →

[VIDEO] How Kodak Invented the “Snapshot”

October 10, 2024

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Photography was once a specialized field where only trained professionals had the expertise to shoot and develop prints. Then in the late 19th century, Kodak released the first of many “point-and-shoot” cameras that would change the industry forever. The video below explores the fascinating history behind the “snapshot” and how technological innovations can bring niche products to a wider market.

Questions:

How did the introduction of point-and-shoot cameras change the photography market?
Do you see any similarities between the Continue reading →

[VIDEO] Xbox Stakes its Future on Cloud Gaming

September 27, 2024

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For decades, the video game console market has been dominated by two major players: Microsoft’s Xbox and Sony’s Playstation. While the latter has consistently outsold the former, in recent years Microsoft has been buying up game developers in an effort to control the software side of the business. The video below explores Microsoft’s bet on cloud gaming through Xbox Game Pass, and whether the tech giant’s gamble will pay off in the long run.

Questions:

Why do companies like Microsoft Continue reading →

Global, Product Development, Promotions, Entertainment, Product Distribution, Video Games, Supply & Demand, Microsoft, Sony

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Car Insurance Rates Climb as Vehicle Prices Fall

September 25, 2024

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During the Covid-19 pandemic, the disruption of global supply chains sent car prices soaring as auto deliveries became erratic and spare parts went scarce. Now that worldwide logistics networks are largely back to normal, however, the cost of cars has been steadily going down. According to the Consumer Price Index (CPI), used car prices fell by 10 percent over the past year while new vehicles are about 4 percent cheaper compared to 2023. Rental cars costs have dropped as well, Continue reading →

Ethics, Supply chains, Transportation, Insurance, Product Distribution, Risk Management, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter C: Managing Risk

Bad Weather and Competing Crops Hurt the Coffee Industry

September 20, 2024

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When it comes to global commodities like coffee beans, even the slightest change in the environment or the economy can drastically change prices and supplies. That’s what happened in 2021 when a sudden and severe frost in Brazil destroyed 500,000 acres of coffee plantations, sending prices for unroasted coffee beans soaring. The extensive damage reduced the country’s coffee production by more than 10 million bags annually for three consecutive years. Brazil is the world’s largest producer of Arabica beans, the Continue reading →

Operations Management, Global, Entrepreneurship, Product Development, Product Distribution, Agriculture, Food & Drink, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution

[VIDEO] How a Cork Company Produces 22 Million Stoppers Per Day

September 12, 2024

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Although wine corks might seem like simple items, the video below shows why they’re anything but. Along with examining the production and manufacturing processes around cork, this lengthy video also explains how one company uses it to produce everything from flooring to footwear.

Questions:

What are cork companies like Amorim doing to address the shortage of skilled laborers needed for bark harvesting?
How did Amorim diversify its operations after a fungi infection nearly destroyed its cork stopper business?