According to The Washington Post, some companies are exploiting inflation to pad their bottom lines. Questions: What evidence indicates that companies are raising prices to exploit rather than in relation to underlying cost increases? If companies are passing on their own higher costs to consumers, their _______________ should stay roughly the same. How do analysts… Read more »
Posts Tagged: Profit Margin
Another Walmart PR disaster
Walmart’s disabled greeters are being replaced by “customer hosts,” with growing responsibilities. Questions: 1. Why has this been such a PR disaster for the company? 2. How many days were the greeters given to find new jobs? 3. What is the new job of “customer hosts” meant to do? 4. What are your thoughts about… Read more »
Costs versus Care
According to Boing-Boing.net, sleep apnea, which is a fast-growing health complaint among Americans, has triggered a set of deceptive and unethical measures by US health insurers to shift the cost of CPAP machines through price gouging to the people who must use them to remain healthy. Questions: 1. Calculate the percentage of the transaction that… Read more »
More Greed and Graft
According to the Washington Post, what started as an antitrust lawsuit brought by states over just two drugs in 2016 has exploded into an investigation of alleged price-fixing involving at least 16 companies and 300 drugs. Questions: 1. What was the “shorthand” between executives used for? Give an example. 2. According to the article, who… Read more »
Delicious Contingent Liabilities
According to Buzz Feed.com, instant noodles are convenient, tasty, and…potentially dangerous? The sick-day staple and college student favorite may provide warmth and comfort, but new research suggests that ramen and other instant soups and noodles may be risky for young kids. Questions: 1. How many children are sent to the emergency room as a result… Read more »
Verizon breaking up wireless unit in reorganization
Verizon Communications Inc.’s new chief executive is restructuring the carrier’s business lines, including its massive wireless business, in one of the first major organizational changes under his leadership. Questions: 1. Who are and will be the new leaders of the reorganized company? 2. When will the changes take place? 3. What is the divider in… Read more »
Owning Home(s)
Business owners and landlords tend to be about four times as wealthy as the average American. That’s more than almost any other country included in a new study. Questions: 1. What were the three household groups in the study? 2. Who are the bottom 40 percent in the housing market? 3. Which countries are the… Read more »
A Look at the Price Tag
According to the Washington Post, with the $750 iPhone XR, arriving in stores on Friday, you have the opportunity to leap ahead to better technology — like a superior camera and more screen — without getting a nosebleed from the price tag. Questions: 1. What is the benefit with the XR battery? 2. What other… Read more »
Changes at GE
GE was led for two decades by Jack Welch, the chief executive both feared and revered for his management discipline. In a surprise move and after only a year in the job of CEO, John Flannery was let go on Oct. 8 amid GE’s long period of stagnation. Questions: 1. In addition to firing the… Read more »
The New Twist in Airline Rates
While the list of things not included with your plane ticket seems to be constantly growing, there is a new twist in ticket rates. As if it isn’t becoming difficult enough, now some airlines have started bidding sites for seat upgrades! Questions: 1. What are the extra fees associated with airline transportation called? 2. What… Read more »