Changing Trends Leave Borden Short of Moolah

Changing Trends Leave Borden Short of Moolah

January 20, 2020

Got milk?  Consumers may see their dairy options shrinking as two of the biggest players in America’s milk industry declare bankruptcy within the last two months.

Borden’s Chapter 11 declaration follows that of Dean Foods, America’s largest milk producer.  After over 160 in business, Borden plans to reorganize, whereas Dean Foods plans to sell its assets.


Video Spotlight: Dairy giant Borden files for bankruptcy


This post is based on the CNN article, One of America’s oldest and largest milk producers files for bankruptcy, by Chris Isidore, January 6, 2020; the CBS News article,  Borden is latest big milk producer to go bust, by Kate Gibson, January 6, 2020; and the YouTube video, Dairy giant Borden files for bankruptcy, by Newsy, January 6, 2020. Image source: Shutterstock/Andrey_Popov.

Discussion Questions:

1. What factors caused Borden’s bankruptcy?

Guidance: Changing consumer preferences, part of the socio-cultural environment, have played a major role in Borden’s bankruptcy.  Dairy milk consumption has been on a decreasing trend, dropping six percent in the last five years or so, as more Americans opt for nut-based or soy-based milk.  In addition, 2019 saw 2,700 family dairies close, following a trend of Continue reading

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The Most Expensive Mile in the Delivery Chain

The Most Expensive Mile in the Delivery Chain

The “last mile” is the last piece in delivery, and it is the most expensive one.

This last piece can account for 50% of the delivery cost because it is labor-intensive, and the trend toward ever faster home deliveries by truck can have a substantial impact on the environment. As competition in the delivery business intensifies, shippers are trying to cut the costs of the last mile. Flirtey, a delivery drone startup, is poised to rival Amazon in its quest to dominate the airborne delivery business.


Video Spotlight: Delivery Drones


This post is based on the CBS News article, Delivering the Goods: Drones and Robots Are Making Their Way to Your Door, by CBS News, December 15, 2019, and the YouTube video, Can Delivery Drones and Robots Make It in the Last Mile?by CBS Sunday Morning, December 15, 2019. Image source: Shutterstock/Phoenixns.

Discussion Questions:

1. Why did Amazon decide to lose a billion dollars on free, one-day shipping during the holiday season?

Guidance: Amazon is involved in the retail and delivery businesses. It bet that the appeal of free, one-day shipping would incentivize customers to buy their holiday gifts on the Amazon Web site. Amazon Continue reading

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Quality Issues Cause Boeing’s 737 Max Inventory Glut

Quality Issues Cause Boeing’s 737 Max Inventory Glut

January 5, 2020

Boeing has decided to halt production temporarily of its 737 Max airplanes.

Since the crashes earlier in the year, Boeing has continued to produce planes in anticipation of approval by the Federal Aviation Administration for the plane to fly again.  Instead, orders have all but ceased for the plane and over 400 aircraft are already sitting as finished goods at Boeing.

Boeing decided to shut down production temporarily, given excess inventory in stock.  However, Boeing plans to shift its focus to delivering the planes in inventory.  Boeing seeks to minimize long term impact on production and suppliers with this temporary halt.


Video Spotlight:


This post is based on the CNN article, Boeing is halting production of the embattled 737 Max starting in January, by Clare Duffy, December 17, 2019, and the YouTube videos listed in the Video Spotlight. Image source: Monty Rakusen/Getty Images

Discussion Questions:

1. Research the Boeing 737 Max on the Continue reading

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