Apple Dodges Tariffs in Texas

Apple Dodges Tariffs in Texas

October 7, 2019
Anita Lee-Post, Ph.D.

Apple is moving its Mac Pro production to Austin, Texas, as part of a plan to invest $350 billion in the U.S. economy by 2023.

Apple already has manufacturing locations in 36 states with 9,000 domestic suppliers. The move not only helps Apple to abate the impact of trade tariffs but also to have a product that is made entirely in USA.

Video Spotlight: Mac Pro to be manufactured in Texas

This post is based on the IB Times article, Apple News: Mac Pro Production Moves To Texas To Dodge Tariffs, by Thomas Kira, September 23, 2019, and the YouTube video, Mac Pro to be manufactured in Texas, by Newsy, September 23, 2019. Image source: © McGraw-Hill Education

Discussion Questions:

1. In what ways is Apple’s decision to move its Mac Pro production to Austin, Texas, capacity-related?

Guidance: The move is a capacity-related decision because Apple has to determine what capacity it needs to make Mac Pro using only domestic suppliers and workers instead of outsourcing the assembly processes to China.

2. What are the reasons for Apple to move its Mac Pro production to Austin, Texas?

Guidance: Trade tariffs make it less economical to Continue reading →

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Where’s the Beef? Tyson Juggles Capacity

Where’s the Beef? Tyson Juggles Capacity

August 29, 2019
David Little, Ph.D.

Fire at a Tyson Foods beef processing plant has affected the company’s ability to maintain supply.  The plant processes 6% of the fed cattle in the US.

Processing capacity in the US is nearly maxed out, so the dip in capacity will increase beef prices nationally.  Tyson is working to move production to other sites.

Video Spotlight: Tyson Foods CEO: Raising Expectations | Mad Money | CNBC

This post is based on the Supply Chain Dive article, Tyson shifts production after plant fire to ‘keep supply chain full’, by Emma Cosgrove, August 13, 2019, and the YouTube video Tyson Foods CEO: Raising Expectations , by CNBC, November 2, 2017. Image source: Foodcollection.

Discussion Questions:

1. What capacity management strategies should Tyson employ now?

Guidance: Students should recognize the need for back up sites or arrangements.  Ask students to describe how outsourcing arrangements might be used to acquire short term capacity with smaller meat processing facilities.  Do any small processors exist?  If not, what other arrangements can be made at the remaining Tyson plant to increase capacity or raise production?  Is the remaining plant operating 24/7 already?  Can some beef processing Continue reading →

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Did Disney Forecast the Demand Drop For Galaxy’s Edge?

Did Disney Forecast the Demand Drop For Galaxy’s Edge?

August 22, 2019
Lisa M. Spencer

Disney, worried about park overcrowding and negative guest experiences with the opening this summer of the Star Wars Galaxy’s Edge attraction, managed instead to kill off demand.

Ticket prices were higher, annual pass holders faced blackout dates, guests required reservations to ride the new Star Wars ride, and hotel prices went up in front of anticipated demand.  These plans were so “successful” in warding off an onslaught of guests that park attendance dropped three percent over the summer.

In addition, some guests may be holding off till the second Star Wars ride opens at the Anaheim Disneyland in January, while fans of the Orlando park are awaiting their first one at the end of this August.

Despite lower attendance, higher ticket prices contributed to a 10% jump in average guest spending, while hotels saw their occupancy rates increase from 86% to 88%.

Video Spotlight: WHAT’S HAPPENING with Star Wars Galaxy’s Edge?!

This post is based on the Business Insider article, Disney Discouraged “Star Wars” Fans From Visiting Its New Galaxy’s Edge Area, and Domestic Park Visits and Profits Dropped, by Theron Mohamed, August 7, 2019; the Fox News article, Disney CEO partially blames Star Wars land for Continue reading →

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