MGMT 1035 Exam Notes PDF

**THE ALCOHOL INDUSTRY** **VIDEO \#1** Alcohol has been made and traded forever. Also political. The Politics of Spirits - - Gin Craze - - - - - - - Rum - - - Rum's Impact - - - Cuba - - - - - **VIDEO \#2** Prohibition: Restraining the liq...

**THE ALCOHOL INDUSTRY** **VIDEO \#1** Alcohol has been made and traded forever. Also political. The Politics of Spirits - - Gin Craze - - - - - - - Rum - - - Rum's Impact - - - Cuba - - - - - **VIDEO \#2** Prohibition: Restraining the liquor trade - - Prohibition Movements in Canada - - - - The Politics of Prohibition - - - The 1898 Referendum - - - - WWI and Prohibition - - - - "Demon Rum": Alcohol in the Trenches - - - Prohibition - - The American Experience - - - Lack of Success - - - - End of Prohibition - - - LCBO - - Evolution of LCBO - - - - **VIDEO \#3** Brand Growth - - In 2004, InBev was created through a merger of AmBev and Interbre, an amalgam of Latin American, Canadian and European brewery interests. In 2008, Anheuser-Busch was acquired, and acquisitions of Grupo Modelo in 2012 and South Korea Oriental Brewing in 2014 helped international penetration. In 2016, a merger was negotiated with African rival SABMiller to create AB InBev. The AB InBev merger was the third largest merger in corporate history, establishing a dominant market position at an estimated one-third of all beer sold worldwide. Differences between alcohol MNEs and others - - Tensions between health and profit - - - Restricting Advertising - - - - Loi Evin: France's regulation of alcohol marketing - - Loi Evin - - - Law's Success - - MNEs and Regulation - - - **LCBO ARTICLE** The article compares the historical introduction of legal liquor sales in Ontario through the LCBO in 1927 to potential future scenarios for marijuana sales. Key points include: 1. 2. 3. 4. 5. 6. **ALCOHOL BRAND STRETCH ARTICLE** The briefing discusses contemporary alcohol marketing, particularly the strategy of \"brand stretching,\" where alcohol brands expand into non-alcoholic products to enhance visibility and circumvent advertising restrictions. Key points include: 1. 2. 3. 4. 5. 6. 7. 8. Overall, while brand extensions are not yet widespread, they represent a significant aspect of alcohol marketing strategies that could influence consumer behaviour and perceptions, particularly among younger demographics. **CATCH UP AND LEADERSHIP IN THE WINE INDUSTRY ARTICLE** The text discusses the dynamics of the global wine industry, particularly focusing on the catch-up processes of latecomer countries in comparison to established producers. High-tech sectors have traditionally been the focus of studies on economic growth in emerging countries, yet the agro-food industry, particularly wine, remains a significant contributor to GDP in many developing nations. The text highlights that while the agro-food sector is often perceived as low value-added, it presents substantial opportunities for technological advancement. The wine industry serves as a compelling case study, illustrating how latecomers like Australia, the USA, Chile, and South Africa have disrupted the dominance of traditional European producers, particularly France and Italy. This shift has been facilitated by changing consumer preferences, the entry of new markets, and the rise of large distribution channels. The text notes that the latecomers have not only increased their market share but have also innovated in production and marketing, leading to a transformation in the industry. The theoretical framework presented emphasizes the concept of \"catch-up,\" which extends beyond mere technology adoption to include the development of social capabilities and technological congruence with industry leaders. The literature suggests that successful catch-up involves creative adaptation and innovation, allowing latecomers to forge their own paths rather than simply replicating established models. The analysis reveals that while latecomers have made significant strides, incumbents have also adapted and maintained their market leadership through innovation and the preservation of traditional practices. Factors contributing to the slower catch-up process in the wine industry include the sector\'s supplier-dominated nature, the gradual pace of agricultural innovation, and the cultural significance of wine, which is deeply tied to geographical and historical contexts. In conclusion, the text posits that the wine industry exemplifies a complex interplay of competition and adaptation, where both latecomers and incumbents continue to evolve in response to changing market dynamics. The emergence of Asian markets is anticipated to further influence the global wine landscape, presenting new opportunities and challenges for all players involved. **TRAVEL AND TOURISM INDUSTRY** **VIDEO \#1** Roman Holiday - - - - Pilgrimages - - - The Grand Tour - - - - Thomas Cook Travel - - - - - - Post WWII Travel and Tourism - - - How Important is Travel and Tourism to the Global Economy - - **VIDEO \#2** Cruise Ships Titanic to Queen Mary - - - Mauretania and Lusitania - - - - - - - - Titanic - - - - The "Unsinkable" - - Sinking of the Titanic - - - - The Industry Continues - - - - Cruise Lines - - - - Expansion of the Cruise Industry - - **VIDEO \#3** Commercial Aviation - - - - Air Travel - - - The Boeing 747 - - - - The status of the Industry: Precovid and Post - - **AIRWAYS: HISTORY OF COMMERCIAL FLIGHT ARTICLE** The article outlines the evolution of commercial air travel from its inception to the present day, highlighting key milestones and innovations: 1. 2. 3. 4. 5. 6. 7. **THE RISE OF THE ALL INCLUSIVE RESORT ARTICLE** The discussion focuses on the rise and economic impact of all-inclusive resort hotels, which generate billions annually and are increasingly popular among families from the U.S., Europe, and now Asia. ### **Key Points:** 1. - - - 2. - - - 3. - - Overall, while all-inclusive resorts contribute significantly to the tourism industry, their impact on local communities is complex and multifaceted. **WALL STREET JOURNAL CRUISE SHIPS LOVE BOAT ARTICLE** The cruise industry has transformed dramatically since \"The Love Boat\" popularized it, shifting from a niche market to a mainstream vacation choice for middle-class families. Here are the key points: 1. 2. 3. 4. 5. 6. 7. Overall, while the industry is enjoying a resurgence, it also navigates complexities related to sustainability, cost, and consumer expectations. **GLOBAL FINANCE** **VIDEO \#1** What is Money? - - - More Specifically - - - - Kinds of Money - - - Potosi and Silver - - Impact - An Aside - - - What is a Bank? Banks and Central Banks - - - - Bank of England - Other Central Banks - - - - - - - - Bank of Canada - - - - - - - - Chartered Banks in Canada - - - - - Chartered Banks in British North America - - - - Evolution of Banking in Canada - - - - - New Tech, Some Questions - - **VIDEO \#2** Although common policy of the EU, not all members use the Euro. they are all required to one day adopt it as their currency. - - - - - - - - - - - - - - - - - - - - - **VIDEO \#3** - - - - - - - - - - - - - - - - - - - - - - - - **THE INTERNATIONAL ROLE OF THE EURO ARTICLE** The article discusses the European Union\'s renewed efforts to enhance the euro\'s status as an international currency, particularly in light of past challenges and changing global dynamics. Key points include: 1. 2. 3. 4. 5. 6. In summary, the EU is strategically positioning the euro to enhance its global standing, driven by recent developments and the desire for reduced dependence on the US dollar, despite existing limitations. **BIG MAC INDEX ARTICLE** The document \"Is the Big Mac Index a Good Guide for Currency Speculators?\" provides a critical examination of the Big Mac Index (BMI) as a tool for evaluating currency value and its potential utility for currency speculators. Here are the key points: 1. 2. 3. 4. 5. **THE WORLD IS SEEING HOW THE DOLLAR REALLY WORKS ARTICLE** The text outlines the dominance of the U.S. dollar in 2022 and the impact of its global financial influence: 1. 2. 3. 4. 5. 6. **THE TEXTILE INDUSTRY** A T-Shirt - - - - Early Cotton - - - The Spread of Cotton to Europe. - - - - By the Middle Ages Cotton Is In Europe - - - - Begins to be Grown in America - - - India is a Major Source of Supply - - - BEIC and Cotton - - - - The Restrictions - - - - - Industrialism Changes Everything - - - - Richard Arkwright - - - - The Power Loom - - Need More Cotton - - Results of the First Industrial Revolution in England - - - - - The Work Force - - - Conclusion - - - America Gets Into The Cotton Business - - Lowell's Mill Girls - - The Decline at Lowell - - - - King Cotton - - US Civil War - - Civil War - - - - End of the War - - - - Triangle to Rana Plaza - - - - Rana Plaza and the Cost of Cotton - - - - **BLOG PART 1** Here's a summary of the key points: - - - - - **BLOG PART 2** Here's a summary of the key points: - - - - - - **BLOG PART 3** Here's a summary of the key points: - - - - - These changes laid the groundwork for many aspects of modern society, including urbanization, the rise of the middle class, and the increasing role of women in the workforce. **BLOG PART 4** Here's a summary of the key points: - - - - - - - **Colonialism and the Indian Textile Industry Article** The British restrictions on Indian textiles during colonial rule were driven by economic, protectionist, and imperial motives. By imposing tariffs and trade barriers, Britain protected its own textile industry while ensuring access to India\'s raw cotton. This exploitation led to wealth extraction and limited Indian industry, weakening local craftsmanship and cultural identity. This policy was part of a broader strategy to maintain economic dependence and social control, impacting India\'s development, autonomy, and heritage under colonialism. **Fast Fashion Article** The history of fast fashion traces back to the Industrial Revolution, with major developments occurring through the 1800s to today. Mass production and sewing machines enabled affordable, ready-made clothes, which escalated in the 1960s as demand for trendy, low-cost clothing grew. Brands like H&M, Zara, and Forever 21 popularized the "fast fashion" model in the late 20th century, allowing rapid, cost-effective production but often relying on exploitative labour and generating waste. Today's fast fashion faces criticism, prompting calls for mindful consumption. **Empires of Cotton Article** By 1861, cotton was vital to the global economy, with massive production in the U.S. fueling textile industries worldwide, especially in Britain. The reliance on slave labour in America, combined with plentiful land and capital, enabled the U.S. to dominate the market. The Civil War disrupted this dependency, causing a "cotton famine" in Europe. Following the war, nations sought new cotton sources and labour systems, marking a shift towards non-slave labour. This era underscored cotton\'s influence on industrial capitalism and the interconnected global economy. **THE OIL INDUSTRY** What is Gasoline? - - - Internal Combustion - - - Ways to Consider Gasoline's Impact - - - John D. Rockefeller - - - - - Technology - - - Society - - - Change in the Oil Business - - - - War - - - Politics - - OPEC - - Environment - - - - Canada - - - Petrocanada - - - **WHAT IS PETROLEUM ARTICLE** Definition and Use: Petroleum, also called crude oil, is a naturally occurring liquid found beneath the earth's surface. It can be refined into fuel for vehicles, heating, and machines, and can be converted into plastics. Economic and Political Impact: The petroleum industry is vital to the global economy, influencing geopolitics, as many major companies rely on it for production and refining. Petroleum is a key driver in global energy markets and economies. Extraction and Refining: Petroleum is extracted through drilling and then refined into various fuels. The extraction process varies by method (e.g., exploratory, developmental, directional drilling). The difficulty of extraction and value of petroleum depend on its density. Industry Segments: Petroleum companies are divided into three sectors: upstream (exploration and extraction), midstream (transportation and storage), and downstream (refining and distribution). Pros and Cons: Pros: Petroleum provides energy for transportation, heating, and plastics. It is easily extracted and transported, with a high energy output. Cons: It is non-renewable, with environmental impacts including carbon emissions, toxic byproducts, and potential harm from extraction methods like fracking and underwater drilling. Geopolitical and Investment Aspects: Oil reserves are concentrated in countries like Venezuela, Saudi Arabia, and Canada. Investment in petroleum can be done through oil futures, ETFs, and mutual funds, focusing on energy companies. Formation and Alternatives: Petroleum is formed from the remains of ancient organisms subjected to heat and pressure over millions of years. It is not renewable, and alternatives like wind, solar, and biofuels are being increasingly explored. Classifications: Unrefined petroleum includes categories like crude oil, natural gas, asphalt, and bitumen. Conclusion: Petroleum is a critical energy source used in many industries but is finite and harmful to the environment, prompting the exploration of renewable energy alternatives. **OIL AND PETROLEUM PRODUCTS EXPLAINED ARTICLE** **Supply and Demand**: Crude oil prices are primarily influenced by global supply and demand. Economic growth increases demand for petroleum products, especially for transportation and energy needs like heating, cooking, and electricity generation. **Role of OPEC**: The Organization of the Petroleum Exporting Countries (OPEC) can influence oil prices by setting production quotas for its members. OPEC controls a significant portion of the world\'s oil reserves and production. However, compliance with quotas is mixed, and factors like non-OPEC competition and consumer responses to price changes also affect oil prices. **Spare Capacity**: OPEC maintains spare oil production capacity, which can be used to stabilize prices during supply disruptions. Saudi Arabia, as the largest producer, historically holds the largest share of this capacity. **Geopolitical and Weather Events**: Political events (e.g., wars, conflicts in the Middle East) and severe weather (e.g., hurricanes, cold weather) can disrupt oil supplies, leading to higher prices. These disruptions can be temporary, and prices generally stabilize once the situation resolves. **Global Auction**: Oil markets function like a global auction, with prices determined by supply and demand at different points in the supply chain. In tight markets, higher bids are required; in loose markets, lower prices prevail. **Market Transactions**: Oil is traded through futures contracts and spot transactions. Futures contracts allow buyers and sellers to lock in prices for future delivery, while spot transactions involve immediate purchases at current market prices. Speculators also trade futures contracts based on price predictions. **Price Signals**: Price fluctuations in spot and futures markets signal the supply-demand balance. Rising prices indicate a supply shortage, while falling prices suggest an oversupply. **Uncertainty in Price Projections**: Predicting future crude oil prices is difficult due to the complex factors involved. EIA projections provide outlooks but are subject to change based on economic, political, and market conditions. **NOT ALL OIL IS EQUAL ARTICLE** **Different Types of Oil**: Not all oil is priced the same. The price a producer receives depends on the type of oil, its location, and its transportation. **Brent Oil**: A global benchmark, Brent oil comes from the North Sea and is a light, sweet oil. Its price is high due to its ease of transport via coastal ports and tankers, allowing it to reach international markets easily. **West Texas Intermediate (WTI)**: Another benchmark, WTI represents U.S. oil and is lighter than Brent. However, due to U.S. export restrictions and transport challenges (since WTI is produced in landlocked areas), WTI often trades at a discount to Brent. **Western Canada Select (WCS)**: This is a key Canadian benchmark for Alberta oil. WCS is a mix of heavy oil and bitumen, which makes it less valuable than lighter oils like WTI and Brent. It is priced lower due to its heavier nature and the distance from major markets. **Dilbit**: A blend of bitumen and diluents from Alberta's oil sands, dilbit is even heavier than WCS and is priced at a further discount. **Bitumen Netback**: The price of bitumen is calculated by subtracting transportation and diluent costs, resulting in a \"netback\" price that affects producers' revenue and royalties. **Impact on Royalties**: Alberta\'s royalties depend on the price received for oil. Lower prices due to quality differences and transportation challenges reduce the value of Alberta's resources, affecting royalties collected from oil production. **Market Access**: The price discounts Alberta oil faces can be mitigated by better access to global markets. Easier transport to refineries would reduce the price gap between Alberta's oil and global benchmarks like Brent and WTI. **THE SERVICE INDUSTRY** **WHAT IS THE SERVICE SECTOR ARTICLE** #### **Definition of the Service Sector** - - #### **Key Characteristics (\"The Five I's\")** 1. 2. 3. 4. 5. #### **Economic Dominance** - ### **Environmental Impact of the Service Sector** - - - - - ### **Modern Sub-Sectors: Quaternary and Quinary Sectors** 1. - - 2. - - #### **Economic Size** - **GET READY FOR THE NEXT SUPPLY DISRUPTION ARTICLE** #### **Supply Chain Challenges During COVID-19:** 1. 2. 3. - - - #### **ADDAPT Framework for Supply Chain Resilience:** The framework consists of six interconnected capabilities designed to enhance preparedness and response to supply chain disruptions: 1. - - 2. - - 3. - - 4. - - 5. - - 6. - - #### **Recommendations for Companies:** 1. 2. 3. 4. #### **Outcomes of ADDAPT Implementation:** Companies that master these capabilities can: - - - **VIDEO \#1** What is deindustrialization? What is the service economy? - - - - The Service Sector: It\'s Not About Wine & Cloth Anymore - - - - - - This lecture covers the rise of the **service economy** and the decline of traditional industrial sectors, a phenomenon known as **deindustrialization**. The key points are: 1. - - 2. - - 3. - - 4. - - 5. - 6. - - In conclusion, the service economy has become dominant, driven by technological change, globalization, and the decline of traditional manufacturing. These changes have reshaped cities and economies, with significant social and economic consequences, including shifts in employment patterns and rising inequalities. **VIDEO \#2** This lecture discusses the concept of **offshoring** and its impact on both manufacturing and finance. The key points are: ### **Definitions and Differences:** 1. 2. ### **Offshoring and the Service Economy:** - - ### **History and Growth of Offshoring:** - - - ### **The Electronics Industry and East Asia:** - - - ### **Challenges and Trade-offs of Offshoring:** - - - ### **Social and Economic Impacts:** - - - ### **Offshoring in Finance:** - - - - ### **Effects of Offshore Finance:** - - ### **Connection Between Offshoring in Manufacturing and Finance:** - - - ### **Conclusion:** - -