Kaoshi

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Chapter| |
1| The Changing Face of Business|
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Learning Objectives | |
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| 1. | Distinguish between business and not‐for‐profit organizations.| 2. | Identify and describe the factors of production.|
3. | Describe the private enterprise system, including basic rights and entrepreneurship.| 4. | Identify the six eras of business, and explain how the relationship era—including alliances, technology, and environmental concerns—influences contemporary business.| 5. | Explain how today's business workforce and the nature of work itself is changing.| 6. | Identify the skills and attributes managers need to lead businesses in the 21st century.| 7. | Outline the characteristics that make a company admired by the business community.|

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| Snuggie: The Break‐out Blanket Hit|
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If the first thing you do when preparing to curl up with a good textbook like this one is to reach for your Snuggie, you have plenty of company. Sales of the funky blanket with sleeves were expected to reach as high as 20 million units in just the second year the cozy accessory was available. Combined with the 5 million blankets sold in the first year, that volume will bring the value of total retail sales of the Snuggie to more than $300 million.That's a respectable profit for an inexpensive product whose unique design and ungainly shape have made it the butt of YouTube parodies and late‐night talk‐show jokes. It means Allstar Marketing Group, which markets the Snuggie, is obviously doing something right, though Scott Boilen, president of the company, does admit to being surprised at his unlikely product's rapid rise to pop‐culture success.Despite being compared to a backwards coat, the fleecy Snuggie has ridden its growing popularity in two new directions: into much greater availability in a wider variety of stores and into a whole new range of styles and colors. Originally introduced in a now‐famous television ad that encouraged viewers to respond with a phone call to place their order, the Snuggie was soon being distributed directly through a few store chains, including obvious choices like Bed Bath & Beyond and drug store chains like Walgreens. By its second year, however, it was also available at campus bookstores and such high‐end retailers as Lord & Taylor.The Snuggie has so far been the centerpiece of two annual New York City fashion runway shows, the second of which brought an avalanche of publicity from the more than 300 news reports that followed the event. The blanket helped increase Internet sales from about 5 percent of Allstar's business to about half over the last few years. And it's become an official accessory of the rock band Weezer, which collaborated with Allstar to feature its own custom Snuggie (also available for sale) in a music video.New Snuggie varieties include animal‐print designs, Snuggies for kids, Snuggies for dogs (available in pet stores), and attention‐getting Snuggies in a wide selection of official college colors complete with logos. More innovation is sure to come.A recent spell of cold weather nearly exhausted stock of the Snuggie, and Allstar temporarily stopped its marketing effort while it replenished supplies. Being out of stock “is a nice problem to have,” said the company's vice president of marketing, “but when people want their Snuggies, they want them now.” Some detractors have complained about the product's quality, but its appeal has more to do with its status as a hot cultural icon than with its fit or even its durability. Meanwhile ardent Snuggie fan groups have organized Snuggie pub crawls, competitions, and get‐togethers across the United States. Facebook boasts more than 300 Snuggie fan pages and twice as many groups.Looking back on his surprise hit and the variety of ways in which consumers have become aware of it, Scott Boilen said, “You always need a combination of luck and a well‐timed strategy. Snuggie took off with viral...
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