Posted: 13 September 2021
A post on all my notes taken in class.
Texas Freeze impacted the Bullfrog Hot Tubs. There was a chain effect.
Cold weather froze the gas wells. Power companies went offline as they did not have gas. Without power, chemical plants had to shut down and many of these plants take months to re-open! The petrochemicals products produced include PVC, resins, etc (Slides from Caplice, 2021).
Why did lumber price skyrocket? Demand was up - people wanted to move out. Supply is down - many people are doing carbon offsets on their land.
Freestyle Soda Machines
Shifting demand patterns due to COVID - from commercial to retail. The shops just didn’t want those refill packs for the soda machines - no restaurants were open! For commercial, you’re just shipping syrup. However, you ship cans of coke for retail. To ship the same amount of coke, it requires 6X more space! The production methods could still produce, but we just couldn’t deliver.
What’s the similarity between bananas and cement?
Most sales come from new products. This is interesting. Original Ruffles has predictable demand - it’s just a favorite among people and they buy it for parties, stuff like that. However, if Ruffles introduces a new product that’s novel and interesting, people might just grab it to try it! So if they keep making new products, they can capture some sales. It’s just like McDonald’s in Singapore with new products every month (it gets me to go try it sometimes - it works).