It is common to think of business as a purely financial world that is somewhat detached from everyday life. This is partly because the biggest, most successful companies in the average neighbourhood tend to be international corporations with locations all around the world, or at the very least, all around the country. Despite this feeling, the truth is that we can often get a good sense for a how a large business is doing by simply paying attention to how things are changing in a particular industry, and how our behaviours are changing regarding their products. Anyone who was perceptive enough to notice that everyone at their university suddenly had white headphones could have been several months ahead of the Apple quarterly report that saw their profits skyrocket from iPod sales. Likewise, anyone paying attention to the movie rental industry in the past year or so will not be surprised at all to learn that Blockbuster is filing for Chapter 11 bankruptcy protection, with almost $1 billion in debt. Costumers are increasingly confused to see that they can purchase a used movie for $10, or rent the same movie for a few days for $6. This is particularly confusing when one considers that movies can be rented through vending machines at grocery stores for $2 a night, or even downloaded straight to the home through Xbox Live, Netflix, and cable services. Blockbuster’s bankruptcy is a perfect example of how our everyday perceptions can be very relevant in the world of international business.
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