Business: A Changing World (10th Edition)

Table of contents

Table of contents :
Cover
Copyright
Dedication
Authors
Welcome
Built from the Ground Up to Be Exciting,Applicable, and Happening!
Exciting & Results-Driven
Applicable
Happening
Exciting, Applicable, Happening: With the BestInstructor Support on the Market
Acknowledgments
Brief Contents
Contents
Part 1: Business in a Changing World
CHAPTER 1:
The Dynamics of Business and Economics
Enter the World of Business:
Competition Is Good for Business
Introduction
The Nature of Business
The Goal of Business
The People and Activities of Business
Why Study Business?
The Economic Foundations of Business
Economic Systems
The Free-Enterprise System
The Forces of Supply and Demand
The Nature of Competition
Responding to Business Challenges: Swatch Works to Restructure Company, Supply Less Parts to Competition
Economic Cycles and Productivity
The American Economy
Going Green: Luxury Automakers Embracing Eco-Friendly Interiors
A Brief History of the American Economy
The Role of the Entrepreneur
Entrepreneurship in Action: Emeco Makes Indestructible Chairs
The Role of Government in the American Economy
The Role of Ethics and Social Responsibility in Business
Can You Learn Business in a Classroom?
So You Want a Job in the Business World
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: The Forces of Supply and Demand
Solve the Dilemma: Mrs. Acres Homemade Pies
Build Your Business Plan: The Dynamics of Business and Economics
See for Yourself Videocase: Redbox Succeeds by Identifying Market Need
Team Exercise
Appendix A: Guidelines for the Development of the Business Plan
CHAPTER 2:
Business Ethics and Social Responsibility
Enter the World of Business:
Antibacterial Soap Faces Regulatory and Consumer Pressure
Introduction
Business Ethics and Social Responsibility
Entrepreneurship in Action: Listening for a Good Business Opportunity
The Role of Ethics in Business
Recognizing Ethical Issues in Business
Fairness and Honesty
Making Decisions about Ethical Issues
Improving Ethical Behavior in Business
Consider Ethics and Social Responsibility: Ralph Lauren Sets Example in FCPA Case
The Nature of Social Responsibility
Social Responsibility Issues
Going Green:
Sustainability Trade-offs: Lighter Vehicles and Higher Prices
Unemployment
So You Want a Job in Business Ethics and Social Responsibility
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Making Decisions about Ethical Issues
Solve the Dilemma: Customer Privacy
Build Your Business Plan: Business Ethics and Social Responsibility
See for Yourself Videocase: The Challenge of Building Trust in Business
Team Exercise
Appendix B: The Legal and Regulatory Environment
Consider Ethics and Social Responsibility:
Marvel Comics Wins Work Made-for-Hire Copyright Case
CHAPTER 3:
Business in a Borderless World
Enter the World of Business:
Chinese Smartphone Company Faces Challenges in Expansion
Introduction
The Role of International Business
Why Nations Trade
Trade between Countries
Balance of Trade
International Trade Barriers
Economic Barriers
Going Green: China’s Sustainability Initiatives
Ethical, Legal, and Political Barriers
Social and Cultural Barriers
Technological Barriers
Trade Agreements, Alliances, and Organizations
General Agreement on Tariffs and Trade
Entrepreneurship in Action: Via Aviation: The Solution to an Industry Problem
The North American Free Trade Agreement
The European Union
Asia-Pacifi c Economic Cooperation
Consider Ethics and Social Responsibility:
Bangladesh Factory Disasters Prompt Better Safety Standards
Association of Southeast Asian Nations
World Bank
International Monetary Fund
Getting Involved in International Business
Exporting and Importing
Trading Companies
Licensing and Franchising
Contract Manufacturing
Outsourcing
Offshoring
Joint Ventures and Alliances
Direct Investment
International Business Strategies
Developing Strategies
Managing the Challenges of Global Business
So You Want a Job in Global Business
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Global Awareness
Solve the Dilemma: Global Expansion or Business as Usual?
Build Your Business Plan: Business in a Borderless World
See for Yourself Videocase: Walt Disney around the Globe
Team Exercise
Part 2: Starting and Growing a Business
CHAPTER 4: Options for Organizing Business
Enter the World of Business: Shareholder Activism
Introduction
Sole Proprietorships
Advantages of Sole Proprietorships
Disadvantages of Sole Proprietorships
Entrepreneurship in Action: Smashing Its Way to Success: Smashburger
Partnerships
Types of Partnership
Articles of Partnership
Going Green: Sustainably Organized: Crimson Renewable Energy
Advantages of Partnerships
Disadvantages of Partnerships
Taxation of Partnerships
Corporations
Creating a Corporation
Types of Corporations
Elements of a Corporation
Advantages of Corporations
Disadvantages of Corporations
Other Types of Ownership
Joint Ventures
S Corporations
Limited Liability Companies
Cooperatives
Responding to Business Challenges: The Evolution of Sears Holdings Company
Trends in Business Ownership: Mergers and Acquisitions
So You’d Like to Start a Business
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Selecting a Form of Business
Solve the Dilemma: To Incorporate or Not to Incorporate
Build Your Business Plan: Options for Organizing Business
See for Yourself Videocase: PODS Excels at Organizing a Business
Team Exercise
CHAPTER 5: Small Business, Entrepreneurship, and Franchising
Enter the World of Business:
Chobani Yogurt Fights for Dominance in the Yogurt Market
Introduction
The Nature of Entrepreneurship and Small Business
What Is a Small Business?
The Role of Small Business in the American Economy
Industries That Attract Small Business
Entrepreneurship in Action:
From Farmer’s Market to Franchiser: Auntie Anne’s Soft Pretzels
Advantages of Small-Business Ownership
Independence
Costs
Flexibility
Focus
Reputation
Disadvantages of Small-Business Ownership
High Stress Level
High Failure Rate
Consider Ethics and Social Responsibility:
The Differences between Successful Entrepreneurs and Fraudsters
Starting a Small Business
The Business Plan
Forms of Business Ownership
Financial Resources
Going Green: ReFleece: A Simple but Sustainable Product
Approaches to Starting a Small Business
Help for Small-Business Managers
The Future for Small Business
Demographic Trends
Technological and Economic Trends
Making Big Businesses Act “Small”
So You Want to Be an Entrepreneur or Small-Business Owner
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Creativity
Solve the Dilemma: The Small-Business Challenge
Build Your Business Plan: Small Business, Entrepreneurship, and Franchising
See for Yourself Videocase: Sonic—A Successful Franchise with an Old-Fashioned Drive-In Experience
Team Exercise
Part 3: Managing for Quality and Competitiveness
CHAPTER 6: The Nature of Management
Enter the World of Business: The Importance of Middle Managers
Introduction
The Importance of Management
Management Functions
Planning
Organizing
Staffing
Directing
Going Green:
Ken Grossman’s Management of Sierra Nevada’s Growth
Controlling
Types of Management
Levels of Management
Areas of Management
Entrepreneurship in Action:
Philip Pillsbury: The Entrepreneur behind the Billion-Dollar Brand
Skills Needed by Managers
Technical Expertise
Conceptual Skills
Analytical Skills
Human Relations Skills
Leadership
Employee Empowerment
Decision Making
Responding to Business Challenges:
Managers Discover Benefits of Feminine Traits for Leadership
Recognizing and Defi ning the Decision Situation
Developing Options
Analyzing Options
Selecting the Best Option
Implementing the Decision
Monitoring the Consequences
Management in Practice
So You Want to Be a Manager
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Functions of Management
Solve the Dilemma: Making Infinity Computers Competitive
Build Your Business Plan: The Nature of Management
See for Yourself Videocase: Planning Drives the Success of Ford Fusion
Team Exercise
CHAPTER 7: Organization, Teamwork, and Communication
Enter the World of Business:
CarMax Uses Decentralized Structure to Support Teamwork
Introduction
Organizational Culture
Responding to Business Challenges: Companies Embracing Greater Employee Interaction
Developing Organizational Structure
Assigning Tasks
Specialization
Departmentalization
Assigning Responsibility
Delegation of Authority
Degree of Centralization
Entrepreneurship in Action:
Forming a Successful New Business: Group Collaboration
Span of Management
Organizational Layers
Forms of Organizational Structure
Line Structure
Line-and-Staff Structure
Multidivisional Structure
Matrix Structure
The Role of Groups and Teams in Organizations
Committees
Task Forces
Teams
Going Green:
Numi Organic Tea Utilizes Teamwork to Increase Sustainability Initiatives
Communicating in Organizations
Formal Communication
Informal Communication Channels
Monitoring Communications
Improving Communication Effectiveness
So You Want a Job in Managing Organizational Culture, Teamwork, and Communication
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Teamwork
Solve the Dilemma: Quest Star in Transition
Build Your Business Plan: Organization, Teamwork, and Communication
See for Yourself Videocase: Zappos Creates Organizational Structure and Culture with Teams
Team Exercise
CHAPTER 8: Managing Service and Manufacturing Operations
Enter the World of Business:
Manufacturers Use Remote Monitoring Systems to Detect Problems
Introduction
The Nature of Operations Management
The Transformation Process
Operations Management in Service Businesses
Entrepreneurship in Action: Celebrity Auto Group Provides Unique Service—Matching Customized Cars to Celebrities
Planning and Designing Operations Systems
Planning the Product
Designing the Operations Processes
Planning Capacity
Planning Facilities
Responding to Business Challenges:
Lenovo Gains a Competitive Advantage through Manufacturing
Sustainability and Manufacturing
Managing the Supply Chain
Purchasing
Managing Inventory
Outsourcing
Going Green: Automakers Look toward Hydrogen Fuel Vehicles
Routing and Scheduling
Managing Quality
International Organization for Standardization (ISO)
Inspection
Sampling
Integrating Operations and Supply Chain Management
So You Want a Job in Operations Management
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Reducing Cycle Time
Solve the Dilemma: Planning for Pizza
Build Your Business Plan: Managing Service and Manufacturing Operations
See for Yourself Vidoecase: Home Run Inn’s Operational Excellence Propels It to Top Spot
Team Exercise
Part 4: Creating the Human Resource Advantage
CHAPTER 9: Motivating the Workforce
Enter the World of Business: Mars Incorporated: Where Employees Love to Work
Introduction
Nature of Human Relations
Historical Perspectives on Employee Motivation
Classical Theory of Motivation
The Hawthorne Studies
Going Green:
Wegmans Motivates Employees and Excels in Sustainability
Theories of Employee Motivation
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
McGregor’s Theory X and Theory Y
Entrepreneurship in Action:
The Stein Mart Culture Is a Key Ingredient for Success
Theory Z
Equity Theory
Expectancy Theory
Strategies for Motivating Employees
Behavior Modification
Job Design
Responding to Business Challenges:
The Pros and Cons of Working from Home
Importance of Motivational Strategies
So You Think You May Be Good at Motivating a Workforce
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Motivating
Solve the Dilemma: Motivating to Win
Build Your Business Plan: Motivating the Workforce
See for Yourself Videocase: The Container Store’s Secret to Success: Employee Satisfaction
Team Exercise
CHAPTER 10: Managing Human Resources
Enter the World of Business:
The Recruitment Process of Cirque du Soleil
Introduction
The Nature of Human Resources Management
Planning for Human Resources Needs
Recruiting and Selecting New Employees
Recruiting
Selection
Legal Issues in Recruiting and Selecting
Developing the Workforce
Training and Development
Assessing Performance
Turnover
Compensating the Workforce
Going Green: Sustainability Job Opportunities
Financial Compensation
Benefits
Entrepreneurship in Action:
Urban Lending Solutions Hires Outside the Box
Managing Unionized Employees
Collective Bargaining
Resolving Disputes
The Importance of Workforce Diversity
The Characteristics of Diversity
Why Is Diversity Important?
The Benefi ts of Workforce Diversity
Affirmative Action
Consider Ethics and Social Responsibility:
Employee Privacy or Employer Vulnerability: The Role of Social Media in the Financial Industry
Trends in Management of the Workforce
So You Want to Work in Human Resources
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Appreciating and Valuing Diversity
Solve the Dilemma: Morale among the Survivors
Build Your Business Plan: Managing Human Resources
See for Yourself Videocase: The Importance of Hollywood Labor Unions
Team Exercise
Appendix C: Personal Career Plan
Part 5: Marketing Developing Relationships
CHAPTER 11: Customer-Driven Marketing
Enter the World of Business:
Banana Republic Uses Marketing to Bring Brand to Life
Introduction
Nature of Marketing
The Exchange Relationship
Functions of Marketing
Creating Value with Marketing
The Marketing Concept
Entrepreneurship in Action:
It’Sugar: Novelty Candy Emporium
Evolution of the Marketing Concept
Responding to Business Challenges: Sheetz: The Starbucks of Convenience Stores
Developing a Marketing Strategy
Selecting a Target Market
Developing a Marketing Mix
Marketing Research and Information Systems
Online Marketing Research
Buying Behavior
Psychological Variables of Buying Behavior
Social Variables of Buying Behavior
Going Green:
Millennial Rejection of Car Culture Causes Automakers to Adapt
Understanding Buying Behavior
The Marketing Environment
Importance of Marketing to Business and Society
So You Want a Job in Marketing
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: The Marketing Mix
Solve the Dilemma: Will It Go?
Build Your Business Plan: Customer-Driven Marketing
See for Yourself Videocase: New Belgium Brews Customer Satisfaction
Team Exercise
CHAPTER 12: Dimensions of Marketing Strategy
Enter the World of Business:
Corvette’s New Look and Message
Introduction
The Marketing Mix
Product Strategy
Developing New Products
Going Green:
Plant-Based Food Products: The Future of Food?
Classifying Products
Product Line and Product Mix
Product Life Cycle
Identifying Products
Pricing Strategy
Pricing Objectives
Specifi c Pricing Strategies
Entrepreneurship in Action: Moots Cycles
Distribution Strategy
Marketing Channels
Intensity of Market Coverage
Physical Distribution
Importance of Distribution in a Marketing Strategy
Promotion Strategy
The Promotion Mix
Promotion Strategies: To Push or to Pull
Objectives of Promotion
Responding to Business Challenges:
Flying at a Higher Altitude: JetBlue Introduces Luxury Seating
Promotional Positioning
Importance of Marketing Strategy
So You Want to Be a Marketing Manager
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Analyzing Motel 6’s Marketing Strategy
Solve the Dilemma: Better Health with Snacks
Build Your Business Plan: Dimensions of Marketing Strategy
See for Yourself Videocase: Groupon Masters Promotion to Become a Popular Daily Deal Site
Team Exercise
CHAPTER 13: Digital Marketing and Social Networking
Enter the World of Business:
Microblog Marketing: Reaching Millions of Consumers with One Click
Introduction
Growth and Benefits of Digital Communication
Using Digital Media in Business
Digital Media and the Marketing Mix
Social Networking
Types of Consumer-Generated Marketing and Digital Media
Going Green: Facebook Praised for Tackling Carbon Emissions
Social Networks
Blogs and Wikis
Media Sharing
Responding to Business Challenges:
Smirnoff’s Mixhibit: An Example of Ethical Digital Marketing
Virtual Worlds
Mobile Marketing
Applications and Widgets
Using Digital Media to Reach Consumers
Entrepreneurship in Action:
Fab.com: How an e-Business Generated Growth through Digital Marketing
Using Digital Media to Learn about Consumers
Legal and Social Issues in Internet Marketing
Privacy
Identity Theft
Online Fraud
Intellectual Property
Digital Media’s Impact on Marketing
So You Want to Be a Digital Marketer
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Planning a Digital Marketing and Social Networking Site
Solve the Dilemma: Developing Successful Freeware
Build Your Business Plan: Digital Marketing and Social Networking
See for Yourself Videocase: Should Employees Use Social Media Sites at Work?
Team Exercise
Part 6: Financing the Enterprise
CHAPTER 14: Accounting and Financial Statements
Enter the World of Business: Former Enron CFO Talks about Accounting Fraud
Introduction
The Nature of Accounting
Accountants
Accounting or Bookkeeping?
The Uses of Accounting Information
Going Green:
Companies Investigate Ways to Integrate Financial Information and Sustainability Costs
The Accounting Process
The Accounting Equation
Double-Entry Bookkeeping
The Accounting Cycle
Financial Statements
The Income Statement
Entrepreneurship in Action:
Al Dente Pasta Serves Up Perfect Pasta to Customers Nationwide
The Balance Sheet
The Statement of Cash Flows
Ratio Analysis: Analyzing Financial Statements
Profitability Ratios
Consider Ethics and Social Responsibility:
Deloitte Partners with New Profit Inc. to Drive Social Innovation
Asset Utilization Ratios
Liquidity Ratios
Debt Utilization Ratios
Per Share Data
Industry Analysis
Importance of Integrity in Accounting
So You Want to Be an Accountant
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Financial Analysis
Solve the Dilemma: Exploring the Secrets of Accounting
Build Your Business Plan: Accounting and Financial Statements
See for Yourself Videocase: The Accounting Function at Goodwill Industries International Inc.
Team Exercise
Chapter 15: Money and the Financial System
Enter the World of Business:
The Good and the Bad of a Cashless Society
Introduction
Money in the Financial System
Functions of Money
Characteristics of Money
Types of Money
The American Financial System
The Federal Reserve System
Banking Institutions
Going Green: Banks Increase Investment in Sustainability
Nonbanking Institutions
Consider Ethics and Social Responsibility: Unregulated Bitcoin Industry Has Regulators Worried
Electronic Banking
Future of Banking
Entrepreneurship in Action:
Square Inc. Introduces the Square Stand
So You’re Interested in Financial Systems or Banking
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Managing Money
Solve the Dilemma: Seeing the Financial Side of Business
Build Your Business Plan: Money and the Finacial System
See for Yourself Videocase: Controversy over Bank Lending Policies
Team Exercise
CHAPTER 16: Financial Management and Securities Markets
Enter the World of Business: Standard & Poor’s Defends Ratings
Introduction
Managing Current Assets and Liabilities
Managing Current Assets
Going Green:
Finance Executives Recognize the Benefits of Method’s Green Efficiencies
Managing Current Liabilities
Managing Fixed Assets
Capital Budgeting and Project Selection
Assessing Risk
Pricing Long-Term Money
Financing with Long-Term Liabilities
Bonds: Corporate IOUs
Types of Bonds
Financing with Owners’ Equity
Entrepreneurship in Action:
Venture Capital Firm Y Combinator Riding on Startup Success
Investment Banking
The Securities Markets
Stock Markets
The Over-the-Counter Market
Measuring Market Performance
Consider Ethics and Social Responsibility:
JPMorgan Struggles to Repair Reputation
So You Want to Work in Financial Management or Securities
Review Your Understanding
Revisit the World of Business
Learn the Terms
Check Your Progress
Get Involved
Build Your Skills: Choosing among Projects
Solve the Dilemma: Surviving Rapid Growth
Build Your Business Plan: Financial Management and Securities Market
See for Yourself Videocase: Morningstar Inc. Makes Investing Easier
Team Exercise
Appendix D: Personal Financial Planning
Notes
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Glossary
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Photo Credits
Indexes
Name Index
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