Business Essentials, Ninth Canadian Edition

Cover
Title Page
Copyright Page
Dedication
Brief Contents
Contents
Preface
Acknowledgments
About the Authors
Part 1 Introducing the Contemporary Business World
	01 Understanding the Canadian Business System
		Spin Master: Canadian Toy Maker Becomes a Global Children’s Entertainment Company
		LO‐1 The Idea of Business and Profit
		LO‐2 Economic Systems Around the World
			Factors of Production
			Types of Economic Systems
				Disruptions in Business Disruptions Are Everywhere!
				There’s an App for That!
		LO‐3 Interactions between Business and Government
			How Government Influences Business
				The Greening of Business Problems in the Ontario Power System
			How Business Influences Government
		LO‐4 The Canadian Market Economy
			Demand and Supply in a Market Economy
				E‐Business and Social Media Solutions The Lucrative Business of App Development
		LO‐5 Private Enterprise and Competition
			Degrees of Competition
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 1
	02 The Environment of Business
		Growth and Success: A Few Dollars at a Time
		LO‐1 Organizational Boundaries and Environments
			Organizational Boundaries
			Multiple Organizational Environments
		LO‐2 The Economic Environment
			Economic Growth
			Economic Stability
				There’s an App for That!
			Managing the Canadian Economy
		LO‐3 The Technological Environment
			Research and Development (R&D)
			Product and Service Technologies
				The Greening of Business Environmentally Friendly Automobiles
		LO‐4 The Political–Legal Environment
			Disruptions in Business The Physical Environment
		LO‐5 The Socio‐Cultural Environment
			Customer Preferences and Tastes
			Ethical Compliance and Responsible Business Behaviour
			The Business Environment
			The Industry Environment
				Entrepreneurship and New Ventures Goldline Curling: Dealing with New Industry Threats
		LO‐6 Emerging Challenges and Opportunities in the Business Environment
			Outsourcing
			The Growing Role of Social Media
			Business Process Management
		LO‐7 Redrawing Corporate Boundaries
			Mergers and Acquisitions
			Divestitures and Spinoffs
			Employee‐Owned Corporations
			Strategic Alliances
			Subsidiary and Parent Corporations
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 2
	03 Conducting Business Ethically and Responsibly
		Is Legalization of Marijuana a Good Idea?
		Ethics in the Workplace
		LO‐1 Individual Ethics
			Business and Managerial Ethics
			Assessing Ethical Behaviour
			Encouraging Ethical Behaviour in Organizations
		LO‐2 Corporate Social Responsibility
		LO‐3 The Stakeholder Model of Responsibility
			Implementing Social Responsibility Programs
			E‐Business and Social Media Solutions Retailers Are Watching You: Is That Okay?
			There’s an App for That!
			Disruptions In Business Key Issues in Whistle‐Blower Programs
			The Greening of Business Which Car Pollutes Less? Electric or Gasoline?
		LO‐4 Approaches to Social Responsibility
			Managing Social Responsibility Programs
		LO‐5 Social Responsibility and the Small Business
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 3
	04 Entrepreneurship, Small Business, and New Venture Creation
		Tim Hortons’ Franchisee Challenges: Heroes, and Villains
		LO‐1 Interrelationship of Small Business, New Venture Creation, and Entrepreneurship
			Small Business
			The New Venture/Firm
			Entrepreneurship
			Intrapreneurs
		LO‐2 The Role of Small and New Businesses in the Canadian Economy
			Small Businesses
			New Ventures
		LO‐3 The Entrepreneurial Process
			Identifying Opportunities
				E‐Business and Social Media Solutions Shopify: Helping Entrepreneurs Expand and Monetize Their Client Base
			Accessing Resources
				There’s an App for That!
			Building the Right Team
				Entrepreneurship and New Ventures Crowdfunding: Finance from the Masses
			Assessing the Fit between Elements in the Entrepreneurial Process
				The Greening of Business Green Growth in Small Businesses
		LO‐4 Starting Up a Small Business
			Buying an Existing Business
			Buying a Franchise
		LO‐5 Success and Failure in Small Business
			Reasons for Success
			Reasons for Failure
		LO‐6 Forms of Business Ownership
			The Sole Proprietorship
			The Partnership
			The Corporation
			The Co‐Operative
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 4
	05 The Global Context of Business
		Couche‐Tard: Your Global Convenience Store
		The Contemporary Global Economy
		LO‐1 The Major World Marketplaces
		LO‐2 Emerging Markets: BRICS and Beyond
			E‐Business and Social Media Solutions The Goose Is Flying East: CanadaGoose.cn
		LO‐3 Forms of Competitive Advantage
			The Balance of Trade
			The Balance of Payments
			Exchange Rates
				There’s an App for That!
		LO‐4 International Business Management
			Going International
			Levels of Involvement in International Business
			International Organizational Structures
		LO‐5 Barriers to International Trade
			Social and Cultural Differences
				Entrepreneurship and New Ventures A Better Coconut Water
			Economic Differences
			Legal and Political Differences
			Business‐Practice Laws
			DISRUPTIONS IN BUSINESS Is Supply ManagementDoomed?
		LO‐6 Overcoming Barriers to Trade
			General Agreement on Tariffs and Trade (GATT)
			World Trade Organization
			The European Union
			The North American Free Trade Agreement and the New US‐Mexico‐Canada Agreement (USMCA)
			Major New Agreements: TPP and CETA
			Other Free Trade Agreements Around the World
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 5
Part 2 The Business of Managing
	06 Managing the Business Enterprise
		A Surprising Change in Corporate Strategy at Bombardier
		Who Are Managers?
		LO‐1 The Management Process
			Planning
			Organizing
			Leading
			Controlling
			Management: Science or Art?
				E‐Business and Social Media Solutions Managing Customer Service Touch Points
			Becoming a Manager
			What Should You Expect in a Management Job?
				Entrepreneurship and New Ventures Innovations in Management
		LO‐2 Types of Managers
			Levels of Management
			Areas of Management
		LO‐3 Management Roles and Skills
			Management Roles
			Management Skills
		LO‐4 Strategic Management
			Setting Business Goals
			Formulating Strategy
				There’s an APP for That!
			Levels of Strategy
		LO‐5 Contingency Planning and Crisis Management
			Contingency Planning
			Crisis Management
				Disruptions in Business When Disaster Strikes
		LO‐6 Management and the Corporate Culture
		The Greening of Business Mission Zero
		Communicating the Culture and Managing Change
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 6
	07 Organizing the Business Enterprise
		Building a Foundation and Structure for Long‐Term Success
		What Is Organizational Structure?
		LO‐1 Determinants of Organizational Structure
			Entrepreneurship and New Ventures Organizing for Growth
			The Chain of Command
			The Building Blocks of Organizational Structure
		LO‐2 Job Specialization
			Departmentalization
			Establishing the Decision‐Making Hierarchy
		LO‐3 Assigning Tasks
			Performing Tasks
			Distributing Authority: Centralization and Decentralization
			Three Forms of Authority
		LO‐4 Basic Organizational Structures
			The Functional Structure
			The Divisional Structure
			Project Organization
			Matrix Structure
			International Structures
			Organizational Design for the Twenty‐First Century
			Boundaryless Organization
			Team Organization
			Virtual Organization
				E‐Business and Social Media Solutions “Simon Says,” Alexa, What Have You Done?
				Learning Organization
		LO‐5 The Informal Organization
			Informal Groups
			The Organizational Grapevine
				There’s an APP for That!
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 7
	08 Managing Human Resources and Labour Relations
		An Avalanche of Sexual Harassment Cases
		LO‐1 The Foundations of Human Resource Management
			The Strategic Importance of HRM
			Human Resource Planning
		LO‐2 Recruiting Human Resources
			The Greening of Business What Are “Green” Jobs?
			Selecting Human Resources
				There’s an APP for That!
				E‐Business and Social Media Solutions Artificial Intelligence Meets HR
		LO‐3 Developing Human Resources
			New Employee Orientation
			Training
				Entrepreneurship and New Ventures Are You LinkedIn?
			Evaluating Employee Performance
		LO‐4 Compensation and Benefits
			Determining Basic Compensation
			Incentive Programs
			Benefits
		LO‐5 The Legal Context of HRM
			Equal Employment Opportunity
			Comparable Worth
			Sexual Harassment
			Employee Safety and Health
			Retirement
		LO‐6 New Challenges in the Changing Workplace
			Managing Workforce Diversity
			Managing Knowledge Workers
			Managing Contingent Workers
		LO‐7 Dealing with Organized Labour
			The Development of Canadian Labour Unions
			Unionism Today
			The Future of Unions
		LO‐8 The Legal Environment for Unions in Canada
			Federal Legislation—The Canada Labour Code
			Provincial Labour Legislation
			Union Organizing Strategy
			Union Security
			Types of Unions
		LO‐9 Collective Bargaining
			Reaching Agreement on the Contract’s Terms
			Contract Issues
			When Bargaining Fails
			DISRUPTIONS IN BUSINESS
			Conciliation, Mediation, and Arbitration
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 8
	09 Motivating, Satisfying, and Leading Employees
		Hunter Harrison
		LO‐1 Forms of Employee Behaviour
		LO‐2 Individual Differences among Employees
			Personality
			Attitudes at Work
				E‐Business and Social Media Solutions Caution: Words Matter and Online Posts Can Haunt You
		LO‐3 Matching People and Jobs
			Psychological Contracts
			The Person–Job Fit
			Motivation in the Workplace
			Classical Theory
				Entrepreneurship and New Ventures Rebooting with Lessons from Past Ventures
			Early Behavioural Theory
		LO‐4 Behavioural Theory in the Mid‐Twentieth Century
			Contemporary Motivation Theory
		LO‐5 Strategies for Enhancing Motivation
			Reinforcement/Behaviour Modification
			Goal‐Setting Theory
			Participative Management and Empowerment
			Team Management
			Job Enrichment and Redesign
			Modified Work Schedules
				The Greening of Business The Compressed Workweek and Telecommuting: Are They Really Green?
		LO‐6 Leadership and Motivation
			Leadership and Power
		LO‐7 Approaches to Leadership
			There’s an APP for That!
		LO‐8 Recent Trends in Leadership
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 9
Part 3 Managing Operations and Information
	10 Operations Management, Productivity, and Quality
		The Robots Keep Coming
		LO‐1 Providing Goods and Services to Customers
			Changes in Canadian Manufacturing over Time
			Industrial Revolutions
				Entrepreneurship and New Ventures Entrepreneurship That Matters: Speaking Loud and Clear
			Creating Value through Operations
		LO‐2 Differences between Service and Manufacturing Operations
		LO‐3 Operations Processes
			Business Strategy as the Driver of Operations
		LO‐4 Operations Planning
			Capacity Planning
			Location Planning
			Layout Planning
			Quality Planning
			Methods Planning
			Operations Scheduling
			The Master Operations Schedule
			Detailed Schedules
			Staff Schedules and Computer‐Based Scheduling
			Project Scheduling
			Operations Control
			Materials Management
			Production Process Control
		LO‐5 The Productivity–Quality Connection
			Meeting the Productivity Challenge
			Meeting the Quality Challenge
		LO‐6 Managing for Quality
			There’s an APP for That!
			Tools for Quality Assurance
		LO‐7 Adding Value Through Supply Chains
			The Greening of Business Too Good to Waste
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 10
	11 Understanding Accounting
		Future Directions for the Modern Accountant
		What Is Accounting, and Who Uses Accounting Information?
		LO‐1 Who Are Accountants and What Do They Do?
			Financial versus Managerial Accounting
			Professional Accountants
				There’s an APP for That!
			Accounting Services
			Private Accountants
		LO‐2 The Accounting Equation
			Assets and Liabilities
			Owners’ Equity
				Entrepreneurship and New Ventures Working with the Accounting Equation
		LO‐3 Financial Statements
			Balance Sheets
		LO‐4 Income Statements
			Statements of Cash Flows
			The Budget: An Internal Financial Statement
		LO‐5 Analyzing Financial Statements
			Solvency Ratios: Borrower’s Ability to Repay Debt
			Short‐Term Solvency Ratios
				DisruptionS in Business Skimming off the Top
			Long‐Term Solvency
			Profitability Ratios: Earnings Power for Owners
			Return on Equity
			Return on Sales
			Earnings Per Share
			Activity Ratios: How Efficiently Is the Firm Using Its Resources?
		LO‐6 Bringing Ethics into the Accounting Equation
			Why Accounting Ethics?
		LO‐7 The Evolving Role of the Modern Accountant
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 11
Part 4 Principles of Marketing
	12 Understanding Marketing Principles and Developing Products
		Maple Leaf: Capitalizing on the Meatless Meat Movement
		LO‐1 What Is Marketing?
			Delivering Value
			Goods, Services, and Ideas
			Relationship Marketing and Customer Relationship Management
			The Marketing Environment
		LO‐2 Developing the Marketing Plan
			Strategy: The Marketing Mix
				There’s an APP for That!
			Product
			Pricing
			Place (Distribution)
			Promotion
		LO‐3 Marketing Strategy: Market Segmentation, Target Marketing, and Positioning
			Identifying Market Segments
		LO‐4 Marketing Research
			The Research Process
			Research Methods
				E‐Business and Social Media Solutions Crowdsourcing: Wisdom from the Consumer World
		LO‐5 Understanding Consumer Behaviour
			Influences on Consumer Behaviour
			The Consumer Buying Process
		LO‐6 Organizational Marketing and Buying Behaviour
			Business Marketing
			B2B Buying Behaviour
		LO‐7 What Is a Product?
			The Value Package
			Classifying Goods and Services
			The Product Mix
			DISRUPTIONS IN BUSINESS Counterfeit Products
		LO‐8 Developing New Products and Branding
			The New Product Development Process
			Product Life Cycle
				Entrepreneurship and New Ventures Copper Branch: Plant‐Based Power Food
			Identifying Products: Branding and Packaging
			Packaging Products
			Labelling Products
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 12
	13 Pricing, Promoting, and Distributing Products
		Amazon Versus the Bay: Past, Present, and Future of Retail
		LO‐1 Determining Prices
			Pricing to Meet Business Objectives
			Price‐Setting Tools
		LO‐2 Pricing Strategies and Tactics
			Pricing Strategies
				There’s an APP for THAT!
			Pricing Tactics
		LO‐3 Promoting Products and Services
			Promotional Strategies
			The Promotional Mix
		LO‐4 Advertising Promotions and Media
			Advertising Media
			Traditional Media: Changing Times
			Online: The Power of Consumer Engagement
		LO‐5 Personal Selling, Sales Promotions, Direct (or Interactive) Marketing, Public Relations, and Publicity
			Personal Selling
			Sales Promotions
			Publicity and Public Relations
				DisruptionS in Business Now Here’s a Story About Disruption!
		LO‐6 The Distribution Mix
			Intermediaries and Distribution Channels
				The Greening of Business Single‐Use Packaging Under Fire
			Distribution Strategies
			Channel Conflict and Channel Leadership
		LO‐7 The Role of Intermediaries
			Wholesaling
			Retailing
				E‐Business and Social Media Solutions The Long Tail, Revisited
		LO‐8 Physical Distribution
			Warehousing Operations
			Transportation Operations
			Distribution through Supply Chains as a Marketing Strategy
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 13
Part 5 Managing Financial Issues
	14 Money and Banking
		RBC: A Symbol of Canadian Banking Strength
		LO‐1 What Is Money?
			The Characteristics of Money
			The Functions of Money
			The Spendable Money Supply: M‐1
			M‐1 Plus the Convertible Money Supply: M‐2
			Credit Cards and Debit Cards: Plastic Money?
		LO‐2 The Canadian Financial System
			Financial Institutions
			Financial Pillar #1—Chartered Banks
			Services Offered by Banks
				There’s an APP for THAT!
			Bank Loans
				E‐Business and Social Media Solutions Real‐Time Investing: Just a Click Away
			Banks as Creators of Money
			Other Changes in Banking
		LO‐3 The Bank of Canada
		LO‐4 Financial Pillar #2—Alternate Banks
			Trust Companies
			Credit Unions/Caisses Populaires
			Financial Pillar #3—Specialized Lending and Savings Intermediaries
			Life Insurance Companies
			Factoring Companies
			Financial Corporations
			Venture Capital Firms
			Pension Funds
			Financial Pillar #4—Investment Dealers
				Entrepreneurship and New Ventures Risky Business
			Other Sources of Funds
			Government Financial Institutions and Granting Agencies
			International Sources of Funds
		LO‐5 International Banking and Finance
			Currency Values and Exchange Rates
			The International Payments Process
				The Greening of Business Is Bitcoin Environmentally Friendly?
			The International Bank Structure
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 14
	15 Financial Decisions and Risk Management
		Blockchain and Bitcoin: New Models or Modern‐Day Bubbles?
		LO‐1 The Role of the Financial Manager
			Objectives of the Financial Manager
			Responsibilities of the Financial Manager
		LO‐2 Why Businesses Need Funds
			Short‐Term (Operating) Expenditures
			Long‐Term (Capital) Expenditures
				Entrepreneurship and New Ventures Social Capital Is Making the World a Better Place
		LO‐3 Sources of Short‐Term Funds
			Trade Credit
			Secured Short‐Term Loans
			Unsecured Short‐Term Loans
		LO‐4 Sources of Long‐Term Funds
			Debt Financing
				The Greening of Business What Are the Prospects for “Green Bonds”?
		LO‐5 Equity Financing
			Hybrid Financing: Preferred Stock
			Choosing between Debt and Equity Financing
			The Risk–Return Relationship
			Securities Markets
			Investment Banking
			Stock Exchanges
		LO‐6 Buying and Selling Securities
			Financing Securities Purchases
		LO‐7 Other Investments
			Mutual Funds
			Exchange‐Traded Funds
			Hedge Funds
			Commodities
				There’s an APP for THAT!
			Securities Regulation
			Financial Management for Small Businesses
			Establishing Bank Credit and Trade Credit
			Venture Capital
			Planning for Cash‐Flow Requirements
		LO‐8 Risk Management
			Coping with Risk
		Summary of Learning Objectives
		Questions and Exercises
		Team Exercises
		business case 15
Appendix A A Brief History of Business in Canada
Appendix B Business Law
Appendix C Using Technology to Manage Information in the Internet and Social Media Era
Appendix D Managing Your Personal Finances: A Synopsis
Appendix E Insurance as Risk Management
Endnotes and Source Notes
Name and Organization Index
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Subject Index
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