Business Essentials [RENTAL EDITION]

Cover
Half Title Page
Title Page
Copyright Page
Brief Contents
Contents
Preface
About the Authors
Part 1 The Contemporary Business World
	1 The U.S. Business Environment
		Chapter Opening Case: Reinventing an American Icon
		Business, Profit, and the External Environment
			Business and Profit
			The External Environments of Business
			Finding a Better Way: Saving the World One Camp Stove at a Time
		Economic Systems
			Factors of Production
			Types of Economic Systems
			Entrepreneurship and New Ventures: Luxury on a Budget
		The Economics of Market Systems
			Demand and Supply in a Market Economy
			Private Enterprise and Competition in a Market Economy
		Economic Indicators
			Economic Growth, Aggregate Output, and Standard of Living
			Economic Stability
			Managing in Turbulent Times: Coronavirus: The Global Economic Impact of Disease
			Managing the U.S. Economy
		Developing Skills in Your Career
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	2 Understanding Business Ethics and Social Responsibility
		Chapter Opening Case: EpiPen: Balancing Morals and Profits
		Ethics in the Workplace
			Individual Ethics
			The Law and the Real World
			Individual Values and Morals
			Business and Managerial Ethics
			Assessing Ethical Behavior
			Company Practices and Business Ethics
		Social Responsibility
			The Stakeholder Model of Responsibility
			Entrepreneurship and New Ventures: Paying a Living Wage
			Contemporary Social Consciousness
		Areas of Social Responsibility
			Responsibility Toward the Environment
			Finding a Better Way: Mission Zero
			Responsibility Toward Customers
			Responsibility Toward Employees
			Responsibility Toward Investors
		Implementing Social Responsibility Programs
			Approaches to Social Responsibility
			Social Responsibility and the Small Business
		The Government and Social Responsibility
			How Governments Influence Business
			How Business Influences Government
		Managing Social Responsibility
			Formal Organizational Dimensions
			Informal Organizational Dimensions
			Evaluating Social Responsibility
			Managing in Turbulent Times: Unintended Consequences of Doing the Right Thing
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	3 Entrepreneurship, New Ventures, and Business Ownership
		Chapter Opening Case: Staying Ahead of the Curve
		What Is a Small Business?
			The Importance of Small Business in the U.S. Economy
			Popular Areas of Small Business Enterprise
			Finding a Better Way: The Rise of the Gig Economy
		Entrepreneurship
			Entrepreneurship Goals
			Entrepreneurial Characteristics
		Starting and Operating a New Business
			Understanding Distinctive Competencies
			Crafting a Business Plan
			Starting the Small Business
			Financing the Small Business
		Trends, Successes, and Failures in New Ventures
			Trends in Small Business Start‐Ups
			Entrepreneurship and New Ventures: Small Investment, Big Payoff
			Reasons for Failure
			Reasons for Success
		Noncorporate Business Ownership
			Sole Proprietorships
			Partnerships
			Cooperatives
		Corporations
			The Corporate Entity
			Types of Corporations
			Managing in Turbulent Times: The Changing Winds of Fortune
			Managing a Corporation
			Special Issues in Corporate Ownership
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	4 Understanding the Global Context of Business
		Chapter Opening Case: Nothing Magical About Alibaba
		The Contemporary Global Economy
			The Major World Marketplaces
			Finding a Better Way: Car Wars: China Versus Mexico
			Trade Agreements and Alliances
		International Trade
			Balance of Trade
			Balance of Payments
			Exchange Rates
			Forms of Competitive Advantage
			Managing in Turbulent Times: Brexit 2020
		International Business Management
			Going International
			Levels of International Involvement
			Entrepreneurship and New Ventures: Women Entrepreneurs Grow Global
			International Organization Structures
		Understanding the Cultural Environment
			Values, Symbols, Beliefs, and Language
			Employee Behavior Across Cultures
		Barriers to International Trade
			Economic Differences
			Legal and Political Differences
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
		Part 1: Integrative Learning Portfolio
			Crafting a Business Plan
			Case: Ford Motor Company
			Finding Your Path: Careers in Business
Part 2 Managing the Business
	5 Managing the Business
		Chapter Opening Case: Alphabet Soup
		The Management Process
			Basic Management Functions
			The Science and the Art of Management
			Becoming a Manager
		Types of Managers
			Levels of Management
			Areas of Management
			Entrepreneurship and New Ventures: Innovations in Management
		Management Roles and Skills
			Managerial Roles
			Basic Management Skills
		Strategic Management: Setting Goals and Formulating Strategy
			Setting Business Goals
			Types of Strategy
			Finding a Better Way: Managing the Contingent Workforce
			Formulating Strategy
			A Hierarchy of Plans
		Contingency Planning and Crisis Management
			Contingency Planning
			Crisis Management
			Managing in Turbulent Times: When Data Disaster Strikes
		Management and the Corporate Culture
			Building and Communicating Culture
			Changing Culture
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	6 Organizing the Business
		Chapter Opening Case: The Skinny
		What Is Organizational Structure?
			Organization Charts
			Determinants of Organizational Structure
			Entrepreneurship and New Ventures: Sometimes Flatter is Better
		The Building Blocks of Organizational Structure
			Job Specialization
			Departmentalization
			Finding a Better Way: Inventing Holacracy
		Establishing the Decision‐Making Hierarchy
			Distributing Authority: Centralization and Decentralization
			The Delegation Process
			Managing in Turbulent Times: Keeping the Organizational Tools Sharp
			Three Forms of Authority
		Basic Forms of Organizational Structure
			Functional Structure
			Divisional Structure
			Matrix Structure
			International Structure
			New Forms of Organizational Structure
		Informal Organization
			Informal Groups
			Organizational Grapevine
			Intrapreneuring
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	7 Operations Management and Quality
		Chapter Opening Case: Made from Scratch
		What Does Operations Mean Today?
			Growth in the Services and Goods Sectors
		Creating Value Through Operations
			Differences Between Service and Goods Manufacturing Operations
			Operations Processes
		Business Strategy as the Driver of Operations
			The Many Faces of Production Operations
		Operations Planning
			Capacity Planning
			Location Planning
			Entrepreneurship and New Ventures: Nothing Like a Home‐Cooked Meal
			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
			Quality Control
		Quality Improvement and Total Quality Management
			The Quality‐Productivity Connection
			Managing for Quality
			Managing in Turbulent Times: Fasten Your Seat Belts, Please
			Tools for Total Quality Management
		Adding Value Through Supply Chains
			The Supply Chain Strategy
			Outsourcing and Global Supply Chains
			Finding a Better Way: Social Responsibility in the Supply Chain
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
		Part 2: Integrative Learning Portfolio
			Crafting a Business Plan
			Case: Ford Motor Company, 1909–1928
			Finding Your Path: Careers in Business
Part 3 People in Organizations
	8 Employee Behavior and Motivation
		Chapter Opening Case: Building a Culture of Hospitality
		Forms of Employee Behavior
			Performance Behaviors
			Organizational Citizenship
			Counterproductive Behaviors
			Managing in Turbulent Times: The Changing Faces of Employee Rights
		Individual Differences Among Employees
			Personality at Work
			Attitudes at Work
		Matching People and Jobs
			Psychological Contracts
			The Person‐Job Fit
		Basic Motivation Concepts and Theories
			Classical Theory
			Early Behavioral Theory
			Entrepreneurship and New Ventures: The Opportunity to Begin Again
			Contemporary Motivation Theory
		Strategies and Techniques for Enhancing Motivation
			Reinforcement/Behavior Modification
			Using Goals to Motivate Behavior
			Finding a Better Way: It’s an Actual Circus Out There
			Participative Management and Empowerment
			Work Teams and Team Structures
			Job Enrichment and Job Redesign
			Modified Work Schedules and Alternative Workplaces
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	9 Leadership and Decision Making
		Chapter Opening Case: Leadership by Design
		The Nature of Leadership
			Leadership and Management
			Leadership and Power
		Early Approaches to Leadership
			Trait Approaches to Leadership
			Behavioral Approaches to Leadership
		The Situational Approach to Leadership
		Leadership Through the Eyes of Followers
			Transformational Leadership
			Charismatic Leadership
			Entrepreneurship and New Ventures: Charisma and Message
		Special Issues in Leadership
			Leadership Substitutes
			Leadership Neutralizers
		The Changing Nature of Leadership
			Leaders as Coaches
			Gender and Leadership
			Finding a Better Way: Women Leading the Way
			Cross‐Cultural Leadership
		Emerging Issues in Leadership
			Strategic Leadership
			Ethical Leadership
			Virtual Leadership
			Managing in Turbulent Times: Leadership Beyond the Bottom Line
		Leadership, Management, and Decision Making
			The Nature of Decision Making
			Rational Decision Making
			Behavioral Aspects of Decision Making
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	10 Human Resource Management and Labor Relations
		Chapter Opening Case: Putting Employees First
		The Foundations of Human Resource Management
			The Strategic Importance of HRM
			HR Planning
		The Legal Context of HRM
			Equal Employment Opportunity
			Compensation and Benefits
			Labor Relations
			Health and Safety
			Other Legal Issues
		Staffing the Organization
			Recruiting Employees
			Selecting Employees
		Compensation and Benefits
			Wages and Salaries
			Incentive Programs
			Benefits Programs
			Finding a Better Way: Reinventing the Workforce
		Developing the Workforce
			Training and Development
			Performance Appraisal
			Entrepreneurship and New Ventures: A Match Made by Artificial Intelligence
		New Challenges in the Changing Workplace
			Managing Workforce Diversity
			Managing Knowledge Workers
			Contingent and Temporary Workers
			Managing in Turbulent Times: The Union’s Job Is Never Done
		Dealing with Organized Labor
			Unionism Today
			Collective Bargaining
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
		Part 3: Integrative Learning Portfolio
			Crafting a Business Plan
			Case: Ford Motor Company, 1929–1947
			Finding Your Path: Careers in Business
Part 4 Principles of Marketing: Building Relationships with Customers for Competitive Advantage
	11 Marketing Processes and Consumer Behavior
		Chapter Opening Case: More Than Just Meatballs
		What Is Marketing?
			Delivering Value
			Goods, Services, and Ideas
			Relationship Marketing and Customer Relationship Management
			The Marketing Environment
		Developing the Marketing Plan
			Managing in Turbulent Times: A Santa Fe Icon
			Marketing Strategy: Planning the Marketing Mix
		Marketing Strategy: Target Marketing and Market Segmentation
			Identifying Market Segments
			Geographic Segmentation
			Demographic Segmentation
			Geo‐Demographic Segmentation
			Psychographic Segmentation
			Behavioral Segmentation
		Marketing Research
			The Research Process
			Research Methods
			Finding a Better Way: Reaping Rewards with Karma
		Understanding Consumer Behavior
			Influences on Consumer Behavior
			The Consumer Buying Process
		Organizational Marketing and Buying Behavior
			Business Marketing
			B2B Buying Behavior
			Social Media and Marketing
			The International Marketing Mix
			Entrepreneurship and New Ventures: Farming Your Niche
		Small Business and the Marketing Mix
			Small‐Business Products
			Small‐Business Pricing
			Small‐Business Distribution
			Small‐Business Promotion
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	12 Developing and Pricing Products
		Chapter Opening Case: The Thirty‐Thousand Dollar Bag
		What Is a Product?
			The Value Package
			Finding a Better Way: Free College for Everyone
			Classifying Goods and Services
			The Product Mix
		Developing New Products
			The New Product Development Process
			Entrepreneurship and New Ventures: Can Beds Come in Boxes?
			Product Mortality Rates
			The Seven‐Step Development Process
			Variations in the Process for Services
		Product Life Cycle
			Stages in the PLC
			Extending Product Life: An Alternative to New Products
			Identifying Products
		Determining Prices
			Pricing to Meet Business Objectives
			Price‐Setting Tools
		Pricing Strategies and Tactics
			Pricing Strategies
			Managing in Turbulent Times: The High Cost of Price Wars
			Pricing Tactics
			International Pricing
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	13 Distributing and Promoting Products
		Chapter Opening Case: Chaos Theory at Work
		The Distribution Mix
			Intermediaries and Distribution Channels
			Distribution Strategies
			Channel Conflict and Channel Leadership
		Wholesaling
			Merchant Wholesalers
			Agents and Brokers
			The E‐Intermediary
			Entrepreneurship and New Ventures: Dispensing Hope
		Retailing
			Types of Brick‐and‐Mortar Retail Outlets
			Nonstore Retailing
			Finding a Better Way: The Store of the Future May Be Coming to You
			Online Retailing
		Physical Distribution
			Warehousing Operations
			Transportation Operations
			Distribution Through Supply Chains as a Marketing Strategy
		The Importance of Promotion
			Promotional Objectives
			Promotional Strategies
			The Promotional Mix
			Advertising
		Personal Selling
			Personal Selling Tasks
			Managing in Turbulent Times: The Last Mile
			The Personal Selling Process
			Sales Promotions
			Direct (or Interactive) Marketing
			Publicity and Public Relations
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
		Part 4: Integrative Learning Portfolio
			Crafting a Business Plan
			Case: Ford Motor Company, 1948–1965
			Finding Your Path: Careers in Business
Part 5 Managing Information for Better Business Decisions
	14 Information Technology (IT) for Business
		Chapter Opening Case: Think Before You Click
		Information Technology Impacts: A Driver of Changes for Business
			Creating Portable Offices: Providing Remote Access to Instant Information
			Enabling Better Service by Coordinating Remote Deliveries
			Creating Leaner, More Efficient Organizations
			Enabling Increased Collaboration
			Enabling Global Exchange
			Providing Flexibility for Customization
			Providing New Business Opportunities
			Improving the World and Our Lives
		IT Building Blocks: Business Resources
			The Internet and Other Communication Resources
			Networks: System Architecture
			Entrepreneurship and New Ventures: Speaking Loud and Clear: The Future of Voice Technology
		Information Systems: Harnessing the Competitive Power of IT
			Leveraging Information Resources: Data Warehousing and Data Mining
			Types of Information Systems
			Managing in Turbulent Times: Better Care, Lower Costs
		IT Risks and Threats
			Hackers
			Identity Theft
			Intellectual Property Theft
			Computer Viruses, Worms, and Trojan Horses
			Spyware
			Spam
		IT Protection Measures
			Preventing Unauthorized Access: Firewalls
			Preventing Identity Theft
			Preventing Infectious Intrusions: Antivirus Software
			Protecting Electronic Communications: Encryption Software
			Avoiding Spam and Spyware
			Ethical Concerns in IT
			Finding a Better Way: Gleaning Wisdom from the World Wide Web
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	15 The Role of Accountants and Accounting Information
		Chapter Opening Case: CSI: Wall Street
		What Is Accounting, and Who Uses Accounting Information?
			Financial Versus Managerial Accounting
			Certified Public Accountants
			Private Accountants and Management Accountants
			Forensic Accountants
			Entrepreneurship and New Ventures: Skimming Off the Top
			Federal Restrictions on CPA Services and Financial Reporting: Sarbox
		The Accounting Equation
			Assets and Liabilities
			Owners’ Equity
			Managing in Turbulent Times: U.S. Versus the World
		Financial Statements
			Balance Sheets
			Income Statements
			Statements of Cash Flows
			The Budget: An Internal Financial Statement
		Reporting Standards and Practices
			Revenue Recognition and Activity Timing
			Full Disclosure
		Analyzing Financial Statements
			Solvency Ratios: Borrower’s Ability to Repay Debt
			Profitability Ratios: Earnings Power for Owners
			Activity Ratios: How Efficiently Is the Firm Using Its Resources?
		Bringing Ethics into the Accounting Equation
			AICPA’s Code of Professional Conduct
			Violations of Accounting Ethics and GAAP
			Finding a Better Way: Analytics and the Future of Auditing
		Internationalizing Accounting
			International Accounting Standards Board
			Why One Set of Global Practices?
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
		Part 5: Integrative Learning Portfolio
			Crafting a Business Plan
			Case: Ford Motor Company, 1965–2008
			Finding Your Path: Careers in Business
Part 6 The Financial System and Issues in Financial Management
	16 Understanding Money and the Role of Banking
		Chapter Opening Case: Where Did All the Money Go?
		What Is Money?
			The Characteristics of Money
			The Functions of Money
			M‐1: The Spendable Money Supply
			M‐2: M‐1 Plus the Convertible Money Supply
			Credit Cards and Debit Cards: Plastic Money?
		The U.S. Financial System
			Financial Institutions
			The Growth of Financial Services
			Managing in Turbulent Times: Getting Serious with Credit Standards
		How Financial Institutions Create Money and Are Regulated
			How Money Is Created
			How Banks Are Regulated
		The Federal Reserve System
			The Structure of the Fed
			Finding a Better Way: A Better Way to Pay?
			The Functions of the Fed
			The Tools of the Fed
		The Changing Money and Banking System
			Government Intervention for Stabilizing the U.S. Financial System
			Anticrime and Antiterrorism Regulations
			The Impact of Electronic Technologies
			Entrepreneurship and New Ventures: Managing a Risky Business
		International Banking and Finance
			Currency Values and Exchange Rates
			The International Payments Process
			International Bank Structure
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
	17 Managing Business Finances
		Chapter Opening Case: Fire On the Ground
		Maximizing Capital Growth
			The Time Value of Money and Compound Growth
			Common Stock Investments
		Investing to Fulfill Financial Objectives
			Reasons for Investing
			Most Mutual Funds Don’t Match the Market
			Exchange‐Traded Funds
			Entrepreneurship and New Ventures: Social Capital Is Making the World a Better Place
		The Business of Trading Securities
			Primary and Secondary Securities Markets
			Stock Exchanges
			Nonexchange Trading: Electronic Communication Networks
			Individual Investor Trading
			Tracking the Market Using Stock Indexes
			Finding a Better Way: Finding a Way to Fund Life After Work
		The Risk–Return Relationship
			Investment Dividends (or Interest), Appreciation, and Total Return
			Fantasy Stock Markets
			Managing Risk with Diversification and Asset Allocation
		Financing the Business Firm
			Secured Loans for Equipment
			Working Capital and Unsecured Loans from Banks
			Angel Investors and Venture Capital
			Sale of Corporate Bonds
		Becoming a Public Corporation
			Going Public Means Selling Part Ownership of the Company
			Managing in Turbulent Times: Winners and Losers
			Stock Valuation
			Market Capitalization
			Choosing Equity Versus Debt Capital
		Regulating Securities Markets
			The Securities and Exchange Commission
			Regulations Against Insider Trading
		Summary of Learning Objectives
		Key Terms
		Questions & Exercises
		Building a Business: Continuing Team Exercise
		Team Exercise
		Exercising Your Ethics
		Cases
		Endnotes
		Part 6: Integrative Learning Portfolio
			Crafting a Business Plan
			Case: Ford Motor Company, 2008–Present
			Finding Your Path: Careers in Business
Appendices
	Appendix I: Risk Management
		Coping with Risk
			Insurance as Risk Management
	Appendix II: The Legal Context of Business
		The U.S. Legal and Judicial Systems
			Types of Law
			The U.S. Judicial System
		Business Law
			Contract Law
			Tort Law
			Property Law
			Agency Law
			Commercial Law
			Bankruptcy Law
		The International Framework of Business Law
	Appendix III: Managing Your Personal Finances
		Building Your Financial Plan
			Assessing Your Current Financial Condition
			Developing Your Financial Goals
		Making Better Use of the Time Value of Money
			Planning for the “Golden Years”
			Time Value as a Financial‐Planning Tool
		Conserving Money by Controlling It
			Credit Cards: Keys to Satisfaction or Financial Handcuffs?
			Save Your Money: Lower Interest Rates and Faster Payments
			Financial Commitments of Home Ownership
			How Much House Can You Afford?
		Cashing Out from Tax Avoidance (Legally)
			The IRA Tax Break
			Protecting Your Net Worth
			Why Buy Life Insurance?
			What Does Life Insurance Do?
			How Much Should I Buy?
			Why Consider Term Insurance?
			How Much Does It Cost?
	Appendix IV: Unions and Labor Management
		Why Do Workers Unionize?
		The Evolution of Unionism in the United States
			Early Unions
			The Emergence of the Major Unions
		Unionism Today
			Trends in Union Membership
			Trends in Union‐Management Relations
			Trends in Bargaining Perspectives
			The Future of Unions
			Contemporary Union Structure
			Locals
		Laws Governing Labor‐Management Relations
			The Major Labor Laws
		How Unions Are Organized and Certified
		Collective Bargaining
			Reaching Agreement on Contract Terms
			Contract Issues
			When Bargaining Fails
			Administering a Labor Agreement
		Endnotes
Glossary
Index
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