Business Foundations: A Changing World

Title
Copyright
Dedication
Author
Welcome
Focused, Exciting, Applicable, Happening
Acknowledgments
Brief Contents
Contents
Part 1 Business in a Changing World
	CHAPTER 1 The Dynamics of Business and Economics
		Enter the World of Business
		Warren Buffet: The Oracle of Omaha
		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
			Economic Cycles and Productivity
		The American Economy
			The Importance of the American Economy
		Responding to Business Challenges
		The Trix of the Trade: General Mills’ Brand Strategy
			A Brief History of the American Economy
			The Role of the Entrepreneur
		Entrepreneurship in Action
		ATA: Engineering Good Teamwork
		Going Green
		Rainforest Alliance Stands Out in a Forest of Nonprofits
			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
		Critical Thinking Questions
		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
		Notes
	CHAPTER 2 Business Ethics and Social Responsibility
		Enter the World of Business
		NFL Tackles Safety Expectations
		Introduction
		Business Ethics and Social Responsibility
		The Role of Ethics in Business
			Recognizing Ethical Issues in Business
			Fairness and Honesty
		Going Green
		Chipotle Chips Away at Food Safety Advancements
			Making Decisions about Ethical Issues
			Improving Ethical Behavior in Business
		Consider Ethics and Social Responsibility
		Eaton Maintains a Successful Ethics Program
		The Nature of Social Responsibility
		Entrepreneurship in Action
		A Step Ahead: Blake Mycoskie Provides Leadership for Social Entrepreneurship
			Social Responsibility Issues
			Unemployment
		So You Want a Job in Business Ethics and Social Responsibility
		Review Your Understanding
		Critical Thinking Questions
		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: Warby Parker: An Affordable World Vision
		Team Exercise
		Notes
	CHAPTER 3 Business in a Borderless World
		Enter the World of Business
		Alibaba: China’s National Treasure
		Introduction
		The Role of International Business
			Why Nations Trade
			Trade between Countries
			Balance of Trade
		International Trade Barriers
			Economic Barriers
			Ethical, Legal, and Political Barriers
		Entrepreneurship in Action
		Kenya Counts on Mobile Banking
		Responding to Business Challenges
		Uber Attempts to Make a Right Turn
			Social and Cultural Barriers
			Technological Barriers
		Trade Agreements, Alliances, and Organizations
			General Agreement on Tariffs and Trade
			The North American Free Trade Agreement
			The European Union 87
			Asia-Pacific Economic Cooperation
			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
		Going Green
		Algae: A Biofuel Breakthrough
			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
		Critical Thinking Questions
		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: Electra Bikes: Better, Cooler, Awesomer!
		Team Exercise
		Notes
Part 2 Starting and Growing a Business
	CHAPTER 4 Options for Organizing Business
		Enter the World of Business
		Louisville Slugger Hits the Ball Out of the Park
		Introduction
		Sole Proprietorships
			Advantages of Sole Proprietorships
			Disadvantages of Sole Proprietorships
		Partnerships
			Types of Partnership
			Articles of Partnership
			Advantages of Partnerships
			Disadvantages of Partnerships
			Taxation of Partnerships
		Consider Ethics and Social Responsibility
		Beer Hound Brews the Perfect Partnership
		Corporations
			Creating a Corporation
			Types of Corporations
			Elements of a Corporation
			Advantages of Corporations
			Disadvantages of Corporations
		Going Green
		To B or Not to B: Cascade Engineering Adopts B Corporation Certification
		Other Types of Ownership
			Joint Ventures
			S Corporations
			Limited Liability Companies
		Entrepreneurship in Action
		Moving on Up: The VIP Moving & Storage LLC Experience
		Cooperatives
		Trends in Business Ownership: Mergers and Acquisitions
		So You’d Like to Start a Business
		Review Your Understanding
		Critical Thinking
		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
		Notes
	CHAPTER 5 Small Business, Entrepreneurship, and Franchising
		Enter the World of Business
		Chick-fil-A Earns Grade A for Quality
		Introduction
		The Nature of Entrepreneurship and Small Business
			What Is a Small Business?
			The Role of Small Business in the American Economy
		Consider Ethics and Social Responsibility
		Shark Tank Takes a Bite of Success
			Industries That Attract Small Business
		Advantages of Small-Business Ownership
			Independence
			Costs
			Flexibility
			Focus
		Entrepreneurship in Action
		Sseko Helps Women Get a Step Ahead
			Reputation
		Disadvantages of Small-Business Ownership
			High Stress Level
			High Failure Rate
		Starting a Small Business
			The Business Plan
			Forms of Business Ownership
			Financial Resources
			Approaches to Starting a Small Business
			Help for Small-Business Managers
		Going Green
		Growing a Family Business: Haney’s Appledale Farm
			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
		Critical Thinking Questions
		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
		Notes
Part 3 Managing for Quality and Competitiveness
	CHAPTER 6 The Nature of Management
		Enter the World of Business
		Home Depot Builds Effective Management System
		Introduction
		The Importance of Management
		Management Functions
			Planning
		Entrepreneurship in Action
		Rebecca Ray Designs Has It in the Bag
			Organizing
			Directing
			Controlling
		Types of Management
			Levels of Management
			Areas of Management
		Skills Needed by Managers
			Technical Expertise
			Conceptual Skills
			Analytical Skills
			Human Relations Skills
		Leadership
		Going Green
		New Belgium Brewing Brews Up “Green” Management Style
			Employee Empowerment
		Decision Making
			Recognizing and Defining the Decision Situation
			Developing Options
			Analyzing Options
			Selecting the Best Option
		Responding to Business Challenges
		Zappos Puts the Right Foot Forward
			Implementing the Decision
			Monitoring the Consequences
		Management in Practice
		So You Want to Be a Manager
		Review Your Understanding
		Critical Thinking Questions
		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: Building a Strong and Healthy Business
		Team Exercise
		Notes
	CHAPTER 7 Organization, Teamwork, and Communication
		Enter the World of Business
		Keurig Green Mountain Brews Effective Communication
		Introduction
		Organizational Culture
		Developing Organizational Structure
		Assigning Tasks
			Specialization
			Departmentalization
		Assigning Responsibility
			Delegation of Authority
			Degree of Centralization
			Span of Management
		Responding to Business Challenges
		Whole Foods Focuses on the Whole Team
			Organizational Layers
		Entrepreneurship in Action
		Sugar Bowl Bakery Hits the Sweet Spot
		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
		Connection and Collaboration: How Timberland Works as a Team
		Communicating in Organizations
			Formal and Informal Communication
			Monitoring Communications
			Improving Communication Effectiveness
		So You Want a Job in Managing Organizational Culture, Teamwork, and Communication
		Review Your Understanding
		Critical Thinking Questions
		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: A Freshii Approach to Food and Business
		Team Exercise
		Notes
	CHAPTER 8 Managing Operations and Supply Chains
		Enter the World of Business
		Trading Up: Trader Joe’s Operational Success
		Introduction
		The Nature of Operations Management
			The Transformation Process
			Operations Management in Service Businesses
		Planning and Designing Operations Systems
			Planning the Product
			Designing the Operations Processes
		Consider Ethics and Social Responsibility
		Improving the Supply Chain with Blockchain
			Planning Capacity
			Planning Facilities
			Sustainability and Manufacturing
		Going Green
		Meet Your Meat: This Company Is Disrupting the Global Meat Market
		Managing the Supply Chain
			Procurement
			Managing Inventory
			Outsourcing
			Routing and Scheduling
		Managing Quality
		Entrepreneurship in Action
		El Pinto: When You Are Hot, You Are Hot
			International Organization for Standardization (ISO)
			Inspection
			Sampling
		Integrating Operations and Supply Chain Management
		So You Want a Job in Operations Management
		Review Your Understanding
		Critical Thinking Questions
		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 Videocase: How Sweet It Is: Creating Supply Chain Efficiencies at the Cocoa Exchange
		Team Exercise
		Notes
Part 4 Creating the Human Resource Advantage
	CHAPTER 9 Motivating the Workforce
		Enter the World of Business
		Facebook Knows How to Motivate Employees
		Introduction
		Nature of Human Relations
		Historical Perspectives on Employee Motivation
			Classical Theory of Motivation
		Consider Ethics and Social Responsibility
		King Arthur: Baked to Perfection
			The Hawthorne Studies
		Theories of Employee Motivation
			Maslow’s Hierarchy of Needs
			Herzberg’s Two-Factor Theory
			McGregor’s Theory X and Theory Y
			Theory Z
		Entrepreneurship in Action
		Namasté Solar Embraces Employee Democracy Model of Management
			Equity Theory
			Expectancy Theory
			Goal-Setting Theory
		Strategies for Motivating Employees
			Behavior Modification
			Job Design
		Going Green
		Patagonia Attracts and Empowers Passionate Employees
			Importance of Motivational Strategies
		So You Think You May Be Good at Motivating a Workforce
		Review Your Understanding
		Critical Thinking Questions
		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
		Notes
	CHAPTER 10 Managing Human Resources
		Enter the World of Business
		Sheryl Sandberg: Wonder Woman
		Introduction
		The Nature of Human Resource Management
		Planning for Human Resource Needs
		Recruiting and Selecting New Employees
			Recruiting
		Consider Ethics and Social Responsibility
		Recruiters Embrace NonTraditional Recruitment Methods
			Selection
		Legal Issues in Recruiting and Selecting
		Developing the Workforce
			Training and Development
			Assessing Performance
			Turnover
		Compensating the Workforce
			Financial Compensation
			Benefits
		Going Green
		Employees Like Green Incentives
		Managing Unionized Employees
			Collective Bargaining
			Resolving Disputes
		The Importance of Workforce Diversity
			The Characteristics of Diversity
			Why Is Diversity Important?
			The Benefits of Workforce Diversity
			Affirmative Action
		Trends in Management of the Workforce
		Entrepreneurship in Action
		Off to WeWork We Go
		So You Want to Work in Human Resources
		Review Your Understanding
		Critical Thinking Questions
		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
		Notes
Part 5 Marketing: Developing Relationships
	CHAPTER 11 Customer-Driven Marketing
		Enter the World of Business
		Dollar General Narrows in on Strategic Segmentation
		Introduction
		Nature of Marketing
			The Exchange Relationship
			Functions of Marketing
			Creating Value with Marketing
		Responding to Business Challenges
		Cool Beans: Starbucks Refines the Customer Experience
			The Marketing Concept
			Evolution of the Marketing Concept
		Developing a Marketing Strategy
			Selecting a Target Market
			Developing a Marketing Mix
		Entrepreneurship in Action
		Wanelo: $100 Million Valuation, Zero Products
		Going Green
		Viridian Energy: Green Energy Gets Personal
		Marketing Research and Information Systems
			Online Marketing Research
		Buying Behavior
			Psychological Variables of Buying Behavior
			Social Variables of Buying Behavior
			Understanding Buying Behavior
		The Marketing Environment
		Importance of Marketing to Business and Society
		So You Want a Job in Marketing
		Review Your Understanding
		Critical Thinking Questions
		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: Marriott: Your Home Away from Home
		Team Exercise
		Notes
	CHAPTER 12 Dimensions of Marketing Strategy
		Enter the World of Business
		Harley-Davidson Rolls in the New Products
		Introduction
		The Marketing Mix
		Product Strategy
			Developing New Products
			Classifying Products
			Product Line and Product Mix
			Product Life Cycle
			Identifying Products
		Entrepreneurship in Action
		FarmLinks: The Ultimate Alabama Resort
		Pricing Strategy
			Pricing Objectives
			Specific Pricing Strategies
		Distribution Strategy
		Going Green
		How Archer Daniels Midlands Connects Farm, Factory, and Table
			Marketing Channels
			Intensity of Market Coverage
			Physical Distribution
			Importance of Distribution in a Marketing Strategy
		Promotion Strategy
		Responding to Business Challenges
		Amazon Sells Everything from A-to-Z
		The Promotion Mix
			Promotion Strategies: To Push or to Pull
			Objectives of Promotion
			Promotional Positioning
		Importance of Marketing Strategy
		So You Want to Be a Marketing Manager
		Review Your Understanding
		Critical Thinking Questions
		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: Cutting Edge Quality: Cutco “Knives for Life”
		Team Exercise
		Notes
	CHAPTER 13 Digital Marketing and Social Media
		Enter the World of Business
		Facebook in the Face of Data Privacy Controversy
		Introduction
		Growth and Benefits of Digital Communication
		Using Digital Media in Business
		Digital Media and the Marketing Mix
			Social Media Marketing
		Consumer-Generated Marketing and Digital Media
			Social Networks
		Consider Ethics and Social Responsibility
		Recruiters Turn to Social Media to Find Network of Talent
			Blogs and Wikis
			Media Sharing
			Mobile Marketing
			Applications and Widgets
		Going Green
		Going Green? There’s an App for That
		Online Monitoring and Analytics
		Using Digital Media to Learn about Consumers
		Legal and Social Issues in Internet Marketing
		Entrepreneurship in Action
		Why Kayak.com is a Travel Search Engine Worth Visiting
		Privacy
			Identity Theft and Online Fraud
			Intellectual Property Theft and Other Illegal Activities
		Digital Media’s Impact on Marketing
		So You Want to Be a Digital Marketer
		Review Your Understanding
		Critical Thinking Questions
		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
		Notes
Part 6 Financing the Enterprise
	CHAPTER 14 Accounting and Financial Statements
		Enter the World of Business
		By the Numbers: Deloitte Excels in the Big Four
		Introduction
		The Nature of Accounting
			Accountants
			Accounting or Bookkeeping?
			The Uses of Accounting Information
		Entrepreneurship in Action
		Perfectly Al Dente: How This Pasta Company Handles Its Finances
		The Accounting Process
			The Accounting Equation
			Double-Entry Bookkeeping
			The Accounting Cycle
		Financial Statements
			The Income Statement
			The Balance Sheet
		Going Green
		Stranded Assets Pose a Financial and Environmental Risk
			The Statement of Cash Flows
		Ratio Analysis: Analyzing Financial Statements
			Profitability Ratios
			Asset Utilization Ratios
			Liquidity Ratios
			Debt Utilization Ratios
			Per Share Data
		Responding to Business Challenges
		How Data Analytics Is Changing the World of Accounting
		Importance of Integrity in Accounting
		So You Want to Be an Accountant
		Review Your Understanding
		Critical Thinking Questions
		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: Goodwill Industries: Accounting in a Nonprofit
		Team Exercise
		Notes
	CHAPTER 15 Money and the Financial System
		Enter the World of Business
		How Mobile Banking Is Breaking the Bank
		Introduction
		Money in the Financial System
			Functions of Money
			Characteristics of Money
			Types of Money
		Entrepreneurship in Action
		Square Rounds Out Its Product Offering
		Responding to Business Challenges
		Decrypting Cryptocurrencies
		The American Financial System
			The Federal Reserve System
			Banking Institutions
		Consider Ethics and Social Responsibility
		Bank on It: Widespread Wells Fargo Fraud Uncovered
			Nonbanking Institutions
			Electronic Banking
			Future of Banking
		So You’re Interested in Financial Systems or Banking
		Review Your Understanding
		Critical Thinking Questions
		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 Financial System
		See for Yourself Videocase: Crowdfunding: Loans You Can Count On
		Team Exercise
		Notes
	CHAPTER 16 Financial Management and Securities Markets
		Enter the World of Business
		No Shock: General Electric Struggles after Poor Financial Management
		Introduction
		Managing Current Assets and Liabilities
			Managing Current Assets
		Consider Ethics and Social Responsibility
		Making Every Woman Count: Improving Gender Diversity in Finance
			Managing Current Liabilities
		Managing Fixed Assets
			Capital Budgeting and Project Selection
			Assessing Risk
			Pricing Long-Term Money
		Going Green
		How Making Sustainability a Top Priority Helps the Bottom Line
		Financing with Long-Term Liabilities
			Bonds: Corporate IOUs
			Types of Bonds
		Financing with Owners’ Equity
		Investment Banking
		Entrepreneurship in Action
		Sounds like Spotify’s Non-IPO Was a Hit
		The Securities Markets
			Stock Markets
			The Over-the-Counter Market
			Measuring Market Performance
		So You Want to Work in Financial Management or Securities
		Review Your Understanding
		Critical Thinking Questions
		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: Tom & Eddie’s: Fed through Nontraditional Channels
		Team Exercise
		Notes
Bonus Chapters
	A. The Legal and Regulatory Environment
	B. Personal Financial Planning
Glossary
Indexes
	Name Index
	Company Index
	Subject Index