Business: A Changing World

Title
Contents
Part 1 Business in a Changing World
	1 The Dynamics of Business and Economics
		Enter the World of Business There Are Plenty of Fish
		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
		Consider Ethics and Social Responsibility Peet’s Coffee & Tea Joins in the Fight to Combat African Poverty
			Economic Cycles and Productivity
		The American Economy
			A Brief History of the American Economy
		Going Green Ethanol Faces a Bumpy Road
			The Role of the Entrepreneur
			The Role of Government in the American Economy
			The Role of Ethics and Social Responsibility in Business
		Entrepreneurship in Action NadaMoo! Challenges Traditional Ice Cream
		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: Happiness, Money, and Doing Good—IContact Founders Have it All!
		Team Exercise
		Appendix A Guidelines for the Development of the Business Plan
	2 Business Ethics and Social Responsibility
		Enter the World of Business The Ethics and Social Responsibility of Collegiate Sports
		Marketing Introduction
		Business Ethics and Social Responsibility
		The Role of Ethics in Business
			Recognizing Ethical Issues in Business
		Consider Ethics and Social Responsibility Bernard Madoff Pulls Off the Largest Ponzi Scheme Ever
			Making Decisions about Ethical Issues
			Improving Ethical Behavior in Business
		The Nature of Social Responsibility
			Social Responsibility Issues
		Entrepreneurship in Action Not Your Typical Grocery Store
		Going Green Walmart Seeks to Define Green Products
		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: Rebuilding America’s Trust in Business
		Team Exercise
		Appendix B The Legal and Regulatory Environment
	3 Business in a Borderless World
		Enter the World of Business Nokia Wins with Global Strategy
		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
		Responding to Business Challenges Walmart Opens in India, in Spite of Protests
			Social and Cultural Barriers
		Entrepreneurship in Action EcoMom Empowers Moms to Make a Difference
			Technological Barriers
		Trade Agreements, Alliances, and Organizations
			General Agreement on Tariffs and Trade
			The North American Free Trade Agreement
			The European Union
			Asia-Pacific Economic Cooperation
			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
		Going Green China Fights Back against Pollution
			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
	4 Options for Organizing Business
		Enter the World of Business Microlending Helps Small Entrepreneurs Start Businesses
		Introduction
		Sole Proprietorships
			Advantages of Sole Proprietorships
			Disadvantages of Sole Proprietorships
		Entrepreneurship in Action Ukrainian Immigrant Becomes Subway Success
		Partnerships
			Types of Partnership
			Articles of Partnership
			Advantages of Partnerships
			Disadvantages of Partnerships
		Going Green E-Bikes Offers Exercise and Environmental Consciousness
			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
		Trends in Business Ownership: Mergers and Acquisitions
		Consider Ethics and Social Responsibility Birkentock Values Comfort, Employees, and Sustainability
		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: New Belgium Brewing
		Team Exercise
	5 Small Business, Entrepreneurship, and Franchising
		Enter the World of Business Aquacopia: Funding a Fish Startup
		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
		Advantages of Small-Business Ownership
			Independence
			Costs
			Flexibility
		Entrepreneurship in Action Cistercian Monks Take Advantage of Their Hardworking Culture to Become Entrepreneurs
			Focus
			Reputation
		Disadvantages of Small-Business Ownership
			High Stress Level
			High Failure Rate
		Consider Ethics and Social Responsibility Xoçai: Selling “Healthy Chocolate” Direct
		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 A Small Business That Makes Ethanol from Algae
		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 Is a Successful Franch ise That Offers an Old-Eashioned Drive-In Experience
		Team Exercise
Part 3 Managing for Quality and Competitiveness
	6 The Nature of Management
		Enter the World of Business Ursula Burns: From Intern to CEO
		Introduction
		The Importance of Management
		Management Functions
			Planning
		Entrepreneurship in Action MobileJets Provides a Luxury Travel Experience
			Organizing
			Staffing
			Directing
			Controlling
		Types of Management
			Levels of Management
			Areas of Management
		Skills Needed by Managers
			Leadership
		Going Green It Isn’t Easy Being Green at Nike
			Technical Expertise
			Conceptual Skills
			Analytical Skills
			Human Relations Skills
		Where Do Managers Come From?
		Decision Making
		Consider Ethics and Social Responsibility Countrywide’s Subprime Loans
			Recognizing and Defining the Decision Situation
			Developing Options
			Analyzing Options
			Selecting the Best Option
			Implementing the Decision
			Monitoring the Consequences
		The Reality of Management
		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: Failure Acts as a Learning Tool for Savvy Entrepreneurs
		Team Exercise
	7 Organization, Teamwork, and Communication
		Enter the World of Business Yahoo! Focuses on Organization and Teamwork
		Introduction
		Organizational Culture
		Business Challenges ATA Engineering Embraces Teamwork
		Developing Organizational Structure
		Assigning Tasks
			Specialization
			Departmentalization
		Assigning Responsibility
			Delegation of Authority
			Degree of Centralization
		Entrepreneurship in Action Al Dente Pasta Serves Up Perfect Pasta to Customers Nationwide
			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
		Communicating in Organizations
			Formal Communication
		Going Green The Rainforest Alliance Uses Teamwork and Organization to Become a Success
			Informal Communication Channels
			Monitoring Communications
		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: ROWE Helps Organizations Improve Productivity while Increasing Employee Satisfaction
		Team Exercise
	8 Managing Service and Manufacturing Operations
		Enter the World of Business Toyota: Once Renowned for Excellence, Experiences Growing Pains
		Introduction
		The Nature of Operations Management
			The Transformation Process
		Responding to Business Challenges Domino’s Goes Online to Improve Service and Customer Satisfaction
			Operations Management in Service Businesses
		Planning and Designing Operations Systems
			Planning the Product
			Designing the Operations Processes
		Entrepreneurship in Action In a Downturn, Restaurants Have to Stand Out from a Crowd
			Planning Capacity
			Planning Facilities
			Sustainability and Manufacturing
		Managing the Supply Chain
			Purchasing
			Managing Inventory
			Outsourcing
			Routing and Scheduling
		Going Green Recycling Is Smart Business at Best Buy
		Managing Quality
			International Organization for Standardization (ISO)
			Inspection
			Sampling
		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 Videocase: Craft Beers Take Off
		Team Exercise
Part 4 Creating the Human Resource Advantage
	9 Motivating the Workforce
		Enter the World of Business J.A. Frate Motivates Its Drivers
		Introduction
		Nature of Human Relations
		Historical Perspectives on Employee Motivation
			Classical Theory of Motivation
		Going Green Lundberg Family Farms Cares about the Earth and Its Employees
			The Hawthorne Studies
		Theories of Employee Motivation
			Maslow’s Hierarchy of Needs
			Herzberg’s Two-Factor Theory
			McGregor’s Theory X and Theory Y
		Responding to Business Challenges Sony Makes Changes to Motivate Managers
			Theory Z
			Variations on Theory Z
			Equity Theory
			Expectancy Theory
		Strategies for Motivating Employees
			Behavior Modification
			Job Design
		Entrepreneurship in Action Hudson Valley Fresh Helps Dairy Farmers Thrive
			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: Volunteering Helps Increase Profits and Improve Employee Retention
		Team Exercise
	10 Managing Human Resources
		Enter the World of Business Bringing Together 15,000 People across the Globe to Create “Our Brew”
		Introduction
		The Nature of Human Resources Management
		Planning for Human Resources Needs
		Recruiting and Selecting New Employees
			Recruiting
			Selection
		Entrepreneurship in Action Burgerville Makes New Strides in Benefits for Fast-Food Employees
			Legal Issues in Recruiting and Selecting
		Developing the Workforce
			Training and Development
			Assessing Performance
			Turnover
		Compensating the Workforce
		Going Green King Arthur Flour: An Employee-Centered Corporate Culture
			Financial Compensation
			Benefits
		Managing Unionized Employees
			Collective Bargaining
			Resolving Disputes
		The Importance of Workforce Diversity
			The Characteristics of Diversity
		Consider Ethics and Social Responsibility Companies Change Compensation Packages
			Why Is Diversity Important?
			The Benefits of Workforce Diversity
			Affirmative Action
		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: Bluewolf, Inc., Utilizes Human Resource Savvy
		Team Exercise
		Appendix C Personal Career Plan
Part 5 Marketing: Developing Relationships
	11 Customer-Driven Marketing
		Enter the World of Business Target Goes Downstream to Compete with Walmart
		Introduction
		Nature of Marketing
			The Exchange Relationship
			Functions of Marketing
			Creating Value with Marketing
		Entrepreneurship in Action Casttoos Make Breaking a Limb a Little More Fashionable
			The Marketing Concept
			Evolution of the Marketing Concept
		Developing a Marketing Strategy
			Selecting a Target Market
		Responding to Business Challenges Bringing Back Barbie
			Developing a Marketing Mix
		Marketing Research and Information Systems
			Online Marketing Research
		Buying Behavior
			Psychological Variables of Buying Behavior
		Going Green Greenwashing: The Newest Ethical Issue
			Social Variables of Buying Behavior
			Understanding Buying Behavior
		The Marketing Environment
		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 Brewery Serves Consumers What They Want
		Team Exercise
	12 Dimensions of Marketing Strategy
		Enter the World of Business Product Placement Is Popular as a Marketing Tactic
		Introduction
		The Marketing Mix
		Product Strategy
			Developing New Products
			Classifying Products
			Product Line and Product Mix
			Product Life Cycle
			Identifying Products
		Pricing Strategy
			Pricing Objectives
			Specific Pricing Strategies
		Going Green General Mills Breaks into Organic Foods under a New Name
		Distribution Strategy
			Marketing Channels
			Intensity of Market Coverage
			Physical Distribution
			Importance of Distribution in a Marketing Strategy
		Promotion Strategy
		Entrepreneurship in Action Gig Art: Advertising through Artwork
			The Promotion Mix
		Responding to Business Challenges People across America Catch the Twitter Bug
			Promotion Strategies: To Push or To Pull
			Objectives of Promotion
			Promotional Positioning
		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: Oberweis Dairy Focuses on Its Customers
		Team Exercise
	13 Digital Marketing and Social Networking
		Enter the World of Business NASCAR Turns to Social Media
		Introduction
		What Is Digital Marketing?
		Growth and Benefits of Digital Communication
		Using Digital Media in Business
		Digital Media and the Marketing Mix
		Going Green Social Networking Sites Advance Sustainability
			Social Networking
		Types of Consumer-Generated Marketing and Digital Media
			Blogs and Wikis
			Video Sharing
			Photo Sharing
			Podcasting
			Social Networks
		Entrepreneurship in Action Desert Blends Creates Unique Products with a Regional Flair
			Virtual Worlds
			Mobile Marketing
		Using Digital Media to Reach Consumers
		Responding to Business Challenges Open Source Hardware: In the Age of Social Networking, Even Manufacturing Benefits from Shared Information
		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 Facebook at Work?
		Team Exercise
Part 6 Financing the Enterprise
	14 Accounting and Financial Statements
		Enter the World of Business Freddie Mae and Freddie Mac: Poor Decision Contributed to Crisis
		Introduction
		The Nature of Accounting
			Accountants
			Accounting or Bookkeeping?
			The Uses of Accounting Information
		Going Green Frog’s Leap Winery Cares about Wine and the Environment
		The Accounting Process
			The Accounting Equation
			Double-Entry Bookkeeping
			The Accounting Cycle
		Financial Statements
			The Income Statement
		Entrepreneurship in Action PayItGreen Helps Consumers Go Online and Save Paper
			The Balance Sheet
			The Statement of Cash Flows
		Ratio Analysis: Analyzing Financial Statements
			Profitability Ratios
		Consider Ethics and Social Responsibility Was Mark-to-Market Accounting at the Root of the Financial Crisis?
			Asset Utilization Ratios
			Liquidity Ratios
			Debt Utilization Ratios
			Per Share Data
			Industry Analysis
		Accounting and the Impact of the Financial Crisis
		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: Arena Football Returns from the Brink of Bankruptcy
		Team Exercise
	15 Money and the Financial System
		Enter the World of Business General Electric: The Financial Giant
		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 Bank of America Stakeholders Support Sustainability
			Nonbanking Institutions
		Consider Ethics and Social Responsibility Accountability in Accounting
			Electronic Banking
			Banking in the Future and the Impact of the Financial Crisis
		Entrepreneurship in Action MicroWind Technologies, LLC, Makes Wind Pay Off
		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 Financial System
		See for Yourself Videocase: The Most Recent Recession Made Credit Hard to Come By
		Team Exercise
	16 Financial Management and Securities Markets
		Enter the World of Business Y Combinator Is a Venture Firm Specializing in Startups
		Introduction
		Managing Current Assets and Liabilities
			Managing Current Assets
		Going Green The Ups and Downs of Investing in First Solar
			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
		Small Businesses Score with On Deck Capital Investment Banking
		The Securities Markets
			Stock Markets
			The Over-the-Counter Market
			Measuring Market Performance
		Consider Ethics and Social Responsibility The Hershey Trust Considers the Hershey School an Important Part of Doing Business
		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
Glossary
Photo Credits
Indexes