Additional Information
Book Details
Abstract
For introductory courses in business.
A Concise and Comprehensive Introduction to Business
Fully comprehensive, Business in Action remains significantly shorter than other introductory business textbooks without omitting any important principles and concepts. Featuring a highly organized, objective-driven structure, this Eighth Edition builds on the text’s tradition of incorporating relevant, contemporary examples from the business world with five brand-new vignettes and case studies bookending its chapters.
This updated edition also includes new and revised questions, visuals, and chapters covering relevant business trends and topics. The ideal textbook for introductory courses in business, Business in Action covers the full spectrum of contemporary business topics without filler or fluff.
MyBizLab® not included. Students, if MyBizLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyBizLab should only be purchased when required by an instructor.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Title Page | 3 | ||
| Copyright Page | 4 | ||
| Contents in Brief | 6 | ||
| Contents | 7 | ||
| Preface | 15 | ||
| Prologue: Using This Course to Help Launch Your Career | 24 | ||
| Part 1: Setting The Stage: The Business of Business | 47 | ||
| Chapter 1: Developing a Business Mindset | 48 | ||
| Behind the Scenes Yolanda Diaz: Building Her Dream with Hard Work and Strong Business Sense | 48 | ||
| Introduction | 49 | ||
| Understanding What Businesses Do | 49 | ||
| Adding Value: The Business of Business | 49 | ||
| Competing to Attract and Satisfy Customers | 50 | ||
| Accepting Risks In The Pursuit Of Rewards | 50 | ||
| Identifying Major Types of Businesses | 50 | ||
| Making the Leap From Buyer to Seller | 52 | ||
| Seeing Business From the Inside Out | 52 | ||
| Appreciating the Role of Business in Society | 53 | ||
| Using this Course to Jump-Start Your Career | 55 | ||
| Recognizing the Multiple Environments of Business | 56 | ||
| The Social Environment | 56 | ||
| The Technological Environment | 57 | ||
| The Economic Environment | 58 | ||
| The Legal and Regulatory Environment | 59 | ||
| The Market Environment | 59 | ||
| Identifying the Major Functional Areas in a Business Enterprise | 60 | ||
| Research and Development | 61 | ||
| Manufacturing, Production, and Operations | 61 | ||
| Marketing, Sales, Distribution, and Customer Support | 61 | ||
| Finance and Accounting | 61 | ||
| Human Resources | 62 | ||
| Business Services | 62 | ||
| Exploring Careers in Business | 62 | ||
| Operations Manager | 63 | ||
| Human Resources Specialist | 63 | ||
| Information Technology Manager | 63 | ||
| Marketing Specialist | 63 | ||
| Sales Professional | 64 | ||
| Accountant | 64 | ||
| Financial Manager | 64 | ||
| Achieving Professionalism | 65 | ||
| Striving to Excel | 65 | ||
| Being Dependable and Accountable | 66 | ||
| Being a Team Player | 66 | ||
| Communicating Effectively | 67 | ||
| Demonstrating Etiquette | 67 | ||
| Making Ethical Decisions | 68 | ||
| Maintaining a Confident, Positive Outlook | 68 | ||
| Behind the Scenes Yolanda Diaz Grows Mirador Enterprises Into a Multimillion-Dollar Success Story | 68 | ||
| Key Terms | 69 | ||
| Test Your Knowledge | 70 | ||
| Expand Your Knowledge | 70 | ||
| Practice Your Skill | 71 | ||
| Chapter 2: Understanding Basic Economics | 72 | ||
| Behind the Scenes: Could You Predict Sales of Apple’s Next Bestseller? | 72 | ||
| Introduction | 73 | ||
| What Is This Thing Called The Economy? | 73 | ||
| Factors Of Production | 73 | ||
| The Economic Impact Of Scarcity | 74 | ||
| Economic Systems | 75 | ||
| Free-Market Systems | 75 | ||
| Planned Systems | 76 | ||
| Nationalization and Privatization | 77 | ||
| The Forces of Demand and Supply | 78 | ||
| Understanding Demand | 78 | ||
| Understanding Supply | 79 | ||
| Understanding How Demand and Supply Interact | 80 | ||
| The Macro View: Understanding How An Economy Operates | 81 | ||
| Competition in a Free-Market System | 81 | ||
| Business Cycles | 82 | ||
| Unemployment | 83 | ||
| Inflation | 83 | ||
| Government’s Role in a Free-Market System | 85 | ||
| Protecting Stakeholders | 85 | ||
| Fostering Competition | 85 | ||
| Antitrust Legislation | 86 | ||
| Merger And Acquisition Approvals | 87 | ||
| Encouraging Innovation and Economic Development | 87 | ||
| Stabilizing and Stimulating the Economy | 87 | ||
| Economic Measures and Monitors | 88 | ||
| Price Indexes | 89 | ||
| National Economic Output | 90 | ||
| Behind the Scenes Racing to Supply One of th Hottest Products in History | 91 | ||
| Racing To Supply One Of The Hottest Products In History | 91 | ||
| Part 2: Building the Framework: Business Ownership and Entrepreneurship | 143 | ||
| Chapter 5: Forms of Ownership | 144 | ||
| Behind the Scenes Cisco Tackles the Challenge of Staying on Top in a Fast-Moving Industry | 144 | ||
| Introduction | 145 | ||
| Sole Proprietorships | 145 | ||
| Advantages of Sole Proprietorships | 145 | ||
| Disadvantages of Sole Proprietorships | 147 | ||
| Partnerships | 148 | ||
| Advantages of Partnerships | 148 | ||
| Disadvantages of Partnerships | 149 | ||
| Keeping It Together: The Partnership Agreement | 149 | ||
| Corporations | 150 | ||
| Advantages of Corporations | 151 | ||
| Disadvantages of Corporations | 151 | ||
| Special Types of Corporations | 152 | ||
| Corporate Governance | 154 | ||
| Shareholders | 154 | ||
| Board of Directors | 155 | ||
| Corporate Officers | 156 | ||
| Mergers and Acquisitions | 157 | ||
| Advantages of Mergers and Acquisitions | 157 | ||
| Disadvantages of Mergers and Acquisitions | 157 | ||
| Merger and Acquisition Defenses | 159 | ||
| Strategic Alliances and Joint Ventures | 160 | ||
| Strategic Alliances | 160 | ||
| Joint Ventures | 160 | ||
| Behind the Scenea Cisco Turns One of the Toughest Moves in Business into a Strategic Advantage | 161 | ||
| Key Terms | 162 | ||
| Test Your Knowledge | 163 | ||
| Expand Your knowledge | 163 | ||
| Practice Your Skills | 164 | ||
| Chapter 6: Entrepreneurship and Small-Business Ownership | 167 | ||
| Behind the Scenes Bringing Traditional Healing Wisdom to Modern Consumers at Sister Sky | 167 | ||
| Introduction | 168 | ||
| The Big World of Small Business | 168 | ||
| Economic Roles of Small Businesses | 168 | ||
| Characteristics of Small Businesses | 170 | ||
| Factors Contributing to the Increase in the Number of Small Businesses | 170 | ||
| E-commerce, Social Media, and Other Technologies | 170 | ||
| Growing Diversity in Entrepreneurship | 170 | ||
| Downsizing and Outsourcing | 171 | ||
| The Entrepreneurial Spirit | 171 | ||
| Why People Start Their own Companies | 172 | ||
| Qualities of Successful Entrepreneurs | 172 | ||
| Innovating Without Leaving: Intrapreneurship | 172 | ||
| The Start-Up Phase: Planning and Launching a New Business | 174 | ||
| Small-Business Ownership Options | 174 | ||
| Blueprint for an Effective Business Plan | 175 | ||
| The Growth Phase: Nurturing and Sustaining a Young Business | 177 | ||
| The New Business Failure Rate | 177 | ||
| Advice and Support For Business Owners | 178 | ||
| Business Partners | 179 | ||
| Mentors and Advisory Boards | 179 | ||
| Print and Online Media | 179 | ||
| Networks and Support Groups | 179 | ||
| Business Incubators | 180 | ||
| Financing Options for Small Businesses | 181 | ||
| Private Financing | 181 | ||
| Banks and Microlenders | 181 | ||
| Venture Capitalists | 182 | ||
| Angel Investors | 182 | ||
| Credit Cards and Personal Lines of Credit | 183 | ||
| Small Business Administration Assistance | 183 | ||
| Public Financing | 183 | ||
| Crowd Funding | 183 | ||
| The Franchise alternative | 184 | ||
| Types of Franchises | 184 | ||
| Advantages of Franchising | 184 | ||
| Disadvantages of Franchising | 185 | ||
| How to Evaluate a Franchising Opportunity | 185 | ||
| Behind the Secnes Building an Authentic and Purposeful Business at Sister Sky | 186 | ||
| Key Terms | 187 | ||
| Test Your Knowledge | 188 | ||
| Expand Your knowledge | 188 | ||
| Practice your Skills | 189 | ||
| Part 3: Guiding the Enterprise: Leadership,Organization, and Operations | 191 | ||
| Chapter 7: Management Roles, Functions, and Skills | 192 | ||
| Behind the Scenes Wegmans Satisfies Customers by Putting Employees First | 192 | ||
| Introduction | 193 | ||
| The Roles of Management | 193 | ||
| Interpersonal Roles | 193 | ||
| Informational Roles | 194 | ||
| Decisional Roles | 195 | ||
| The Planning Function | 195 | ||
| Defining the Mission, Vision, and Values | 196 | ||
| Assessing Strengths, Weaknesses, Opportunities, and Threats | 197 | ||
| Developing Forecasts | 197 | ||
| Analyzing the Competition | 198 | ||
| Establishing Goals and Objectives | 199 | ||
| Developing Action Plans | 199 | ||
| The Organizing Function | 200 | ||
| Top Managers | 200 | ||
| Middle Managers | 201 | ||
| First-Line Managers | 201 | ||
| The Leading Function | 202 | ||
| Developing an Effective Leadership Style | 203 | ||
| Coaching and Mentoring | 204 | ||
| Managing Change | 204 | ||
| Building a Positive Organizational Culture | 205 | ||
| The Controlling Function | 206 | ||
| The Control Cycle | 206 | ||
| Establishing Performance Standards | 206 | ||
| Measuring Performance and Responding as Needed | 207 | ||
| Crisis Management: Maintaining Control in Extraordinary Circumstances | 208 | ||
| Essential Management Skills | 209 | ||
| Interpersonal Skills | 209 | ||
| Technical Skills | 209 | ||
| Conceptual Skills | 210 | ||
| Decision-Making Skills | 210 | ||
| Behind The Scenes Customers Believe in Wegmans Because Wegmans Believes in Its Employees | 212 | ||
| Key Terms | 213 | ||
| Test Your knowledge | 213 | ||
| Expand Your Knowledge | 214 | ||
| Practice Your Skills | 214 | ||
| Chapter 8: Organization and Teamwork | 216 | ||
| Behind the Scenes Cemex ReinventS a Century-Old Company to Competein a new Business world | 216 | ||
| Introduction | 217 | ||
| Designing an Effective Organization Structure | 217 | ||
| Identifying Core Competencies | 217 | ||
| Identifying Job Responsibilities | 218 | ||
| Defining the Chain of Command | 219 | ||
| Span Of Management | 219 | ||
| Centralization Versus Decentralization | 220 | ||
| Organizing the Workforce | 222 | ||
| Functional Structures | 222 | ||
| Divisional Structures | 222 | ||
| Matrix Structures | 223 | ||
| Network Structures | 224 | ||
| Organizing in Teams | 225 | ||
| What is a Team? | 225 | ||
| Types of Teams | 225 | ||
| Problem-Solving Teams | 225 | ||
| Self-Managed Teams | 226 | ||
| Functional Teams | 226 | ||
| Cross-Functional Teams | 226 | ||
| Virtual Teams | 226 | ||
| Social Networks And Virtual Communities | 227 | ||
| Ensuring Team Productivity | 228 | ||
| Advantages and Disadvantages of Working in Teams | 229 | ||
| Characteristics of Effective Teams | 230 | ||
| Fostering Teamwork | 232 | ||
| Team Development | 232 | ||
| Team Conflict | 233 | ||
| Causes Of Team Conflict | 233 | ||
| Solutions To Team Conflict | 234 | ||
| Managing an Unstructured Organization | 235 | ||
| Potential Benefits of Unstructured Organizations | 236 | ||
| Potential Challenges of Unstructured Organizations | 237 | ||
| Behind the Scenes An Innovative Collaboration Platform at Cemex “makes a Big Company Look Like a Small Company” | 239 | ||
| Key Terms | 239 | ||
| Test Your Knowledge | 240 | ||
| Expand Your Knowledge | 241 | ||
| Practice Your SkilS | 241 | ||
| Chapter 9: Production Systems | 244 | ||
| Behind the Scenes Customizing Dreams at Kiesel Guitars | 244 | ||
| Introduction | 245 | ||
| The Systems View of Business | 245 | ||
| Thinking in Systems | 245 | ||
| Managing Systems for Peak Performance | 246 | ||
| Value Chains and Value Webs | 248 | ||
| Redefining Organizations with Value Webs | 248 | ||
| The Offshoring Controversy | 249 | ||
| Supply Chain Management | 252 | ||
| Supply Chains Versus Value Chains | 252 | ||
| Supply Chain Systems and Techniques | 253 | ||
| Production and Operations Management | 254 | ||
| Lean Systems | 254 | ||
| Mass Production, Customized Production, and Mass Customization | 256 | ||
| Facilities Location and Design | 256 | ||
| Forecasting and Capacity Planning | 257 | ||
| Scheduling | 257 | ||
| The Unique Challenges of Service Delivery | 258 | ||
| Perishability | 258 | ||
| Location Constraints | 259 | ||
| Scalability Challenges and Opportunities | 259 | ||
| Performance Variability and Perceptions of Quality | 259 | ||
| Customer Involvement and Provider Interaction | 259 | ||
| Product and Process Quality | 260 | ||
| Quality and Complexity | 260 | ||
| Strategies for Ensuring Product Quality | 261 | ||
| Continuous Improvement | 261 | ||
| Statistical Process Control | 261 | ||
| Six Sigma | 262 | ||
| ISO 9000 | 262 | ||
| Behind The Scenes Kiesel’s Production System Satisfies Demanding Guitarists | 263 | ||
| Key Terms | 264 | ||
| Test Your Knowledge | 264 | ||
| Expand Your Knowledge | 265 | ||
| Practice Your Skills | 265 | ||
| Part 4: Supporting the Workforce: Motivation and Human Resources | 269 | ||
| Chapter 10: Employee Motivation | 270 | ||
| Behind the Scenes Taking a Second Look at the Career Ladder | 270 | ||
| Introduction | 271 | ||
| What Motivates Employees to Peak Performance? | 271 | ||
| What is Motivation? | 271 | ||
| Classical Theories of Motivation | 273 | ||
| Taylor’s Scientific Management | 273 | ||
| The Hawthorne Studies and the “Hawthorne Effect” | 273 | ||
| Maslow’s Hierarchy of Needs | 274 | ||
| Theory X and Theory Y | 274 | ||
| Herzberg’s Two Factors | 275 | ||
| Mcclelland’s Three Needs | 275 | ||
| Explaining Employee Choices | 276 | ||
| Expectancy Theory | 276 | ||
| Equity Theory | 277 | ||
| Motivating with Challenging Goals | 278 | ||
| Management by Objectives | 279 | ||
| Risks and Limitations of Goal-Setting Theory | 280 | ||
| Redesigning Jobs to Stimulate Performance | 281 | ||
| The Job Characteristics Model | 281 | ||
| Approaches to Modifying Core Job Dimensions | 282 | ||
| Reinforcing High-Performance Behavior | 283 | ||
| Types of Reinforcement | 283 | ||
| Unintended Consequences of Reinforcement | 284 | ||
| Motivational Strategies | 285 | ||
| Providing Timely and Frequent Feedback | 285 | ||
| Making it Personal | 285 | ||
| Gamifying for Healthy Competition | 286 | ||
| Adapting to Circumstances and Special Needs | 287 | ||
| Addressing Workplace Negativity | 287 | ||
| Being an Inspiring Leader | 287 | ||
| Motivating Yourself | 287 | ||
| Behind the Scenes Motivating Individuals by Personalizing Careers at Deloitte | 288 | ||
| Key Terms | 289 | ||
| Test Your Knowledge | 289 | ||
| Expand Your knowledge | 290 | ||
| Practice Your SkiLLs | 290 | ||
| Chapter 11: Human Resources Management | 293 | ||
| Behind the Scenes An Unconventional Approach to Finding Unconventional Employees | 293 | ||
| Introduction | 294 | ||
| Keeping Pace with Today’s Workforce | 294 | ||
| Contemporary Staffing Challenges | 294 | ||
| Planning for a Company’s Staffing Needs | 295 | ||
| Evaluating Job Requirements | 295 | ||
| Forecasting Supply and Demand | 295 | ||
| Managing a Diverse Workforce | 297 | ||
| Dimensions of Workforce Diversity | 297 | ||
| Age | 298 | ||
| Gender | 298 | ||
| Race And Ethnicity | 300 | ||
| Religion | 300 | ||
| Ability | 301 | ||
| Diversity Initiatives | 301 | ||
| Managing the Employment Life Cycle | 302 | ||
| Hiring Employees | 302 | ||
| Terminating Employees | 302 | ||
| Replacing Retiring Employees | 304 | ||
| Developing and Evaluating Employees | 305 | ||
| Appraising Employee Performance | 305 | ||
| Training and Developing Employees | 305 | ||
| Promoting and Reassigning Employees | 307 | ||
| Administering Employee Compensation | 307 | ||
| Salaries and Wages | 308 | ||
| Incentive Programs | 308 | ||
| Employee Benefits and Services | 310 | ||
| Insurance | 310 | ||
| Retirement Benefits | 310 | ||
| Stock Options | 311 | ||
| Other Employee Benefits | 311 | ||
| Behind the SceneS For Zappos, Finding the Right Employees Means Rejecting the Old Way of Doing Business | 313 | ||
| Key Terms | 314 | ||
| Test Your Knowledge | 314 | ||
| Expand Your Knowledge | 315 | ||
| Practice Your SKills | 315 | ||
| Chapter 12: Labor Relations | 319 | ||
| Behind the Scenes Boeing and the IAM: A High-Stakes Battle with Thousands of Jobs on the Line | 319 | ||
| Introduction | 320 | ||
| The Role of Labor Unions | 320 | ||
| Unionization: The Employee’s Perspective | 321 | ||
| Unionization: Management’s Perspective | 322 | ||
| Unionization in Historical Perspective | 323 | ||
| Power to the Unions: The Wagner act of 1935 | 324 | ||
| Power to the Owners: The Taft-Hartley Act of 1947 | 325 | ||
| Power to Union Members: The Landrum-Griffin Act Of 1959 | 325 | ||
| The Organizing Process | 326 | ||
| Union Security and Right-to-Work Laws | 326 | ||
| Types of Unions | 326 | ||
| How Unions are Structured | 327 | ||
| Union Organizing Drives | 328 | ||
| Management Efforts to Avoid Unionization | 329 | ||
| The Collective Bargaining Process | 330 | ||
| Negotiating an Agreement | 331 | ||
| Exercising Options when Negotiations Break Down | 331 | ||
| Labor’s Options | 331 | ||
| Management’s Options | 332 | ||
| Grievance, Discipline, and Arbitration Procedures | 333 | ||
| Unfair Labor Practices | 333 | ||
| Resolving Employee Grievances | 334 | ||
| Disciplining Employees | 334 | ||
| Arbitrating Disputes | 334 | ||
| The Future of Labor | 335 | ||
| Behind the Scenes Boeing and the IAM: A Project Saved, but Strife Remains | 337 | ||
| Key Terms | 337 | ||
| Test Your Knowledge | 338 | ||
| Expand Your Knowledge | 338 | ||
| Practice Your Skills | 339 | ||
| Part 5: Satisfying the Customer: Marketing,Sales, and Customer Support | 341 | ||
| Chapter 13: The Art and Science of Marketing | 342 | ||
| Behind the Scenes Red Ants Pants Gives Working Women a Choice That Fits | 342 | ||
| Introduction | 343 | ||
| Marketing in a Changing World | 343 | ||
| The Role of Marketing in Society | 343 | ||
| Needs and Wants | 343 | ||
| Exchanges and Transactions | 344 | ||
| The Four Utilities | 344 | ||
| The Marketing Concept | 344 | ||
| Challenges in Contemporary Marketing | 346 | ||
| Involving the Customer in the Marketing Process | 346 | ||
| Making Data-Driven Marketing Decisions | 348 | ||
| Marketing with Greater Concern for Ethics and Etiquette | 348 | ||
| Understanding Today’s Customers | 350 | ||
| The Consumer Decision Process | 350 | ||
| The Organizational Customer Decision Process | 352 | ||
| Identifying Market Opportunities | 353 | ||
| Examining the Current Marketing Situation | 354 | ||
| Reviewing Performance | 354 | ||
| Evaluating Competition | 354 | ||
| Examining Internal Strengths And Weaknesses | 354 | ||
| Analyzing The External Environment | 355 | ||
| Assessing Opportunities and Setting Objectives | 355 | ||
| Crafting a Marketing Strategy | 356 | ||
| Dividing Markets into Segments | 356 | ||
| Choosing Your Target Markets | 357 | ||
| Staking Out a Position in Your Target Markets | 358 | ||
| The Marketing Mix | 359 | ||
| Products | 360 | ||
| Pricing | 360 | ||
| Distribution | 360 | ||
| Customer Communication | 361 | ||
| Behind The Scenes Aggravation Leads to Inspiration for Sarah Calhoun of Red Ants Pants | 362 | ||
| Key Terms | 363 | ||
| Test Your knowledge | 364 | ||
| Expand Your Knowledge | 364 | ||
| Practice Your Skills | 365 | ||
| Chapter 14: Product and Pricing Strategies | 367 | ||
| Behind the Scenes Transforming a World-Class Athlete into a World-Class Brand | 367 | ||
| Introduction | 368 | ||
| Characteristics of Products | 368 | ||
| Types of Products | 368 | ||
| Consumer Products | 369 | ||
| Industrial and Commercial Products | 369 | ||
| The Product Life Cycle | 370 | ||
| Introduction | 371 | ||
| Growth | 371 | ||
| Maturity | 371 | ||
| Decline | 371 | ||
| The New-Product Development Process | 372 | ||
| Idea Generation | 372 | ||
| Idea Screening | 372 | ||
| Business Analysis | 373 | ||
| Prototype Development | 373 | ||
| Test Marketing | 374 | ||
| Commercialization | 374 | ||
| Product Identities | 375 | ||
| Brand Name Selection | 375 | ||
| Brand Ownership | 376 | ||
| Packaging | 376 | ||
| Labeling | 377 | ||
| Product-Line and Product-Mix Strategies | 378 | ||
| Product Lines | 378 | ||
| Product Mix | 378 | ||
| Product Expansion Strategies | 380 | ||
| Product Strategies For International Markets | 381 | ||
| Pricing Strategies | 381 | ||
| Strategic Considerations in Pricing | 382 | ||
| Cost Structure and Break-Even Analysis | 382 | ||
| Pricing Methods | 384 | ||
| Cost-Based Pricing | 385 | ||
| Value-Based Pricing | 385 | ||
| Optimal Pricing | 385 | ||
| Skim Pricing | 385 | ||
| Penetration Pricing | 386 | ||
| Loss-Leader Pricing | 386 | ||
| Auction Pricing | 386 | ||
| Participative Pricing | 387 | ||
| Free and Freemium Pricing | 387 | ||
| Price Adjustment Tactics | 387 | ||
| Behind The Scenes Building the Annika Brand | 389 | ||
| Key Terms | 390 | ||
| Test Your Knowledge | 390 | ||
| Expand Your Knowledge | 391 | ||
| Practice Your Skills | 391 | ||
| Chapter 15: Distribution And Marketing Logistics | 394 | ||
| Behind the Scenes Costco Keeps Customers Coming Back for More | 394 | ||
| Introduction | 395 | ||
| The Role of Marketing Intermediaries | 395 | ||
| Wholesaling Versus Retailing | 395 | ||
| Contributions of Marketing Intermediaries | 395 | ||
| Wholesaling and Industrial Distribution | 398 | ||
| Major Types of Wholesalers | 398 | ||
| The Outlook for Wholesaling | 398 | ||
| Retailing | 399 | ||
| Retailing Formats | 400 | ||
| The Outlook for Retailing | 401 | ||
| Distribution Strategies | 403 | ||
| Customer Needs and Expectations | 404 | ||
| Product Support Requirements | 404 | ||
| Segmentation, Targeting, and Positioning | 404 | ||
| Competitors’ Distribution Channels | 404 | ||
| Established Industry Patterns and Requirements | 405 | ||
| Considerations in Channel Design and Management | 405 | ||
| Channel Length | 405 | ||
| Market Coverage | 407 | ||
| Distribution Costs | 407 | ||
| Channel Conflict | 407 | ||
| Channel Organization and Control | 407 | ||
| Physical Distribution and Logistics | 409 | ||
| Forecasting | 410 | ||
| Order Processing | 410 | ||
| Inventory Control | 410 | ||
| Warehousing | 411 | ||
| Transportation | 411 | ||
| Behind the Scenes Costco Pushes Its Supply Chain to Satisfy Customers | 412 | ||
| Key Terms | 413 | ||
| Test Your Knowledge | 414 | ||
| Expand Your Knowledge | 414 | ||
| Practice Your Skills | 415 | ||
| Chapter 16: Customer Communication | 417 | ||
| Behind The Scenes How the Quest for a Better Camera Strap Triggered the Growth of One of Today’s Hottest Companies | 417 | ||
| Introduction | 418 | ||
| Customer Communication: Challenges, Strategies, and Issues | 418 | ||
| Establishing Communication Goals | 418 | ||
| Defining Customer Messages | 419 | ||
| Assembling the Communication Mix | 420 | ||
| Communication Laws and Ethics | 421 | ||
| Advertising | 422 | ||
| Types of Advertising | 423 | ||
| Advertising Appeals | 423 | ||
| Advertising Media | 425 | ||
| Direct Marketing | 427 | ||
| Direct Marketing Techniques | 427 | ||
| Direct Marketing Media | 427 | ||
| Personal Selling | 428 | ||
| Contemporary Personal Selling | 429 | ||
| The Personal-Selling Process | 429 | ||
| Sales Promotion | 431 | ||
| Consumer Promotions | 431 | ||
| Trade Promotions | 432 | ||
| Social Media and Public Relations | 433 | ||
| Social Media in the Marketing Process | 433 | ||
| Communication Strategies for Social Media | 434 | ||
| Brand Communities | 435 | ||
| Public Relations | 436 | ||
| Behind the Scenes Fanatical Customers Help Push Gopro into Billion-Dollar Territory | 437 | ||
| Key Terms | 438 | ||
| Test Your Knowledge | 438 | ||
| Expand Your Knowledge | 439 | ||
| Practice Your Skills | 439 | ||
| Part 6: Managing the Money: Accounting and Financial Resources | 441 | ||
| Chapter 17: Financial Information and Accounting Concepts | 442 | ||
| Behind the Scenes Reality Comes Knocking at the Googleplex | 442 | ||
| Introduction | 443 | ||
| Understanding Accounting | 443 | ||
| What Accountants Do | 443 | ||
| Private Accountants | 444 | ||
| Public Accountants | 444 | ||
| Major Accounting Rules | 445 | ||
| Generally Accepted Accounting Principles (GAAP) | 446 | ||
| Non-GAAP Metrics | 446 | ||
| Global Reporting Standards | 447 | ||
| Sarbanes-Oxley | 447 | ||
| Fundamental Accounting Concepts | 448 | ||
| The Accounting Equation | 448 | ||
| Double-Entry Bookkeeping and the Matching Principle | 449 | ||
| Using Financial Statements: The Balance Sheet | 450 | ||
| Understanding Financial Statements | 450 | ||
| Balance Sheet | 450 | ||
| Assets | 453 | ||
| Liabilities | 453 | ||
| Owners’ Equity | 453 | ||
| Using Financial Statements: Income and Cash Flow Statements | 454 | ||
| Income Statement | 454 | ||
| Statement of Cash Flows | 456 | ||
| Analyzing Financial Statements | 457 | ||
| Trend Analysis | 457 | ||
| Ratio Analysis | 458 | ||
| Types of Financial Ratios | 458 | ||
| Profitability Ratios | 458 | ||
| Liquidity Ratios | 458 | ||
| Activity Ratios | 458 | ||
| Leverage, or Debt, Ratios | 460 | ||
| Behind The Scenes Google This: “Cost Control” | 461 | ||
| Key Terms | 462 | ||
| Test Your Knowledge | 463 | ||
| Expand Your Knowledge | 463 | ||
| Practice Your Skills | 464 | ||
| Chapter 18: Financial Management | 467 | ||
| Behind the Scenes Charging Ahead: Visa Searches for Funds | 467 | ||
| Introduction | 468 | ||
| The Role of Financial Management | 468 | ||
| Developing a Financial Plan | 469 | ||
| Monitoring Cash Flow | 469 | ||
| Managing Accounts Receivable and Accounts Payable | 470 | ||
| Managing Inventory | 470 | ||
| Managing Cash Reserves | 471 | ||
| The Budgeting Process | 472 | ||
| Budgeting Challenges | 472 | ||
| Types of Budgets | 473 | ||
| Financing Alternatives: Factors to Consider | 475 | ||
| Debt Financing Versus Equity Financing | 475 | ||
| Length of Term | 476 | ||
| Cost of Capital | 476 | ||
| Risk | 476 | ||
| Interest Rates | 476 | ||
| Opportunity Cost | 477 | ||
| Financing Alternatives: Short-Term Debt | 478 | ||
| Credit Cards | 478 | ||
| Trade Credit | 478 | ||
| Secured Loans | 479 | ||
| Unsecured Loans | 479 | ||
| Commercial Paper | 480 | ||
| Factoring and Receivables Auctions | 480 | ||
| Financing Alternatives: Long-Term Debt | 481 | ||
| Long-Term Loans | 481 | ||
| Leases | 482 | ||
| Corporate Bonds | 482 | ||
| Financing Alternatives: Equity | 483 | ||
| Venture Capital and Other Private Equity | 484 | ||
| Public Stock Offerings | 484 | ||
| Behind The Scenes Visa Funds its Future With Record-Setting IPO | 486 | ||
| Key Terms | 487 | ||
| Test Your Knowledge | 488 | ||
| Expand Your Knowledge | 489 | ||
| Practice Your Skills | 489 | ||
| Chapter 19: Financial Markets and Investment Strategies | 491 | ||
| Chesapeake Energy Searches for Stability in a Volatile World | 491 | ||
| Introduction | 492 | ||
| Stocks | 492 | ||
| Types of Stock | 492 | ||
| Stock Valuation | 493 | ||
| Bonds | 495 | ||
| Advantages and Disadvantages of Bonds | 496 | ||
| Bond Issuers | 497 | ||
| Mutual Funds | 498 | ||
| Advantages and Disadvantages of Mutual Funds | 499 | ||
| Choosing Mutual Funds | 499 | ||
| Derivatives | 502 | ||
| Options and Financial Futures | 503 | ||
| Commodities Futures | 504 | ||
| Currency Futures | 504 | ||
| Credit Derivatives | 504 | ||
| Financial Markets | 505 | ||
| The Stock Market | 505 | ||
| The Bond Market | 505 | ||
| The Money Market | 506 | ||
| The Derivatives Market | 506 | ||
| Investment Strategies and Techniques | 506 | ||
| Establishing Investment Objectives | 507 | ||
| Learning to Analyze Financial News | 508 | ||
| Creating an Investment Portfolio | 508 | ||
| Buying and Selling Securities | 509 | ||
| Behind the Scenes Chesapeake Energy Hedges, Then Doesn’t, Then Does | 510 | ||
| Key Terms | 512 | ||
| Test Your Knowledge | 512 | ||
| Expand Your Knowledge | 513 | ||
| Practice Your Skills | 513 | ||
| Chapter 20: The Money Supply and Banking Systems | 515 | ||
| Can a Not-For-Profit Credit Union Compete in a Profitdriven World? | 515 | ||
| Introduction | 516 | ||
| The Money Supply | 516 | ||
| The Meaning of Money | 516 | ||
| Monitoring and Managing the Money Supply | 516 | ||
| The Federal Reserve and Other Federal Financial Institutions | 518 | ||
| The Fed’s Major Responsibilities | 518 | ||
| The Fed’s Tools for Implementing Monetary Policy | 519 | ||
| The Federal Funds Rate | 519 | ||
| The Discount Rate | 520 | ||
| Other Government Banking Agencies and Institutions | 520 | ||
| Investment Banking | 521 | ||
| Services Offered by Investment Banks | 521 | ||
| Types of Investment Banks | 522 | ||
| Commercial Banking and Other Financial Services | 523 | ||
| Commercial Banking Services | 523 | ||
| Other Financial Services | 524 | ||
| Banking’s Role in the Great Recession | 524 | ||
| Building the Perfect Bubble | 525 | ||
| Recovering from the Dot-Com Bubble | 525 | ||
| Creating a New Bubble in Housing | 525 | ||
| Securitizing Debt | 527 | ||
| The Bubble Bursts: The Meltdown of 2008 | 528 | ||
| The Great Recession | 529 | ||
| Efforts to Regulate and Reform the Banking Industry | 530 | ||
| Lessons to be Learned | 530 | ||
| Efforts to Prevent Another Banking Crisis | 531 | ||
| Behind The Scenes Alliant Credit Union: A Member-Driven Approach to Meeting Customer Needs | 533 | ||
| Key Terms | 534 | ||
| Test Your Knowledge | 535 | ||
| Expand Your Knowledge | 535 | ||
| Practice Your Skills | 535 | ||
| Appendixes | 538 | ||
| Appendix A: Business Law | 538 | ||
| Appendix B: Risk Management | 546 | ||
| Appendix C: Information Technology | 553 | ||
| Appendix D: Personal Finance: Getting Set for Life | 559 | ||
| Glossary | 574 | ||
| Brand, Organization, Name, and Website Index | 592 | ||
| Subject Index | 594 |