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Understanding Business


Edition: 7th
Author(s): Nickels, William G.; McHugh, James M.; McHugh, Susan M.
ISBN10:  0072923997
ISBN13:  9780072923995
Format:  Hardcover
Pub. Date:  10/31/2004
Publisher(s): McGraw-Hill College

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Table of Contents
Preface xvii
Prologue: Getting Ready for Prime Time 1(40)
Video Case: Hotjobs.com 41
PART 1 Business Trends: Cultivating a Business in Diverse, Global Environments
Managing within the Dynamic Business Environment: Taking Risks and Making Profits
2(32)
Profile: Getting to Know Meg Whitman from eBay
3(1)
Business and Entrepreneurship: Revenues, Profits, and Losses
4(5)
Matching Risk with Profit
4(1)
Businesses Add to the Standard of Living and Quality of Life
5(1)
Spotlight on Small Business: The Environment for Small Businesses
6(1)
Responding to the Various Business Stakeholders
6(1)
Using Business Principles in Nonprofit Organizations
7(2)
Entrepreneurship versus Working for Others
9(3)
Opportunities for Entrepreneurs
9(1)
The Importance of Entrepreneurs to the Creation of Wealth
10(2)
Reaching Beyond Our Borders: Freedom and Protective Laws Equal Prosperity
12(1)
The Business Environment
12(13)
The Economic and Legal Environment
12(2)
The Technological Environment
14(1)
Reaching Beyond Our Borders: Ethical Lapses Are Global
15(1)
Making Ethical Decisions: Ethics Begin with You
16(3)
Dealing with Change: Adjusting to the E-Commerce Era
19
The Competitive Environment
18(3)
The Social Environment
21(3)
The Global Environment
24(1)
The Evolution of American Business
25(6)
Progress in the Agricultural and Manufacturing Industries
25
Progress in Service Industries
24(2)
Your Future in Business
26(5)
Casing the Web: Moving Up the Corporate Ladder www.mhhe.com/ub7e
Video Case: Toying with Success: The McFarlane Companies
31(3)
How Economics Affects Business: The Creation and Distribution of Wealth
34(32)
Profile: Getting to Know Milton Hershey of Hershey's Chocolate
35(1)
How Economic Conditions Affect Businesses
36(4)
What Is Economics?
36(1)
Reaching Beyond Our Borders: Entrepreneurs in El Salvador and Brazil
37(1)
Dealing with Change: Some Good Macroeconomic News
38
Why Economics Was Known as ``the Dismal Science''
37(2)
Growth Economics and Adam Smith
39(1)
How Businesses Benefit the Community
39(1)
Understanding Free-Market Capitalism
40(7)
The Foundations of Capitalism
41(1)
Spotlight on Small Business: Starting a Small Business in the United States versus Elsewhere
42(1)
How Free Markets Work
42(1)
How Prices Are Determined
43(1)
The Economic Concept of Supply
43(1)
The Economic Concept of Demand
43(1)
The Equilibrium Point or Market Price
44(1)
Competition within Free Markets
45(1)
Benefits and Limitations of the Free Markets
46(1)
Understanding Socialism
47(2)
The Benefits of Socialism
48(1)
The Negative Consequences of Socialism
48(1)
Understanding Communism
49(1)
The Trend toward Mixed Economies
49(3)
Dealing with Change: The Internet Integrates World Markets
52(1)
Understanding the Economic System of the United States
52(12)
Key Economic Indicators
53(2)
Productivity in the United States
55(1)
Productivity in the Service Sector
55(1)
The Business Cycle
56(1)
Stabilizing the Economy through Fiscal Policy
56(2)
Using Monetary Policy to Keep the Economy Growing
58(1)
Making Ethical Decisions: Exploring the Tax Laws
59(5)
Casing the Web: The Rule of 72 www.mhhe.com/ub7e
Video Case: LaBaguette
64(2)
Competing in Global Markets
66(34)
Profile: Getting to Know Li Yifei of MTV Networks-China
67(1)
The Dynamic Global Market
68(1)
Why Trade with Other Nations?
69(1)
The Theories of Comparative and Absolute Advantage
69(1)
Getting Involved in Global Trade
70(4)
Importing Goods and Services
70(1)
Exporting Goods and Services
71(1)
Measuring Global Trade
72(1)
Reaching Beyond Our Borders: McDonaldizing the World
73(1)
Trading in Global Markets: The U.S. Experience
74(1)
Strategies for Reaching Global Markets
75(6)
Licensing
76(1)
Dealing with Change: Like Money in the Bank
77(1)
Exporting
77(1)
Franchising
78(1)
Contract Manufacturing
78(1)
International Joint Ventures and Strategic Alliances
79(1)
Foreign Subsidiaries
80(1)
Forces Affecting Trading in Global Markets
81(6)
Sociocultural Forces
81(2)
Economic and Financial Forces
83(2)
Legal and Regulatory Forces
85(1)
Physical and Environmental Forces
86(1)
Making Ethical Decisions: Doing Bad by Trying to Do Good
87(1)
Trade Protectionism
87(5)
Legal Briefcase: When Is a Fish Not a Fish?
88(1)
The General Agreement on Tariffs and Trade, and the World Trade Organization
89(1)
Common Markets
90(2)
The North American Free Trade Agreement (NAFTA)
92(1)
The Future of Global Trade: Global E-Commerce
92(6)
Globalization and You
93(5)
Casing the Web: Cooling Off the Sweatshops www.mhhe.com/ub7e
Video Case: Six Billion Customers and Counting: IBM
98(2)
Demonstrating Ethical Behavior and Social Responsibility
100(40)
Profile: Getting to Know Dean Jernigan, CEO of Storage USA and Founder of the Memphis Redbirds
101(1)
Ethics Is More Than Legality
102(3)
Ethical Standards Are Fundamental
102(1)
Making Ethical Decisions: Did Napster Catch the Music Industry Napping?
103(1)
Ethics Begins with Each of Us
104(1)
Managing Businesses Ethically and Responsibly
105(5)
Setting Corporate Ethical Standards
107(2)
Dealing with Change: Enron: From Ethics Poster Child to Wanted Poster
109(1)
Corporate Social Responsibility
110(7)
Spotlight on Small Business: Myths about Small-Business Philanthropy
111(1)
Responsibility to Customers
111(1)
Responsibility to Investors
112(2)
Responsibility to Employees
114(1)
Responsibility to Society and the Environment
114(2)
Social Auditing
116(1)
International Ethics and Social Responsibility
117(6)
Reaching Beyond Our Borders: Ethical Culture Clash
119(4)
Casing the Web: Got a Deadline? Click Here www.mhhe.com/ub7e
Video Case: Doing unto Others: Abbott Laboratories
123(1)
Appendix: Working within the Legal Environment of Business
124(16)
PART 2 Business Ownership: Starting a Small Business
Choosing a Form of Business Ownership
140(32)
Profile: Getting to Know Anne Beiler of Auntie Anne's Pretzels
141(1)
Basic Forms of Business Ownership
142(1)
Sole Proprietorships
143(2)
Advantages of Sole Proprietorships
143(1)
Disadvantages of Sole Proprietorships
143(2)
Partnerships
145(3)
Disadvantages of Partnerships
145(1)
Dealing with Change: Testing the Limits of Limited Liability Partnerships
146(1)
Advantages of Partnerships
146(1)
Spotlight on Small Business: Choose Your Partner
147(1)
Corporations
148(7)
Advantages of Corporations
149(2)
Disadvantages of Corporations
151(1)
Individuals Can Incorporate
152(1)
S Corporations
152(1)
Limited Liability Companies
153(2)
Corporate Expansion: Mergers and Acquisitions
155(2)
Dealing with Change: Falling Giants
156(1)
Special Forms of Ownership
157(1)
Franchises
158(7)
Advantages of Franchises
158(2)
Disadvantages of Franchises
160(1)
Legal Briefcase: Franchising Fraud
161(1)
Diversity in Franchising
161(2)
Home-Based Franchises
163(1)
E-Commerce in Franchising
163(1)
Using Technology in Franchising
164(1)
Franchising in International Markets
164(1)
Cooperatives
165(1)
Which Form of Ownership Is for You?
166(4)
Casing the Web: Keeping the Air in Blimpie www.mhhe.com/ub7e
Video Case: Making Profits with a Twist: Auntie Anne's Pretzels
170(2)
Entrepreneurship and Starting a Small Business
172(38)
Profile: Getting to Know Renee Amoore, Founder of The Amoore Group
173(1)
The Age of the Entrepreneur
174(1)
The Job-Creating Power of Entrepreneurs in the United States
174(1)
Why People Take the Entrepreneurial Challenge
175(8)
What Does It Take to Be an Entrepreneur?
176(1)
Entrepreneurial Teams
177(1)
Micropreneurs and Home-Based Businesses
178(2)
Web-Based Businesses
180(1)
Entrepreneurship within Firms
181(2)
Encouraging Entrepreneurship---What Government Can Do
183(1)
Getting Started in Small Business
183(4)
Small versus Big Business
184(1)
Importance of Small Business
184(1)
Small-Business Success and Failure
185(2)
Learning about Small-Business Operations
187(2)
Learn from Others
187(1)
Spotlight on Small Business: Making the Grade in Business
188
Get Some Experience
187(1)
Take Over a Successful Firm
187(2)
Managing a Small Business
189(8)
Begin with Planning
189(1)
Writing a Business Plan
190(1)
Getting Money to Fund a Small Business
190(2)
The Small Business Administration
192(2)
Knowing Your Customers
194(1)
Managing Employees
194(1)
Keeping Records
195(1)
Looking for Help
195(2)
Going International: Small-Business Prospects
197(4)
Reaching Beyond Our Borders: Sparkling Success in Cyberspace
198(3)
Casing the Web: BMOC: Starting a Small Business at School www.mhhe.com/ub7e
Video Case: It's in the Bag: Joe-To-Go
201(2)
Appendix: Entrepreneur Readiness Questionnaire
203(4)
Part 2 Career Portfolio
207(3)
PART 3 Business Management: Empowering Employees to Satisfy Customers
Management, Leadership, and Employee Empowerment
210(28)
Profile: Getting to Know Oprah Winfrey: Businesswoman and TV Personality
211(1)
Managerial Challenges
212(1)
Managers' Roles Are Changing
212(1)
Functions of Management
213(1)
Planning: Creating a Vision Based on Values
214(5)
Spotlight on Small Business: Taking a SWOT at the Competition
217(1)
Decision Making: Finding the Best Alternative
218(1)
Organizing: Creating a Unified System
219(6)
Tasks and Skills at Different Levels of Management
220(2)
The Trend toward Self-Managed Teams
222(1)
The Stakeholder-Oriented Organization
222(1)
Dealing with Change: Is Target on Target for the Future?
223(1)
Staffing: Getting and Keeping the Right People
223(1)
Managing Diversity
224(1)
Leading: Providing Continuous Vision and Values
225(6)
Leadership Styles
225(1)
Making Ethical Decisions: Leading by Example
226(2)
Dealing with Change: John Chambers Uses Participative Management at Cisco
228(1)
Empowering Workers
228(2)
Reaching Beyond Our Borders: Strong as Steel
230(1)
Managing Knowledge
230(1)
Controlling: Making Sure It Works
231(6)
A New Criterion for Measurement: Customer Satisfaction
232(1)
The Corporate Scorecard
233(4)
Casing the Web: Leading in a Leaderless Company www.mhhe.com/ub7e
Video Case: Leading America's Team: Delta Force
237(1)
Adapting Organizations to Today's Markets
238(28)
Profile: Getting to Know Carly Fiorina of Hewlett-Packard
239(1)
Building an Organization from the Bottom Up
240(5)
The Changing Organization
240(1)
Making Ethical Decisions: Safety versus Profit
241(1)
The Historical Development of Organizational Design
241(2)
Turning Principles into Organizational Design
243(2)
Issues Involved in Structuring Organizations
245(6)
Centralization versus Decentralization of Authority
245(1)
Reaching Beyond Our Borders: The Internet Makes the World Smaller
246(1)
Choosing the Appropriate Span of Control
246(1)
Tall versus Flat Organization Structures
247(1)
Advantages and Disadvantages of Departmentalization
248(3)
Organization Models
251(4)
Line Organizations
251(1)
Line-and-Staff Organizations
251(1)
Matrix-Style Organizations
252(2)
Cross-Functional Self-Managed Teams
254(1)
Managing the Interactions among Firms
255(2)
Benchmarking and Outsourcing
256(1)
Adapting to Change
257(8)
Restructuring for Empowerment
257(1)
Radical Reorganization
258(1)
Creating a Change-Oriented Organizational Culture
259(1)
Spotlight on Small Business: All This and Ice Cream Too
260(1)
The Informal Organization
260(5)
Casing the Web: IBM Is Both an Outsource and a Major Outsource for Others www.mhhe.com/ub7e
Video Case: One Smooth Stone
265(1)
Producing World-Class Goods and Services
266(32)
Profile: Getting to Know Dain Hancock of Lockheed Martin
267(1)
America's Evolving Manufacturing and Services Base
268(2)
From Production to Operations Management
268(1)
Operations Management in Action
269(1)
Manufacturers Turn to a Customer Orientation and Services for Profit
270(1)
Operations Management Functions
270(9)
Facility Location
270(2)
Making Ethical Decisions: Stay or Leave?
272(2)
Reaching Beyond Our Borders: Why Not Live in Hawaii and Do Business Globally?
274
Facility Layout
273(2)
Quality Control
275(2)
Spotlight on Small Business: Meeting the Six Sigma Standard
277(1)
Dealing with Change: Why Is Service Still So Bad?
278(1)
Operations Management in the Service Sector
279(2)
Measuring Quality in the Service Sector
280(1)
Services Go Interactive
281(1)
Operations Management in the Manufacturing Sector
281(3)
Manufacturing Processes
282(1)
Materials Requirement Planning
283(1)
Modern Production Techniques
284(4)
Just-in-Time Inventory Control
284(1)
Internet Purchasing
285(1)
Flexible Manufacturing
285(1)
Lean Manufacturing
286(1)
Mass Customization
286(1)
Competing in Time
287(1)
Computer-Aided Design and Manufacturing
287(1)
Control Procedures: PERT and Gantt Charts
288(1)
Preparing for the Future
289(5)
Casing the Web: Griffin Hospital www.mhhe.com/ub7e
Video Case: Reality on Request: Digital Domain
294(1)
Part 3 Career Portfolio
295(3)
PART 4 Management of Human Resources: Motivating Employees to Produce Quality Goods and Services
Motivating Employees and Building Self-Managed Teams
298(30)
Profile: Getting to Know Herb Kelleher and Colleen Barrett of Southwest Airlines
299(1)
The Importance of Motivation
300(3)
Frederick Taylor: The Father of Scientific Management
300(1)
Elton Mayo and the Hawthorne Studies
301(1)
Legal Briefcase: Scientific Management Is Alive and Well at UPS
302(1)
Motivation and Maslow's Hierarchy of Needs
303(2)
Applying Maslow's Theory
305(1)
Herzberg's Motivating Factors
305(2)
Applying Herzberg's Theories
307(1)
Job Enrichment
307(2)
Spotlight on Small Business: Motivating Employees in a Small Business
309(1)
McGregor's Theory X and Theory Y
309(2)
Theory X
310(1)
Theory Y
310(1)
Ouchi's Theory Z
311(2)
Goal-Setting Theory and Management by Objectives
313(1)
Meeting Employee Expectations: Expectancy Theory
314(1)
Reinforcing Employee Performance: Reinforcement Theory
315(1)
Treating Employees Fairly: Equity Theory
315(1)
Building Teamwork through Open Communication
316(4)
Applying Open Communication in Self-Managed Teams
317(2)
Making Ethical Decisions: Motivating Temporary Employees
319
Models of Employee Empowerment
318(2)
Motivation in the Future
320(6)
Reaching Beyond Our Borders: Global Teamwork
321(5)
Casing the Web: Making Teams Work in a Changing Market www.mhhe.com/ub7e
Video Case: Working for the Best: The Container Store
326(2)
Human Resource Management: Finding and Keeping the Best Employees
328(34)
Profile: Getting to Know Karen Oman of Certes Financial Pros
329(1)
Working with People Is Just the Beginning
330(3)
Developing the Ultimate Resource
330(1)
The Human Resource Challenge
331(1)
Dealing with Change: Who Will Replace the Graying Workers?
332(1)
Determining Your Human Resource Needs
333(1)
Recruiting Employees from a Diverse Population
334(4)
Spotlight on Small Business: Competing for Qualified Workers
335(3)
Selecting Employees Who Will Be Productive
338(1)
Hiring Contingent Workers
337(1)
Training and Developing Employees for Optimum Performance
338(4)
Management Development
341(1)
Networking
341(1)
Diversity in Management Development
342(1)
Appraising Employee Performance to Get Optimum Results
342(2)
Compensating Employees: Attracting and Keeping the Best
344(4)
Pay Systems
344(1)
Compensating Teams
344(2)
Fringe Benefits
346(2)
Reaching Beyond Our Borders: Managing a Global Workforce
348(1)
Scheduling Employees to Meet Organizational and Employee Needs
348(3)
Flextime Plans
348(1)
Home-Based and Other Mobile Work
349(1)
Job-Sharing Plans
350(1)
Moving Employees Up, Over, and Out
351(2)
Promoting and Reassigning Employees
351(1)
Terminating Employees
352(1)
Retiring Employees
352(1)
Losing Employees
353(1)
Laws Affecting Human Resource Management
353(8)
Legal Briefcase: Government Legislation
354(1)
Laws Protecting the Disabled and Older Employees
355(1)
Effects of Legislation
356(5)
Casing the Web: Dual-Career Planning www.mhhe.com/ub7e
Video Case: SAS
361(1)
Dealing with Employee--Management Issues and Relationships
362(34)
Profile: Getting to Know Paul Tagliabue, Commissioner of the National Football League
362(2)
Employee--Management Issues
364(1)
Labor Unions from Different Perspectives
365(1)
The Early History of Organized Labor
365(1)
Labor Legislation and Collective Bargaining
366(7)
Objectives of Organized Labor
368(2)
Resolving Labor-Management Disagreements
370(1)
Reaching Beyond Our Borders: The Euro Strikes Out with the Unions
371(1)
Mediation and Arbitration
372(1)
Tactics Used in Labor-Management Conflicts
373(6)
Union Tactics
373(2)
Dealing with Change: Sitting on the Docks
375(1)
Management Tactics
376(1)
The Future of Unions and Labor-Management Relations
376(1)
Making Ethical Decisions: Crossing the Line or Double Crossing
377(1)
Spotlight on Small Business: The ER Meets the Teamsters
378(1)
Controversial Employee--Management Issues
379(12)
Executive Compensation
379(2)
Legal Briefcase: Getting the Golden Boot
381(1)
Comparable Worth
381(1)
Sexual Harassment
382(2)
Child Care
384(1)
Elder Care
385(1)
AIDS Testing, Drug Testing, and Violence in the Workplace
386(1)
Employee Stock Ownership Plans (ESOPs)
387(4)
Casing the Web: Do Right-to-Work Laws Help States? www.mhhe.com/ub7e
Video Case: LUV in the Workplace: Southwest Airlines
391(2)
Part 4 Career Portfolio
393(3)
PART 5 Marketing: Developing and Implementing Customer-Oriented Marketing Plans
Marketing: Building Customer and Stakeholder Relationships
396(32)
Profile: Getting to Know Marco Sorani of SSB Technologies
397(1)
What Is Marketing?
398(2)
The Evolution of Marketing
398(2)
Nonprofit Organizations Prosper from Marketing
400(1)
The Marketing Mix
400(5)
Dealing with Change: Applying the Four Ps
401(1)
Applying the Marketing Process
402(1)
Designing a Product to Meet Needs
402(1)
Setting an Appropriate Price
403(1)
Reaching Beyond Our Borders: Problems and Solutions
404(1)
Getting the Product to the Right Place
404(1)
Developing an Effective Promotional Strategy
404(1)
Providing Marketers with Information
405(6)
The Marketing Research Process
406(2)
The Marketing Environment
408(1)
Making Ethical Decisions: No Kidding
408(3)
Two Different Markets: Consumer and Business-to-Business (B2B)
411(1)
The Consumer Market
411(7)
Segmenting the Consumer Market
412(1)
Reaching Smaller Market Segments
412(1)
Moving toward Relationship Marketing
413(1)
Dealing with Change: Finding New Market Opportunities
414(1)
Spotlight on Small Business: Relationship Marketing of Bicycles
415(1)
Forming Communities of Buyers
415(1)
The Consumer Decision-Making Process
416(2)
The Business-to-Business Market
418(1)
Updating the Marketing Concept
419(2)
From Providing Customer Satisfaction to Exceeding Expectations
420(1)
Benchmarking and Uniting Organizations
420(1)
Maintaining a Profit Orientation
420(1)
Establishing Relationships with All Stakeholders
421(6)
Customer Relationship Management (CRM) Goes High Tech
421(1)
Your Prospects in Marketing
422(5)
Casing the Web: Customer-Oriented Marketing Concepts at Thermos www.mhhe.com/ub7e
Video Case: Racing to Market
427(1)
Developing and Pricing Products and Services
428(30)
Profile: Getting to Know Alan G. Lafley of Procter & Gamble
429(1)
Product Development and the Total Product Offer
430(4)
Developing a Total Product Offer
431(1)
Product Lines and the Product Mix
432(1)
Dealing with Change: Using the Web to Provide More Information
433(1)
Product Differentiation
434(3)
Marketing Different Classes of Consumer Goods and Services
434(1)
Marketing Industrial Goods and Services
435(2)
Packaging Changes the Product
437(1)
The Growing Importance of Packaging
437(1)
Branding and Brand Equity
438(3)
Brand Categories
438(1)
Generating Brand Equity and Loyalty
439(1)
Creating Brand Associations
440(1)
Making Ethical Decisions: Are We Too Star Struck?
440(1)
Brand Management
440(1)
The New-Product Development Process
441(2)
Generating New-Product Ideas
441(1)
Product Screening
441(1)
Product Analysis
441(1)
Product Development and Testing
442(1)
Commercialization
442(1)
The International Challenge
442(1)
Reaching Beyond Our Borders: Designing Products for the Poor
443(1)
The Product Life Cycle
443(3)
Example of the Product Life Cycle
444(1)
The Importance of the Product Life Cycle
444(2)
Competitive Pricing
446(5)
Pricing Objectives
446(1)
Cost-Based Pricing
447(1)
Demand-Based Pricing
448(1)
Competition-Based Pricing
448(1)
Pricing in the Service Sector
448(1)
Spotlight on Small Business: Going from Low-End to Upscale Restaurants
449(1)
Break-Even Analysis
449(1)
Other Pricing Strategies
450(1)
How Market Forces Affect Pricing
451(1)
Nonprice Competition
451(6)
Nonprice Strategies
451(6)
Casing the Web: Everyday Low Pricing www.mhhe.com/ub7e
Video Case: Search for Youth: CBS and CNN
457(1)
Distributing Products Quickly and Efficiently
458(30)
Profile: Getting to Know Gus Pagonis of Sears
459(1)
The Emergence of Marketing Intermediaries
460(3)
Why Marketing Needs Intermediaries
460(1)
How Intermediaries Create Exchange Efficiency
460(1)
The Value versus the Cost of Intermediaries
461(2)
The Utilities Created by Intermediaries
463(3)
Form Utility
463(1)
Time Utility
464(1)
Place Utility
464(1)
Possession Utility
464(1)
Information Utility
464(1)
Making Ethical Decisions: Look One Place, Buy Another
465(1)
Service Utility
465(1)
Dealing with Change: How Technology Helped Change the Way