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Business Essentials

by ;
Edition:
4th
ISBN13:

9780130675446

ISBN10:
013067544X
Format:
Paperback
Pub. Date:
1/1/2003
Publisher(s):
PRENTICE HALL
List Price: $80.00
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Summary

This best-selling book presents a brief "no-nonsense" approach to the fundamentals of business which spans the range of all functional areasmanagement, marketing, operations, accounting, information systems, finance, and legal studies.A six-part organization introduces readers to the basics of the business system in the U.S.; addresses the management side of business; looks at human resources, marketing, and the way business manage information for both internal users and for reporting to external constituents; and finally, presents the financial elements of business.For anyone preparing for a business career in the third millennium.

Table of Contents

Preface xvi
PART I Understanding the Contemporary Business Environment 2(112)
Understanding the U.S. Business System
2(28)
What's Hot on the Cyberspace Hit List
2(3)
The Concept of Business and the Concept of Profit
5(1)
Economic Systems Around the World
5(4)
Factors of Production
6(1)
Types of Economic Systems
6(3)
It's a Wired World Electronic B2B in the Auto Industry
9(1)
The U.S. Economic System
10(5)
Markets, Demand, and Supply
10(1)
Private Enterprise and Competition
11(4)
Understanding Economic Performance
15(7)
Economic Growth
15(4)
Economic Stability
19(3)
Managing the U.S. Economy
22(1)
The Global Economy in the Twenty-First Century
22(3)
Three Major Forces
22(1)
Projected Trends and Patterns
23(2)
Sounding Out the Music Industry Oligopoly
25(1)
Summary of Learning Objectives
26(1)
Questions and Exercises
27(1)
Exploring the Web Knowing the Difference Between Right and Left
27(1)
Exercising Your Ethics Prescribing a Dose of Competitive Medicine
27(1)
Building Your Business Skills Analyzing the Price of Doing E-Business
28(1)
Crafting Your Business Plan Making Scents of Competition
28(1)
Video Exercise Factors to Consider: Lands' End
29(1)
Understanding the Global Context of Business
30(28)
The New ETO (European Theater of Operations)
30(2)
The Rise of International Business
32(7)
The Contemporary Global Economy
32(1)
The Major World Marketplaces
32(5)
Forms of Competitive Advantage
37(2)
It's a Wired World Nokia Puts the Finishing Touches on a Telecommunications Giant
39(3)
Import-Export Balances
39(2)
Exchange Rates
41(1)
International Business Management
42(6)
Going International
43(2)
Levels of Involvement
45(2)
International Organizational Structures
47(1)
Barriers to International Trade
48(4)
Social and Cultural Differences
48(1)
Economic Differences
49(1)
Legal and Political Differences
49(3)
It's a SmallWorld.Com After All
52(1)
Summary of Learning Objectives
53(1)
Questions and Exercises
53(1)
Exploring the Web Tapping into the CIA
54(1)
Exercising Your Ethics Paying Heed to Foreign Practices
54(1)
Building Your Business Skills Putting Yourself in Your Place
54(1)
Crafting Your Business Plan Considering the World
55(1)
Video Exercise Entering the Global Marketplace: Lands' End and Yahoo!
56(2)
Conducting Business Ethically and Responsibly
58(28)
A Tale of Two Companies
58(3)
Ethics in the Workplace
61(3)
Assessing Ethical Behavior
61(1)
Company Practices and Business Ethics
62(2)
It's a Wired World When It Comes to Privacy, It's a Small World After All
64(2)
Social Responsibility
66(3)
The Stakeholder Model of Responsibility
66(2)
The Evolution of Social Responsibility
68(1)
Contemporary Social Consciousness
69(1)
Areas of Social Responsibility
69(8)
Responsibility Toward the Environment
69(3)
Responsibility Toward Customers
72(2)
Responsibility Toward Employees
74(2)
Responsibility Toward Investors
76(1)
Implementing Social Responsibility Programs
77(4)
Approaches to Social Responsibility
77(2)
Managing Social Responsibility Programs
79(1)
Social Responsibility and the Small Business
80(1)
Some Ethical Rants and Raves
81(1)
Summary of Learning Objectives
82(1)
Questions and Exercises
82(1)
Exploring the Web Setting Your Sites on Ethics
83(1)
Exercising Your Ethics Taking a Stance
83(1)
Building Your Business Skills To Lie or Not to Lie: That Is the Question
83(1)
Crafting Your Business Plan Going in the Ethical Direction
84(1)
Video Exercise Catering to Serious Users: Patagonia
85(1)
Understanding Entrepreneurship and Small Business
86(28)
Planting the Seeds of a Netpreneurial Idea
86(3)
What is a Small Business?
89(3)
The Importance of Small Business in the U.S. Economy
89(1)
Popular Areas of Small-Business Enterprise
90(2)
Types of Business Organizations
92(5)
Sole Proprietorships
92(1)
Partnerships
93(1)
Corporations
94(3)
Managing a Corporation
97(3)
Corporate Governance
97(1)
Special Issues in Corporate Ownership
98(2)
Entrepreneurship
100(1)
The Distinction Between Entrepreneurship and Small Business
100(1)
Success and Failure in Small Business
101(3)
Trends in Small-Business Start-Ups
101(1)
Reasons for Failure
102(2)
Reasons for Success
104(1)
Starting and Operating the Small Business
104(3)
Starting the Small Business
104(1)
Financing the Small Business
105(2)
It's a Wired World A Wealth of Investors for Picky Start-Ups
107(1)
Franchising
107(1)
Advantages and Disadvantages of Franchising
108(1)
Tapping Out
108(1)
Summary of Learning Objectives
109(1)
Questions and Exercises
110(1)
Exploring the Web Taking a Field Trip to the SBA
111(1)
Exercising Your Ethics Breaking Up Is Hard to Do
111(1)
Building Your Business Skills Working the Internet
112(1)
Crafting Your Business Plan Fitting in to the Entrepreneurial Mold
112(1)
Video Exercise Doing Business Privately: Amy's Ice Creams
113(1)
PART II Understanding the Business of Managing 114(80)
Managing the Business Enterprise
114(26)
Grounds for the Defense
114(3)
Setting Goals and Formulating Strategy
117(6)
Setting Business Goals
118(1)
Formulating Strategy
119(3)
Contingency Planning and Crisis Management
122(1)
The Management Process
123(3)
Planning
123(1)
Organizing
124(1)
Directing
124(1)
Controlling
125(1)
Types of Managers
126(2)
Levels of Management
126(1)
Areas of Management
127(1)
Basic Management Skills
128(2)
Technical Skills
128(1)
Human Relations Skills
128(1)
Conceptual Skills
129(1)
Decision-Making Skills
129(1)
It's a Wired World How to Spot the E-CEO
130(2)
Time Management Skills
130(1)
Management Skills for the Twenty-First Century
131(1)
Management and the Corporate Culture
132(2)
Communicating the Culture and Managing Change
132(2)
Down East Showdown
134(1)
Summary of Learning Objectives
135(1)
Questions and Exercises
136(1)
Exploring the Web There's Coffee, and Then There's Coffee
136(1)
Exercising Your Ethics Making Room for Alternative Actions
136(1)
Building Your Business Skills Speaking with Power
137(1)
Crafting Your Business Plan Furnishing Yourself with Management Skills
138(1)
Video Exercise The Management Picture: Quick Takes Video (I)
138(2)
Organizing the Business Enterprise
140(24)
Forging E-Connections
140(2)
What is Organizational Structure?
142(1)
Determinants of Organization
142(1)
It's a Wired World Hot-Wiring Ford
143(1)
Chain of Command
143(1)
The Building Blocks of Organizational Structure
144(4)
Specialization
144(1)
Departmentalization
145(3)
Establishing the Decision-Making Hierarchy
148(5)
Assigning Tasks: Responsibility and Authority
148(1)
Performing Tasks: Delegation and Accountability
148(1)
Distributing Authority: Centralization and Decentralization
149(3)
Three Forms of Authority
152(1)
Basic Forms of Organizational Structure
153(5)
Functional Organization
153(1)
Divisional Organization
153(1)
Matrix Organization
154(1)
International Organization
155(1)
Organizational Design for the Twenty-First Century
156(2)
Informal Organization
158(2)
Formal Versus Informal Organizational Systems
158(1)
Intrapreneuring
159(1)
Building on Cybersites
160(1)
Summary of Learning Objectives
160(1)
Questions and Exercises
161(1)
Exploring The Web How to Organize a Magic Kingdom
161(1)
Exercising Your Ethics Minding Your Own Business
162(1)
Building Your Business Skills Getting with the Program
162(1)
Crafting Your Business Plan Doctoring the Organization
163(1)
Video Exercise The Management Pictue: Quick Takes Video (II)
163(1)
Managing Operations and Improving Quality
164(30)
``Speed is Everything''
164(2)
Goods and Services Operations
166(2)
Growth in the Service and Goods Sectors
166(1)
The Growth of Global Operations
167(1)
Creating Value Through Operations
168(4)
Operations Processes
169(1)
Differences Between Service and Manufacturing Operations
170(2)
Operations Planning
172(5)
Capacity Planning
172(1)
Location Planning
173(1)
Layout Planning
174(1)
Quality Planning
175(1)
Methods Planning
176(1)
It's a Wired World Selling the Idea of Culture Shift
177(1)
Operations Scheduling
177(1)
Scheduling Goods Operations
177(1)
Scheduling Service Operations
178(1)
Operations Control
178(2)
Materials Management
178(1)
Tools for Operations Process Control
179(1)
Quality Improvement
180(6)
Managing for Quality
181(2)
Tools for Total Quality Management
183(3)
Adding Value Through Supply Chains
186(2)
The Supply Chain Strategy
187(1)
Reengineering Supply Chains for Better Results
187(1)
Got a Problem with Your Peripheral? Ask Dudley
188(1)
Summary of Learning Objectives
189(1)
Questions and Exercises
190(1)
Exploring the Web Copying a Formula for Efficient Service
190(1)
Exercising Your Ethics Calculating the Cost of Conscience
191(1)
Building Your Business Skills The One-on-One Entrepreneur
191(1)
Crafting Your Business Plan Getting on a Par with Customers
192(1)
Video Exercise Channeling Resources: Regal Marine
192(2)
PART III Understanding People in Organizations 194(56)
Motivating, Satisfying, and Leading Employees
194(26)
A New Deal in the Workplace
194(2)
Psychological Contracts in Organizations
196(1)
The Importance of Satisfaction and Morale
196(3)
Recent Trends in Managing Satisfaction and Morale
198(1)
Motivation in the Workplace
199(4)
Classical Theory
199(1)
Behavior Theory: The Hawthorne Studies
199(1)
Contemporary Motivational Theories
200(3)
It's a Wired World The Future of Compensation?
203(1)
Strategies for Enhancing Job Satisfaction and Morale
204(8)
Reinforcement/Behavior Modification Theory
204(1)
Management by Objectives
205(1)
Participative Management and Empowerment
206(1)
Job Enrichment and Job Redesign
207(1)
Modified Work Schedules
208(4)
Managerial Styles and Leadership
212(3)
Managerial Styles
212(1)
The Contingency Approach to Leadership
213(1)
Motivation and Leadership in the Twenty-First Century
214(1)
What Did You Expect?
215(1)
Summary of Learning Objectives
215(1)
Questions and Exercises
216(1)
Exploring the Web The Satisfaction of Surveying
217(1)
Exercising Your Ethics Practicing Controlled Behavior
217(1)
Building Your Business Skills To Much of a Good Thing
217(1)
Crafting Your Business Plan Making Reservations and Other Plans
218(1)
Video Exercise Learning to Motivate: Student Advantage
219(1)
Managing Human Resources and Labor Relations
220(30)
And All the M&MS You Can Eat
220(3)
The Foundations of Human Resource Management
223(2)
The Strategic Importance of HRM
223(1)
Human Resource Planning
223(2)
Staffing the Organization
225(1)
It's a Wired World Companies Put Web to Work as Recruiter
226(2)
Selecting Human Resources
227(1)
Developing The Workforce
228(2)
Training
228(1)
Performance Appraisal
229(1)
Compensation and benefits
230(2)
Wages and Salaries
230(1)
Incentive Programs
230(1)
Benefits Programs
231(1)
The Legal Context of Hr Management
232(2)
Equal Employment Opportunity
232(1)
Contemporary Legal Issues in HR Management
232(2)
New Challenges in the Changing Workplace
234(3)
Managing Workforce Diversity
234(1)
Managing Knowledge Workers
235(1)
Contingent and Temporary Workers
236(1)
Dealing with Organized Labor
237(3)
Unionism Today
237(3)
Collective Bargaining
240(4)
Reaching Agreement on Contract Terms
240(1)
Contract Issues
241(1)
When Bargaining Fails
242(2)
How Paternal is too Paternal?
244(1)
Summary of Learning Objectives
245(1)
Questions and Exercises
246(1)
Exploring the Web Keeping the Internet on Retainer
246(1)
Exercising Your Ethics Operating Tactically
246(1)
Building Your Business Skills A Little Collective Brainstorming
247(1)
Crafting Your Business Plan Taking the Occasion to Deal with Labor
248(1)
Video Exercise Channeling Human Resources: Showtime
248(2)
PART IV Understanding Principles of Marketing 250(56)
Understanding Marketing Processes and Consumer Behavior
250(28)
Xbox Spots the Market
250(2)
What is Marketing?
252(5)
Marketing: Goods, Services, and Ideas
252(1)
The Marketing Environment
252(3)
The Marketing Mix
255(2)
Target Marketing and Market Segmentation
257(3)
Identifying Market Segments
258(2)
It's Wired World Better Health Through Cyberspace Demographics
260(1)
Understanding Consumer Behavior
261(2)
Influences on Consumer Behavior
261(1)
The Consumer Buying Process
262(1)
Organizational Marketing and Buying Behavior
263(2)
Organizational Markets
263(1)
Organizational Buying Behavior
264(1)
What is a Product?
265(2)
Features and Benefits
265(1)
Classifying Goods and Services
266(1)
The Product Mix
267(1)
Developing New Products
267(1)
The New Product Development Process
267(1)
Identifying Products
268(2)
Branding Products
268(2)
Packaging Products
270(1)
The International Marketing Mix
270(1)
Small Business and the Marketing Mix
271(2)
Microsoft's Great Xpectations
273(1)
Summary of Learning Objectives
274(1)
Questions and Exercises
274(1)
Exploring The Web Dealing in Segments and Variables (I)
275(1)
Exercising Your Ethics Driving a Legitimate Bargain
275(1)
Building Your Business Skills Dealing in Segments and Variables (II)
276(1)
Crafting Your Business Plan Picking and Packaging the Right Products
276(1)
Video Exercise Niche Noshing: Terra Chips
277(1)
Pricing, Promoting, and Distributing Products
278(28)
Strike Up the Bandwidth
278(2)
Determining Prices
280(2)
Pricing to Meet Business Objectives
280(1)
Price-Setting Tools
280(2)
Pricing Strategies and Tactics
282(2)
Pricing Strategies
282(2)
It's a Wired World The World of Cyberprice Bidding
284(1)
Pricing Tactics
284(1)
The Importance of Promotion
285(1)
Promotional Objectives
285(1)
The Promotional Mix
285(5)
Advertising Promotions
286(3)
Personal Selling
289(1)
Personal Selling Tasks
289(1)
Sales Promotions
289(1)
Publicity and Public Relations
290(1)
The Distribution Mix
290(4)
Intermediaries and Distribution Channels
290(2)
Distribution of Business Products
292(2)
Wholesaling
294(1)
Merchant Wholesalers
294(1)
The Advent of the E-Intermediary
294(1)
Retailing
295(3)
Types of Retail Outlets
295(2)
Nonstore and Electronic Retailing
297(1)
Physical Distribution
298(1)
Warehousing Operations
298(1)
Transportation Operations
298(1)
Distribution as a Marketing Strategy
298(1)
Why Riaa Got Riled
299(1)
Summary of Learning Objectives
300(2)
Questions and Exercises
302(1)
Exploring the Web Need Help for E-Mail Marketing?
302(1)
Exercising Your Ethics The Chain of Responsibility
303(1)
Building Your Business Skills Are You Sold on the Net?
303(1)
Crafting Your Business Plan Getting the Caffeine into Your Cup
304(1)
Video Exercise Promoting White Moustaches: The ``Got Milk?'' Campaign
304(2)
PART V Managing Information 306(56)
Managing Information Systems and Electronic Commerce
306(26)
``Life, the Universe, and Everything''
306(2)
Information Management: An Overview
308(1)
Information Systems
308(1)
New Business Technologies in the Information Age
309(6)
The Expanding Scope of Information Systems
309(1)
Electronic Business and Communications Technologies
309(3)
New Options for Organizational Design: The Networked Enterprise
312(3)
Types of Information Systems
315(5)
User Groups and System Requirements
316(1)
Major Systems by Level
317(3)
Databases and Software for the Information System
320(3)
Databases and Program Software
321(2)
Telecommunications and Networks
323(2)
Multimedia Communication Systems
323(1)
System Architecture
324(1)
It's a Wired World ``These Two Companies Are a Natural Fit''
325(1)
Researching With a Purpose
326(1)
Summary of Learning Objectives
327(1)
Questions and Exercises
328(1)
Exploring the Web On the Cutting Edge with Experts
328(1)
Exercising Your Ethics Supplying the Right Answers
329(1)
Building Your Business Skills The Art and Science of Point-and-Click Research
329(1)
Crafting Your Business Plan Getting Wired Into Better Information
330(1)
Video Exercise Space Age it at Boeing
331(1)
Understanding Principles of Accounting
332(30)
Why Banks Have to Clean Up Their Transactions
332(3)
What is Accounting and Who Uses Accounting Information?
335(1)
Who Are Accountants and What Do They Do?
335(4)
Financial Versus Managerial Accounting
336(1)
Certified Public Accountants
336(1)
Private Accountants
337(1)
The CPA Vision Project
338(1)
It's a Wired World A Roundabout Look at Conflicting Interests
339(2)
Tools of the Accounting Trade
341(2)
The Accounting Equation
342(1)
Double-Entry Accounting
343(1)
Financial Statements
343(8)
Balance Sheets
343(3)
Income Statements
346(1)
Statements of Cash Flows
347(1)
The Budget: An Internal Financial Statement
348(1)
Reporting Standards and Practices
349(2)
Analyzing Financial Statements
351(3)
Short-Term Solvency Ratios
351(1)
Long-Term Solvency Ratios
352(1)
Profitability Ratios
352(1)
Activity Ratios
353(1)
International Accounting
354(2)
Foreign Currency Exchange
354(1)
International Transactions
355(1)
International Accounting Standards
355(1)
Securing Exchanges
356(1)
Summary of Learning Objectives
357(1)
Questions and Exercises
358(1)
Exploring the Web A Field Trip to the AICPA
358(1)
Exercising Your Ethics Confidentially Yours
358(1)
Building Your Business Skills Putting the Buzz in Billing
359(1)
Crafting Your Business Plan The Profitability of Planning
359(2)
Video Exercise Accounting for a Few Billion Sold: McDonald's
361(1)
PART VI Understanding Financial Issues 362(51)
Understanding Money and Banking
362(24)
Europe Cashes In
362(2)
What Is Money?
364(3)
The Characteristics of Money
364(1)
The Functions of Money
364(1)
The Spendable Money Supply: M-1
365(1)
M-1 Plus the Convertible Money Supply: M-2
365(1)
Credit Cards
366(1)
The U.S. Financial System
367(5)
Financial Institutions
367(3)
Special Financial Services
370(1)
Banks as Creators of Money
371(1)
It's a Wired World To E-Bank or Not to E-Bank
372(1)
Regulation of Commercial Banking
373(1)
The Federal Reserve System
373(4)
The Structure of the Fed
373(1)
The Functions of the Fed
374(2)
The Tools of the Fed
376(1)
The Changing Money and Banking System
377(2)
Deregulation
377(1)
Interstate Banking
377(1)
The Impact of Electronic Technologies
377(2)
International Banking and Finance
379(2)
The International Payments Process
379(1)
International Bank Structure
380(1)
Gentlemen, Start Your Euros!
381(1)
Summary of Learning Objectives
382(1)
Questions and Exercises
383(1)
Exploring the Web Banking on the Fed
383(1)
Exercising Your Ethics Telling the Ethical From the Strictly Legal
384(1)
Building Your Business Skills Four Economists in a Room
384(1)
Crafting Your Business Plan How to Bank on Your Money
385(1)
Video Exercise The World's Lenders: The World Bank and the IMF
385(1)
Understanding Securities and Investments
386(27)
Is Volatility Here to Stay?
386(2)
Securities Markets
388(1)
Primary and Secondary Securities Markets
388(1)
Stocks
388(8)
Common Stocks
388(2)
Preferred Stock
390(1)
Stock Exchanges
391(5)
It's a Wired World Opening the Portals to Cross-Border Trading
396(1)
Bonds
396(2)
U.S. Government Bonds
397(1)
Municipal Bonds
397(1)
Corporate Bonds
397(1)
Mutual Funds
398(1)
Buying and Selling Securities
399(6)
Financial Information Services
399(5)
Placing Orders
404(1)
Financing Purchases
404(1)
Securities Market Regulation
405(1)
The Securities and Exchange Commission
405(1)
The Stuff That Rumors and Inflated Expectations are Made of
406(1)
Summary of Learning Objectives
407(1)
Questions and Exercises
408(1)
Exploring the Web What to Do During Trading Hours
408(1)
Exercising Your Ethics Are You Endowed with Good Judgment?
409(1)
Building Your Business Skills Market Ups and Downs
409(1)
Crafting Your Business Plan A Capital Idea
410(1)
Video Exercise Information Pays Off: Anatomy of a Stock Trade
411(2)
Appendix I Understanding Financial Risk and Risk Management 413(12)
Appendix II Understanding the Legal Context of Business 425(10)
Notes, Sources, and Credits 435(14)
Glossary 449(16)
Name, Company, Product Index 465(6)
Subject Index 471

Excerpts

One way a textbook, or any successful product, succeeds in the long term is by close reevaluation on a regular basis and attention to market feedback. Based upon our market observations and your suggestions, we've streamlinedBusiness Essentialsto 15 chapters, organized into 6 parts, plus 2 appendixes. This streamlined organization should make the material even more manageable for both semester and quarter courses. The strengths that have made it the market bestseller continue: Cutting edge Current Succinct Price sensitive What's new ... New!IT'S A WIRED WORLD In each chapter, boxes titled"It's a Wired World"offer brief real-world examples of steps established businesses are taking to keep pace with both new and old competitors in the e-business environment. New!WEB Connection Each chapter contains a new feature called"WEB Connection"that relates the Internet to the chapter's topics. The WEB Connection includes a real company's URL, screen shot, description of the company's mission, and an Action Challenge posted on the companion Web site for the book. New!Exercising Your Ethics To bring ethics to the forefront, we've introduced a new end-of-chapter feature,"Exercising Your Ethics,"to motivate students to resolve an ethical situation. Each dilemma includes a description of the situation and then concludes with student questions that focus on how to approach and resolve an ethical challenge. New!Video Cases and Exercise The fourth edition ofBusiness Essentialsincludes a brand new video library. Each chapter now concludes with an engaging video exercise that puts chapter concepts into a dramatic real business context. Each video exercise asks students to analyze an interesting real company and includes discussion questions and assignment material. Hallmark Strengths!Fully Updated! New!Two Part Case Vignettes To engage students in real-life business situations, each chapter opens with a compelling vignette describing how an individual or organization has responded to an opportunity or challenge. The story continues... The story is then revisited at the end of the chapter, where it concludes with more information and follow-up questions tailored to help students analyze the case, either on their own or in class as a group activity. All vignettes have all been fully updated to keep current. End-of Chapter ActivitiesFully Updated Exploring the Web Exercises. In these exercises, students are directed to the Internet and given hands-on activities designed to enhance their understanding of important chapter topics. BuildingYour Business Skills These popular end-of-chapter exercises consist of activities that allow students to apply their knowledge and critical thinking skills to an extended problem drawn from a wide range of realistic business experiences. Each of these exercises has been specifically designed to satisfy the general criteria laid out in the Secretary of Labor's Commission of Achieving Necessary Skills (SCANS) requirements. Crafting Your Business Plan Exercises These chapter-ending exercises have been streamlined to make it easier for students to grasp and complete quickly. Students examine sample plans from a variety of businesses using the Windows-basedBusiness PlanPro 4.0 software. Students and instructors can also take the exercises further if they choose because this powerful educational version also allows students to begin creating their own professional business plans with step-by-step instructions. Version 4.0 allows planners to publish plans to a protected Internet site, where students can access all or part of posted plans. The educational version of the best-sellingBusiness Pl


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