Understanding Business

by Nickels, William G.; McHugh, James M.; McHugh, Susan M.

• ISBN13: 9780072923995
• ISBN10: 0072923997
• Edition: 7th
• Format: Hardcover
• Copyright: 2004-10-31
• Publisher: McGraw-Hill College

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 Intermediaries Create Utility	466	(1)
Wholesale Intermediaries	466	(2)
Merchant Wholesalers	467	(1)
Agents and Brokers	468	(1)
Retail Intermediaries	468	(4)
How Retailers Compete	469	(2)
Retail Distribution Strategy	471	(1)
Nonstore Retailing	472	(3)
Electronic Retailing	472	(1)
Reaching Beyond Our Borders: What You Want, When You Want It	473	(1)
Telemarketing	473	(1)
Vending Machines, Kiosks, and Carts	473	(1)
Direct Selling	474	(1)
Multilevel Marketing	474	(1)
Direct Marketing	474	(1)
Building Cooperation in Channel Systems	475	(2)
Corporate Distribution Systems	475	(1)
Contractual Distribution Systems	476	(1)
Administered Distribution Systems	476	(1)
Supply Chains	476	(1)
The Emergence of Logistics	477	(2)
Getting Goods from Producer to Consumer Efficiently	479	(3)
Choosing the Right Transportation Mode	480	(2)
The Storage Function	482	(1)
What All This Means to You	482	(5)
Casing the Web: Multilevel Marketing www.mhhe.com/ub7e
Video Case: Bricks-and-Clicks: Mall of America and Amazon.com	487	(1)
Today's Promotional Techniques	488	(30)
Profile: Getting to Know Dan Wieden of Wieden and Kennedy	489	(1)
Promotion and the Promotion Mix	490	(1)
Advertising: Persuasive Communication	491	(7)
Dealing with Change: Product Placement Challenges Advertising	494	(1)
The Growing Use of Infomercials	494	(1)
Advertising and Promotion on the Internet	494	(1)
Spotlight on Small Business: Using Testimonials to Build Business	495	(1)
Global Advertising	496	(1)
Reaching Beyond Our Borders: Can There Be a Starbucks Inside a Starbucks?	496	(2)
Personal Selling: Providing Personal Attention	498	(4)
Steps in the Selling Process	498	(2)
Using Technology to Practice Consultative Selling	500	(1)
The Business-to-Consumer (B2C) Sales Process	501	(1)
Public Relations: Building Relationships	502	(2)
Publicity: The Talking Arm of PR	503	(1)
Sales Promotion: Getting a Good Deal	504	(3)
Sampling Is a Powerful Sales Promotion Tool	505	(1)
Word of Mouth	506	(1)
Viral Marketing and Other Word-of-Mouth Strategies	506	(1)
How New Technologies Are Affecting Promotion	507	(1)
Managing the Promotion Mix: Putting It All Together	507	(7)
Promotional Strategies	508	(1)
Creating an Integrated Marketing Communication (IMC) System	508	(1)
Building Interactive Marketing Programs	509	(5)
Casing the Web: Developing a Promotional Strategy for Biltmore Estate www.mhhe.com/ub7e
Video Case: Art of Motoring: MiniUSA	514	(1)
Part 5 Career Portfolio	515	(3)
PART 6 Decision Making: Managing Information
Using Technology to Manage Information	518	(28)
Profile: Getting to Know W. Roy Dunbar of Eli Lilly	519	(1)
The Role of Information Technology	520	(3)
How Information Technology Changes Business	520	(1)
Moving from Information Technology toward Knowledge Technology	521	(2)
Dealing with Change: The Next Best Thing to Being There	523	(1)
Managing Information	523	(2)
Storing and Mining Data	525	(1)
The Road to Knowledge: The Internet, Intranets, Extranets, and Virtual Private Networks	525	(4)
Dealing with Change: IT May Change Everything, but It Doesn't Cure All Ills	526	(2)
The Front Door: Enterprise Portals	528	(1)
Broadband Technology	528	(1)
The Enabling Technology: Hardware	529	(3)
Cutting the Cord: Wireless Information Appliances	530	(1)
Computer Networks	530	(2)
Software	532	(2)
Effects of Information Technology on Management	534	(5)
Human Resource Issues	534	(2)
Security Issues	536	(1)
Legal Briefcase: Fear Factor: Leaky Cybersecurity	537	(1)
Privacy Issues	537	(2)
Stability Issues	539	(1)
Technology and You	539	(6)
Casing the Web: The Super Bowl of Networks www.mhhe.com/ub7e
Video Case: As Easy as Riding a Bike---Hoffman Sports Association	545	(1)
Understanding Financial Information and Accounting	546	(34)
Profile: Getting to Know Michael Miller of Goodwill Industries	547	(1)
The Importance of Financial Information	548	(1)
What Is Accounting?	548	(1)
Areas of Accounting	549	(4)
Managerial Accounting	549	(1)
Financial Accounting	550	(1)
Dealing with Change: Elementary, Mr. Auditor, Elementary!	551	(1)
Auditing	551	(1)
Tax Accounting	552	(1)
Government and Not-for-Profit Accounting	552	(1)
Accounting versus Bookkeeping	553	(12)
The Six-Step Accounting Cycle	553	(1)
The Impact of Computers on Accounting	554	(1)
Understanding Key Financial Statements	555	(1)
The Fundamental Accounting Equation	555	(1)
The Balance Sheet	556	(1)
Assets	556	(2)
Liabilities and Owners' Equity Accounts	558	(1)
Spotlight on Small Business: You, Incorporated	559	(1)
The Income Statement	560	(1)
Revenue	560	(1)
Cost of Goods Sold (Cost of Goods Manufactured)	561	(1)
Operating Expenses and Net Profit or Loss	562	(1)
The Statement of Cash Flows	562	(1)
The Importance of Cash Flow Analysis	563	(1)
Making Ethical Decisions: On the Accounting Hot Seat	564	(1)
Applying Accounting Knowledge in the Business	565	(2)
Legal Briefcase: Auditing the Accounting Profession	567	(1)
Analyzing Financial Statements: Ratio Analysis	567	(9)
Liquidity Ratios	567	(2)
Leverage (Debt) Ratios	569	(1)
Profitability (Performance Ratios)	569	(1)
Activity Ratios	570	(6)
Casing the Web: Getting Through the Hard Times at Hard Rock www.mhhe.com/ub7e
Video Case: Talking the Language of Business: AON	576	(1)
Part 6 Career Portfolio	577	(3)
PART 7 Managing Financial Resources
Financial Management	580	(28)
Profile: Getting to Know Randy Casstevens, CFO of Krispy Kreme Doughnuts	581	(1)
The Role of Finance and Financial Managers	582	(2)
The Importance of Understanding Finance	583	(1)
What Is Financial Management?	584	(1)
Financial Planning	584	(5)
Forecasting Financial Needs	584	(1)
Working with the Budgeting Process	585	(2)
Establishing Financial Controls	587	(1)
Spotlight on Small Business: You, Incorporated, Monthly Budget	588	(1)
Making Ethical Decisions: Playing It Safe	589	(1)
The Need for Operating Funds	589	(4)
Managing Day-by-Day Needs of the Business	589	(1)
Controlling Credit Operations	590	(1)
Acquiring Needed Inventory	590	(1)
Making Capital Expenditures	591	(1)
Alternative Sources of Funds	591	(1)
Dealing with Change: Financial Crisis in the Classrooms	592	(1)
Obtaining Short-Term Financing	593	(4)
Trade Credit	593	(1)
Promissory Notes	593	(1)
Family and Friends	593	(1)
Commercial Banks and Other Financial Institutions	593	(2)
Different Forms of Short-Term Loans	595	(1)
Factoring	596	(1)
Commercial Paper	596	(1)
Reaching Beyond Our Borders: Making Sure the Check's in the Mail	597	(1)
Obtaining Long-Term Financing	597	(10)
Debt Financing	598	(1)
Equity Financing	599	(3)
Making Decisions on Using Financial Leverage	602	(5)
Casing the Web: Survival of the Financially Fittest www.mhhe.com/ub7e
Video Case: Financial Management	607	(1)
Securities Markets: Financing and Investing Opportunities	608	(34)
Profile: Getting to Know David and Tom Gardner of the Motley Fool	609	(1)
The Function of Securities Markets	610	(1)
The Role of Investment Bankers	610	(1)
Dealing with Change: Maintaining the Integrity of Securities Markets	611	(1)
Debt Financing by Selling Bonds	611	(4)
Learning the Language of Bonds	612	(1)
Advantages and Disadvantages of Issuing Bonds	613	(1)
Different Classes of Bonds	613	(1)
Special Bond Features	614	(1)
Equity Financing by Selling Stock	615	(2)
Learning the Language of Stock	615	(1)
Advantages and Disadvantages of Issuing Stock	615	(1)
Issuing Shares of Preferred Stock	616	(1)
Special Features of Preferred Stock	616	(1)
Issuing Shares of Common Stock	617	(1)
Stock Exchanges	617	(4)
U.S. Exchanges	617	(2)
Securities Regulations and the Securities and Exchange Commission	619	(1)
Legal Briefcase: Getting the ``Inside'' Story	620	(1)
Making Ethical Decisions: What Will It Be: Your Bark or Your Bite?	621
Global Stock Exchanges	620	(1)
How to Invest in Securities	621	(4)
Reaching Beyond Our Borders: It Really Is a Small World	622	(1)
Investing Online	623	(1)
Spotlight on Small Business: Getting Your Money's Worth	623	(1)
Choosing the Right Investment Strategy	624	(1)
Investing in Bonds	625	(1)
Investing in Stocks	625	(2)
Stock Splits	626	(1)
Investing in Mutual Funds	627	(2)
Diversifying Investments	628	(1)
Investing in High-Risk Investments	629	(2)
Investing in High-Risk (Junk) Bonds	629	(1)
Buying Stock on Margin	629	(1)
Investing in Commodities	629	(2)
Understanding Information from Securities Markets	631	(10)
Understanding Bond Quotations	631	(1)
Understanding Stock Quotations	631	(2)
Understanding Mutual Fund Quotations	633	(1)
Stock Market Indicators	633	(1)
The Market's Roller-Coaster Ride	634	(1)
Investing Challenges in the 21st-Century Market	635	(6)
Casing the Web: Making Dreams Come True www.mhhe.com/ub7e
Video Case: A Fool and His Money: Motley Fool	641	(1)
Understanding Money and Financial Institutions	642	(26)
Profile: Getting to Know Alan Greenspan, Chairman of the Federal Reserve	643	(1)
Why Money Is Important	644	(3)
What Is Money?	644	(1)
Changing the Currency in Europe	645	(1)
What Is the Money Supply?	645	(1)
Why Does the Money Supply Need to Be Controlled?	646	(1)
The Global Exchange of Money	646	(1)
Control of the Money Supply	647	(3)
Basics about the Federal Reserve	647	(1)
The Reserve Requirement	648	(1)
Open-Market Operations	649	(1)
The Discount Rate	649	(1)
The Federal Reserve's Check-Clearing Role	649	(1)
The History of Banking and the Need for the Fed	650	(2)
Banking and the Great Depression	657
The Federal Reserve and the Banking Industry	652	(1)
The American Banking System	652	(5)
Commercial Banks	652	(2)
Making Ethical Decisions: To Tell the Teller or Not	654	(1)
Savings and Loan Associations (S&Ls)	654	(1)
Spotlight on Small Business: Where Can Entrepreneurs Go to Get Financing?	655	(1)
Credit Unions	655	(1)
Other Financial Institutions (Nonbanks)	655	(2)
How the Government Protects Your Funds	657	(1)
The Federal Deposit Insurance Corporation (FDIC)	657	(1)
The Savings Association Insurance Fund (SAIF)	657	(1)
The National Credit Union Administration (NCUA)	657	(1)
The Future of Banking	658	(3)
Ethical Issues Hurt Banking Deeply	658	(1)
Electronic Banking on the Internet	658	(1)
Dealing with Change: The Internet and Global Banking	659	(1)
Using Technology to Make Banking More Efficient	659	(2)
International Banking and Banking Services	661	(6)
Leaders in International Banking	661	(1)
The World Bank and the International Monetary Fund (IMF)	662	(1)
Reaching Beyond Our Borders: The ``Bank of Crooks and Criminals, Incorporated''	663	(4)
Casing the Web: Learning about the Federal Reserve System www.mhhe.com/ub7e
Video Case: A Reputation You Can Bank On: Bank One	667	(1)
Managing Personal Finances to Achieve Financial Security	668	(37)
Profile: Getting to Know Today's Billionaires	669	(1)
The Need for Personal Financial Planning	670	(4)
Financial Planning Begins with Making Money	670	(1)
Six Steps in Learning to Control Your Assets	670	(4)
Building Your Financial Base	674	(6)
Real Estate: A Relatively Secure Investment	675	(1)
Spotlight on Small Business: Financing for Tom, Dick, but Not Mary	675	(2)
Where to Put Your Savings	677	(1)
Learning to Manage Credit	678	(1)
Dealing with Change: Give Me Credit or Give Me Death	679	(1)
Making Ethical Decisions: Giving Credit Cards to Students	680	(1)
Protecting Your Financial Base: Buying Insurance	680	(2)
Health Insurance	681	(1)
Homeowners or Renter's Insurance	682	(1)
Other Insurance	682	(1)
Planning Your Retirement	682	(10)
Social Security	682	(1)
Individual Retirement Accounts (IRAs)	683	(1)
401 (k) Plans	684	(2)
Keogh Plans	686	(1)
Financial Planners	687	(1)
Estate Planning	687	(5)
Casing the Web: Becoming Financially Secure www.mhhe.com/ub7e
Video Case: So You Want to be a Millionaire: Edward Jones	692	(1)
Appendix: Managing Risk	693	(12)
Part 7 Career Portfolio	705	(1)
Chapter Notes
Glossary
Photo Credits
Name Index
Organization Index
Subject Index