A A At. Business Essentials

Transcription

1 A A At Business Essentials Ronald J. Ebert Ricky W. Griffin Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

2 CONTENTS Part I: The Contemporary Business World Chapter 1: The U.S. Business Environment 2 Chapter Opening Case: What Goes Up... Can Go Even Higher! 3 The Concept of Business and the Concept of Profit 4 The External Environments of Business 4 Domestic Business Environment 4 Global Business Environment 4 Technological Environment 4 Political-Legal Environment 5 Sociocultural Environment 5 Economic Environment 5 Economic Systems 5 Factors of Production 5 Types of Economic Systems 6 Managing in Turbulent Times: What Goes Around... 7 The Economics of Market Systems 9 Demand and Supply in a Market Economy 9 Private Enterprise and Competition in a Market Economy 11 Entrepreneurship and New Ventures: Business... and Pleasure 12 Economic Indicators 13 Economic Growth, Aggregate Output, and Standard of Living 13 Economic Stability 17 Managing the U.S. Economy 18 End-of-Chapter Review: Questions and s 19 Online content mybizlab.com: Self-check Questions Exercising Your Ethics: Team Video Chapter 2: Business Ethics and Social Responsibility 20 Chapter Opening Case: Under the Guise of Green 21 Ethics in the Workplace 22 Individual Ethics 22 Business and Managerial Ethics 22 Managing in Turbulent Times: Justwhen They Need It Most 23 Assessing Ethical Behavior 24 Company Practices and Business Ethics 25 Entrepreneurship and New Ventures: The Electronic Equivalent of Paper Shredding 26 Social Responsibility 26 The Stakeholder Model of Responsibility 26 Contemporary Social Consciousness 27 Areas of Social Responsibility 28 Responsibility Toward the Environment 28 Responsibility Toward Customers 28 Responsibility Toward Employees 30 Responsibility Toward Investors 31 Implementing Social Responsibility Programs 32 Approaches to Social Responsibility 32 Managing Social Responsibility Program 34 Social Responsibility and the Small Business 34 End-of-Chapter Review: Questions and s 35 Exercising Your Ethics: Team Video Chapter 3: Entrepreneurship, New Ventures, and Business Ownership 36 Chapter Opening Case: Harvard Dropout Turned Billionaire 37

3 What Is a "Small" Business? 38 The Importance of Small Business in the U.S. Economy 38 Popular Areas of Small-Business Enterprise 39 Entrepreneurship 40 Managing in Turbulent Times: The Wide World of Risk 40 Entrepreneurial Characteristics 41 Starting and Operating a New Business 41 Crafting a Business Plan 41 Starting a Small Business 42 Financing a Small Business 43 Trends, Successes, and Failures in New Ventures 43 Trends in Small-Business Start-ups 43 Reasons for Failure 44 Entrepreneurship and New Ventures: The Road to Recovery 45 Reasons for Success 45 Noncorporate Business Ownership 46 Sole Proprietorships 46 Partnerships 46 Cooperatives 47 Corporations 47 The Corporate Entity 48 Types of Corporations 48 Managing a Corporation 49 Special Issues in Corporate Ownership 50 End-of-Chapter Review: Questions and s 51 Exercising Your Ethics: Team Video Chapter 4: The Global Context of Business 52 Chapter Opening Case: A Truly Universal Studio 53 The Contemporary Global Economy 54 The Major World Marketplaces 54 Trade Agreements and Alliances 56 Import-Export Balances 57 Exchange Rates 59 Forms of Competitive Advantage 60 Entrepreneurship and New Ventures: Rolling in the Worldwide Dough 60 International Business Management 61 Going International 61 Levels of International Involvement 62 International Organization Structures 63 Managing in Turbulent Times: The Ups and Downs of Globalization 64 Barriers to International Trade 65 Social and Cultural Differences 65 Economic Differences 65 Legal and Political Differences 65 End-of-Chapter Review: Questions and s 67 Exercising Your Ethics: Team Video Part II: The Business of Managing Chapter 5: Business Management 68 Chapter Opening Case: Google Keeps Growing 69 Who Are Managers? 70 The Management Process 71 Planning 71 Organizing 71 Leading 72 Controlling 72 Types of Managers 73 Levels of Management 73 Areas of Management 73 Basic Management Skills 74 Technical Skills 74 Human Relations Skills 74 Conceptual Skills 74 Decision-Making Skills 75 Time Management Skills 75 Management Skills for the Twenty-first Century 75 Strategic Management: Setting Goals and Formulating Strategy 76 Setting Business Goals 76

4 Entrepreneurship and New Ventures: Samuel Adams Makes Headway 77 Types of Strategies 78 Formulating Strategy 78 Managing in Turbulent Times: Best Buy- Built to Last 80 A Hierarchy of Plans 81 Contingency Planning and Crisis Management 81 Contingency Planning 82 Crisis Management 82 Management and the Corporate Culture 82 End-of-Chapter Review: Questions and s 83 Online content ntybizlab.com:self-check Questions Exercising Your Ethics: Team Video Chapter 6: Organizing the Business 84 Chapter Opening Case: PepsiCo's Performance with Purpose 85 What Is Organizational Structure? 86 Organization Charts 86 Determinants of Organizational Structure 86 The Building Blocks of Organizational Structure 87 Specialization 87. Departmentalization 88 Managing in Turbulent Times: Force-feeding the Market 89 Establishing the Decision-Making Hierarchy 90 Distributing Authority: Centralization and Decentralization 90 The Delegation Process 92 Three Forms of Authority 92 Basic Forms of Organizational Structure 94 Functional Structure 94 Divisional Structure 94 Matrix Structure 95 Entrepreneurship and New Ventures: Making the Grade 95 International Structure 97 Organizational Design for the Twenty-first Century 97 Informal Organization 98 Intrapreneuring 98 End-of-Chapter Review: Questions and s 99 Exercising Your Ethics: Team Video Chapter 7: Operations Management and Quality 100 Chapter Opening Case: When Peanut Spreads Go Bad, Oh My! 101 What Does Operations Mean Today? 102 Creating Value Through Operations 102 Differences Between Service and Goods Manufacturing Operations 103 Operations Processes 104 Business Strategy as the Driver of Operations 104 The Many Faces of Production Operations 105 Operations Planning 106 Entrepreneurship and New Ventures: From a Missouri Garage to Hollywood 106 Capacity Planning 107 Location Planning 107 Layout Planning 107 Quality Planning 108 Methods Planning 108 Operations Scheduling 109 The Master Production Schedule 109 Detailed Schedules 109 Staff Schedules and Computer-Based Scheduling 109 Project Scheduling 110 Operations Control 110 Materials Management 111 Quality Control 112 Quality Improvement and Total Quality Management 112 Managing for Quality 113

5 Managing in Turbulent Times: Will Leaner Operations Restore the U.S. Auto Industry? 113 Tools for Total Quality Management 114 Adding Value Through Supply Chains 115 The Supply Chain Strategy 115 Outsourcing and Global Supply Chains 116 End-of-Chapter Review: Questions and s 117 Exercising Your Ethics: Team Video Part III: People in Organizations Chapter 8: Employee Behavior and Motivation 118 Chapter Opening Case: What's the Deal about Work? 119 Forms of Employee Behavior 120 Performance Behaviors 120 n Organizational Citizenship 120 Counterproductive Behaviors 120 Managing in Turbulent Times: Tragedy in the Workplace 121 Individual Differences among Employees 122 Personality at Work 122 Attitudes at Work. 123 Matching People and Jobs 123 Psychological Contracts 123 The Person-Job Fit 124. Basic Motivation Concepts and Theories 124 Classical Theory 124 Early Behavioral Theory 124 Contemporary Motivation Theory 126 Strategies and Techniques for Enhancing Motivation 127 Reinforcement/Behavior Modification 128 Using Goals to Motivate Behavior 128 Entrepreneurship and New Ventures: Extreme Employee Empowerment 128 Participative Management and Empowerment 129 ' Team Structures 129 Job Enrichment and Job Redesign 129 Modified Work Schedules 130 End-of-Chapter Review: Questions and s 131 Exercising Your Ethics: Team Video Chapter 9: Leadership and Decision Making 132 Chapter Opening Case: Leadership Stretched to the Brink 133 The Nature of Leadership 134 Early Approaches to Leadership 135 Trait Approaches to Leadership 135 Behavioral Approaches to Leadership 135 The Situational Approach to Leadership 136 Leadership through the Eyes of Followers 137 Transformational Leadership 137 Charismatic Leadership 138 Special Issues in Leadership 139 Leadership Substitutes 139 Leadership Neutralizers 139 The Changing Nature of Leadership 140 Leaders as Coaches 140 Managing in Turbulent Times: No More Secrets? 140 * Gender and Leadership 141 Cross-Cultural Leadership 141 Emerging Issues in Leadership 142 Strategic Leadership 142 Entrepreneurship and New Ventures: An Apple a Day 142 Ethical Leadership 143 Virtual Leadership 143 Leadership, Management, and Decision Making 143 Rational Decision Making 143, Behavioral Aspects of Decision Making 146 End-of-Chapter Review: Questions and s 147 Exercising Your Ethics: Team Video

6 Chapter 10: Human Resource Management and Labor Relations 148 Chapter Opening Case: The Temping ofamerica 149 The Foundations of Human Resource Management 150 The Strategic Importance of HRM 150 HR Planning 150 Staffing the Organization 151 Recruiting Human Resources 151 Selecting Human Resources 151 Entrepreneurship and New Ventures: Moving People to Move Movies 152 Developing the Workforce 153 Training 153 Performance Appraisal 153 Compensation and Benefits 154 Wages and Salaries 154 Incentive Programs 154 v Benefits Programs 155 The Legal Context of HRM 156 Equal Employment Opportunity 156 Managing in Turbulent Times: In Good Times and Bad 157 Contemporary Legal Issues in HRM 158 New Challenges in the Changing Workplace 159 Managing Workforce.Diversity 159 Managing Knowledge Workers. 159 Contingent and Temporary Workers 159 Dealing with Organized Labor 160 Unionism Today 160 Collective Bargaining 161 Reaching Agreement on Contract Terms 161 Contract Issues 161 When Bargaining Fails 162 End-of-Chapter Review: Questions and s 163 Online content mybizlab.com: Self-check Questions Exercising Your Ethics: Team Video Part IV: Principles of Marketing Chapter 11: Marketing Processes and Consumer Behavior 164 Chapter Opening Case: Starbucks Brews a New Marketing Mix 165 What Is Marketing? 166 Providing Value and Satisfaction 166 Goods, Services, and Ideas 166 The Marketing Environment 167 Managing in Turbulent Times: Feeling the Pressure for "Green" 168 Strategy: The Marketing Mix 169 Target Marketing and Market Segmentation 170 Identifying Market Segments 171 Understanding Consumer Behavior 171 Influences on Consumer Behavior 172 The Consumer Buying Process 172 Organizational Marketing and Buying Behavior 173 Business Marketing 173 B2B Buying Behavior 173 What Is a Product? 174 The Value Package 174 Classifying Goods and Services 174 The Product Mix 174 Developing New Products 175 Product Mortality Rates 175 Product Life Cycle 176 Identifying Products 176 Branding Products 177 Packaging Products 178 The International Marketing Mix 178 International Products 178 International Pricing 179 International Distribution 179 International Promotion 179 Small Business and the Marketing Mix 179 Entrepreneurship and New Ventures: Social Networking for Job Opportunities in Tough Times 180

7 End-of-Chapter Review: Questions and s 181 Exercising Your Ethics: Team Video Chapter 12: Pricing, Distributing, and Promoting Products 182 Chapter Opening Case: itunes Is It 183 Determining Prices 184 Pricing to Meet Business Objectives 184 Price-Setting Tools 184 Pricing Strategies and Tactics 186 Pricing Strategies 186 Pricing Tactics 186 The Distribution Mix 187 Intermediaries and Distribution Channels 187 Wholesaling 189 Retailing 189 Types of Retail Outlets 189 Nonstore Retailing 190 Entrepreneurship and New Ventures: Doing Good in a Bad Economy: wowowow! 190 j Online Shopping Agents 191 Electronic Retailing 191 Physical Distribution 192 Warehousing Operations 192 Transportation Operations 192 Distribution as a Marketing Strategy 193 Managing in Turbulent Times: Getting a Stimulus Boost with Pricing and Promotion 193 The Importance of Promotion 194 Promotional Objectives 194 The Promotional Mix 194 Advertising Promotions 195 Personal Selling 195 Sales Promotions 196 Publicity and Public Relations 197 End-of-Chapter Review: Questions and s 197 Exercising Your Ethics: Team Video Part V: Managing Information Chapter 13: Information Technology for Business 198 Chapter Opening Case: Online Pirates Feast on Economic Downturn 199 IT Impacts 200 Creating Portable Offices: Providing Remote Access to Instant Information 200 Enabling Better Service by Coordinating Remote Deliveries 200 Creating Leaner, More Efficient Organizations 200 Enabling Increased Collaboration 200 Enabling Global Exchange 201 Improving Management Processes 201 Providing Flexibility for Customization 201 Providing New Business Opportunities 201 Improving the World and Our Lives 202 IT Building Blocks: Business Resources 202 The Internet and Other Communication Resources 203 Networks: System Architecture 204 Hardware and Software 205 Managing in Turbulent Times: When Cash Gets Scarce, Businesses Switch to Internet Bartering 206 Information Systems: Harnessing the Competitive Power of IT 207 Leveraging Information Resources: Data Warehousing and Data Mining 207 Entrepreneurship and New Ventures: LaidOffCamp: Silver Lining, in a Stormy Recession? 208 Types of Information Systems 209 IT Risks and Threats 210 Hackers 210 Identity Theft 211 Intellectual Property Theft 211 Computer Viruses, Worms, and Trojan Horses 211 Spy ware 211 Spam 211 IT Protection Measures 212 Preventing Unauthorized Access: Firewalls 212 Preventing Identity Theft 212 Preventing Viruses: Anti-Virus Software 212 Protecting Electronic Communications: Encryption Software 212 Avoiding Spam and Spyware 212

8 End-of-Chapter Review: Questions and s 213 Exercising Your Ethics: Team Video Chapter 14: The Role of Accountants and Accounting Information 214 Chapter Opening Case: CSLWallStreet 215 What Is Accounting, and Who Uses ^ Accounting Information? 216 Who Are Accountants and What Do They Do? 216 Financial versus Managerial Accounting 216 Certified Public Accountants 216 Private Accountants and Management Accountants 218 Forensic Accountants 218 Federal Restrictions on CPA Services and Financial Reporting: Sarbox 219. The Accounting Equation 219 Financial Statements 220 Balance Sheets 221 Income Statements 222 Statements of Cash Flows 223 The Budget: An Internal Financial Statement 224 Reporting Standards and Practices 224 Managing in Turbulent Times: The "Fairness"Dilemma: What's an Asset's Real Value? 225 Analyzing Financial Statements 226 Solvency Ratios: Borrower's Ability to Repay Debt 226 Profitability Ratios: Earnings Power for Owners 227 Entrepreneurship and New Ventures: How Will Twitter - Turn Tweets into Treasure? 227 Activity Ratios: How Efficiently Is the Firm Using Its Resources? 228 Bringing Ethics into the Accounting Equation 228 Why Accounting Ethics? 228 End-of-Chapter Review: Questions and s 229 Exercising Your Ethics: Team Video Part VI: Financial Issues Chapter 15: Money and Banking 230 Chapter Opening Case: Banking Systems Crash in "Perfect Storm" 231 What Is Money? 232 The Characteristics of Money 232 The Functions of Money 232 M-1: The Spendable Money Supply 233 M-2: M-1 Plus the Convertible Money Supply 233 The U.S. Financial System 234 Financial Institutions 234 The Growth of Financial Services 235 Managing in Turbulent Times: Getting Serious with Credit Standards 236 Financial Institutions as Creators of Money 237 Regulation of the Banking System 237 The Federal Reserve System 238 The Structure of the Fed 238 The Functions of the Fed 239 The Tools of the Fed 240 The Changing Money and Banking System 241 Government Intervention for Stabilizing the U.S. Financial System 241 Anti-Crime and Anti-Terrorism Regulations 241 The Impact of Electronic Technologies 242 Entrepreneurship and New Ventures: Sowing the Seeds for a Green Bank 242 International Banking and Finance 244 The International Payments Process 244 International Bank Structure 244 End-of-Chapter Review: Questions and s 245 Exercising Your Ethics: Team Video Chapter 16: Managing Finances 246 Chapter Opening Case: Investing in Green 247 Maximizing Capital Growth 248 The Time Value of Money 248

9 Common Stock 248 Mutual Funds and Exchange-Traded Funds 249 The Business of Trading Securities 250 Stock Exchanges 251 Non-Exchange Trading: Electronic Communication Networks 252 Individual Investor Trading 252 Tracking the Market Using Stock Indexes 253 Entrepreneurship and New Ventures: An Entrepreneurship of Evil 254 The Risk-Return Relationship -255 Investment Dividends (or Interest), Appreciation, and Total Return 256 Reducing Risk with Diversification and Asset Allocation 256 Financing the Business Firm 257 Secured Loans for Equipment 257 Working Capital and Unsecured Loans from Banks 257 Angel Investors and Venture Capital 257 : Sale of Corporate Bonds 258 Becoming a Public Corporation 259 Managing in Turbulent Times: Staying Afloat in a Sea of Falling Home Values 259 Going Public Means Selling Off Part of the Company 260 Stock Valuation 260 Market Capitalization 261 Choosing Equity versus Debt Capital 262 Pros and Cons for Debt Financing 262 Pros and Cons for Equity Financing 262 End-of-Chapter Review: Questions and s 263 Exercising Your Ethics: Team Video Appendices Appendix I: Risk Management 264 Risk Management 264 Coping with Risk 264 Insurance as Risk Management 265 Appendix II: The Legal Context of Business 267 The U.S. Legal and Judicial Systems 267 Types of Law 267 The U.S. Judicial System 268 Business Law 268 Contract Law 268 Tort Law 269 Property Law 269 Agency Law 270 Commercial Law 270 Bankruptcy Law 271 The International Framework of Business Law 271 Appendix IH: Managing Your Personal Finances 272 Building Your Financial Plan 272 Assessing Your Current Financial Condition 272 Develop Your Financial Goals 272 Making Better Use of the Time Value of Money 273 Planning for the Golden Years 273 Time Value as a Financial-Planning Tool 274 Conserving Money by Controlling It 275 Credit Cards: Keys to Satisfaction or Financial Handcuffs? 275 Save Your Money: Lower Interest Rates and Faster Payments 276 Declining Asset Value: A Borrower's Regret 276 Financial Commitments of Home Ownership 276 How Much House Can You Afford? 276 Cashing Out from Tax Avoidance (Legally) 278 The IRA Tax Break 278 Protecting Your Net Worth 279 Notes, Sources, and Credits 281 Glindex 296