Foundations of business 3e by pride hughes

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DEAR STUDENTS, WELCOME TO THE THIRD EDITION OF FOUNDATIONS OF BUSINESS! This is where you can find out what it takes to be successful in today’s competitive business world Based on our many years of teaching and working with students, we know how hard it can be to start your career, get the promotion you really want, start your own business, or become the person you want to be That’s why we chose “SUCCESS” as the theme for this new edition It’s important to begin reading this text with one thing in mind: Learning about business and how you can become successful can be fun There is so much that is exciting about business—it affects virtually everything we do, from our work lives, to our politics, to even what we for entertainment So to really learn about business is never boring—because we are learning about ourselves Beginning in Chapter 1, we discuss what it takes to be successful in the workplace Then the theme of success is reinforced when we discuss the functional areas of business—management, marketing, information, accounting, and finance in the rest of the text In addition, important topics like ethics and social responsibility, forms of business ownership, and small business receive special attention and are highlighted throughout the third edition Learning about business and how you can become successful can be fun We’ve also done everything possible to eliminate the problems that students encounter in a typical class All the content and features in the text along with powerful online learning tools on the student companion Web site (www.cengagebrain.com) are designed not only to improve your grade in this course, but to help you to become a better employee, business owner, consumer, or investor Special features including Personal Apps, Building Skills for Career Success, and Social Networking are designed to help you apply information in each chapter to your life And the Test Yourself feature at the end of each chapter can help you prepare for exams We encourage you to examine the visual guide in the front of the book to see how the features in this new edition of Foundations of Business can help you learn about business We want you to be successful—in this course, in your career, and in your life! Finally, we invite you to email us if you need more information or if you have suggestions for improving this book Sincerely, Bill Pride, w-pride@tamu.edu Bob Hughes, bhughes@dcccd.edu Jack Kapoor, kapoorj@cdnet.cod.edu This page intentionally left blank This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest FOUNDATIONS OF BUSINESS 3E William M Pride Texas A&M University Robert J Hughes Dallas County Community Colleges Jack R Kapoor College of DuPage Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Foundations of Business, Third edition William M Pride, Robert J Hughes, Jack R. Kapoor Vice President of Editorial, Business: Jack W. Calhoun Publisher: Erin Joyner Acquisitions Editor: Jason Fremder Managing Developmental Editor: Joanne Dauksewicz Editorial Assistant: Meghan Fischer Marketing Manager: Michelle Lockard Content Project Manager: Darrell Frye Media Editor: Kristin Meere © 2013, 2011 South-Western, Cengage Learning ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Manufacturing Planner: Ron Montgomery Sr Marketing Communications Manager: Sarah Greber Production Service: MPS Limited, a Macmillan Company Sr Art Director: Stacy Jenkins Shirley ExamView® is a registered trademark of eInstruction Corp Windows is a registered trademark of the Microsoft Corporation used herein under license Macintosh and Power Macintosh are registered trademarks of Apple Computer, Inc used herein under license © 2013 Cengage Learning All Rights Reserved Internal and Cover Designer: KeDesign Cover Image: ©Artic-Images/Getty Cengage Learning WebTutor™ is a trademark of Cengage Learning Rights Acquisitions Specialist (text): Sam A. Marshall Library of Congress Control Number: 2011939830 Rights Acquisitions Specialist (image): Deanna Ettinger ISBN-13: 978-1-111-58015-5 ISBN-10: 1-111-58015-4 South-Western 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America 15 14 13 12 11 To Nancy, Allen, Mike, Ashley, and Charlie Pride To my wife Peggy and to my mother Barbara Hughes To my wife Theresa; my children Karen, Kathryn, and Dave; and in memory of my parents Ram and Sheela Kapoor BRIEF CONTENTS PART THE ENVIRONMENT OF BUSINESS Chapter Chapter Chapter PART 162 Understanding the Management Process 163 Creating a Flexible Organization 188 Producing Quality Goods and Services 210 240 Attracting and Retaining the Best Employees 241 Motivating and Satisfying Employees and Teams 270 MARKETING Chapter 11 Chapter 12 Chapter 13 PART Choosing a Form of Business Ownership 103 Small Business, Entrepreneurship, and Franchises 131 HUMAN RESOURCES Chapter Chapter 10 PART 102 MANAGEMENT AND ORGANIZATION Chapter Chapter Chapter PART Exploring the World of Business and Economics Being Ethical and Socially Responsible 34 Exploring Global Business 67 BUSINESS OWNERSHIP AND ENTREPRENEURSHIP Chapter Chapter PART 302 Building Customer Relationships Through Effective Marketing 303 Creating and Pricing Products that Satisfy Customers 330 Distributing and Promoting Products 366 MANAGING INFORMATION, ACCOUNTING, AND FINANCE Chapter 14 Chapter 15 Chapter 16 405 Understanding Information and e-Business 406 Using Accounting Information 439 Mastering Financial Management 468 iv 222 hot o1 ock p iSt st/ vou ren t da Lau © The following appendices appear on the companion site www.cengagebrain.com Appendix A: Understanding Personal Finances and Investments A-1 Appendix B: Careers in Business B-1 Appendix C: Enhancing Union-Management Relations C-1 Appendix D: Risk Management and Insurance D-1 Appendix E: Business Law, Regulation, and Taxation E-1 883 Notes N-1 Answer Key AK-1 Glossary G-1 Name Index NI-1 Subject Index SI-1 CONTENTS CHAPTER 1: EXPLORING THE WORLD OF BUSINESS AND ECONOMICS CHAPTER 2: BEING ETHICAL AND SOCIALLY RESPONSIBLE 34 Inside Business: The Walt Disney Company’s Script for Inside Business: Eco-Friendly Cars Become Big Business 35 Blockbuster Business Results Your Future in the Changing World of Business Business Ethics Defined 36 Ethical Issues 36 Why Study Business?, Career Success: Clicking Your Career into High Gear Spotlight: How Important Are Employee Benefits? Special Note to Students, Business: A Definition 10 The Organized Effort of Individuals, 10 • Satisfying Needs, 10 • Business Profit, 11 Types of Economic Systems 12 Capitalism, 13 • Capitalism in the United States, 14 • Command Economies, 16 Measuring Economic Performance 17 The Importance of Productivity in the Global Marketplace, 17 • Important Economic Indicators that Measure a Nation’s Economy, 18 The Business Cycle 20 Types of Competition 21 Perfect Competition, 21 • Monopolistic Competition, 23 • Oligopoly, 23 • Monopoly, 24 American Business Today 24 Early Business Development, 24 • Business Development in the 1900s, 25 • A New Century: 2000 and Beyond, 26 Entrepreneurial Success: Meet Scott Heiferman, Meetup Entrepreneur 26 The Current Business Environment, 27 Sustain the Planet: Avon Says: “Hello Green Tomorrow” 27 The Challenges Ahead, 28 Summary 29 Key Terms 30 Discussion Questions 30 Test Yourself 31 Video Case: Entertainment Means Profits for Nederlander Concerts 32 Building Skills for Career Success 33 © Jim Jurica/iStockphoto 497781 PART THE ENVIRONMENT OF BUSINESS Fairness and Honesty, 37 • Organizational Relationships, 37 • Conflict of Interest, 38 • Communications, 38 Factors Affecting Ethical Behavior 38 Individual Factors Affecting Ethics, 38 • Social Factors Affecting Ethics, 39 Ethical Challenges & Successful Solutions: Green or Greenwashing? 39 “Opportunity” as a Factor Affecting Ethics 40 Encouraging Ethical Behavior 40 Government’s Role in Encouraging Ethics, 40 • Trade Associations’ Role in Encouraging Ethics, 41 • Individual Companies’ Role in Encouraging Ethics, 41 Social Responsibility 44 Going for Success: American Express “Crowdsources” Philanthropy 46 The Evolution of Social Responsibility in Business 47 Historical Evolution of Business Social Responsibility, 47 Two Views of Social Responsibility 49 The Economic Model, 49 • The Socioeconomic Model, 49 • The Pros and Cons of Social Responsibility, 49 Sustain the Planet: Sustainability 50 Consumerism 51 The Six Basic Rights of Consumers, 51 • Major Consumerism Forces, 52 Employment Practices 54 Affirmative Action Programs, 54 • Training Programs for the Hard-Core Unemployed, 55 Concern for the Environment 56 Effects of Environmental Legislation, 57 Spotlight: Recession and Responsibility 58 Who Should Pay for a Clean Environment?, 60 Implementing a Program of Social Responsibility 60 Developing a Program of Social Responsibility, 60 • Funding the Program, 61 v Summary 62 Key Terms 63 Discussion Questions 63 Test Yourself 63 Video Case: Scholfield Honda—Going Green with Honda 65 Building Skills for Career Success 65 CHAPTER 3: EXPLORING GLOBAL BUSINESS 67 Inside Business: PepsiCo Gobbles Up Growth in Global Markets 68 The Basis for International Business 69 Absolute and Comparative Advantage, 69 • Exporting and Importing, 70 Restrictions to International Business 71 Types of Trade Restrictions, 72 • Reasons for Trade Restrictions, 74 • Reasons Against Trade Restrictions, 75 The Extent of International Business 75 The World Economic Outlook for Trade, 76 Career Success: Today’s Global Career Path 78 International Trade Agreements 79 The General Agreement on Tariffs and Trade and the World Trade Organization, 79 Spotlight: Leading Exporters in World Merchandise Trade, 2009 79 PART Methods of Entering International Business 84 Licensing, 84 • Exporting, 85 Going for Success: LEGO Builds on Licensing for Global Growth 85 Joint Ventures, 87 • Totally Owned Facilities, 87 • Strategic Alliances, 87 • Trading Companies, 88 • Countertrade, 88 • Multinational Firms, 88 Sources of Export Assistance 90 Financing International Business 90 The Export-Import Bank of the United States, 91 • Multilateral Development Banks, 91 Sustain the Planet: Selling Eco-Friendly Goods, Services, and Technologies 91 The International Monetary Fund, 92 Summary 92 Key Terms 93 Discussion Questions 93 Test Yourself 94 Video Case: Evo: Creatively Exceeding Customer Expectations Here and Abroad 95 Building Skills for Career Success 96 Running a Business: Part 1: Let’s Go Get a Graeter’s! 97 Building a Business Plan: Part 99 BUSINESS OWNERSHIP AND ENTREPRENEURSHIP 102 CHAPTER 4: CHOOSING A FORM OF BUSINESS OWNERSHIP 103 Inside Business: Raising Cane’s Serves Up Small Business Success 104 Sole Proprietorships 105 Advantages of Sole Proprietorships, 105 • Disadvantages of Sole Proprietorships, 107 Entrepreneurial Success: Student Business Incubators 108 Beyond the Sole Proprietorship, 108 Partnerships 108 Types of Partners, 109 Social Media: Going Social with SCORE 109 The Partnership Agreement, 110 • Advantages of Partnerships, 111 • Disadvantages of Partnerships, 112 • Beyond the Partnership, 112 Corporations 113 Corporate Ownership, 113 • Forming a Corporation, 114 • Corporate Structure, 116 • Advantages of Corporations, 116 • Disadvantages of Corporations, 117 Spotlight: Business Profits 117 Special Types of Business Ownership 119 S-Corporations, 119 • Limited-Liability Companies, 119 • Not-for-Profit Corporations, 120 Going for Success: Growth through Global Joint Ventures 121 Joint Ventures and Syndicates 121 Joint Ventures, 121 • Syndicates, 122 vi World Trade and Global Economic Crisis, 81 • International Economic Organizations Working to Foster Trade, 81 Corporate Growth 122 Growth from Within, 122 • Growth Through Mergers and Acquisitions, 122 • Merger and Acquisition Trends During an Economic Crisis, 124 Summary 125 Key Terms 126 Discussion Questions 126 Test Yourself 127 Video Case: Annie’s Homegrown: A Corporation with Entrepreneurial Spirit 128 Building Skills for Career Success 129 CHAPTER 5: SMALL BUSINESS, ENTREPRENEURSHIP, AND FRANCHISES 131 Inside Business: Small Businesses Get Boost from Big Business 132 Small Business: A Profile 133 The Small-Business Sector, 133 • Industries that Attract Small Businesses, 134 The People in Small Businesses: The Entrepreneurs 135 Characteristics of Entrepreneurs, 135 • Other Personal Factors, 136 • Motivation, 136 • Women as Small-Business Owners, 136 Career Success: Looking for an Internship? Think Small 137 Teenagers as Small-Business Owners, 137 • Why Some Entrepreneurs and Small Businesses Fail, 138 The Importance of Small Businesses in Our Economy 139 Contents Canon, Inc., 231 Cap Gemini Ernst & Young, 186 Capital One Financial, 340 Career Builder, Career One Stop, Cargill Corn Milling North America, 226 Caribbean Basin Initiative (CBI), 84 Carl’s Jr., 153 Carnival Cruise Lines, Carpenter, Jake Burton, 236 Carter, Jimmy, 83 Casserly, Meghan, 175f Caterine, Melinda J., 180f Caterpillar, Inc., 78, 482 Cato Institute, 70 Cengage Learning, 342 Center for Trade Policy, Cato Institute, 70 Central American Free Trade Agreement (CAFTA), 83 Central European Free Trade Association, 77 Century 21 Real Estate, 153 Challenger, Gray & Christmas, 252 Challenger, John, 252 Character of a Corporation, The (Goffee and Jones), 202f Charles Schwab Financial Services, 416 Charles Schwab Foundation, 46 Chase Bank, 479 Chevrolet Company, 353 Chevron, 215 Christakos, John, 364 Chrysler Group, 119, 192 Chu, Steven, 487 Church & Dwight, 458 Church’s Chicken, 152 CIO Insight, 228f Circle K Stores, 374 Cisco Systems, 288, 420 Citibank, 215 Citigroup, 132, 488 Civil Rights Act of 1964, 54 Clancy, Heather, 431f Clarke, Richard T., 47 Clean Air Act, 59 Clean Water Act, 57 Clemson University, 136 clickz.com, 341f Clinton, William J., 52, 83, 90 Clorox, Inc., 340, 458 Club Penguin children’s Internet site, CNet News, 486f Coca-Cola Company, 49, 58, 150, 218, 257, 337, 340, 344, 434 Cohn, Michael, 443f Coker, Ralph, 137f Colgate-Palmolive, 49, 87, 458 Colorado Business, 203f Columbia Gas, 147 Columbia Pictures Entertainment, 87 Colvin, Geoff, 196f Committee for the Implementation of Textile Agreements, 74 Common Market of the Southern Cone (MERCOSUR), 84 Commonwealth of Independent States (former USSR), 81, 84 Compaq Computer Corp., 149 Computer Industry Almanac, 428 ComputerWeekly, 459f ComputerWorld, 418f ConAgra, 351 Condé Nast Publications, 338 Consolidated Edison, 485 Consorzio Foods, 129 Consumer Affairs, Container Store, The, 429 NI-2 Contemporary Advertising (Arens, Weigold, and Arens), 387f Cool Whip, Inc., 346 Cooper, Cynthia, 43 Copley Pharmaceuticals, Inc., 36 Copycat Cupcakes Don’t Cut It (McMath), 342f Corcodikes, Nick, 250f Corpus Christi Caller Times, 137f Costco, Inc., 128, 373, 375 Council on Foreign Relations, 27 Cox, Taylor H., 246f Cracker Barrel Old Country Stores, 10 Crain’s Detroit Business, 418f Crain’s New York Business, 418f Creative Display Solutions, 138 CRM Magazine, 85f Cuban, Mark, Curtin, Mary Liz, 369 Curves Fitness Centers, 151–152 Customer Relationship Magazine, 129 CVS Caremark, Inc., 373 D Daft, Richard L., 246f Daily Record, The, Dairy Queen, 149, 151 Davis, Keith, 50f Davis, Wendy, 320f DeBalse, Colleen, 486f De Beers, Inc., 344 Decker, Sam, 203f Deepwater Horizon oil spill, 58 Deere & Company, 37 Dell Computer Corporation, 31, 202, 232, 341, 345, 368, 429 Dell Foundation, 45 Del Monte, 362 Deloitte Touche Tohmatsu, 78, 287, 399, 446–447, 459 Delphi Automotive Systems Corporation, 60 Demeter, Steve, 418 Demuth, Lee G., III, 341f Denman, George, 403 Denny’s Restaurants, 315 Deshpande, Abhijeet, 488f Dingell, John, 37 Dinsmore, David, 252f DirectTV, 357 Dish Network Corporation, 475 Disney, Roy, Disney, Walt, Disney Interactive Media Group, Diversity-Business.com, 109 Dizzy Dean’s Beef and Burgers, 152 DLA Piper Technology Leaders Forecast, 318f Doctor’s Associates, 152 Dodd-Frank Wall Street Reform and Consumer Protection Act, 473 Dodge Motor Company, 353 Dolan, Kerry A., 46f Dollar General Stores, 367, 374 Domino’s Pizza, 304 Domsic, Melissa, 108f Donnelly, Tim, 355f Dooney & Bourke, 311 Dow Chemical Company, 88, 196, 291 Dowling, Daisy Wademan, 144f DPR Construction, 257 Drexel-Heritage furniture, 226 Dr Pepper/Seven-Up Companies, 150, 344 Drucker, Peter, 364 DuBois, Kathleen, 147 Dudley, Joe, 4–5, Dun & Bradstreet (D&B), 137, 320, 458, 489 Dunkin’ Donuts, 154, 180 Dunn, Andy, 285 Dunn, Patricia, 37 DuPont, Inc., 196 Duracell Batteries, 343 Durand, Douglas, 36 E Eastman Kodak, 146, 249 eBay, 290, 386, 424, 428 Ebbers, Bernard, 473 Eco-Business, 488f Economist, The, 170f E-Consultancy, 376f El-Badri, Abdalla Salem, 84 Eli Lilly & Co., Inc., 166, 193 Ellison, Larry, 122 eMarketer, 385f Endeavor Personal Concierge, 355 Energizer, Inc., 338 Engineering & Computer Simulations, Inc., 140 Engle v R J Reynolds, 36 English-Boswell, Chenille, 453 Enron, Inc., 39, 43, 441 Enterprise Development Group, 152 Entrepreneur magazine, 151 Environmental Leader, 39f Equal Employment Opportunity Commission (EEOC), 55, 251, 263 Ernst & Young, 268, 446–447, 459 ESPN sports network, Ethan Allen, 400 ETrade, 328 European Bank for Reconstruction and Development, 92 European Economic Area (EEA), 82 European Union (EU), 81–82 Evans, Dave, 341f Evans, Teri, 26 EvoGear.com, 95–96 Export-Import Bank, 90–91 ExxonMobil, 46, 124, 192, 244, 249, 418 F Facebook, 109, 124, 139–140, 167, 180, 208, 271, 304, 310, 316, 367, 376, 400, 403, 421, 429, 437, 459, 478, 486, 497 Fahrenheit 212, 340 Fallwell, Keren, 488f Fannie Mae, 138, 441 Fantastic Foods, 129 Fast Company, 309f Federal Communications Commission (FCC), 389 Federal Reserve, 20, 142 Federal Reserve Bank of St Louis, 79f Federal Reserve Bulletin, 413 Federal Trade Commission (FTC), 38–39, 154, 320, 377, 389 FedEx, Inc., 149, 271, 400 Ferrari, 290 Ferrell, O C., 39f, 313f, 314f, 317f, 359f, 383f, 3913f Fettig, Jeff, 268 Fidelity Investments, 416 Financial Times, 341f, 447f Fine Living Channel, 402 First Business Bank (CA), 143 Fitzsimmons, Caitlin, 388f Flannery, Matt, 111 Flavelle, Dana, 376f Flinders, Karl, 459f Flogging Molly, 495 Foden-Vencil, Kristian, 369f Food Network, 159, 402 Name Index Foot Locker, 375 Foraker, John, 129 Forbes, Thom, 342f Forbes magazine, 46f, 158, 175f, 320f Ford, Gerald, 52 Ford, Henry, 25 Ford, Henry II, 56 Ford Motor Company, 8, 18, 23, 35, 139, 200, 226, 245, 309, 316, 353, 427, 476, 487 Forrester Research, 428 Fortune magazine, 41, 109, 196f, 249–250, 257, 274, 341f, 413, 447 Fotolog.com, 26 Foundation for Enterprise Development, 298 Foundations of Marketing (Pride and Ferrell), 359f Fountain, Henry, 196f Fox Business, 369f Fox News Small Business Center, 137f Freddie Mac, 138 Frederick, William C., 50f Free Wave Technologies (CO), 282 French Connection, 376 Friedman, Thomas L., 69 Furman, Phyllis, 170f G Gabjhawala, Rekha, 153 Gallardo, Luis, 459f Gallup Organization, 152 Gamble, James, 113 Gap, Inc., 8, 375, 393 Garfield, Bob, 320f Gates Foundation, 121 Geico Insurance, 475 General Electric Company (GE), 45, 68, 114, 121, 146, 171, 196, 199, 213, 216, 227, 249, 274, 412, 418, 440, 472 General Mills, 12, 50, 56, 336, 340, 418 General Mills Foundation, 44 General Motors Company (GM), 23, 35, 87–88, 121–122, 141, 165, 336, 386, 469 Gerdes, Lindsey, 447f Gerstein, Joseph, 36 Get Your Share (Stav), Giant Food, 413 Gillette, 336 Girl Scouts of America, 121 Glader, Paul, 121f Glad Products Company, 215 Globe and Mail, The (Canada), 309f GNC (General Nutrition Centers), 149 Goffee, Rob, 202f Gogoi, Pallavi, 78f Goldman Sachs, 122 Gold Star Appliances, Inc., 478 Goodrich, Ben, 75 Google, Inc., 124, 130, 177, 196, 202, 228, 257, 271, 284, 418, 421–422, 428, 430–431 Goo Goo Dolls, 32 Goran, Leon, 185 Gorman, Leon, 298 Go-to-Market plan, 170 Gourmet magazine, 338 Govemment Accountability Office (GAO), 74 Graeter, Bob, 97–98, 160, 238, 300 Graeter, Charlie, 97 Graeter, Chip, 97, 160, 238, 300, 402 Graeter, Regina, 97 Graeter, Richard II, 160, 238, 300–301, 402, 497 Graeter’s, 97–98, 160, 238, 300, 402–403, 497–498 Graffort, Cindy, 208 Grainger, Inc., 371 Grass, Martin L., 43 Graves, Todd, 104 Name Index Great Clips hair salons, 154 Graeter’s, 160 GreenBiz.com, 196f Greene, Susan D., 253f Greener World Media, 288f Green Grid, 420 Greenhouse, Steven, 447f Greenpeace, 39 Gresham, Larry, 39f Griffin, Ricky W., 200f, 246f, 411f Griswold, Daniel T., 70 Grosnickle, Karolyn, 37 Groupon.com, 355 Group Swoop, 355 Gruma SA (Mexico), 87 Guitar Center, Inc., 391 Gunther, Marc, 341f H Häagen-Dazs, 98, 402 Haass, Richard, 27 Habitat for Humanity, 120 Halliburton, Inc., 39 Halvorsen, Elizabeth, 146 Hampp, Andrew, 316f Hard Rock Cafe, 221 Harrington, Emily, 146 Harrods (UK), 374 Hart, Ariel, 288f Hart, G J., 275 Harvard Business Review Blog, 144f Harvard Business School, 137 Harvard University, 138–140 Hasbro, Inc., 231 Hatten, Timothy, 144f Healthcare Financial Management Association, 41 Heiferman, Scott, 26 Hendricks, Brian, 137 Herrera, Tilde, 196f Hershey, Inc., 274, 340 Hertz Corporation, 151 Herzberg, Frederick, 276, 284 Hewlett-Packard Corp (HP), 31, 37, 49, 113, 219, 227 Hickins, Michael, 320f Hiebing, Inc (WI), 388 Hi-Media Group, 26 Hird, Jake, 376f Hispanic PR Wire, 116 History Channel, 402 Hitachi America, 50 H.J Heinz Company, 105, 164, 343, 346 Hlar, Corbin, 431f Hochberg, Fred P., 91 Holiday Inns, 151, 306 Home Depot, Inc., 132, 371, 373, 375, 399, 448 Homegrown Naturals, Inc., 129 Home Shopping Network (HSN), 377 Honda Motor Company, 23, 65, 170, 409 Honeywell, Inc., 227 Hoover, Inc., 425 Horatio Alger Award, Horsford, Simon, 216f Houston Community College, 167 H&R Block, 149 HR.BLR.COM, 247 HRWorld.com, 283f Hsu, Tiffany, 196f, 486f Hufbauer, Gary, 75 Huffington Post, 78f Hulu.com, 400 Hurricane Katrina, 44 H.W Wilson, Inc., 401 Hyatt Corporation, 176 Hyundai USA, 177 I IBM, Inc., 45, 65, 132, 146, 227, 345, 420 Illumina, Inc., 231 Immelt, Jeffrey R., 170, 171 Inc magazine, 147, 180f, 355f Industrial Revolution, 307 Information Resources, Inc., 320 Infosys Technologies (India), 424 InfoWorld, 478f Innovision Technologies, 135 Institute for International Economics, 75 Intel Corporation, 149 Inter-American Development Bank, 90–91 Intergovernmental Panel on Climate Change, 59 Internal Revenue Service (IRS), 119–120, 383 International Bank for Reconstruction and Development (IBRD), 91 International Development Association (IDA), 91 International Franchise Association, 154 International Monetary Fund (IMF), 76, 77f, 92 International Trade Loan program, SBA, 155 International Women’s Day, 46 Inter RAO (Russia), 121 Iosebashvili, Ira, 121f ISO (International Organization for Standardization), 227–228 i-traffic.com, 26 Ivey Planning Group, 108–109 J J Crew, 376 J P Morgan Chase, 122 Jackson, Lisa, 203f Jackson Hewitt tax services, 320 Jaguar, 44 Javelin Strategy and Research, 430 JCPenney, 105, 319, 376 Jell-O Brand Gelatin, 345 Jha, Sanjay, 58 Jobs, Steve, 178 Johnson, Lyndon B., 56 Johnson, William, 164 Johnson & Johnson, Inc., 114, 386, 417, 434 Jones, Gareth, 202f Jones, Huw, 443f Journal of American Academy of Business, 341f Journal of Marketing, 39f JP Morgan Chase, 488 Junior Achievement, 138 JustFares.com, 95 K Karisia safari firm (Kenya), 216 Kaufelt, Rob, 158 Kauffman, Raven, 137 Kazemi, Masoud Mir, 84 Kellogg’s, 192, 214, 319, 346 Kelzer, Gregg, 418f Kennedy, John F., 51, 80 Kepcher, Carolyn, 250f KFC (Kentucky Fried Chicken), 151 Kiger, Patrick J., 309f Kilduff, Angela, 355f Kiley, David, 316f Kimpton Hotels and Restaurants, 256–257 Kinsey, Matt, 285f Kirby, Inc., 376 Kiva.org, 111 NI-3 Kiviat, Barbara, 6, 309f Kmart Corporation, 196 Kmart Stores, 114, 305, 374, 399 KnowThis.com, 321f Koehn, Nancy F., 137 Kohl’s Stores, 425 Kolesnik, Kris, 43 Kontzer, Tony, 228f Korkki, Phyllis, 78f Kosova, Weston, 39f Kozlowski, Leo Dennis, 37 KPMG, 268, 440, 446–447, 459 Kraft Foods, 10, 129, 211, 319, 386, 444 Kroger Company, 97, 158, 160, 238, 373, 402–403 Krotz, Joanna L., 137f Krummer, Robert, Jr., 143 Kuen, Leng, 488f Kwe, Glenda, L LaFalce, John, 43 Lahontan Valley News (NV), 252f LaMonica, Martin, 486f Lamy, Pascal, 81 Lands’ End, 367, 376 Lansing State Journal, 108f La Prensa (Arguello), 108 Launching New Ventures: An Entrepreneurial Approach (Allen), 145f Lauper, Cyndi, 32 Leahy, Jordan, 144 Leanna’s Hair, Inc., 138 Learning Tree International, 268 Ledger, The (FL), 216f LEGO Group, 85, 170 Lehman Brothers, 441–442 Leon & Lulu (MI), 369 Levering, Robert, 447f Levi Srauss, 196 Lexis-Nexis, 320 Lexus, Inc., 343 Liebowitz, Matt, 478f Limbach, James, Lindblad Expeditions, 216 Lindquist, Lee, 65 LinkedIn, 180, 429, 459 Litow, Stanley S., 45 Little Guys, The, 466 Live Nation, 32 Liz Claiborne, Inc., 232 L.L Bean, Inc., 139, 185, 298, 306, 347, 367, 400 Lockheed Martin, 44, 227 Lohr, Steve, 320f L’Oréal, 386 Los Angeles Times, 137f, 196f, 486f Louisiana State University, 104 Lowe’s, Inc., 289, 373 Lublin, Joann S., 170f Lufthansa AG, 87 M MacMillan, Douglas, 418f Mac OS X operating system, 420 Macy’s, Inc., 367, 374, 399, 429 Mad Men (television program), 388 Madoff, Bernard, 37 Maggiano’s Little Italy restaurants, 218 Maitland, Alison, 447f Malcolm Baldridge National Quality Award, 226 Management (Daft), 246f Management (Griffin), 200f, 411f Management Review, 342f NI-4 Mancina, Saverio, 369f Marathon Oil Corporation, 214 Marchionne, Sergio, 119 Marilyn’s Gift Gallery and Sound Music World, 147 Marketing Concepts and Strategies (Pride and Ferrell), 313f, 314f, 317f, 383f, 391f Marketing magazine, 375f Marks, Richard, 37 Maroon 5, 32 Marriott International, 5, 147, 151, 345 Mars, Inc., 407 Marshall, Gary, 418f Marshall, John, 113 Marshall Field’s (IL), 374 Marshalls Stores, 375 Martel, Melanie C L., 253f Martha Stewart Living Omnimedia, 200 Marvel Entertainment, Marx, Karl, 17 Marya, Radhika, 26 Mary Kay Cosmetics, 368, 376 Mashable, 26 Maslow, Abraham, 274 Massachusetts Small Business Development Center, 155 Mattel, Inc., 21 Mattioli, Dana, 170f Maxim Integrted Products, Inc., 222 Mayo, Elton, 274 Mayo Clinic, 165 Mayrhuber, Wolfgang, 87 McCarron, Suzanne, 46 McCormick, Chris, 185 McDaniel de Andrade, Dixie, McDonald’s Corporation, 13, 67, 139, 149, 152, 153, 180, 191, 196, 198, 223, 315 McGregor, Douglas, 277–278 McKay, Lauren, 85f McMath, Robert, 342f McMillion, Denver, 147 McNulty, Suzy, 287 Media Post, 320f MediaShift, 431f Medicare, 36 Mercedes-Benz, 227, 306, 314 Merck & Co., Inc., 47 Miami Herald, 144f Michael and Susan Dell Foundation, 45 Michelin, Inc., 344 Michigan Office of Great Workplace Development, 283f Microsoft Corporation, 24, 50, 55, 65, 114, 189, 271, 291, 329, 418–420, 430–431, 434, 458, 482 Midvale Steel Company (PA), 272 Mills, Karen, 139, 148–149 Milwaukee Public Schools (WI), 45 MindBodyFitness, 355 Minority Business Development Agency, 146 Mir Mine (Russia), 69 Mission Local (CA), 355f Mission Minis, 355 MMR, 39f M&M’s candies, 407 Mobil33t iPhone app, 108 Modesto Academy of Music & Design, 148 Mom Corps of Miami, Monahan, Jane, 488f Money.CNN.com, 89f Monster.com, 5, 249 Montgomery Ward catalog, 376 Monthly Labor Review, 413 Moorhead, Gregory, 246f Morgan Stanley, 122 Morton Salt, 313 Moskowitz, Milton, 447f Motorola, Inc., 58, 182, 226–227, 344, 409 Mozilla, Inc., 291, 421 Mulally, Alan, 487 Murray’s Cheese, Inc., 158–159 MySpace, 208, 429 N Nabisco, Inc., 338 Nacher, Thomas, 342f Nader, Ralph, 52 Naked Juice, Inc., 347 Nanigan, Daniel J., 155 Nanmac Corporation, 155 Nardone, Paul, 129 NASA (National Aeronautics and Space Administration), 171 NASDAQ stock exchange, 37, 485 National Alliance of Business (NAB), 56 National Black McDonald’s Operators Association, 152 National Center for Employee Ownership, 289 National Consumers’ League, 52 National Export Initiative, 78 National Export Strategy (NES), 90–91 National Federation of Independent Business Foundation, 136f, 143f National Franchise Mediation Program, 153 National Ice Cream Month, 403 National Small Business Person of the Year award, 139 National Small Business Week, 149 National Trade Data Bank, 96 National Trust for Historic Preservation, 46 National Whistle Blower Center, 43 Nederlander Concerts, 32–33, 495 Needleman, Sarah H., 6, 175f, 369f Nestlé, 211, 226, 328–329, 340 Netflix video rentals, 315, 377 NetGrocer.com, 329 Newsweek, 39f New United Motor Manufacturing, Inc (NUMMI), 88 New York Daily News, 170f, 250f New York Life Insurance, 214 New York Magazine, 26 New York Stock Exchange (NYSE), 469, 485 New York Times, 78f, 228f, 320f, 447f New York Times Education Life Supplement, 196f New York Yankees, 221 NFL football, 407 Nicole Miller, Inc., 319 Nielsen marketing research, 321, 421f Nike, Inc., 189, 199, 311, 342, 343 Nisource, Inc., 147 Nissan Motor Company, 23, 35, 170, 311 Nixon, Richard, 37 Noise Control Act of 1972, 59–60 Nokia, 189 Nortel Networks Corporation, 38 North American Free Trade Agreement (NAFTA), 83, 96 Northrup Grumman Corporation, 227 Northwestern University, 144 Numi Organic Tea, 208 NYSE Euronext holding company, 485 O Obama, Barack, 43, 78, 149, 473 Observer, The (UK), 216f Occupational Outlook Handbook, 447 Office Depot, Inc., 375 OfficeMax, 313–314 Office of the U.S Trade Representative, 83 Name Index Olay, 322 Old Navy, 393 Old School Forest Preserve (IL), 58 Olyai, Nikki, 135 O’Malley, Martin, 55 Oneida, Inc., 231 Open Pantry Stores, 374 Oprah Winfrey Show, 4, 402–403 Oracle Corporation, 122 Orbitz.com, 427 Oregon Public Broadcasting, 369f Organizational Behavior (Griffin and Moorhead), 246f Organization for Economic Cooperation and Development (OECD), 84 Organization of Petroleum Exporting Countries, 84 Ouchi, William, 278 Outback Steakhouse, Inc., 149 Oviedo, Dannielle, 208 Oxley, Michael J., 43 P Pacific Rim, 84 Packard, Dave, 113 Page, Larry, 177 Pampered Chef Products, 376 Panasonic Corporation, 220 Parker Brothers, 334 Partners in Preservation Web site, 46f Patagonia, 39 Patek Philippe, 371 Patel, Kumur, 355f Paychex, Inc., 256 Pencil Makers Association, 73 Pensions & Investments, 170f Pepperidge Farms, 13 PepsiCo, Inc., 50, 68, 128, 150, 153, 247, 337 Perkins, Tom, 203f Pet Assure, Inc., 257 Petty, Herman, 152 Pfau, Bruce, 440 Pfizer, Inc., 132, 386 Philip Morris, Inc., 51, 88 Phillips, Bryce, 95–96 Phillips Petroleum, 44 Photobrand, 400 Pier Imports, 68 Pixar Entertainment, Pizza Hut, 219, 306, 342 Planters, 346 Plumb, Taryn, 46f Polaroid, 139 Pollution Control Board of Kerala (India), 58 Polo Ralph Lauren, 343 Pomerantz, Carrie Schwab, 46 Porcino, Paul, 497 Portland Press Herald, 180f Post-Industrial Society (Drucker), 364 Pottery Barn, 376 PricewaterhouseCoopers LLP, 37, 247, 446–447, 459 Pride, William M., 313f, 314f, 317f, 359f, 383f, 391f Prior, Anna, 252f Proactive skin care, 378 Procter, William, 113 Procter & Gamble Company (P&G), 38, 105, 113, 139, 146, 170, 175, 192, 211, 249, 290, 328–329, 336, 340–342, 345, 357, 370, 386, 409, 458, 482 P&T Express (Vietnam), 121 Q Quaker Oats, Inc., 257 Qualified Resources, Inc., 147 Name Index Questor Corporation, 85 Quicken accounting software, 420 QVC shopping network, 377 Qwest, Inc., 39 R Rackspace.com, 430 RadioShack, 153 Rahim, Ahmed, 208 Rahim, Reem, 208 Raising Cane’s restaurants, 104 Raitt, Bonnie, 495 Razor Gator, Inc., 344 Reader’s Digest Association, 113–114, 320 Reagan, Ronald, 83 Reason Public Policy Institute, 287 Recorder app, 418 Redbox video rentals, 315 Red Cross, Red Sox baseball team, 400 Reebok Company, 221 Reed, Kevin, 443f Reed Business Information, 342f Renaissance Capital, 484f Restoration Hardware, 424 Reuters, 443f Reynolds, Shelley, 107 Reynolds Signature Homes, 107 Richland Community Collge (TX), 226 Rigas, John J., 36 Rigas, Timothy J., 36 RIM (Research in Motion), 344 Rite Aid Corp., 43 Ritz-Carlton Hotels, 226 R.J Reynolds, Inc., 51 Roebuck, Alvah, 117 Rolls-Royce, 311 Romanias, Chris, 153 Rooney, Jennifer, 388f Roosevelt, Franklin D., 25, 48 Rosetta Stone language learning software, 378 Rostekhnologil (Russia), 121 Roundy’s Supermarkets, 223 Royal Caribbean Cruise Lines, Royal Crown Companies, 150–151 Royal Dutch/Shell Group, 114 Royer’s Roundtop Café, 191 RoyOMartin Plywood, 252 Ruiz, Manny, 116 S S C Johnson & Son, 41, 44 Safeway Stores, Inc., 208 SAIC, 121 Salon.com, 78f Samsung, Inc., 189, 340 San Diego Union-Tribune, 316f Sarah Coventry Products, 376 Sara Lee Corporation, 10 Sarbanes, Paul S., 43 SAS, Inc., 257, 274 Save the Children, Inc., SayNow, 124 SBA Management Assistance Program, 145–146 Scannell, Stephen, 369 Scheer, David, 180f Schmitt, Jeff, 175f Schneider, Tehani, Scholfield, Roger, 65 Schultz, Howard, 180–181 Schweitzer, Tamara, 180f SC Johnson & Son Co., 257, 286 SCORE (Service Corps of Retired Executives), 109, 146 SCORE Award for Outstanding SociallyProgressive Business, 104 Sears, Richard, 117 Sears, Roebuck & Co., 117, 141, 256, 305, 309–310, 342, 356 Sears Holdings, Inc., 114, 196, 373, 380 Seattle Times, 250f SeaWorld, 120 Securities and Exchange Commission (SEC), 43, 443, 484 Security News Daily, 478f Sephora Cosmetics, 378 Seton Hall University, 37 7-Eleven Stores, 165, 374, 399 Shafrir, Doree, 26 Shah, Premal, 111 Shanghai Disney, Shea, Bill, 418f Shearman, Sarah, 376f Shell, Richard, 147 Shirouzu, Norihiko, 121f Shutterfly.com, 344 Siegle, Lucy, 216f Sierra Club, 65 Silicon Valley, 113 Singer Sewing Company, 151 Siyeza, Inc., 56 SkillView Technologies, Inc., 245 Skype, 309 Small Business Administration (SBA), 104, 133, 139f, 150f, 155 Small Business Development Centers (SBDCs), 147 Small Business Institutes (SBIs), 147 Small Business Investment Companies (SBICs), 148 Small Business Management: Entrepreneurship and Beyond (Hatten), 144f Small Business Saturday movement, 132 Small Business Training Network (SBTN), 146 Smartfood, 128 Smith, Adam, 13–14, 17, 192 Smith, Gary, 108–109 Smith, Janet, 108–109 Social Media Marketing Magazine, 459f Sodexo, Inc., 286 Solera Capital LLC, 129 Sony Corporation, 10, 87, 114, 221, 345 South Florida Business Journal, 388f Southwest Airlines, 165, 171–172, 215, 242 South-Western Publishing, 248 Space, 429 Spaly, Brian, 285 Speaker, Joe, 43 Springsteen, Bruce, 495 Sprint Nextel Communications, 425–426 SPSS, Inc., 319 Stahl, Jennifer, 287 Standard Chartered Bank (UK), 488 Standard & Poor’s, 428, 458 Standard & Poor’s Industry Surveys, 365 Stanford Business School, 285 Stanley Black & Decker, 471 Stanley Home Products, 376 Staples, Inc., 149 Starbucks Coffee, 49, 167, 180–181, 287, 340–341, 367, 429 Star Online, The (Malaysia), 488f StartUpPc, Inc., 138 Stav, Julie, Strand, Cheryl, 136 Stross, Randall, 228f Student magazine, 135 SUBWAY, 151–152, 154 Subway Corp., 131 SunCoke Energy, 484 NI-5 Sunoco, Inc., 484 Superfund, 59 Supplemental Terrorist Activity Relief program, 148 Supplier Connection, 132 Sydney Morning Herald (Australia), T Takeda Pharmaceutical Company, Ltd (Japan), 36 Taliman, Pam, 148 TAP Pharmaceutical Products, Inc., 36 Target Stores, Inc., 128, 373–374, 375, 453, 467 Taylor, Frederick W., 272, 277 Taylor, James, 495 TCBY Enterprises, 152 Tech Radar, 418f Telephone Pionees of America, 46 Tesco, 211 Tesla Motors, Inc., 35 Texas A&M University, 283f Texas A&M University-Corpus Christi, 137 Texas Instruments (TI), 41–42 Texas Roadhouse, 274–275 TGI Friday’s, 164 Thomas, Gwen, 132 Thomas, Owen, 285f Thomasville Furniture, Inc., 23 Thomsen, Linda Chatman, 43 Thornton, Beth, 147 Thorpe, Liz, 158 3M Company, 59–60, 218, 259, 335, 472 Thulasidas, V., 87 Thurm, Scott, 320f Timber Industry Magazine, The, 488f Time International, 216f Time magazine, 6, 43, 140, 309f Time Warner, Inc., 4, 386 Tire Rack, Inc., 344 T.J Maxx, 375 Tkaczyk, Christopher, 447f T-Mobile, 123 Tommy Hilfiger, 343 Toronto Star (Canada), 376f Tour of Hope, 395 Town Talk (LA), 252f Toyota Corporation, 18, 23, 35, 88, 170, 180, 231, 290, 343, 353, 384 Trade Act of 2002, 69 Trade Promotion Coordinating Committee (TPCC), 90 Trammel, Angela, 151–152 Travel Channel, 402 Treaty of Asuncion, 84 Triangle Business Journal, 85f Trism game, 418 Tupperware Products, 376 Turner, Jane, 43 Turner Broadcasting System, 321 21Vianet Group, 483 Twitter, 109, 124, 159, 180, 310, 341, 367, 400, 429, 437, 459, 497 Tyco International, Ltc., 37 Tynan-Wood, Christina, 478f U Ultimate Job Hunter’s Guidebook, The (Greene and Martel), 253f Underwood, Carrie, 424 NI-6 Unilever, 211, 328–329, 458 Union Bank, 50 Union Carbide, 87 Union Pacific Corporation, 491 United Airlines, 289 United Way, 44, 388 University of Central Florida, 137 University of Michigan, 108 University of New Hampshire Technology Pipeline, University of Northern Iowa, 108 University of Wisconsin-Madison, 108 University of Wisconsin-Whitewater, 144 UPS (United Parcel Service), 78, 97, 121, 132, 177, 379, 400, 402 Urban Outfitters, Inc., 364 U.S Bureau of Labor Statistics, 7, 18, 217f, 229 U.S Census Bureau, 55f, 56f, 71f, 105f, 106f, 142, 374 U.S Commercial Service, 155 U.S Consumer Product Safety Commission, 51 U.S Department of Commerce, 72f, 73, 78f, 89f, 155, 217 U.S Department of Energy, 487 U.S Environmental Protection Agency (EPA), 27, 57, 59, 142, 230 U.S Food and Drug Administration (FDA), 36, 51, 230, 389 U.S Government Printing Office, 148 U.S Navy, 179 U.S Occupational Safety and Health Administration, 230 U.S Office of Management and Budget, 140 U.S Patent and Trademark Office, 342, 345 U.S Steel Corp., 73 U.S Supreme Court, 113 U.S Uniform Partnership Act, 108 U.S West, 321 U.S.Court of Appeals, 43 USDA Economic Research Service, 414f V Vanguard Mutual Funds, 443 VatorNews, 285f VB Solutions, Inc., 138 Venture Beat, 285f Verizon Communications, 38, 356–357, 370, 386, 420 Village of Rochester Hills shopping center, 378 Virgin Group, 135 Vivendi, 50 Volkswagen AG, 114, 170 Volvo, 284, 344 Vroom, Victor, 280 W W L Gore & Associates, 289 Wachovia Bank, 124 Walgreen’s, Inc., 373 Wallace, DeWitt, 113 Wallace, Lila, 113 Wall Street Journal, 6, 26, 121f, 144f, 170f, 175f, 250f, 252f, 320f, 369f, 413, 486f Walmart Superstores, 11, 32, 44, 105, 121–122, 169, 211, 357, 367, 369, 371, 373–374, 375, 380, 471 Walsh, Daniel, 288f Walt Disney Company, 3–4, 243, 316–317, 386, 407, 420, 485 Walton, Sam, 11, 122 Watkins, Sherron S., 43 Wayne State University, 152 Wealth of Nations (Smith), 13, 192 Weather Channel, 400 Weight Watchers, 164, 331, 346 Weigold, Michael, 387f Welburn, Craig, 152 Wells Fargo Bank, 124 Wendy’s International, 152–153 Western Electric Company (IL), 274 West Virginia Small Business Development Centers (SBDC), 147 Wexler, David, 466 Wexler, Evie, 466 Whataburger, 223 What Were They Thinking? (McMath and Forbes), 342f Whirlpool Corporation, 220, 268 White Hen Pantry, 374 Whole Foods, 208 Why Good Ideas Go Bust (Berggren and Nacher), 342f Willis, David, Windows Internet Explorer, 421 Winston Churchill High School (MD), 138 WisBusiness, 144f Withey, Annie, 128 Women’s Business Enterprise National Council, 135 Working Mother, 109 World Bank, 91 WorldCom, Inc., 39, 43, 473 World Is Flat, The (Friedman), 69 World Monuments Fund, 46 World Trade Association (WTO), 73, 79f, 80f, 81 Wrigley’s gum, 369 Wuling Group, 121 X Xerox Corporation, 139, 290, 345 XTO Energy, 124 Y Yahoo!, Inc., 8, 50, 96, 130, 271, 421f, 428, 467 Yankee Candle, 400 Yoplait yogurt, 84 Young Eagles, 44 YouTube, 109, 310, 316, 367, 400, 459 Z Zappos, Inc., 309 ZDNet, 431f Zebco, Inc., 478 Zoom Systems, 378 Zuckerberg, Mark, 139–140 See also Facebook Zwahlen, Cyndia, 137f Zynga, Inc., 486 Name Index A absolute and comparative advantage, 69–70 acceptability, of pricing, 350 accessibility, of transportation, 381 accessory equipment, 333 accountability, 195 accounting information, 439–467 accounting cycle, 447–448 accounting equation, 448 activity ratios, 460–461 balance sheet, 449–452 in business plan, 499 company comparison from, 458 debt-to-owner’s-equity ratio, 461–462 importance of, 441–444 income statement, 452–455 investment evaluation from, 457–458 profitability ratios, 458–459 short-term financial ratios from, 459–460 statement of cash flows, 455–456 upgrading systems for, 497 users of, 444–447 accounts payable, as current liabilities, 451 accounts receivable, 450, 482–483 accounts receivable turnover, 460–461 accumulated depreciation, 451 achievement, employee, 276–277 acid rain, 58 acid-test ratio, 460 activity ratios, 460–461 adaptations to products, 339 ad hoc committees, 203 adjourning teams, 292–293 administrative management, 174, 276, 411 advancement, employee, 276 advantage, absolute and comparative, 69–70 advertising, 383–389 advertising agencies, 388 cooperative, 394 developing campaigns, 385–388 e-business model for, 428 false and misleading, 38 interactive marketing in, 428 by purpose, 384–385 sales orientation of, 308 social and legal considerations in, 389 advisory authority, 198–199 aesthetic modifications to products, 338 affirmative action, 54–55, 263–264 African American markets, 319 African Development Bank (AFDB), 91 Age Discrimination in Employment Act, 263 agents in distribution channels, 369–370 as wholesalers, 372–373 air pollution, 58–59 air transport, 382 alien corporations, 114 all-distance pricing, in telecommunications industry, 357 allocator, price as, 348 allowances buying, 394 as discount, 359 for doubtful accounts, 450 sales, 452 “alternative” promotions, 400 “American Dream,” American Institute of Certified Public Accountants (AICPA), 446 Americans with Disabilities Act, 264 analytical processes, 214 analytic skills, of managers, 175 animation technology, annual report, 448 antidumping duties, 73 applications for employment, 250–251 application software, 420 applied research, 218 approaching prospects for sales, 390 appropriation, advertising, 385–386 articles of partnership, 110–111 artificial intelligence (AI), 416 Asia, trade outlook and, 76 Asian Development Bank (ADB), 91 assembly line, 25, 222 assessment centers, employment, 253 assets, in accounting, 448, 450–451 Association of Southeast Asian Nations, 83 attrition, 245 auctions, online, 371 audience, target, 385 audited financial statements, 442–443, 457 See also accounting information auditing, for ISO certification, 228 authority, 177, 195–196, 198–199 autocratic leadership style, 177 automated clearinghouses (ACHs), 478 automatic teller machines (ATMs), 377–378, 478–479 automatic vending, 377 automation, 221, 231, 417 automobiles, eco-friendly, 35 B balance of payments, 71, 74 balance of trade, 19, 70, 72 balance sheet, 449–452, 457 banker’s acceptance, 479 banking bank credit statistic, 19 drafts in, 86 electronic, 478–479 Equator Principles for, 488 international, 479–480 multilateral development banks, 91–92 traditional, 477–478 bankruptcy, 119, 469, 476–477 bar charts, for presentations, 414–415 barter agreements, 24, 88 basic research, 218 basis, for market segmentation, 313 behavior modification, 285 benchmarking, 181 best practices, 181 better business bureaus, 389 bill of lading, 86 board of directors, corporate, 116 bond indenture, 490 bonds, corporate, 489–491 bookkeeping system, double-entry, 448 brainstorming, 179, 203, 292, 416 brand equity, 344, 367 brand extensions, 345–346 branding products, 342–346, 402 brand loyalty, 343–344, 402–403 brand marks, 342 brand names, 342 breakeven quantity, in pricing, 352 broadband access, 428 brokerage e-business model, 428 brokers, as wholesalers, 372–373 budgeting, 385–386, 475 building re-purposing, 369 bundle pricing, 356–357 business, introduction to, 2–33 business cycle, 20–21 changing nature of, 4–10 competition, 21–24 definition of, 10–12 economic systems, 12–17 measuring economic performance, 17–19 in United States, 24–28 business analysis, of new products, 340 business application software, 419 business buying behavior, 322, 324 business cycle, 20–21, 140 business ethics See ethics; social responsibility business models, 426 business plans accounting information component, 499 company and industry components, 161 exit strategy component, 499 human resources component, 301 management team component, 239 manufacturing component, 239 marketing plan component, 403 overview, 99–101 for small businesses, 142–145 business products, 332, 358–359 See also goods and services; products business reports, 414 business services, 333 business-to-business markets, 310 business-to-business (B2B) model, 427 business-to-consumer (B2C) model, 427–428 buying allowances, 394 buying behavior, 305, 322–324, 409 SI-1 © DNY59 / iStockphoto 842411 SUBJECT INDEX “buy one, get one free” (BOGO) multiple-unit pricing, 356 buyouts, 245 C cafeterias, company, 256 call centers, 185 Canada, trade outlook and, 76 Canadian Free Trade Agreement, 83 candy-printing technology, 407 capacity, 220–221, 223–224 capital, 13, 117, 142 capital budget, 475 capital-intensive technology, 221 capitalism, 13–15, 27 captioned photographs, for publicity, 395 captive pricing, 357 careers in accounting, 440, 445–447 in advertising and marketing, 388 career coaching, 250 choosing, 5–6 in financial management, 473–474 “green,” 196 in international business, 78 internships, 137, 144 in management, 175 nonspecialized paths for, 278 in operations management, 213–214 student business incubators, 108 telecommuting during, 288 Web cam interviews, 309 Caribbean Basin Institute (CBI), 84 carriers, in transportation, 381 carrying costs, 427 cash budget of, 475 as current assets, 450 discounts for, 359 cash flow financing for, 470–471 problems in, 477 in small business, 138 statement of, 455–457 catalog selling, 367, 371, 376 category killers, 375 category management, 371 caveat emptor, 47 Central American Free Trade Agreement (CAFTA), 83 centralized government plans, in communism, 17 centralized organizations, 196 certificates of deposit (CDs), 477 certification, ISO, 228 certification, of products, 74 certified management accountants (CMA), 446 certified public accountants (CPA), 446 chain of command, 191–192, 198 chain retailers, 374 channels, distribution, 368–371 charts, organization, 191–192 checks, 477 chief financial officers (CFOs), 473 chief sustainability officer (CSO), 196 child-care services, 256 children, advertising to, 38 choice, consumer right to, 52 Civil Rights Acts, 263 classification of markets, 310 classroom training programs, 258 cleaning up short-term notes, 481 closed corporations, 113 closing sales, in personal selling, 391 cloud computing, 430–431 codes of ethics, 41–42 SI-2 collaborative learning systems, 417 collaborative workplace culture, 171, 185, 271 collateral, 380, 480, 482 collective bargaining, 84 collective decision making, 278 command economies, 16–17 commercialization of new products, 341 commercial paper, 481–482 commissions, 255 committees and task forces, 203–204 common carriers, in transportation, 381–382 Common Market of the Southern Cone (MERCOSUR), 84 common stock, 115, 485 Commonwealth of Independent States (former USSR), 77, 81, 84 communal culture, 202 communications as advertising objective, 385 ethical issues in, 38 integrated marketing, 382–383 in management, 175–176 organizational height effect on, 197 in small business, 134 technology for, 416–417 communism, 16–17, 77 community shopping centers, 378 company policies, 276 comparable worth, 255 comparative advertising, 384 comparative and absolute advantage, 69–70 comparison discounting, 358 comparison of prices, 349 comparison other, in equity theory, 280 compensating balance, for loans, 481 compensation, 253–256 competition advertising and, 389 in business environment, 27 in concert business, 32 consumer benefits from, 52 penetration pricing to reduce, 354 in premium products, 98 in product categories, 402 product life-cycle and, 334–336 in small business, 141 social responsibility and, 49 types of, 21–24 competition-based pricing, 353 component parts, 333 computer-aided design (CAD), 231 computer-aided flexible manufacturing, 213 computer-aided manufacturing (CAM), 231 computer hardware, 420 computer-integrated manufacturing (CIM), 232 computer network, 420 computer viruses, 430 concentrated market segmentation approach, 312–313 concept testing new products, 340 conceptual skills, in management, conceptual skills, of managers, 174 concierge services, 257 conferences, as training programs, 258 confidentiality, 430 conflicts of interest, 38 conglomerate mergers, 123–124 consensus leadership style, 177 consensus management, 238 consultative leadership style, 177 consumer buying behavior, 322–324 consumer confidence, 343 consumer markets, 310 consumer price index (CPI), 18–19 consumer products, 15, 332 consumers basic rights of, 51–52 broadband access of, 428 consumerism forces, 52–54 households as, 15 informed, mergers and acquisitions and, 123 promotion methods for, 392 reduced spending of, trade barrier effects on, 74–75 content, online, paying for, 358 contingency plans, 169–170 continual reinforcement, 279 continuity of business, 107, 112 continuous process manufacturing system, 232 continuous quality improvement, 181 contract carriers, in transportation, 381–382 controlling, as management function, 171–172 convenience, packaging for, 346 convenience products, 332, 370 convenience showrooms, 374 conversion process, in manufacturing, 214–216 convertible bonds, 490 cookies, to track Internet usage, 430 cooperative advertising, 394 cooperative partnerships, 371 copyrights, 24, 451 core competencies, 168 core time, in flextime systems, 286 corporate bonds, 489–491 corporate charter, 115 corporate raiders, 123 corporate retreats, 274 corporations advantages of, 116–117 disadvantages of, 117–118 forming, 114–115 growth of, 122–125 stock of, 113–114 structure of, 116 corrective action, 51, 171 correlation analyses, in sales forecasts, 318 cost accounting, 445 cost-based pricing, 351–352 cost/benefit analysis, 415 cost of goods sold, 452–454 costs carrying, 427 delivery, 359 e-business to reduce, 425–426 fixed, 352, 364 flotation, 484 holding, 225, 379 insurance, 379 outsourcing to reduce, 424 shipping, 225, 306 stock-out, 225, 379 storage, 225, 379, 427 total, 352 transportation, 381 variable, 352, 364 See also price countertrade, 88 coupons, 392–393, 403 coverage of market, 370–371 CPI (consumer price index), 18–19 credit, 20, 225, 478 credit-card theft, 377 credit unions, 256 cross-functional teams, 200–201, 290–291, 293 cultural diversity, 6, 245–247, 268 culture Subject Index collaborative, 171, 185, 271 corporate, 199, 208, 242 employee diversity, 245–247, 268 norms of, 39–40, 74 currency devaluation, 73–74 current assets, in accounting, 450–451 current liabilities, in accounting, 451 current ratio, 460 customary pricing, 357 customer-driven production, 232 customer lifetime value, 306 customer loyalty, 305, 393, 402 customer relationship management (CRM), 417 customer relationships, 303–329 buying behavior, 322–324 classification of markets, 310 departmentalization by, 194 managing, 305–306 marketing concept in, 307–310 marketing information, 318–322 marketing plan for, 316–317 marketing strategies for, 310–316 price and, 364 sales forecasting, 317–318 social networking for, 497 utility value for, 306–307 See also products customer satisfaction, in quality management, 181 customer service, 218, 257, 298, 424 customer testimonials, 316 customization, 213 D data collecting, 412–413 information versus, 409–410 processing, 414 storing, 413 updating, 413 database marketing, 320, 382 databases, 410, 412 data mining, 430 “deal-a-day” Web sites, 355 debenture bonds, 490 debit card, 478 debt long-term, 487–491 national, 3, 20–21 short-term, 480–483 debt capital, 476 debt-to-owner’s-equity ratio, 461–462 decentralization, 196 deceptive and misleading advertising, 389 deceptive pricing practices, 358 decision-support systems (DSS), 416 decline stage, in product life-cycle, 335–336 definite price breaks, 357 deflation, 18 delegation, 195–196, 285 deleting products, 338 delivery costs, 359 demand, supply and, 22–23, 348–349 demand-based pricing, 353 democratic leadership style, 177 departmentalization, 193–195 department stores, 374 dependability, of transportation, 381 depreciation, accumulated, 451 depressions, 20, 25, 28, 48 design planning, for production, 219–221 desired behavior, 285 differential pricing, 354–356 differentiated market segmentation approach, 312–313 Subject Index differentiation, 23, 350, 353 digital advertising agencies, 388 direct channel, 368, 370 directing, as management function, 171 direct investment, international business by, 87 direct marketing, 376–378 direct-response marketing, 376 direct selling, 376 direct-to-consumer prescription advertising, 389 discounts on business products, 359 on car buying, 409 comparison, 358 “deal-a-day” Web sites for, 355 periodic, 355 purchase, 452 random, 356 sales, 452 discount stores, 374 discretionary income, in buying behavior, 323 discrimination, 54–55, 252, 263 displacement, by technology, 232 disposable income, in buying behavior, 323 dissatisfaction, employee, 276 distributing products, 366–382 channels for, 368–371 in marketing mix, 314–315 physical distribution, 379–382 retailers in, 373–379 supply chain management, 371 wholesalers in, 371–373 See also promoting products distribution industries, 134 distributors, 372 diversity, cultural, 6, 245–247, 268 dividends, 115, 456, 484, 486 Dodd-Frank Wall Street Reform and Consumer Protection Act, 473 Doha round, of GATT negotiations, 81 domestic corporations, 114 domestic system of production, 24 do-not-call registry, 377 door-to-door selling, 376 door-to-door service, by trucks, 382 double taxation, of corporations, 118 downtown shopping districts, 379 drafts, bank, 86 dual-branded franchises, 152 dual-income families, 286 dual roles, in teams, 293 dumping, protective tariffs against, 73 E early retirement, 245 earnings per share, 459 earnings statement, 452 Eastern Europe, trade outlook and, 76 e-book readers, 331 e-business, 422–432 future of, 428–432 for M&Ms, 407 models of, 426–428 overview, 25–26 profits from, 424–426 resources for, 422 satisfying needs with, 422–424 eco-friendly cars, 35 e-commerce, 169, 298, 400, 422 economic indicators, 18–19, 170 economic model of social responsibility, 49 economics, 27, 431–432 economies capitalistic and command, 12–17 developing, 81 measuring performance of, 17–19 service, 26 stimulus programs for, ecotourism, 216 EDI (electronic data interchange) technology, 371 education, salaries and, efficiency, scientific management for, 272 e-learning, for training programs, 257 electronic banking, 478–479 electronic check conversion (ECC), 479 electronic couponing, 403 electronic data interchange (EDI) technology, 371 Electronic Funds Transfer Act, 479 electronic funds transfer (EFT) system, 478–479 electronic job boards, 440 electronic stock exchange, 485 “elevator pitch,” 144 e-mail, 416–417, 429 embargos, 73 employee benefits, 7, 256–257 employee-centric approach, 284 employee participation, 181, 227 Employee Retirement Income Security Act, 263 employees, attracting and retaining, 241–269 benefits, 256–257 compensation, 253–256 cultural diversity, 245–247, 268 human resources management overview, 243–244 job analysis, 247–248 legislation on, 261–264 orientation, 253 performance appraisal, 258–261 planning for, 244–245 recruiting, 248–249, 418 selection, 249–253 in small business, 140 training and development, 257–258, 418 employees, motivating, 270–301 behavior modification, 285 employee ownership, 289 empowerment, 288–289, 298 equity theory, 280 expectation theory, 280–281 flextime, 286 goal-setting theory, 281–282 Hawthorne studies on, 274 Herzberg’s motivation-hygiene theory, 276–277 Internet privacy of, 430 job enrichment, 284–285 job sharing, 287 management by objectives, 282–284 Maslow’s hierarchy of needs, 274–275 motivation defined, 272 part-time work, 286–287 reinforcement theory, 278–280 scientific management, 272–273 teamwork, 289–294 telecommuting, 287–288 Theory X and Theory Y, 277–278 Theory Z, 278 employee stock ownership plans (ESOPs), 289 employee turnover, 208 employment agencies, 249 employment practices, 54–56 empowering employees, 288–289, 298 energy efficiency, 420, 431 English as a second language, 246–247 entrepreneurial leadership style, 177 entrepreneurship in app development, 418 building re-use in, 369 business knowledge for, corporate culture and, 203 SI-3 entrepreneurship (Cont.) “deal-a-day” Web sites for promotion, 355 as factor of production, 13 Internet advertising agencies, 26 motivation in, 285 See also ownership of business; small businesses environmental protection, 57–60, 185 See also green business practices; sustainability epidemics, in contingency plans, 170 e-procurement hubs, 371 Equal Employment Opportunity Commission (EEOC), 263 Equal Pay Act, 262 Equator Principles, 488 equilibrium price, 23, 348–349 equipment, 333, 455 equipment breakdown, 224 equity capital, 476 equity financing sources, 483–487 equity theory of motivation, 280 esteem needs, of employees, 275 ethics, 34–66 behavioral factors affecting, 38–40 business ethics defined, 36 of cloud computing, 431 of ecotourism, 216 encouraging, 40–44 Equator Principles, 488 financial information on foreign firms, 443 Internet issues in, 429–430 issues in, 36–38 of job interviews, 252 target marketing, 320 See also social responsibility Eurofactories, 87 Europe, trade outlook and, 76 European Bank for Reconstruction and Development, 92 European Commission, 443 European Economic Area (EEA), 82 European Union (EU), 81–82, 443 evaluating advertising effectiveness, 387–388 event sponsorships, 394 everyday low prices (EDLPs), 357 exclusive distribution, 370 executing advertising campaigns, 387 executive information systems (EIS), 416 exercise rooms, 256 exit strategy, 499 expansion periods, 21 expectation theory of motivation, 280–281 expenses, e-business to reduce, 425–426 expert systems, 416 export-import merchant, 85 exporting assistance for, 90 entering international business by, 85–87 overview, 70–71 U.S economy and, 77, 79 express warranty, 347 extensions to products, 338 external data sources, 413 external opportunities and threats, 168 external recruiting, 249 extinction, in behavior modification, 279 F facilities planning, in production, 221–222 factoring accounts receivable, 482–483 factors of production, 13 factory system of manufacturing, 25 failure of products, 341 Fair Labor Standards Act, 262 SI-4 fairness and honesty, 37 See also ethics Fair Packaging and Labeling Act, 347 family branding, 345 family-owned businesses, 97 family packaging, 346 fast-food industry, franchising in, 151 feature articles, for publicity, 395 federal deficit, 21 federal income taxes, 455 Federal Trade Commission (FTC), 38–39, 154, 320, 358, 377, 389 feedback interviews, in performance appraisal, 260–261 female-dominated jobs, 255 field order takers, salespersons as, 390 financial accounting, 445 Financial Accounting Standards Board (FASB), 442 financial leverage, 487 financial management, 173, 468–500 banking services for, 477–478 credit transactions for, 478 description of, 470–474 electronic banking for, 478–479 equity financing sources, 483–487 international banking for, 479–480 long-term debt sources, 487–491 planning in, 474–477 short-term debt sources, 480–483 financial managers, 411 financial plan, 474–476 financial ratios, 458–460 financial resources, 10–11, 165 financial security, of employees, 272 financial statements, 442–443, 448, 457 See also accounting information financing, 90–92, 456 finished-goods inventory, 225 fires, in contingency plans, 170 firing employees, 245 first-line management, 173 fiscal policies, of Federal Reserve, 20 fixed assets, 451 fixed costs, 352, 364 fixed-position layout, for production, 223 flat organizations, 197–198 flexible employee benefit plans, 257 flexible manufacturing systems (FMS), 232 flextime, 286 floods, in contingency plans, 170 floor, price, 351 flotation costs, of IPOs, 484 FOB destination pricing, 359 FOB origin pricing, 359 focus, of conversion process, 215 following up, in personal selling, 391 follow-up, in production, 226 forecasting, 244–245, 317–318 foreclosures, of homes, 3, 20 foreign corporations, 114 foreign-exchange controls, 73 formal leadership, 177 forming effective teams, 292 form utility, 214, 306–307 401k retirement plans, 289, 300 fragmented culture, 202 franchising example of, 104, 497 growth of, 151–155 as limited monopolies, 24 overview, 149–151 fraud, on Internet, 430 free enterprise system, free-market economy, 14, 16 free shipping, 306 free trade, 67 freight charges, 359 freight forwarders, in transportation, 381 “French pot” method for manufacturing, 97 frequency, of transportation, 381 frequent-flier programs, 393 frequent-user incentives, 393–394 full-service wholesalers, 372 function, departmentalization by, 193 functional authority, 198–199 functional middlemen, 368–369, 372 functional modifications to products, 338 funds, sources of, 475–476 See also financial management G gain sharing, 255 GATT (General Agreement on Tariffs and Trade), 79–81 GDP (gross domestic product), 18–20, 75 general expenses, 455 general journal, 447–448 general ledger, 448 generally accepted accounting principles (GAAPs), 442, 457–458 general-merchandise wholesalers, 372 general partners, 109 generic brands, 343 generic products, 343 generic terms, in brand names, 345 geographic pricing strategies, 359 globalization, 67–101 absolute and comparative advantage, 69–70 accounting standards and, 442–443 competition growth from, 27 e-business and, 431–432 entering international business, 84–89 exporting and importing, 70–71, 90 financing international business, 90–92 productivity importance in, 17 trade agreements, 79–84 trade restrictions, 71–75 U.S competing in, 212–213 world trade outlook, 76–79 goals and objectives in planning, 167–168 goal-setting theory of motivation, 281–282 goods and services, 210–239 conversion process, 214–216 innovations in, 218–219 operations control, 224–229 planning production of, 219–224 production defined, 212–214 service importance, 216–218 technology for productivity, 229–232 See also distributing products; promoting products goodwill, 385, 451 government in Adam Smith’s capitalism, 14–15 on advertising, 389 in command economies, 16–17 consumerism legislation of, 53 corporate regulation by, 118 employment legislation of, 261–264 environmental protection legislation of, 57 ethical behavior encouraged by, 40–41 information sources from, 413 regulatory impact on productivity, 230 services of, 16 social responsibility legislation of, 48–49 government accounting, 445 governmental markets, 310 “grapevine,” 204 graphs, for presentations, 414–415 Great Depression, 25, 28, 48 greed, accounting practices and, 442 Subject Index “green” business practices career paths and, 196 cloud computing, 431 eco-friendly cars, 35, 65 in information technology, 420 in production, 211, 213 for small business, 142 “greenwashing,” 39 gross domestic product (GDP), 18–20, 75 gross profit, 454 gross sales, 452 groupware, 416 growth, employee, 276 growth stage, in product life-cycle, 335 H hard-core unemployed, 55–56 Hawthorne studies of motivation, 274 hazardous wastes, 60 healthcare industry, 486 Herzberg’s motivation-hygiene theory, 276–277, 284 high-definition television, 219 Hispanic markets, 319 holding costs, 225, 379 holiday pay, 256 homes, foreclosures of, 3, 20 horizon, planning, 223 horizontal mergers, 123–124 hostile takeovers, 122–123 hourly wages, 255 households, in capitalism, 15 housing starts, 19 http (HyperText Transfer Protocol), 421 human factors, in motivating employees, 274 human relations movement, 274, 277 human resources, 10–11, 165, 221 See also employees human resources management, 173, 243–244, 411 hygiene factors, 276 I identity theft, 377, 478 imitation products, 339 immediate-response advertising, 384 implementation, development and, 218 implied control mechanisms, 278 import duties, 72 Import-Export Bank of the United States, 91 importing, 70–71, 79 incentive payments, 255 incentives, sales, 392–393 income, distribution of, 16 See also taxes income statement, 452–455, 457 indenture, bond, 490 independent marketing intermediaries, 370 independent retailers, 373 in-depth interviews, for marketing research, 319 individual branding, 345 industrial markets, 310 Industrial Revolution, 25 industry associations, 384, 389 inflation, 18–19 informal leadership, 177 informal organization, 204 information resources, 406–438 business need for, 10–11, 165–166 consumer right to, 52 e-business, 422–432 future of, 428–432 models of, 426–428 profits from, 424–426 resources for, 422 satisfying needs with, 422–424 Subject Index Internet to obtain, 420–422 management information systems, 410–415 marketing, 318–322 productivity improvement with, 415–419 risk reduction with, 408–410 information society, 420 information technology (IT), 410, 420 infringement on brands, 345 initial public offering (IPO), 122, 483–484 innovation corporate culture of, 203 in goods and services, 213, 218–219 matrix structure and, 201 in products, 339 input-to-output ratio, 280 inside order takers, salespersons as, 390 inspection, 227 Institute of Management Accountants, 446 institutional advertising, 385 institutional investors, 487 institutional markets, 310 insurance, syndicates in, 122 insurance costs, 379 intangible assets, 451 integrated marketing communications, 382–383 integrated software, 419 intensive distribution, 370 interactive marketing, 428 Inter-American Development Bank (IDB), 91 interest expense, 455 interest rate, prime, 19 intermediaries, packaging for, 347 See also marketing intermediaries intermittent process manufacturing systems, 232 internal data sources, 412 internal recruiting, 249 internal relationships, 175 International Accounting Standards Board (IASB), 442 international banking, 479–480 international business, 67–101 absolute and comparative advantage, 69–70 entering, 84–89 exporting and importing, 70–71, 90 financing, 90–92 franchising for, 154 restrictions to, 71–75 trade agreements, 79–84 world trade outlook, 76–79 International Development Association (IDA), 91 International Financial Reporting Standards Board (IFRS), 442 International Monetary Fund (IMF), 76, 92 Internet advertising on, 386–387 e-commerce on, 400 e-learning training programs on, 257 information resources on, 420–422 marketing collaboration on, 344 marketing research on, 321 price comparison on, 349 social responsibility and, 49 stockholders voting on, 115 strategic planning affected by, 169 See also e-business internships, 137, 144 interpersonal relationships, 276 interpersonal skills, in management, interpersonal skills, of managers, 175–176 interviews employment, 251–253 for marketing research, 319 on-campus, 440 on Web cam, 309 intranets, 321, 420 introduction stage, in product life-cycle, 334–335 invasion of privacy, 430 inventory business loans for, 477 cash flow and, 466 control of, 225–226 as current assets, 450 data updates on, 413 inventory turnover ratio, 461 loans secured by, 482 management of, 379 reducing, 371 investment banking firm, 484 investments cash flows from, 456 evaluation of, 457–458 informed investors, in partnerships, 112 “invisible hand,” in capitalism, 13 involuntary layoffs, 245 involvement, sense of, 274 ISO 9000 and 14000, 227–228 J Japan, trade outlook and, 76 job analysis, 247–248 jobbers, 372 job boards, electronic, 440 job descriptions, 247 job design, 192–193 job enlargement, 284 job enrichment, 284–285 job evaluation, 254 job redesign, 284 job rotation, 193 job-search Web sites, job security, 276 job sharing, 287, 440 job specifications, 247 joint ventures, 87, 121–122 journalizing, in accounting cycle, 447 judgmental performance appraisal, 260 junk e-mail, 429 just-in-time inventory system (JIT), 225–226 K Kennedy round, of GATT negotiations, 80 key industries, in socialism, 16 knowledge management (KM), 410 L labeling products, 74, 347 labor, 13, 424 See also employees laboratory testing services, for ISO certification, 228 labor-intensive technology, 221 Labor-Management Relations Act, 261–262 laissez-faire, 14, 300 LAN (local area network), 420–421 land, as factor of production, 13 landfills, 59 land pollution, 59–60 Latin America, trade outlook and, 76 lattice management structure, 289 lawsuits, consumer, 51 layoffs, 223–224, 245 leadership, 171, 176–178, 238 lean manufacturing, 231 legal issues, 389, 429–430 See also government legal monopolies, 24 legislation See government letters of credit, 86, 479 SI-5 liabilities in accounting, 448, 451–452 in corporations, 116–117 in partnerships, 112 in sole proprietorships, 107 licensing, 24, 84–85, 104 life-cycle of products, 219, 333–336 lifestyle shopping centers, 378 lifetime employment, 278 lifetime value customers, 306 limited liability companies, 104, 119–120 limited liability partnerships (LLP), 112 limited-line retailers, 375 limited-line wholesalers, 372 limited monopolies, 24 limited partners, 109 line-and-staff structure for organizations, 198–199 line authority, 198 line managers, 198, 244 line of credit, 477 line of products versus product mix, 336–337 line structure for organizations, 198 linking, integrated software for, 419 liquidity, of assets, 450 load flexibility, of transportation, 381 loans business, 477–478, 481 compensating balance for, 481 for inventory, 477 long-term, 478, 489 secured by inventory, 482 short-term, 477 unsecured bank, 481 location, departmentalization by, 194 log-file records, for monitoring Internet usage, 430 long-term business loans, 478 long-term debt sources, 487–491 long-term financing sources, 471–472 long-term liabilities, in accounting, 451 losses, 11 low-wage workers, 213 lump-sum salary increases, 256 M macroeconomics, 12 magnitude, of conversion process, 215 major equipment, 333 malpractice, 112 malware, on Internet, 430 management, 163–187 accounting information for, 444 corporate specialization in, 117 of customer relationships, 305–306 decision making in, 178–180 definition, 165–166 functions of, 166–172 human resources, 243–244 leadership versus, 176–178 operations, 212 partnership disagreements on, 112 performance enhancement by, 238 sales, 391 skills for, 7–8, 174–176 in small business, 138 in sole proprietorships, 108 span of, 197–198 supply chain, 371 total quality, 181–182 types of, 172–174 See also employees; financial management management by objectives, 282–284 management development, 257 management information systems (MIS), 410–415, 497 SI-6 managerial accounting, 445 manufacturer brand, 342 manufacturer’s agents, 373 manufacturing as businesses type, 10 factory system of, 25 “French pot” method for, 97 wholesaler services to, 372 See also goods and services margins, target, 364 marketable securities, as current assets, 450 market capitalization, 113 market coverage, 370–371 market demand, 223 market economy, 14 marketing in business plans, 403 direct, 376–378 interactive, 428 management of, 173, 220, 409, 411 See also customer relationships marketing communications, 382–383 marketing information systems, 318 marketing intermediaries agents as independent, 370 discounts to, 359 overview, 368 resellers, 10 retailers, 373–379 wholesalers, 371–373 marketing mix, 310, 314–316 marketing research on car buying, 409 description of, 318–320 production affected by, 212 surveys for, 401 market price, 23 market segmentation, 311–314 market share competition-based pricing for, 353 line extensions for, 338 penetration pricing for, 354 pricing for, 23, 351 markup, 351, 364 Maslow’s hierarchy of needs, 274–275 mass-media advertising, 382 mass production, 213–214 material resources, 10–11, 165 materials handling, 380 materials requirements planning (MRP), 225 matrix structure for organizations, 200–201 maturity date of corporate bonds, 490 maturity stage, in product life-cycle, 335–336 media plan, advertising, 386 Medicare, 37 mega-mergers, 123 members-only warehouse club stores, 375 mercenary culture, 202 merchandise inventory, as current assets, 450 merchant middlemen, 368 merchant wholesalers, 372 MERCOSUR (Common Market of the Southern Cone), 84 mergers and acquisitions, 122–124 merit pay, 255 message, advertising, 386 Mexico, trade outlook and, 76 microeconomics, 12 middle management, 172–173 middlemen, 359, 368–369 See also marketing intermediaries minority groups, 54 minority-owned companies, 4, 146–148, 151 “missing middle” market segment, 319 mission, of organization, 167 missionary salespersons, 390 mix, promotion, 383 mixed economy, 14 mixed interviews, in performance appraisal, 261 “mobile” Web sites, 421 modifications to products, 337–338 monetary policies, of Federal Reserve, 20 monopolies, 24 monopolisitic competition, 23 morale, 201, 272 mortgage bonds, 490 mortgage lending, subprime, 76 mortgage payable, as long-term liability, 451 most-favored-nation status (MFN), 79 motivation, 136, 171, 276 See also employees multilateral development banks, 91–92 multinational enterprises, 88–89 See also international business multinational firms, 442 multiple distribution channels, 370 multiple-unit packaging, 346 multiple-unit pricing, 356 multisupplier online catalogs, 371 N NASDAQ stock exchange, 37, 485 National Association of Colleges and Employers, 445 national debt, 3, 20, 21 national do-not-call registry, 377 national income, 19 National Labor Relations Act, 261–262 national security, 74 National Trade Data Bank, 96 natural monopolies, 24 natural resources, 13 needs, 10–11, 274 negative reinforcement, 279 negligence, 112 negotiable instruments See financial management negotiated pricing, 355 neighborhood shopping centers, 378 net income, 455 net loss, 455 net sales, 453 networked culture, 202 networking, network structure for organizations, 201 net worth, 449 new-product pricing, 354 news releases, for publicity, 395 New York Stock Exchange (NYSE), 469, 485 noise pollution, 60 nonfood products, sampling, 393 not-for-profit accounting, 445 nonparticipant roles, in teams, 293 non-price competition, 349 nonspecialized career paths, 278 nonstore selling, 376–378 nontariff barriers to trade, 73 non-union companies, 301 norming, in effective teams, 292 North American Free Trade Agreement (NAFTA), 83, 96 notes payable, as current liabilities, 451 notes receivable, as current assets, 450 not-for-profit corporations, 5, 120–121 O objections, in personal selling, 391 objective performance appraisal, 260 objectives management by, 282–284 in planning, 167–168 Subject Index Occupational Safety and Health Act (OSHA), 261, 263 odd-number pricing, 356 officers, corporate, 116 off-peak pricing, 355 off-price retailers, 375 off-shore oil drilling, 230 off-the-shelf materials, 364 oligopolistic competition, 23 one-store operators, 373 ongoing costs, of IPOs, 484 online content, paying for, 358 online information services, for marketing, 321 online “redlining,” 320 online retailing, 376–377 online selling, 367 online shopping malls, 425 online videos, in marketing mix, 316 on-the-job coaching, 285 on-the-job training programs, 258 open-air configuration, at lifestyle shopping centers, 378 open corporations, 114 operating expenses, 455 operations cash flows from, 455–456 control of, 224–229 management of, 173, 212–214, 411 plans for, 169–170 “opportunity,” ethics affected by, 40 optimization, 168 order getters, salespersons as, 389 order processing, 379–380 order takers, salespersons as, 390 organizational height, 197 Organization for Economic Cooperation and Development (OECD), 84 Organization of Petroleum Exporting Countries, 84 organizations, business, 188–209 committees and task forces in, 203–204 corporate culture for, 201–203, 208 decentralization in, 196 definition, 190–192 delegation in, 195–196 departmentalization in, 193–195 ethics and, 37–38 informal, 204 job design in, 192–193 line-and-staff structure for, 198–199 line structure for, 198 management span in, 197–198 matrix structure for, 200–201 network structure for, 201 organizing, as management function, 170–171 orientation programs, for employees, 253 out-of-stock situations, 371 output quotas, 273 outside order takers, salespersons as, 390 outsourcing, 213, 422, 424 over-the-counter (OTC) stock market, 484–485 overtime, 255 owner’s equity, 448–449, 452 ownership of business, 103–130 corporations advantages, 116–117 disadvantages, 117–118 forming, 114–115 growth of, 122–125 stock of, 113–114 structure of, 116 by employees, 289 joint ventures, 121–122 limited liability companies, 119–120 not-for-profit corporations, 120–121 partnership, 108–112 Subject Index S-corporations, 119 sole proprietorship, 105–108 syndicates, 122 P Pacific Rim, trading in, 84 packaging, 346–347 pandemics, in contingency plans, 170 participative decision making, in Theory Z firms, 278 participative leadership style, 177 partnerships, 108–112 part-time work, 286–287 “party plan” selling, 376 passbook savings accounts, 477 pass-through taxation, 119 patents, 24, 133, 451 pay, 276 See also employees pay-for-performance, 255 pay for time not worked, as employee benefit, 256 pay-per-view e-business model, 428 peak period, in economy, 20 peer-to-peer (P2P) business model, 428 penetration pricing, 354 pensions, 256 perfect competition, 21–23 performance appraisals of, 258–261 of effective teams, 292 measuring, 17–19, 300 standards setting, 171 periodic discounting, 355 perishable products, 369 perpetual life, of corporations, 117 personal budget, 452 personal selling, 384, 389–391 personnel management, 243 See also employees pharmaceutical industry, direct-to-consumer advertising of, 389 photographs, for publicity, 395 physical distribution, 379–382 physiological needs, of employees, 274 piece-rate system, 273–274 pie charts, for presentations, 414–415 piggyback transportation, 382 pipeline transport, 382 place utility, 306–307 planned shopping centers, 378 planning as management function, 167–170 marketing, 316–317 production, 219–224 plant layout, for production, 222 plastic packaging material, 347 platform, advertising, 385 point-of-purchase displays, 394 point-of-sale (POS) terminals, 479 “poison pills,” to prevent acquisition, 123 pollution air, 58–59 land, 59–60 noise, 60 overview, 56 water, 57–58 See also green business practices Ponzi schemes, 37 “porcupine provisions,” to prevent acquisition, 123 positive reinforcement, 279 possession utility, 306–307 power-grid improvements, 486 power outages, in contingency plans, 170 power-saving technology, 420, 431 PPI (producer price index), 19 preferred stock, 115, 485 “preferred” suppliers, 427 premium pricing, 350, 357 premiums, as product promotion, 393 premiums plus sticker prices, 353 prepaid expenses, as current assets, 450 prescription advertising, direct-toconsumer, 389 presenting information, 390–391, 414–415 press conferences, for publicity, 395 prestigious products, 370 price, 348–359 of business products, 358–359 buyer behavior and, 409 competition factors in, 52, 349–350 equilibrium or market, 23 in marketing mix, 314–315 methods of, 351–353 objectives in, 350–351 off-price retailers, 375 in oligopolies, 23 packaging for special, 346 strategies for, 353–358 supplier comparison of, 224 supply and demand impact, 348–349 trade barriers and, 75 price-conscious customers, 364 price leaders, 358 price lining, 357 primary-demand advertising, 384 primary market, initial public offering (IPO) for, 484 prime interest rate, 19, 481 privacy, 320, 430 private accountants, 446 private brand, 342–343 private carriers, in transportation, 381–382 private employment agencies, 249 private-equity firms, 129 private placements, 487 private warehouse, 380 problem-recognition stage, in buying decisions, 322 problem-solving approach, in performance appraisal, 261 problem-solving teams, 290 process layout, for production, 222 process materials, 333 producer markets, 310 producer price index (PPI), 19 producer-to-agent middlman-to-business user channel, 370 producer-to-agent-to-wholesaler-to-retailer-toconsumer channel, 369 producer-to-business user channel, 370 producer-to-consumer channel, 368 producer-to-retailer-to-consumer channel, 369 producer-to-wholesaler-to-retailer-to-consumer channel, 369 product demonstrations, 316, 391 product design, 220 product development, 340 product differentiation, 23 product extensions, 219 production, 13, 135, 222 See also goods and services; products productivity globalization and, 17 information resources to improve, 415–419 management consultants on, 97 matrix structure increases in, 201 “soldiering” versus, 272 technology for, 229–232, 371 telecommuting and, 287 product layout, for production, 222 product life-cycle, 219, 333–336 SI-7 product-line pricing, 357–358 product lines, 219–220 products, 330–365 branding, 342–346 classification of, 332–333 departmentalization by, 193–194 differentiation of, 350 labeling, 347 life-cycle of, 333–336 in marketing mix, 314–315 mix of, 336–342 deleting products from, 338 developing new products for, 339–341 extensions to, 338 failure of products in, 341 line versus, 336–337 modifications to, 337–338 packaging, 346–347 pricing, 348–359 business products, 358–359 competition factors in, 349–350 methods of, 351–353 objectives in, 350–351 strategies for, 353–358 supply and demand impact, 348–349 sampling, 393 speculative production of, 471 See also distributing products; goods and services; price; promoting products product testing, 74 professional development, 175 Professional Oversight Board (UK), 443 profitability ratios, 458–459 profit margin, 459 profits corporate, 19 from customer relationship management, 305 e-business, 424–426 financial planning for, 495 “giving away,” 351 gross, 454 as household income, 15 on income statement, 452 overview, 11–12 in partnerships, 111 pricing to maximize, 350–351 in sole proprietorships, 106 profit-sharing, 256, 282, 300 project managers, 200 promissory notes, 481 promoting products, 382–395 advertising, 384–389 “deal-a-day” Web sites for, 355 example of, 400 integrated marketing communications, 382–383 in marketing mix, 314–315 overview, 383–384 packaging for, 346–347 personal selling, 389–391 public relations, 394–395 sales promotion, 358, 392–394 special-event pricing for, 358 See also distributing products promotion from within company, 249 proprietary accounting information, 444 prospecting for sales, 390 protective tariffs, 73 prototyping, 237, 340 proxy, to vote stock, 115, 123 psychological factors, in buying behavior, 323 psychological pricing, 356–357 public accountants, 446 public employment agencies, 249 publicity, 395 public relations, 384, 394–395 public utilities, 24 SI-8 public warehouses, 380, 482 punishment, 279 purchase discounts, 452 purchasing, 224–225 pure competition, 21–23 Q qualified individual with a disability, in ADA, 264 quality as brand builder, 402 modifications to products for, 338 price and, 350 supplier comparison of, 225 quality circles, 227 quality control, 226–227 quantity discounts, 359 quick ratio, 460 quotas, 54–55, 73, 273 R railroads, 382 random discounting, 356 rating scales, in performance appraisal, 260 raw materials, 333 raw-materials inventory, 225 reasonable accommodation for disabilities, in ADA, 264 rebates, 392–393 recessions in business cycle, 20–21 financial management in, 472 sales revenue in, 466 small business affected by, 140, 149 social responsibility and, 58 trade outlook and, 76 recognition, employee, 272, 276–277 recovery periods, 21 recruiting employees, 248–249, 418 recycling packaging material, 347 “redlining,” 320 reference interest rate, 481 references, for employment, 252 refinements to products, 219, 339 regional shopping centers, 379 registered corporate bonds, 490 registration of brands, 344–345 reinforcement theory of motivation, 278–280 reinvestment, 486 relationship marketing, 305 reliability of suppliers, 225, 228 reminder advertising, 384 renewable energy, 486 reordering inventory, 413 replacement chart, for HRM forecasting, 244 re-purposing buildings, 369 reputation, advertising to enhance, 384 research and development (R&D), 218, 340 resellers, 310, 392, 394 resource owners, households as, 15 responsibility, delegation of, 195 responsibility, employee, 276 restructuring, 198 résumés, 250 retailers cooperative advertising for, 394 description of, 367, 369 markup of, 351 nonstore selling, 376–378 packaging for, 347 shopping centers, 378–379 short-term financing needs of, 471 as small businesses, 134 store types, 373–375 wholesaler services to, 372 retained earnings, 452, 486–487 retaliation, to trade barriers, 74 retirement, 245, 256, 289, 300 return on investment (ROI), pricing for, 351 return on owner’s equity, 459 return on sales ratio, 459 returns, sales, 452 revenue stream, 424 revenue tariffs, 73 reverse discrimination, 55 revolving credit agreement, 477–478 risk as business plan component, 499 default, 122 profit as payment for, 12 reducing, 408–410 for small business, 142 risk-return ratio, 473 robotics, 231 role-playing, as training programs, 258 routing of materials, 226 S safety, 51, 261, 263, 274 salaries, 255–256 salaries payable, as current liabilities, 451 sales agents, 373 sales force automation, 417 sales forces, agents versus, 369 sales forecasting, 317–318 sales managers, 391 sales promotion, 384, 392–394 sales revenue as advertising objective, 385 commissions on, 255 e-business, 424–425 goods and services exchanged for, 15 personal selling, 389–391 profit relationship to, 11 recession and, 466 as source of funds, 475–476 technology to assist, 417–418 samples, 393 Sarbanes-Oxley Act of 2002, 40–41, 443 satisfaction, employee, 274, 276 “satisficing,” 180 savings accounts, 477 scam artists, 478 scandals, accounting, 441–442 scarcity, 12 scheduling, 226 scientific management, 272–273, 277 SCORE (Service Corps of Retired Executives), 109 S-corporations, 119 screening new products, 340 search engines, 33, 421 seasonal discounts, 359 seasonal products, 369 seasonal promotions, 358 secondary information, for marketing, 321 secondary market, for stock, 484–485 secondary-market pricing, 355 Securities and Exchange Commission (SEC), 43, 443, 484 securities exchange, 485 segmentation of markets, 311–314 selection, of employees, 249–253 selective-demand advertising, 384–385 selective distribution, 370 self-actualization needs, of employees, 275 self-appraisal, in performance appraisal, 261 self-managed work teams, 290–291 selling expenses, 455 selling points, in advertising, 385 Subject Index seminars, as training programs, 258 sensitivities to pricing, 354–355 serial bonds, 490 service economy, 10, 26, 135 See also goods and services “shark repellents,” to prevent acquisition, 123 shelf-space allocation, 98 shipping costs, 225, 306 shoplifting, 346 shopping centers, 378–379 shopping malls, online, 425 shopping products, 332 short-term business loans, 477 short-term debt sources, 480–483 short-term financial ratios, 459–460 short-term financing needs, 470–471 sick leave, 256 simulations, as training programs, 258 single-line retailers, 375 single-source data, marketing, 320 sinking fund, for bond repayment, 491 site selection, in production, 221 situational factors, in buying behavior, 323 Six Sigma quality improvement approach, 227 skills inventory, for HRM forecasting, 245 skimming, price, 354 Small Business Administration (SBA), 104, 145–149 small business development centers (SBDCs), 148 small businesses, 131–161 advantages of, 141–142 business plan for, 142–145 disadvantages of, 142 economic importance of, 139–141 entrepreneurs in, 135–139 franchising, 149–155 profile of, 133–135 Small Business Administration (SBA), 145–149 small business institutes (SBIs), 148 small business investment companies (SBICs), 148 smart phones, 189, 421 social acceptance, in employee motivation, 274 social audit, 61 social factors, in buying behavior, 323 socialism, 16–17 social media, 344, 429 social needs, of employees, 274 social networking Web sites, 429, 440, 459, 478, 497 social responsibility economic model of, 49 examples of, 44–47 history of, 47–49 implementing, 60–61 Internet issues in, 429–430 socioeconomic model of, 49–51 See also consumers; employment practices; ethics; green business practices Social Security, 256 socioemotional roles, in teams, 293 software, trial versions of, 393 solar-energy panels, 486 solar technology, 473 “soldiering,” 272 sole proprietorships, 105–108 source documents, analyzing, in accounting cycle, 447 spamming, 429–430 special-event pricing, 358 specialization, 25, 193 specialized journals, in accounting, 448 specialty-line wholesalers, 372 specialty products, 332 Subject Index speculative production, 471 speeches, for public relations, 394 speed, in transportation, 381 staffing, 243 See also employees staff managers, 198 staff positions, in organizations, 192 stakeholders, 12, 444 standardization, 228 standard of living, 24 standards, quality, 227–228 standards setting, as management function, 171 standing committees, 203 startups See small businesses statement of cash flows, 455–456, 457 statement of financial position, 449 statistics, 414 status quo pricing, 351 sticker prices, 353 stock, 113, 483–486 stock brokerage firms, 122 stockholders, 113, 115, 444, 449, 452 stock market, 3, 469, 485 stock options, 256, 289 stock-out costs, 225, 379 storage costs, 225, 379, 427 store brand, 342 stores, types of, 373–375 storming, in effective teams, 292 strategic alliances, for international business, 87–88 strategic planning, 167, 169–170, 244 strengths of demand, 353 strikes, 224, 274 structured interviews, for employment, 252 student business incubators, 108 subassemblies, inspection of, 227 subprime mortgage lending, 76 subscription e-business model, 428 succession planning, 160 supermarkets, 374–375 super sales trainer, 257 superstores, 375 supervision, 276 suppliers backup, 224 comparing, 224–225 “preferred,” 427 promissory notes to, 481 in quality management, 181 small businesses as, 141 supplies, 333 supply and demand, 22–23, 348–349 supply chain management, 371 support personnel, in personal selling, 390 surpluses, 24 surveillance, of employees, 430 surveys, 318, 401 survival, 350, 358, 466 sustainability Corporate Social Responsibility Newswire on, 50 definition of, 27–28 in information technology, 420 in manufacturing, 217 on Web sites, 290 SWOT analysis (strengths, weaknesses, opportunities, and threats), 168 syndicates, 122 synthetic processes, 214 systems software, 420 T tables, for presentations, 414–416 tactical plans, 169–170 takeover advocates, 124 tampering, product, 346 target audience, 385 target behavior, 285 target margins, 364 target markets, 311–314 tariffs, 72–73 taskforces, committees and, 203–204 task-specialist roles, in teams, 293 tax accounting, 445 taxes corporate, 118 for environmental protection, 60 import duties as, 72 on inventory, 379 net income before and after, 455 in recessions, 466 of sole proprietorships, 106 structure of, 20 taxes payable, as current liabilities, 451 tax-exempt status, of non-profits, 120 teams, 289–294 benefits and limitations of, 294 conflicts in, 293–294 cross-functional, 200 developing, 292–293 roles in, 293 types of, 290–291 working in, 33 technical salespersons, 390 technical skills, 7, 176 technology animation, business affected by, 27 candy-printing, 407 e-business future and, 428–432 growth opportunities in, 318 marketing information and, 320–322 power-saving, 431 in production planning, 221 for productivity, 229–232 small business innovations in, 139–140 solar, 473 for supply-chain management, 371 See also e-business teenagers, as small business owners, 137–138 telecommunications industry, bundle pricing in, 356–357 telecommuting, 287–288, 418–419, 440, 447 telemarketing, 377 television home shopping, 377 tell-and-listen feedback interviews, in performance appraisal, 261 tell-and-sell feedback interviews, in performance appraisal, 261 tender offers, 123 tenure, of employees, 300 term-loan agreements, 489 testing new products, 340–341 test market data, in sales forecasts, 318 tests, employment, 250–251 Theory X and Theory Y, 277–278 Theory Z, 278 360-degree evaluation, in performance appraisal, 261 time-series analysis, in sales forecasts, 318 time utility, 306–307 timing function, 226 Tokyo round, of GATT negotiations, 80 top-down process, 185 top management, 172 total costs, 352 totally owned facilities, 87 total quality management, 181–182 total revenue, 352 tracking Internet usage, 429 SI-9 tracking online behavior, 320 trade agreements on, 79–84 balance of, 70, 72 barriers to, 71–75 free, 67 See also globalization trade associations, 41, 384 trade credit, 480–481 trade deficit, 70 trade discounts, 359 trade-in allowances, 359 trademarks, 24, 342, 451 trademark symbol (®), 345, 347 trade names, 342 trade sale promotion methods, 392 trade salespersons, 390 trade shows, 394 trading companies, 88 traditional channel, 369 traditional specialty stores, 375 training and development, 55–56, 257–258, 300, 418 transaction recording and posting, in accounting cycle, 447–448 transfer of ownership, in corporations, 117 transfer pricing, 359 transfer within company, 249 transportation, 134, 380–382 See also distributing products trial closing, in personal selling, 391 trial versions, as product promotion, 393 trough, in business cycle, 20 trucks, 382 trustee, for corporate bonds, 491 tuition-reimbursement benefits, 256 turnover rates, 272, 300 two-for-one sales, 346 type A firms, 278 type J firms, 278 SI-10 U undervalued jobs, 255 undifferentiated approach, to marketing, 311 unemployment, 3, 18, 55–56 unemployment insurance, 256 unit unloading, in materials handling, 380 Universal Product Code (UPC) symbol, 347 unsecured bank loans, 481 unsecured financing, 480 upscale treats, competition in, 98 URLs (Uniform Resource Locators), 421 Uruguay round, of GATT negotiations, 80–81 U.S Department of Labor, 445 U.S Public Company Accounting Oversight Board (PCAOB), 443 U.S Uniform Partnership Act, 108 utility value, 214, 306–307 V vacation time, 256 variable costs, 352, 364 venture capital, 144, 148, 486–487 vertical mergers, 123–124 veterinary health insurance, 257 video game machines, 377 video rental industry, 315, 377 videos, in marketing mix, 316 virtual offices, 418–419 virtual organizations, 201, 288 virtual teams, 291 virtuoso teams, 290 visual displays, for presentations, 414–415 volatility, in contingency plans, 170 W wages, 254–255 WANs (wide area networks), 421 warehouse club stores, 375 warehouse showrooms, 374 warehousing, 380, 482 warranties, 306, 347 waste-disposal problems, 59–60 water pollution, 57–58 waterway transport, 382 wealth, 12, 14 weather conditions, in contingency plans, 170 Web browsers, 421 Web cam interviews, 309 Web sites, creating, 421–423 whistle-blowers, 41, 43, 443 wholesale cash-and-carry stores, 121 wholesalers, 134, 347, 351, 369, 371–373 wind energy projects, 486 women jobs dominated by, 255 in management, 177 as small business owners, 136–137, 151 workers’ compensation insurance, 256 working capital, 459–460 working conditions, 276 work-in-progress inventory, 225 work/life balance, 287 workplace characteristics of men vs women, 177 workplace diversity, “workspace,” 417 World Bank, 91 World Trade Organization (WTO), 73, 81 world trade outlook, 76–79 World Wide Web, 420–421 Z zero-based budgeting, 475 zero-tolerance policies, 252 Subject Index ... 421 Defining e -Business 422 Organizing e -Business Resources, 422 • Satisfying Needs Online, 422 • Creating e -Business Profit, 424 Fundamental Models of e -Business 426 Business- to -Business (B2B)... TAKE PRIDE IN YOUR SUCCESS… WITH FOUNDATIONS OF BUSINESS, 3E Foundations of Business gives you the comprehensive preparation you’ll need to SUCCEED in today’s competitive business world By providing... Journal of Marketing, Journal of Marketing Research, Journal of the Academy of Marketing Science, and Journal of Advertising Dr Pride is a member of the American Marketing Association, Academy of