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John Wiley & Sons, Inc David L Kurtz University of Arkansas Boone & Kurtz’s Contemporary BUSINESS 15TH EDITION at the speed of business ffirs_SE.indd iii 21/08/12 10:49 AM The 15th edition of Contemporary Business is dedicated to my wife, Diane She is the best thing that ever happened to me —Dave Kurtz Vice President & Executive Publisher Senior Acquisitions Editor Content Editor Production Manager Senior Production Editor Associate Director of Marketing Marketing Manager Creative Director Senior Designer Text Designer Cover Designer Production Management Services Photo Department Manager Senior Product Designer Media Specialist George Hoffman Franny Kelly Brian Kamins Dorothy Sinclair Valerie A Vargas Amy Scholz Kelly Simmons Harry Nolan Madelyn Lesure Design Group Wendy Lai Integra Hilary Newman Allison Morris Elena Santa Maria This book was set in Janson Text LT Std-Roman 10/13 by MPS Limited, Chennai, India and printed and bound by Quad/Graphics-Versailles The cover was printed by Quad/Graphics-Versailles This book is printed on acid free paper ∞ Founded in 1807, John Wiley & Sons, Inc has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support For more information, please visit our website: www.wiley.com/go/citizenship Copyright © 2012, 2010, 2006 John Wiley & Sons, Inc All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year †These copies are licensed and may not be sold or transferred to a third party †Upon completion of the review period, please return the evaluation copy to Wiley †Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel Outside of the United States, please contact your local representative ISBN-13 978-1-118-29198-6 ISBN-13 978-1-118-21816-7 (Binder Ready Version) Printed in the United States of America 10 ffirs_SE.indd iv 25/08/12 8:01 AM About the Author During Dave Kurtz’s high school days, no one in Salisbury, Maryland, would have mistaken him for a scholar In fact, he was a mediocre student, so bad that his father steered him toward higher education by finding him a succession of backbreaking summer jobs Thankfully, most of them have been erased from his memory, but a few linger, including picking peaches, loading watermelons on trucks headed for market, and working as a pipefitter’s helper Unfortunately, these jobs had zero impact on his academic standing Worse yet for Dave’s ego, he was no better than average as a high school athlete in football and track But four years at Davis & Elkins College in Elkins, West Virginia, turned him around Excellent instructors helped get Dave on sound academic footing His grade point average soared—enough to get him accepted by the graduate business school at the University of Arkansas, where he met Gene Boone Gene and Dave became longtime co-authors; together they produced more than 50 books In addition to writing, Dave and Gene were involved in various entrepreneurial ventures This long-term partnership ended with Gene’s death a few years ago But, this book will always be Boone & Kurtz’s Contemporary Business If you have any questions or comments about the new 15th edition, Dave can be reached at ProfKurtz@gmail.com About the Author fbetw_SE.indd v v 20/08/12 8:09 AM Preface Solutions at the Speed of Business A part of every business is change; now more than ever, business moves at a pace that is unparalleled Containing the most important introductory business topics, Contemporary Business includes the most current information available and the best supplementary package in the business You’ll find that this new edition gets your students excited about the world of business, helps them improve their critical-thinking skills, and offers you and your students SOLUTIONS AT THE SPEED OF BUSINESS SOLUTIONS AT THE SPEED OF BUSINESS FOR INSTRUCTORS Consistent with recent editions of Contemporary Business, the instructor resources are designed to propel the instructor into the classroom with all the materials needed to engage students and help them understand text concepts As always, all the major teaching materials are contained within the Instructor’s Manual, and this new Annotated Instructor’s Edition contains Lecture Enhancers and Classroom Activities The PowerPoint Presentations and Test Bank have also been updated and improved Greensburg, KS—our continuing case—is highlighted in part videos, plus we’ve added two other videos: “One Year Later” and “Future Plans.” Our Wiley Business End-of-Chapter Video Series showcases companies such as Zipcar, Seventh Generation, New Harvest Coffee Roasters, and Comet Skateboards SOLUTIONS AT THE SPEED OF BUSINESS FOR STUDENTS With contemporary being the operative word, we’ve added two videos to update our Greensburg, Kansas video series As always, every chapter is loaded with up-to-the-minute business issues and examples to enliven classroom discussion and debate, such as how “social entrepreneurs” are making their mark on emerging businesses Processes, strategies, and procedures are brought to life through videos highlighting real companies and employees, an inventive business model, and collaborative learning exercises And to further enhance the student learning process, with WileyPLUS, instructors and students receive 24/7 access to resources that promote positive learning outcomes Throughout each study session, students can assess their progress and gain immediate feedback on their strengths and weaknesses so they can be confident they are spending their time effectively How Boone & Kurtz Became the Leading Brand in the Market For more than three decades, Contemporary Business has provided the latest in content and pedagogy Our current editions have long been the model for our competitors’ next editions Consider Boone & Kurtz’s proven record of providing instructors and students with pedagogical firsts: • Contemporary Business was the first introductory business text written specifically for the student—rather than the instructor—featuring a motivational style students readily understood and enjoyed • Contemporary Business has always been based on marketing research, written the way instructors actually teach the course • Contemporary Business was the first text to integrate computer applications—and later, Internet assignments—into each chapter • Contemporary Business was the first business text to offer end-of-chapter video cases as well as end-of-part cases filmed by professional producers vi fpref_SE.indd vi Preface 20/08/12 8:14 AM • Contemporary Business was the first to use multimedia technology to integrate all components of the Introduction to Business ancillary program, videos, and PowerPoint CD-ROMs for both instructors and students—enabling instructors to custom-create lively lecture presentations Wiley is proud to be publishing a book that has represented the needs of students and instructors so effectively and for so many years The 15th edition will continue this excellent tradition and will continue to offer students and instructors SOLUTIONS AT THE SPEED OF BUSINESS Pedagogy Contemporary Business has always employed extensive pedagogy—such as opening vignettes and boxed features—to breathe life into the exciting concepts and issues facing contemporary business The 15th edition is packed with updates and revisions to key pedagogical features, including: • Business Etiquette • Assessment Checks • Teamwork Exercises • Self-Quizzes • Hit & Miss • Solving an Ethical Controversy • Going Green Continuing to Build the Boone & Kurtz Brand Because the business world is constantly changing, the Introduction to Business instructors need a SOLUTION AT THE SPEED OF BUSINESS Trends, strategies, and practices are evolving, and students must understand how to perform business in today’s world Keeping this in mind, here are just a few of the important business trends and practices we’ve focused on for this new edition to help move students forward into a great business career Preface fpref_SE.indd vii vii 20/08/12 8:14 AM What Are Learning Styles? Have you ever repeated something to yourself over and over to help remember it? Or does your best friend ask you to draw a map to someplace where the two of you are planning to meet, rather than just tell her the directions? If so, then you already have an intuitive sense that people learn in different ways, Researchers in learning theory have developed various categories of learning styles Some people, for example, learn best by reading or writing Others learn best by using various senses—seeing, hearing, feeling, tasting, or even smelling When you understand how you learn best, you can make use of learning strategies that will optimize the time you spend studying To find out what your particular learning style is, www.wiley.com/college/boone and take the learning styles quiz you find there The quiz will help you determine your primary learning style: Visual Learner Haptic Learner Print Learner Auditory Learner Olfactory Learner Interactive Learner Kinesthetic Learner Then, consult the information below and on the following pages for study tips for each learning style This information will help you better understand your learning style and how to apply it to the study of business Study Tips for Visual Learners If you are a Visual Learner, you prefer to work with images and diagrams It is important that you see information Visual Learning • Draw charts/diagrams during lecture • Examine textbook figures and graphs • Look at images and videos on WileyPLUS and other Web sites • Pay close attention to charts, drawings, and handouts your instructor uses • Underline; use different colors • Use symbols, flowcharts, graphs, different arrangements on the page, white spaces Visual Reinforcement • Make flashcards by drawing tables/charts on one side and definition or description on the other side • Use art-based worksheets; cover labels on images in text and then rewrite the labels • Use colored pencils/markers and colored paper to organize information into types • Convert your lecture notes into “page pictures.” To this: - Use the visual learning strategies outlined above - Reconstruct images in different ways - Redraw pages from memory - Replace words with symbols and initials - Draw diagrams where appropriate - Practice turning your visuals back into words If visual learning is your weakness: If you are not a Visual Learner but want to improve your visual learning, try re-keying tables/charts from the textbook Study Tips for Print Learners If you are a Print Learner, reading will be important but writing will be much more important Print Learning • Write text lecture notes during lecture • Read relevant topics in textbook, especially textbook tables • Look at text descriptions in animations and Web sites • Use lists and headings • Use dictionaries, glossaries, and definitions • Read handouts, textbooks, and supplementary library readings • Use lecture notes Print Reinforcement • Rewrite your notes from class, and copy classroom handouts in your own handwriting • Make your own flashcards • Write out essays summarizing lecture notes or textbook topics • Develop mnemonics • Identify word relationships • Create tables with information extracted from textbook or lecture notes • Use text based worksheets or crossword puzzles • Write out words again and again • Reread notes silently • Rewrite ideas and principles into other words • Turn charts, diagrams, and other illustrations into statements • Practice writing exam answers • Practice with multiple choice questions • Write paragraphs, especially beginnings and endings • Write your lists in outline form • Arrange your words into hierarchies and points If print learning is your weakness: If you are not a Print Learner but want to improve your print learning, try covering labels of figures from the textbook and writing in the labels Study Tips for Auditory Learners If you are an Auditory Learner, then you prefer listening as a way to learn information Hearing will be very important, and sound helps you focus Auditory Learning • Make audio recordings during lecture • Do not skip class; hearing the lecture is essential to understanding viii fpref_SE.indd viii • Play audio files provided by instructor and textbook • Listen to narration of animations • Attend lecture and tutorials • Discuss topics with students and instructors • Explain new ideas to other people • Leave spaces in your lecture notes for later recall • Describe overheads, pictures, and visuals to somebody who was not in class Learning Styles 20/08/12 8:14 AM Auditory Reinforcement • Record yourself reading the notes and listen to the recording • Write out transcripts of the audio files • Summarize information that you have read, speaking out loud • Use a recorder to create self-tests • Compose “songs” about information • Play music during studying to help focus • Expand your notes by talking with other and with information from your textbook • Read summarized notes out loud • Explain your notes to another auditory learner • Talk with the instructor • Spend time in quiet places recalling the ideas • Say your answers out loud If auditory teaming is your weakness: If you are not an Auditory Learner but want to improve your auditory learning, try writing out the scripts from pre-recorded lectures Study Tips for Interactive Learners If you are an Interactive Learner, you will want to share your information A study group will be important Interactive Learning • Ask a lot of questions during lecture or TA review sessions • Contact other students, via e-mail or discussion forums, and ask them to explain what they learned Interactive Reinforcement • “Teach” the content to a group of other students • Talking to an empty room may seem odd, but it will be effective for you • Discuss information with others, making sure that you both ask and answer questions • Work in small group discussions, making a verbal and written discussion of what others say If interactive learning is your weakness: If you are not an Interactive Learner but want to improve prove your interactive learning, try asking your study partner questions and then repeating them to the instructor Study Tips for Haptic Learners If you are a Haptic Learner, you prefer to work with your hands It is important to physically manipulate material Haptic Learning • Take blank paper to lecture to draw charts/ tables/diagrams • Using the textbook, run your fingers along the figures and graphs to get a “feel” for shapes and relationships Haptic Reinforcement • Trace words and pictures on flashcards • Perform electronic exercises that involve dragand-drop activities • Alternate between speaking and writing information • Observe someone performing a task that you would like to learn • Make sure you have freedom of movement while studying If haptic learning is your weakness: If you are not a Haptic Learner but want to improve your haptic learning, try spending more time in class working with graphs and tables while speaking or writing down information Study Tips for Kinesthetic Learners If you are a Kinesthetic Learner, it will be important that you involve your body during studying Kinesthetic Learning • Ask permission to get up and move during lecture • Participate in role-playing activities in the classroom • Use all your senses • Go to labs; take field trips • Listen to real-life examples • Pay attention to applications • Use trial-and-error methods • Use hands-on approaches Kinesthetic Reinforcement • Make flashcards; place them on the floor, and move your body around them • Move while you are teaching the material to others • Put examples in your summaries • Use case studies and applications to help with principles and abstract concepts • Talk about your notes with another kinesthetic person • Use pictures and photographs that illustrate an idea • Write practice answers • Role-play the exam situation If kinesthetic learning is your weakness: If you are not a Kinesthetic Learner but want to improve your kinesthetic learning, try moving flash cards to reconstruct graphs and tables, etc Study Tips for Olfactory Learners If you are an Olfactory Learner, you will prefer to use the senses of smell and taste to reinforce learning This is a rare learning modality Olfactory Learning • During lecture, use different scented markers to identify different types of information Olfactory Reinforcement • Rewrite notes with scented markers • If possible, go back to the computer lab to your studying • Burn aromatic candles while studying • Try to associate the material that you’re studying with a pleasant taste or smell If olfactory learning is your weakness: If you are not an Olfactory Learner but want to improve your olfactory learning, try burning an aromatic candle or incense while you study, or eating cookies during study sessions Learning Styles fpref_SE.indd ix ix 20/08/12 8:14 AM LEARNING STYLES SURVEY CHART Resources Visual Print Hit & Miss ✔ ✔ ✔ Launching Your Career ✔ ✔ ✔ Learning Goals ✔ ✔ ✔ Going Green ✔ ✔ Business Etiquette ✔ ✔ Solving an Ethical Controversy ✔ ✔ Assessment Checks ✔ ✔ ✔ Review Questions ✔ ✔ ✔ Cases ✔ ✔ ✔ Project/Teamwork Applications ✔ ✔ ✔ Flashcards ✔ ✔ ✔ Business Terms ✔ ✔ ✔ Interactive Quizzes ✔ ✔ ✔ Student PowerPoints ✔ ✔ ✔ ✔ Audio Summary (English/Spanish) ✔ ✔ ✔ ✔ ✔ Animated Figures ✔ ✔ ✔ ✔ ✔ Case Study Animations ✔ ✔ ✔ ✔ ✔ E-lectures ✔ ✔ ✔ ✔ ✔ Greensburg, KS Continuing Case ✔ ✔ ✔ ✔ ✔ ✔ End-of-Chapter Videos ✔ ✔ ✔ ✔ ✔ ✔ Final Exam Questions ✔ ✔ ✔ Quiz Questions ✔ ✔ ✔ Pre-lecture Questions ✔ ✔ ✔ Post-lecture Questions ✔ ✔ ✔ Video Questions ✔ ✔ Drop-box Questions ✔ ✔ x fpref_SE.indd x Auditory Interactive Haptic Kinesthetic ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Learning Styles 20/08/12 8:14 AM Acknowledgements Contemporary Business has long benefited from the instructors who have offered their time as reviewers Comprehensive reviews of the 15th edition and ancillary materials were provided by the following colleagues: 2012 Advisory Board 2011 Advisory Board Kim Goudy – Central Ohio Technical College Kelly Gold – Fayetteville Tech Community College Frank Harber – Indian River State College Lynda Hodge – Guilford Tech Community College Chuck Kitzmiller – Indian River State College Christy Shell – Houston Community College Rudy Soliz – Houston Community College Ted Tedmon – North Idaho College Richard Warner – Lehigh Carbon Community College Janet Seggern – Lehigh Carbon Community College Susan Kendall – Arapahoe Community College Annette Haugen – Merced Community College Joseph Schubert – Delaware Technical and Community College Robin Kelly – Cuyahoga Community College Frank Barber – Cuyahoga Community College Thomas Byrnes – Wake Tech Community College Marian Matthews – Central New Mexico Community College Tom Darling – Central New Mexico Community College Laura Portolese-Dias – Shoreline Community College Mary Gorman – University of Cincinnati Diana Carmel – Golden West College Eileen Kearney – Montgomery County Community College John McCoy – Suffolk University Cathleen Behan – Northern Virginia Community College Donna Waldron – Manchester Community College Thomas Mobley – Miami University Gil Feiertag – Columbus State Community College Kellie Enrich – Cuyahoga Community College Sal Veas – Santa Monica College Sally Proffitt – Tarrant County Community College – Northeast David Robinson – University of California – Berkeley Rodney Thirion – Pikes Peak Community College Patricia Setlik – William Rainey Harper College Gary Cohen – University of Maryland Janice Feldbauer – Schoolcraft College Linda Hefferin – Elgin Community College Cynthia Miree-Coppin – Oakland University David Oliver – Edison State College – Lee Campus Lisa Zingaro – Oakton CC – Des Plaines Campus Karen Halpern – South Puget Sound Community College Colette Wolfson – Ivy Tech CC – South Bend John Hilston – Brevard CC – Palm Bay Campus John Striebich – Monroe Community College Nathaniel Calloway – University of Maryland University College Jayre Reaves – Rutgers University In Conclusion I would like to thank Ingrid Benson, Michelle Dellinger, and Cate Rzasa Their editorial and production efforts on behalf of Contemporary Business were terrific Let me conclude by noting that this new edition would never have become a reality without the outstanding efforts of the Wiley editorial, production, and marketing teams Special thanks to George Hoffman, Lisé Johnson, Franny Kelly, Kelly Simmons, Brian Kamins, Melissa Solarz, and Valerie Vargas Acknowledgements flast_SE.indd xi xi 23/08/12 1:13 PM Brief Contents PART Business in a Global Environment Chapter Chapter Chapter Chapter PART Starting and Growing Your Business Chapter Chapter PART xii ftoc_SE.indd xii Customer-Driven Marketing Product and Distribution Strategies Promotion and Pricing Strategies Managing Technology and Information Chapter 14 PART Management, Leadership, and the Internal Organization Human Resource Management: From Recruitment to Labor Relations Top Performance through Empowerment, Teamwork, and Communication Production and Operations Management Marketing Management Chapter 11 Chapter 12 Chapter 13 PART Forms of Business Ownership and Organization Starting Your Own Business: The Entrepreneurship Alternative Management: Empowering People to Achieve Business Chapter Chapter Chapter Chapter 10 PART The Changing Face of Business Business Ethics and Social Responsibility Economic Challenges Facing Contemporary Business Competing in World Markets Using Technology to Manage Information Managing Financial Resources 2 30 64 96 132 132 168 200 200 230 260 288 320 320 354 390 428 428 456 Chapter 15 Chapter 16 Chapter 17 Understanding Accounting and Financial Statements The Financial System Financial Management 456 488 520 Appendix A Business Law A-1 Appendix B Insurance and Risk Management A-18 Appendix C Personal Financial Planning A-30 Appendix D Developing a Business Plan A-43 Appendix E Careers in Contemporary Business A-52 Brief Contents 23/08/12 1:09 PM www.downloadslide.net India (Continued ) high-context culture in, 273 IFRS standards compliance, 480 offshoring in, 19, 98, 119 saffron production in, 100 technology industry in, 101 Indirect exporting, 117 Indirect transfers funds, 491 Individual branding, 365 Individual ethics, 35–36 Individual retirement plans, A-41 Indoor pollution, cleaning products and, 62 Industrial entrepreneurs, 12–13 Industrial Revolution, 12 Industry creation, by small businesses, 137–138 Inflation, 79–80 Infomercials, 403–404 Informal communication channels, 277–278 Information See also Information systems defined, 430 in promotional strategies, 395 right to, 50 sharing with employees, 262 Information economy, shift to, 87 Information systems components of, 431–432 computer networks in, 437–440 defined, 430 ethical issues, 443 hardware for, 434–436 overview, 430–431 security issues, 440–442, 444, 445, 446 software for, 431, 436–437, 446 trends in, 444–447 types of, 432–434 Information Technology Agreement (ITA), 110 Information technology (IT) accounting systems, 465–466 careers in, 455 cloud computing, 444, 445, 446, 523 for entrepreneurs, 177–178 Informative advertising, 398 Infrastructure, 106–107 Initial public offerings (IPOs), 496, 497 Innovation at Apple, I-16 bindsub_SE.indd 16 collaboration and, 19–20 entrepreneurs and, 10–11 by small businesses, 10–11, 138 Insider trading, 512 Installations, 358 Installment loans, A-37 Institutional advertising, 398 Insurable interest, A-21 Insurable risk, A-21–A-23 Insurance automobile, A-18, A-26 basic concepts, A-21–A-23 defined, A-20 personal finance and, A-39–A-40 self, A-20 sources of coverage, A-23–A-24 types of, A-24–A-29 Insurance companies, 505, A-24 Intangible assets, 464 Intangible personal property, A-12–A-13 Integrated marketing communications (IMC), 392–397 Integrity, 37–38 Intellectual property, A-14 Intensive distribution, 380 Interest rates on bonds, 494 short-term vs long-term funds, 532 Intermittent production processes, 293 Internal data, 332–333 Internal locus of control, for entrepreneurs, 182 International accounting, 478–480 International direct investment, 119–120 International economic communities, 113–115 International Financial Reporting Standards (IFRS), 480 International fiscal policy, 85 International law, A-4 International regulations, 109–110 International trade See also World marketplace barriers to, 104–111 measuring, 101–104 purpose of, 98–101 reducing barriers to, 111–115 International unions, 250 Internet See also Social networking; Web sites accounting process and, 465–466 advertising and, 350–351, 400 banking via, 504 cloud computing, 444, 445, 446, 523 convergence with television, 387–388 copyright infringement and, A-14 coupons via, 405 e-businesses, 15, 109 employee use of, 38, 443 international trade research resources on, 116 intranets, 437, 438–439 job searches using, A57–A-58 legislation on, A-9–A-10 résumé submittal, A-64 VoIP, 437, 440 VPNs and, 437, 439 Internet retailing defined, 374 in Europe, 123, 379 flash-shopping, 165 security concerns, 433 The Internship Bible (Princeton Review), A-54 Internships, A-53–A-54 Interviews, job, A-64–A-65 Intranets, 437, 438–439, 498 Intrapreneurship, 189–190 Introduction, in business plans, 142, A-47–A-48 Introduction stage of product life cycles, 359–360 Inventions, patenting, 184, 199 Inventory control, 303–304 Inventory management, 528–529 Inventory turnover, 474, 529 Investment planning, A-40 Investment-grade bonds, 494 Investors legislation protecting, A-8–A-9 social and ethical responsibilities to, 57 “Invisible hand” concept, Involuntary turnover, 243 IPOs (initial public offerings), 496, 497 Iran, saffron production in, 100 ISO Standards, 310–311 Isoprene, in tires, 302 Italy, apparel manufacturing in, 110 J Japan beverage industry, 88 business etiquette in, 105 deflation in, 81 earthquake and tsunami (2011), 5, 37, 49, 85, 93 Groupon company and, 120 high-context culture in, 273 rare-earth metal lawsuit, A-4 trade with U.S., 100, 102 Job creation, by small businesses, 10, 137 Job enlargement/ enrichment, 249 Job interviews, A-64–A-65 Job market, fitting in, A-68–A-69 Job rotation, 249 Job searches accepting a job, A-67–A-68 guidelines for, A-56–A-59 interviews, A-64–A-67 social networking for, 139, 233–234, 235 Job security, entrepreneurship for, 174 Job sharing programs, 242 Jobs creation of, 10, 137 entry-level, A-53 starting a new job, 308 Jobscasts, 234 Joint ventures, 120, 161 Judiciary, A-2–A-3 Junk bonds, 494 Just-in-time (JIT) systems, 304 K Keywords, A-58 Kindness campaign, 42 L Labels See also Brands nutrition, 321 product identification and, 367–368 warning, 50 Labor force See Workforce Labor unions, 250–254 Labor-management relations, 250–254 Labor-Management Relations Act (TaftHartley Act of 1947), 251 Subject Index 20/08/12 8:24 AM www.downloadslide.net Landrum-Griffin Act of 1959 (Labor-Management Reporting and Disclosure Act), 251 Languages, as international trade barrier, 105–106 Lanham Act, A-13 LANs (local area networks), 437, 438 Laptop computers, 435 Large numbers, law of, A-22–A-23 Latin America, cultural differences in, 273, 300 Latin Americans See Hispanics Law of agency, A-11 Law of large numbers, A-22–A-23 Law of supply and demand, 71 Laws See also specific laws antitrust, 74, 160, 541, A-5–A-6 bankruptcy, A-16 class-action suits, A-15 consumer protection, A-7 core business, A-10–A-13 cyberspace and telecommunications protection, A-9–A-10 defined, A-3 deregulation, A-6 employee protection, A-7–A-8 employee recruitment and selection, 234–235 international trade and, 108–110 for investment encouragement, 189 investor protection, A-8–A-9 labor, 251 overview, A-1–A-2 prohibition of cutthroat competition, 10 role in enforcing business ethics, 42 smoking bans, 44 tax, A-16–A-17 trademarks, patents, and copyrights, A-13–A-14 types of, A-3–A-5 Lawsuits class-action, A-15 for discrimination, 19, 55 prevalence of, A-1–A-2 Layoffs, 244 Lead, from electronic waste, 46 Leadership at Apple, for change, 22 ethical, 39, 42 from managers, 215–217 LEED (Leadership in Environmental Engineering and Design), 294 Legal differences, as international trade barrier, 107–110 Legal structures for businesses for family-owned businesses, 154–155 types of, 151–153 Legal system, A-2–A-3 Legislation See Laws Letters of reference, A-57 Leverage, 531 Leverage ratios, 476 Leveraged buyouts (LBOs), 537, 540 Liabilities, 464, 468 Liability corporations, 152–153 partnerships, 152 product, 49, A-15 sole proprietorships, 151 Liability insurance, A-26 Libya, regime change in, 108 Licensing agreements, foreign, 119 Life insurance, A-28–A-29 Lifestyle centers, 377 Lifestyle entrepreneurs, 174 Lifestyles, personal finance and, A-31 Lifetime value of a customer, 344 Lilly Ledbetter Fair Pay Act of 2009, 239, A-7 Limit orders, 501 Limited-function merchant wholesalers, 372 Limited-liability companies (LLCs), 153 Line organizations, 222 Line-and-staff organizations, 222 Lines of credit, 503, 535 Liquidity ratios, 473–474 Listening, 275 LLCs (limited-liability companies), 153 Loan officers, 548 Loans See also Financing from banks, 503 discount rates, 509 management of, A-36–A-38 microloans, 82, 143 national debt, 86 SBA-guaranteed, 143 short-term, 535 student, 85 for women-owned businesses, 82 Local area networks (LANs), 437, 438 Local food movement, 29 Local laws, A-5 Local unions, 250 Location decisions, 296–299, 377 Lockouts, 253 Lodging managers, 319 Logistics, 381 Long-term assets, 529 Long-term debt to equity ratios, 476 Long-term financing, 532, 536–539 Louisiana, civil law system, A-11 Low-context cultures, 273 Loyalty brand, 341, 365–366 customer, 14, 261 vs truth, 38 Loyalty programs, 261 Lump-sum bonuses, 240 Luxury brands, 387, 407, 413–414 Luxury taxes, A-17 M M1/M2 money, 508 Macedonia, apparel manufacturing in, 314–315 Macroeconomics capitalist economies, 8, 72–75 defined, 65 mixed market economies, 76 overview, 65–66, 71 planned economies, 75–76 Made in Italy label, 110 Magazines advertising in, 401 on entrepreneurship, 169 Mainframe computers, 435 Maintenance factors, 246–247 Make, buy, or lease decisions, 302–303 Makeup, specialized, 170 Malaysia, computer use legislation, 109 Mall shopping, 377, 378, 381 Malware, 441–442 Managed care plans, A-27 Management See also Financial management; Human resource management careers in, 318–319 decision making by, 213–214 defined, 202 empowerment of employees, 261, 262–264 functions of, 204–205 hierarchy of, 202–203, 209, 222–224 labor-management relations, 250–254 leadership by, 215–217 marketing, 426 motivation of employees, 239, 244–250 risk, 34 skills for, 203–204 small business failures and, 139 Management accountants, 461 Management by objectives (MBO), 248–249 Management consulting, 459–460 Management development programs, 236–237 Management information systems (MIS), 433 Management support systems, 433–434 Managers as decision makers, 213–214 as leaders, 215–217 qualities of successful, 20–22 Mancessories, 138 Manufacturer-owned wholesaling intermediaries, 372 Manufacturers’ agents, 373 Manufacturers’ brands, 365 Manufacturers’ reps, 373 Manufacturing See also Production of computer chips, 289 flexible, 295–296 offshoring of, 19, 119 pollution from, 45–46 sustainability initiatives, 293–294 Market economy See Private enterprise system Market interest rates, 494 Market orders, 501 Market penetration, A-49 Market price, 71 Market Reform Act of 1990, 512 Market segmentation business markets, 341–342 consumer markets, 336–341 overview, 335–336 Market surveillance, 513 Subject Index bindsub_SE.indd 17 I-17 20/08/12 8:24 AM www.downloadslide.net Marketable securities, 527–528 Marketing See also Promotion careers in, 426–427 defined, 322 evolution of, 324–325 green, 47 not-for-profit organizations, 325–328 overview, 322–323 relationship, 344–346 to teenagers, 423 Marketing concept, 324–325 Marketing era, 13–14, 324 Marketing intermediaries, 369, 371, 379–380 Marketing management, 426 Marketing mix, 329, 330–332 Marketing research, 332–335 Marketing research analysts, 426 Marketing section, in business plans, 142, A-48–A-49 Marketing strategies in business plans, 142, A-48–A-49 developing, 328–332 product classification and, 358 product life cycle implications on, 361–362 Maslow’s hierarchy of needs, 246, 249–250 Mass customization, 332 Mass production, 291–292 Material nonpublic information, 512 Materials handling, 382 Materials requirement planning (MRP), 304–305 Matrix organizations, 223–224 Maturity stage of product life cycles, 360–361 Mechanization, 291 Media, advertising, 399–404 Mediation, 252 Medical and health services managers, 319 Medical care See Health care Medicare/Medicaid, A-24 Men accessories for, 138 education and annual earnings level, A-52 I-18 bindsub_SE.indd 18 in workforce, A-69 Merchant wholesalers, 372 Mergers, 160, 539–540 Messages, in communication process, 272–273 Mexico high-context culture in, 273 NAFTA participation, 113, 114 offshoring in, 119 peso value, 104, 479–480 trade with U.S., 100 Microeconomics defined, 65 factors driving demand, 66–69 factors driving supply, 69–70 interaction of demand and supply, 70–71 Microloans, 82, 143, 205–206 Microprocessor chip manufacturing, 289 Middle East baksheesh practice, 108 Starbucks expansion, 212 Middle management, 203, 318 Middleman, 369 Midrange computer systems, 435 Military helmets, 363 Millennial generation employee management, 221 ethnic cuisine for, 323 market for, 338–339 personal saving strategies, A-30 Minorities See also specific groups entrepreneurship among, 339–340 increasing workforce diversity and, 18 microloans for, 82 small-business opportunities for, 82, 146–147 Mission statements, 142, 209–210 Missionary selling, 408–409 Mixed market economies, 76, 77 MNCs (Multinational corporations), 120–121 Mobile commerce, 11, 128 Mobile phones antitrust case, 160 broadband network cards, 438 business etiquette for, 436 coupons using, 323, 405 design of, 128 distribution channels, 370 GPS-sharing systems, 360 intranets for, 439 maturity of market, 360 Mobility, workforce, 19 Modified breakeven analysis, 416 Monetary policy, 84, 508–510 Money management, personal, A-34, A-36, A-37 Money market instruments, 492, A-40 Monopolistic competition, 73 Monopoly, 73, 74–75 Moral development, stages of, 35–36 Mortgage pass-through securities, 493 Mortgage Reform and AntiPredatory Lending Act of 2007, A-5 Motivation, of employees, 239, 244–250 Motivator factors, 246–247 Motor Carrier Act and Staggers Rail Act, A-6 MRO (maintenance, repair, and operating supplies), 358 MRP (Materials requirement planning), 304–305 Multidomestic business strategies, 122–123 Multinational corporations (MNCs), 120–121 Multivitamin production, 310 Municipal bonds, 492 Music, iPhone apps for, 177 Mutual funds, 506 N NAFTA (North American Free Trade Agreement), 113–114, 341 NAICS (North American Industry Classification System), 341–342 National brands, 365 National debt, 86 National Environmental Policy Act, A-7 National Flood Insurance Program, A-26 National Labor Relations Act of 1935 (Wagner Act), 251 National unions, 250 Natural gas vehicles, 425 Natural resources, Navigation treaties, 109 Nearshoring, 19 Needs for achievement, 180 Maslow’s hierarchy of, 246, 249–250 Negligence, A-15 Negotiable instruments, A-12 Net profit margins, 475 Net worth, 490, A-35 Netbook computers, 435 Netherlands financial markets in, 102 multinational corporations in, 120 trade with U.S., 100 Network administrators, 455 The New Business Road Test: What Entrepreneurs and Executives Should Do Before Writing a Business Plan (Mullins), A-50 New ventures See Entrepreneurs; Entrepreneurship; Starting a business New-product development stages, 362–364 Newspapers, advertising in, 401, A-58 Noise, in communication process, 273–274 Nondepository financial institutions, 502, 505–506 Nonpersonal selling, 394 Nonprogrammed decisions, 214 Nonstore retailers, 373–374 Non-tariff trade barriers, 111 Nontraditional marketing, 326–328 Nontraditional students, A-68 Nonverbal communication, 278–279 Norming stage, team development, 269, 270 North American Free Trade Agreement (NAFTA), 113–114, 341 North American Industry Classification System (NAICS), 341–342 Notebook computers, 435 Notetaking, electronic, 429 Not-for-profit corporations, 155 Not-for-profit organizations Subject Index 20/08/12 8:24 AM www.downloadslide.net accountants for, 461 advertising by, 398 defined, joint ventures with for-profits, 161 marketing by, 325–328 organizational structures for, 219 overview, 5–6 publicity for, 411 Nuclear power, possible increase in, 92–93 Nutrition labeling, 321 Nutrition Labeling and Education Act, A-7 O Obesity, as public health issue, 45 Objections, in sales process, 410 Objectives, 212 Observational studies, 333– 334 Odd pricing, 419 Offensive listening, 275 Offset agreements, 118 Offshoring, 19, 119 Oil industry Deepwater Horizon oil spill (2010), 46, 70, 280, 281, 495 divestiture in, 544–545 gasoline demand, 67–68 Oligopolies, 73, 74 On-demand computing, 446 One-on-one marketing, 346 Online entertainment, 361 Online games, 173, 335, 396, 397 Online marketing, increase in, 169 Online shopping See Internet retailing On-the-job ethical dilemmas, 36–39 On-the-job training, 236 Open book management, 262, 458 Open communication, 277 Open corporations, 158 Open market operations, 509 Operating plans, 524 Operating systems (computer), 9, 363, 436, 442 Operational planning, 208 Operational support systems, 432–433 Opportunities, 210, 211 Optimism, in entrepreneurs, 180 Oral communication, 274–275 Order processing, 382, 408 Organic products coffee, 29, 519 cotton apparel, 166 Organization charts, 219 Organization for Economic Cooperation and Development Anti-Bribery Convention, 108 Organization marketing, 328 Organizations See also Businesses; Not-forprofit organizations defined, 218 delegation in, 221–222 departmentalization in, 219–221 organizing process, 218–219 structures of, 222–224 Organizing, 205 Orientation, for new employees, 236 Osechi meals, 120 OSHA Act, A-8 Outbound telemarketing, 409 Outdoor advertising, 402–403 Outlet malls, 381 Outsourcing, 19, 244 Overseas assignments, qualifications for, 130–131 Overseas divisions, 120 Over-the-counter selling, 408 Owners’ equity, 464, 468 Ownership utility, 323 P Packaging, 367–368 Paid time off (PTO), 53, 241 Pakistan, candy contamination, 309 Panama Canal expansion, 355 Paper, conserving, 18 Paper cups, recycling, 43 Paraguay, customs union in, 113 Partnerships, 152 See also Strategic alliances Part-time employees, 19, 242 Passwords, for computer systems, 441 Patent Reform Act, A-14 Patents, 184, 199, 391, A-14 Patient Protection and Affordable Care Act, A-8, A-27 Pay See Compensation Pay for knowledge, 240 Pay gap, 56–57, 146, 239, A-52 Pay-as-you-drive insurance, A-18 Peer reviews, 237 Penetration pricing, 416–417 Pension funds, 505–506 Pension plans, A-41 Pension Protection Act, A-8 Performance appraisals, 237–238 Performing stage, team development, 269, 270 Perpetual inventory systems, 303–304 Person marketing, 327 Personal bankruptcies, A-16 Personal computers, 434, 435 See also Computers Personal financial management decisions for, A-36–A-41 goal-setting, A-35–A-36 importance of, A-31–A-33 model of, A-33–A-35 saving strategies, A-30 Personal financial planners, 549 Personal selling, 393, 407–410 Personal shoppers, 408 Personal space, 278, 279 Persuasive advertising, 398 PERT (program evaluation and review technique) charts, 307 Peso (Mexico), 104, 479–480 Pet industry air transportation services, 424, 486–487 boarding and daycare services, 171 monopolistic competition in, 73 product recalls, 49 Petroleum industry See Oil industry Pharmaceutical industry flexible manufacturing systems for, 296 generic drugs, 391 missionary selling in, 408–409 patents, 74 prescription drug advertising regulation, 50 Philanthropy, corporate, 34, 44, 48–49 Physical distribution, 369, 381–382 Physiological needs, 246 Pick-and-place robots, 294 Picketing, 253 Place marketing, 327 Place utility, 323 Planned economies, 75–76, 77 Planned shopping centers, 377 Planning defined, 204 importance of, 206–209 types of, 207–209 Podcasts, for job openings, 234 Point-of-purchase (POP) advertising, 406–407 Poland, European trade with, 115 Police vehicles, 337 Polite listening, 275 Political climate, 107–108 Political differences, as international trade barrier, 107–110 Pollution, from manufacturing practices, 45–46 Populations U.S., 18 world, 99 Portfolio managers, 549 Positioning, 395 Postconventional ethical stage, 35, 36 Potential sales revenue, A-49 Pound (Britain), 103, 530 Power of attorney, A-41 The Practice of Management (Drucker), 248 Preconventional ethical stage, 35, 36 Preferred provider organizations (PPOs), A-27 Preferred stock, 158, 496 Pregnancy Discrimination Act of 1978, 53, 54 Premiums (insurance), 404–405, 505 Premiums (promotions), A-20 Presentation, in sales process, 410 Prestige pricing, 413–414 Price wars, 413 Price-level changes, 79–82 Price-quality relationships, 418–419 Subject Index bindsub_SE.indd 19 I-19 20/08/12 8:24 AM www.downloadslide.net Prices consumer perceptions of, 418–419 defined, 412 equilibrium, 71 haggling over, 407–408 market, 71 Pricing strategies, 331, 377, 412–417 Primary data, 333 Primary demand, 391 Primary markets, 496, 511 Principals in law of agency, A-11 résumés of, in business plans, 142, A-49 Privacy issues data mining, 334–335 drug testing, 45, 235 monitoring of employee Internet use, 38, 443 social networking, 139 spyware, 442 telemarketing, 409 Private enterprise system See also Capitalism basic concepts, 8–9 basic rights in, 9–10 entrepreneurship alternative and, 10–11 vs other systems, 77 types of competition in, 72–75 Private equity funds, 537 Private insurance companies, A-24 Private investors, 145 Private placements, 536–537 Private property, Private sector, not-for-profit organizations in, Privatization, 76 Problem-solving teams, 265 Process control systems, 433 Process departmentalization, 220–221 Process layout, 300, 301 Product advertising, 398 Product departmentalization, 219–220 Product identification, 364–368 Product launch, 363 Product layout, 300, 301 Product liability, 49, A-15 Product life cycles, 359– 364, 398–399 Product lines, 359 Product managers, 367 Product mixes, 359 I-20 bindsub_SE.indd 20 Product placement, 396 Product strategies, 330–331, 356–359, 376 Product usage rates, 341 Production See also Manufacturing defined, 289 location of, 296–299 processes of, 290, 292–293 strategic importance of, 291–292 technology and, 293–294 Production and operations management controlling production process, 305–308 defined, 289 dispatching, 308 facility layout determination, 300–302 follow-up, 308 implementing production plan, 302–305 production planning, 299–300, 305–306 quality issues, 308–311 Production control, 305–308 Production era, 13, 324 Production facilities See Facility planning Production managers, 299, 319 Production systems, 290 Productivity, 79, 80, 81 Product-related segmentation, 340–341 Products accentuating value of, 396 classification of, 356–358 consumer vs business, 329–330 differentiating, 395 with good design, 128, 229 Profit margins, 475 Profit sharing, 239, 240 Profitability objectives, 412 Profitability ratios, 475 Profit-and-loss (P&L) statements, 466, 468, 470 Profits basic concepts, 4–5 defined, forecasting of, 525 right to keep, 9–10 Programmed decisions, 213 Promotion, 391, 392–397 Promotional mix, 393–394 Promotional strategies defined, 331 objectives of, 394–396 pushing and pulling, 411–412 for retailers, 377 sales promotion, 404–411 Property, A-12–A-13 Property and liability insurance, A-25–A-26 Property law, A-12–A-13 Prospecting, in sales process, 409–410 Prospectuses, 511 Protective tariffs, 110 Psychographic segmentation, 340 Public accountants, 459–460 Public Health Cigarette Smoking Act, A-7 Public health, social responsibility and, 44–45 Public insurance agencies, A-23–A-24 Public ownership of businesses, 156 Public relations crises, 280 Public relations (PR), 411, 426 Public sector, not-for-profit organizations in, Publicity, 411 Publicly held corporations, 158 Publishing industry changes in, 94, 414 comic books, 94–95, 388–389 setting prices in, 110 Pulling strategies, 412 Purchasing managers, 319 Pure competition, 72, 73 Pure monopolies, 74 Pure risk, A-19 Pushing strategies, 411–412 Q Qualifying, in sales process, 409–410 Quality importance of, 308–311 price-quality relationships, 418–419 Quality control, 309–310 Quality-of-life issues for employees, 52–53 for entrepreneurs, 174–175 Quick ratios, 473, 474 Quotas, 111 R Rack jobbers, 372 Radio, advertising on, 401 Radio-frequency identification (RFID), 368, 382, 433 Railroad industry, 382 Raises, asking for, 243 Raleigh, North Carolina, smart-grid technology, 78 Rand (South African currency), 104 Rare-earth metal exports, A-4 Ratio analysis, 473–476 Raw materials, 358 Real (Brazilian currency), 104 Real property (real estate), A-13 Rebates, 405 Recalls Chinese-made goods, 88 Johnson & Johnson, 33 liability and, A-15 pet food, 49 Toyota vehicles, 265, 272, 309 Receipts, data extraction from, 485 Receivables turnover, 474–475, 528 Recessions, 78, 79 See also Economic downturn/crisis (2008– ) Recruitment responsibilities, 232–235 Recycling defined, 46 of electronics, 46, 47 of paper cups, 43 as resource, 46 References, A-57 Reforestation programs, 109 Regional stock exchanges, 500 Registration, of new securities, 511 Regular dividends, 532 Regulated monopolies, 74–75 Regulation environment for businesses, A-5–A-6 of the financial system, 510–513, A-5 international, 109–110 of small businesses, 140–141 Regulation FD (Fair Disclosure), 57 Relationship era, 14–17, 324 Relationship management, 14, 15 Relationship marketing, 344–346 Subject Index 20/08/12 8:24 AM www.downloadslide.net Religious beliefs, as international trade barrier, 106 Reminder-oriented advertising, 399 Renewable energy research on, 46, 47 smart grids and, 78, 202–203 solar energy, 16, 185, 298 Rental car industry, customer service, 261 Renting vs buying a home, A-39 Repair services, 383 Replacement decisions, 529 Reserve requirements, 508–509 Resignation of employees, 243 Respondeat superior (let the master answer), A-11 Restaurant industry capital structure, 530 fast-food, 71, 72, 293, 342 food trucks, 323 Restrictive monetary policy, 84 Results-oriented résumés, A-62 Résumés preparation of, A-59–A-64 of principals, in business plans, 142, A-49 Retail health clinics, 331 Retailer-owned cooperatives, 373 Retailers competition among, 376–378 as intermediaries, 371 nonstore, 373 small businesses, 135 store, 374–376 Retirement employer-sponsored plans, A-41 planning for, A-41 recession effects on, 338 Retirement savings plans, 241, 264 Retreats, team-building, 270 Return on equity, 475 Revenue bonds, 492 Revenue tariffs, 110 Revolving credit, 535, A-37 Right to be heard, 51 Right to be informed, 50 Right to be safe, 49 Right to choose, 51 Rights, in private enterprise system, 9–10 Risk, A-19 Risk management, 34, A-19–A-21 Risk-return trade-off, 523 Robinson-Patman Act, A-6 Robots, 294–295 Routing phase, 306 Rubber, synthetic, 302 Rule of indemnity, A-22 Rules of conduct, for securities markets, 512–513 Runs, bank, 504 Rupee (India), 104, 119 Russia countertrade and, 118 financial markets in, 102 globalization and, 99 vzyatka practice, 108 S S corporations, 153 SaaS (Software as a service), 446 Safety, 51–52, 246 Saffron cultivation, 100 Salaries, 239 See also Compensation; Wages Sales mistakes by salespeople, 393 nonpersonal selling, 394 personal selling, 393 potential revenue, in business plans, A-49 promotional strategies for, 395–396 Sales (discounted prices), 418, 419 Sales branches, 372 Sales era, 324 Sales law, A-11–A-12 Sales offices, 372 Sales process, 409–411 Sales promotion consumer-oriented, 404–406 personal selling, 407–410 trade-oriented, 406–407 Sales representatives, 426 Samples, 405–406 Samsung, 322, 436, 540 Sandwich generation, 52 Sarbanes-Oxley Act compliance requirements, 34 financial reporting requirements, 205 fraud reporting procedures, 39 purpose of, 34, 57, A-8 requirements of, 462–463, A-9 whistle-blowing and, 467 Satellite radio, 401 Satellite television, 399 Saudi Arabia, trade with U.S., 100 Savers (financial system), 490–491 Savings and loan associations, 504–505 Savings banks, 504–505, 510 SBICs (Small Business Investment Companies), 143, 144 Scarcity, prestige and, 413–414 Scheduling, 242 Scheduling phase, 306 Screening stage of product development, 362–363 Seasonal unemployment, 83 Second job interviews, A-67 Secondary data, 333 Secondary market, 497–498, 512 Secured bonds, 493 Securities See also Bonds defined, 491 money market instruments, 492 private placement of, 536–537 public sale of, 536 regulation of, 511–513 as short-term asset, 527–528 stocks, 495–497, 536–537, A-40 Securities Exchange Act, A-8 Security analysts, 548–549 Security concerns, online, 433, 440–441, A-9–A-10 Seed capital, 186 Segmentation See Market segmentation Selective demand, 391 Selective distribution, 380 Self-actualization needs, 246 Self-confidence, in entrepreneurs, 180 Self-insurance, A-20 Self-managed teams, 265 Self-regulation, in financial industry, 512–513 Seller’s market, 325 Sell-offs, 540 Sender, in communication process, 272–273 Serial entrepreneurs, 171 Servers, 435 Service sector classification of services, 358 offshoring of, 19, 119 rise in jobs, A-69 U.S exports, 102 Sexism, 56–57 Sexual harassment, 56–57 Share buy-backs, 534 Share draft accounts, 505 Sherman Act, 74, A-6 Shifts in demand curves, 68–69 Shifts in supply curves, 69–70 Shipping industry customs clearing of packages, 371 distribution logistics, 382–383 hand-held devices in, 436 Panama Canal expansion, 355 sustainable practices, 61 tracking software, 178 Shopping, online See Internet retailing Shopping malls, 377, 378, 381 Shopping products, 356, 357 Short-term assets, 527–529 Short-term funds mixing with long-term, 532 options for, 534–536 Short-term loans, 535 Short-term monopolies, 74 Shrimp industry, supply changes, 70 Sin taxes, A-17 Singapore, flexible manufacturing systems, 296 Six sigma concept, 309–310 Skateboards, 195–196, 546 Skimming pricing, 416 Skunkworks projects, 190 Slow steaming, 61 Small Business Investment Companies (SBICs), 143, 144 Small Business Jobs Act of 2010, 143 Small businesses See also Entrepreneurs; Entrepreneurship; Franchises/Franchising accounting software for, 465 assistance for, 143–147 business plans for, 141–143 career ideas for, 198–199 defined, 134 economic contributions of, 136–138 education level of owners, 10, 11 failure of, 138–141 innovation in, 10–11, 138 legal services for, A-1 microloans for, 82 social networking for, 194–195 as source of employment, 10 typical ventures, 134–136 Subject Index bindsub_SE.indd 21 I-21 20/08/12 8:24 AM www.downloadslide.net Small businesses (Continued ) women and minorities in, 82, 146–147 Smart grids, 78, 202–203 Smart phones accounting process and, 465 business etiquette for, 436 distribution channels, 370 intranets for, 439 malware and, 442 popularity of, 93–94, 333, 435 Smoking, social responsibility and, 44 Soap, donations to developing countries, 60–61 Social audits, 44 Social differences, as international trade barrier, 105–106 Social entrepreneurs, 172 Social era, 324 Social needs, 246 Social networking Baby Boom generation use, 335 blogs, 15, 340 business etiquette for, 15, 379 in the coffee industry, 29, 377 for employee recruitment, 233–234, 235 employee use and abuse, 40 for entrepreneurs, 177–178, 194–195 by food trucks, 323 for intangible goods, 380 in job searches, 139 marketing with, 169, 328, 400 privacy concerns, 334–335 for small businesses, 194–195 for teenagers, 423 Social responsibility of admired companies, 22 B corporations and, 546 cause marketing, 328 corporate citizens list, 214 corporate philanthropy as, 34, 44, 48–49 to customers, 49–51 defined, 42 to employees, 51–57 to general public, 44–49 to investors and financial community, 57 overview, 42–44 public health as, 127 Social Security, A-24, A-28 I-22 bindsub_SE.indd 22 Socialism, 75, 77 Soft currencies, 104 Soft drink industry, 359 Software accounting, 465–466, 477 business-planning, A-50–A-51 common applications, 437 in information systems, 431, 436–437, 446 overview, 436–437 Software as a service (SaaS), 446 Solar energy innovative companies, 185 popularity of, 16 production location decisions, 298 Sole proprietorships, 151–152 South Korea mobile commerce use, 128 trade with U.S., 100 Sovereign wealth funds, 537–538 Soviet Union, collapse of, 75–76 Spain, saffron production in, 100 Spam, 402 Span of management, 221 Special-effects makeup, 170 Specialist investment firms, 498 Specialization of labor, 291 Specialty advertising, 406 Specialty products, 356, 357 Speculative bonds, 494 Speculative risk, A-19 Spending, monitoring, A-34, A-38–A-39 Spin-offs, 540 Sponsorship, 403 Spyware, 442 Stakeholders, 42 Standard of living, A-31 Standardization, 291, 331 Standardization business strategies, 121–122 Starting a business See also Entrepreneurship business ideas, 183–185, 198–199 business plans, 185–186 financing, 186–189 State courts, A-3 State employment agencies, A-59 State laws, A-5 State-chartered banks, 510 Statement of cash flows, 466, 471–473 Statement of owners’ equity, 466, 470, 471 Statutory law, A-4 Steroid abuse, 45 Stevia sugar substitute, 190 Stock markets (exchanges), 498–501 Stock options, 263–264 Stockholders, 158 Stocks issue of, 496–497 personal finance and, A-40 private placement of, 536–537 public sale of, 536 types of, 495–496 Store atmospherics, 378 Store brands, 422–423 Storming stage, team development, 269, 270 Strategic alliances in the banking industry, 489 in the coffee industry, 29 in the computer industry, 380 defined, 15 Strategic planning defined, 207–208 process of, 209–213 Strategic plans, 524 Strengths, 210, 211 Strengths and weaknesses evaluation, 210–212 Strikes, 252–253 Structural unemployment, 83 Student loans, 85 Students, nontraditional, A-68 Subcontracting, 119 Subprime mortgages, 493 Subscription television, 388 Substance abuse, as public health issue, 45 Sugar substitutes, 190 Super slow steaming, 61 Supercomputers, 435 Supervisory management, 203, 318 Suppliers, 303 Supplies, 358 Supply defined, 66 factors driving, 69–70 interaction of demand with, 70–71 Supply chains, 381 Supply curves, 69–70 Surveys, on consumers, 334 Sustainability initiatives alternative fuel/electric vehicles, 45, 208–209, 425 B corporations, 154, 546 cleaning products, 62 Comet Skateboards, 195, 546 construction industry, 254 customer relationship advantages of, 16 Dollar General, 538 Greensburg, Kansas, 129, 197, 317, 425, 454, 547 hotel industry, 315–316, 405 IKEA, 341 Johnson & Johnson, 211 Kimpton Hotels, 315–316 King Arthur Flour, 154 KPMG, 466 Kraft Foods, 293, 294 manufacturing processes, 293–294 New Resource Bank, 491 Nobis Engineering, 20 packaging, 367 Patagonia-Walmart project, 166 PortionPac, 368 PrintEco software, 18 Raleigh smart-grid technology, 78 reforestation program, 109 renewable energy, 16, 46, 47, 78, 185, 202–203, 298 SC Johnson, 280 Seventh Generation, 166–167, 259 shipping industry, 61 Starbucks, 43 Walmart, 33, 166–167 Sustainable, as term, 47 Sweepstakes, promotional, 406 Swipe fees, 511 Switzerland, low-context culture in, 273 SWOT analysis, 210–212 Synchronous learning, 454 Syndicates, of financial institutions, 497 Synergy, 540 Synthetic production systems, 293 Synthetic rubber, in tires, 302 Systemic discrimination, 55 T Tablet technology, 333, 436, 465 Tactical planning, 208 Taft-Hartley Act of 1947 (Labor-Management Relations Act), 251 Subject Index 20/08/12 8:24 AM www.downloadslide.net Tangible assets, 464 Tangible personal property, A-12 Target markets, 329–331, 376 Targeted employment areas, 189 Targets, in mergers, 539 Tariffs, 109, 110 Tax law, A-16–A-17 Taxes for corporations, 153 federal budget and, 86 incentives on, 299 planning for, A-38 for small businesses, 141 types of, A-16–A-17 volunteer programs, 458–459 Team cohesiveness, 270–271 Team development, 269–270 Team diversity, 268, 269 Team level, 268 Team norms, 271 Team size, 267 Team-building, 270, 285–286 Teams characteristics of, 267–270 cohesiveness and norms, 270–271 conflict in, 271 defined, 264 at Enterprise Rent-a-Car, 261 types of, 264–267 Technical management skills, 203–204 Technical support specialists, 455 Technology customizing products and, 346 as form of capital, 6–7 need for skilled workers, 17 for relationship management, 15 smart grids, 78, 202–203 stock market, 498, 499, 500 unethical behavior and, 35 Teenagers market for, 338–339 marketing to, 423 shopping mall use, 378 in the workforce, 17, 52 Telecommunications Act, A-6 Telecommunications networks, 431 Telecommuters, 242, 445 Telemarketing, 374, 408, 409 Telemarketing Sales Rule, 409, A-10 Television as advertising medium, 399–400, 403–404 cable, 387–388, 399 convergence with Internet, 387–388 Hispanic market for, 339 maturity of market, 360 product placement on, 396 satellite, 399 Tender offers, 539 Term life insurance, A-28 Termination of employees, 243 Terrorism, 87 Test marketing, 363–364 Theories, X, Y, Z, 250 Threats, 210, 211 360-degree performance reviews, 237–238 Thrift institutions, 504–505 Ticket vendors, 413–414 Time deposits, 492 Time utility, 323 Timeshare business models, 188 Tire production, 302 Title VII, Civil Rights Act of 1964, 53, 54, 234 Tobacco products, social responsibility and, 44 Tolerance for ambiguity, in entrepreneurs, 182 Tolerance for failure, in entrepreneurs, 180–181 Tombstone ads, 496 Toothbrushes, children’s, 128 Top management, 202, 318 See also Chief executive officers (CEOs) Torts, A-14–A-15 Total asset turnover, 475 Total costs, 415 Total revenue, 415 Toy stores, online, 136 Trade barriers economic differences and, 106–107 political/legal differences and, 107–110 reducing, 111–115 social/cultural differences and, 105–106 trade restriction types, 110–111 Trade credit, 534 Trade deficit, 101 Trade promotion, 406 Trade shows, 407 Trade surplus, 101 Trademarks, 364, 365, A-13–A-14 Trade-oriented sales promotions, 406–407 Trading floors, 498 Training programs at Coca-Cola, 257–258 at Seventh Generation, 259 types of, 236–237 Transaction management, 14 Transaction processing systems, 432–433 Transportation See also Automobile industry as factor in production-facility location, 296 for pets, 424, 486–487 for shipping products, 382–383 Treasurers, 522 Treasury securities, 86, 492, 496–497, 509 Treaties, international trade, 109 Trial courts, A-2–A-3 Triangle Shirtwaist Factory fire (1911), 51 Triple bottom line companies, 546 Trojan horses, 442 Truth, 37, 38 Truth in Lending Act, A-5 Tsunami, in Japan (2011), 5, 37, 49, 85, 93 U Underemployed workers, 82 Underwriting, 497, 505, 536, A-22 Underwriting discounts, 536 Unemployment, 82–83, 231 Unemployment insurance, A-24 Unemployment rate, 82 Uniform Commercial Code (UCC), A-11–A-12 Uniform Employee Selection Guidelines, 234 Uniformed Services Employment and Reemployment Rights Act of 1994, 54, A-8 Unions See Labor unions United Kingdom cultural differences, 106 financial markets in, 513 multinational corporations in, 120 pound in, 103, 530 trade with U.S., 100 United States (U.S.) cultural differences, 106 major exports and imports, 102 NAFTA participation, 113 population of, 18 top trading partners, 100 Universal product codes (UPCs), 368 Unpaid leave, 53 Unsecured bonds, 493 Upward communication, 277 Uranium demand, 92 Uruguay, customs union in, 113 Uruguay Round negotiations, 112 U.S district courts, A-2–A-3 USA Patriot Act, A-5, A-6 Users (financial system), 490–491 Utility, 289, 323, 371 Utility computing, 446 V Vacation time, 106 Values, as international trade barrier, 106 Variable costs, 415 Vending machines, 396 Vendor-managed inventory, 304, 382 Vendors, selection of, 303 Venture capital, 145 Venture capitalists, 188– 189, 519, 537 Vertical mergers, 160 Veterans, job programs for, 231, 232 Vice presidents for financial management, 522 Video game industry downloadable content, 363 effects of recession on, 67 guerrilla marketing in, 396, 397 Videos, maturity of market, 361 Vietnam offshoring in, 119 shrimp industry, 70 Vietnam Era Veterans Readjustment Act of 1974, 53, 54 Viral advertising, 400 Virtual offices, 445 Virtual private networks (VPNs), 437, 439 Virtual teams, 266–267 Viruses, 441–442 Vision of entrepreneurs, 179 importance of, 20 Subject Index bindsub_SE.indd 23 I-23 20/08/12 8:24 AM www.downloadslide.net Vision (Continued ) overview, 205–206 Vocational Rehabilitation Act of 1973, 54 VoIP (voice over Internet protocol), 437, 440, 451 Volume objectives, 413 Voluntary turnover, 243 Volunteerism, 49 Vroom’s expectancy theory, 247 W Wages, 239 See also Compensation Wages payable, 464 Wagner Act, 251 Walk-in health clinics, 331 Warehousing, 382 Warning labels, 50 Warranties, 383, A-12 Waste management, 294, 316 Water, access to, 327 Wawa Mum program (Ethiopia), 31 I-24 bindsub_SE.indd 24 Weaknesses, 210, 211 The Wealth of Nations (Smith), Web sites See also E-businesses (electronic business); Internet retailing business plan resources, A-50, A-51 business plans, 186 career assessment resources, A-55 career planning resources, A-70 for entrepreneurs, 169, 199 job sites, 233–234, 235, A-57–A-58 for small businesses, 136 for work scheduling, 242 Web-based applications, Wheel of retailing, 375–376 Wheeler-Lea Act, 50, A-6 Whistle-blowing, 38–39, 467 Wholesalers, 371–373 Wide area networks (WANs), 437, 438 Widgets, 400 WiFi (wireless fidelity), 438, 439 Wills, A-41 Wi-Max, 438 Wireless devices, business etiquette for, 436 Wireless Fidelity (WiFi), 438, 439 Wireless networks, 438 Women education and annual earnings level, A-52 microloans for, 82 pay gap, 56–57, A-52 small-business opportunities for, 82, 146 in workforce, A-69 Wonderlic Basic Skills Test, 235 Work teams, 265 Workers’ compensation, A-24 Workforce aging, 55 changes in, 17–20, A-32 development as social responsibility, 47–48 distributed, 444–445 globalization and, 87, 88 Work-life balance, 52–53, 242 Workplace safety, 51–52 World Factbook (CIA), 116, 131 World marketplace See also International trade marketing mix for, 331–332 overview, 97–98 packaging issues, 367 size of, 98–100 Worms, 442 Written communication, 275–276 Y Yen (Japanese currency), 103, 104 Yogurt industry, 172, 293 Z Zimbabwe, diamond industry, 37 Subject Index 20/08/12 8:24 AM www.downloadslide.net International Index Entries in bold refer to the "Business Terms You Need to Know," which are listed at the end of each chapter A Absolute advantage, 100 Abu Dhabi Investment Authority (ADIA), 537, 538 Accounting, 478–480 Acquisitions, 120 Adaptation strategies, 122–123, 331–332 Advertising, in China, 397 Africa debt forgiveness, 85 packaging issues, 367 Aging, 87 Agriculture chickpea program, 31 coffee production, 29, 519 trade agreements and, 112, 114 Air Canada, 76 Airline industry, privatization in, 76 Alghanim Sons Group, 117 Allstate Insurance, 102 Aluminum industry, 121–122 Amazon.com, 15, 123 Apparel manufacturing in Macedonia, 314–315 Made in Italy label, 110 Apple Inc., 126–127 Argentina customs union in, 113 hyperinflation in, 80 ASEAN (Association of South East Asian Nations), 113 Asia ASEAN participation, 113 design industry in, 128 financial markets in, 102, 513 flexible manufacturing systems, 296 high-context culture in, 273 Panama Canal expansion effects, 355 Panasonic Automotive Systems Asia Pacific in, 120 Starbucks expansion in, 212 Assets, management of, 529–530 Association of Collegiate Entrepreneurs, 177 Association of South East Asian Nations (ASEAN), 113 Atlantis, Paradise Island resort, 451 Australia financial markets in, 102 IBM research lab in, 101 IFRS standards compliance, 480 uranium mining, 92 Austria, low-context culture in, 273 Automobile industry Chrysler acquisition, 97 Tata Nano impact, 106, 107 B Balance of payments, 101 Balance of trade, 101 Bank of America, 513 Banks/banking, 514 Barriers to trade See Trade barriers Baskin-Robbins, 148 BBC (British Broadcasting Corporation), 268, 269 BDO International, 485 Beverage industry, 88 Bhati Beads, 175 Bill and Melinda Gates Foundation, 398 BNP Paribas SA, 513 Bolivia, customs union in, 113 BP (British Petroleum), 45, 280, 281, 495 Brand names, 364–365 Brazil currency devaluation, 103 customs union in, 113 globalization and, 99 multinational corporations in, 120 Olympic Games marketing, 327 trade with U.S., 100 Bribes, 122 BRIC countries, 99 Brisco, 103 British Broadcasting Corporation (BBC), 268, 269 Burberry, 379 Business etiquette global employee relationships, 88 in Japan, 105 Business strategies, global, 121–123 Businesses global challenges of 21st century, 86–88 top ten admired companies, 23 C Cable and Wireless, 522 CAFTA-DR (Central America-Dominican Republic Free Trade Agreement), 414 Canada IFRS standards compliance, 480 international unions in, 250 NAFTA participation, 113, 114 Nordstrom expansion in, 28 trade with U.S., 100 uranium mining, 92 Canadian Airlines International, 76 Candy Dynamics, 309 Canon, 109 Canon Forestry Program, 109 Capitalism, 8, 72–75, 77 Cause advertising, 398 Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), 114 Central banks, 513 Chickpea program, Ethiopia, 31 Chile, customs union in, 113 China advertising in, 397 Apple suppliers in, 126–127 bedding products factory, 306 beverage industry, 88 censorship in, 206 defective goods from, A-4 economic growth of, 87 entrepreneurs in, 174 fast-food market in, 331, 332 financial markets in, 102 flexible manufacturing systems, 296 GDP growth, 99 globalization and, 99 Groupon company and, 120 guanxi, 122 huilui practice, 108 luxury goods market, 387 multinational corporations in, 120 multivitamin production, 310 offshoring in, 19, 119 potential Facebook presence, 206 rare-earth metal export restrictions, A-4 recalls in, 88 shift toward market-oriented economy, 76 textile production in, 100, 101 trade with U.S., 100, 102, 109 China Investment Corporation, 538 Chrysler, 97 Citibank, 102, 513 Citigroup, 387 The Coca-Cola Company, 478 Cocoa, sustainable, 47 Coffee industry, 28–29, 519 Colombia, coffee production, 519 Commerce treaties, 109 Communication importance of, 272–274 language differences and, 105–106 personal space and, 279 Communism, 75–76, 77 Comparative advantage, 101 Competition, 87 ConocoPhillips, 545 Context, in communication process, 272, 273 Contractual agreements, international, 118–119 Cooperatives (co-ops), 519 Corruption, 108–109 Costa Rica, coffee production, 28–29, 519 Countertrade, 118 Cuba, U.S trade embargo, 110 Cultural differences, as international trade barrier, 105–106 International Index bIndex_SE.indd 25 I-25 22/08/12 1:02 PM www.downloadslide.net Currency, exchange rates and, 103–104, 107, 479–480 Customs unions, 113 Czech Republic, European trade with, 115 D Debt forgiveness, 85, 113 Design industry, 128 Devaluation, 103, 107 Developing countries debt forgiveness, 85 drinking water access, 327 potential market in, 99–100 soap donations, 60 Diamond industry, 37 Direct exporting, 117 Dlush Beverage Joints, 117 Doha Round talks, 112 Dollar, as currency, 104 Drinking water programs, 327 Dumping, 111 E Earthquakes Haiti (2010), 85 Japan (2011), 5, 37, 49, 85, 93 E-businesses (electronic business), 109 Economic differences, as international trade barrier, 106–107 Economic downturn/crisis (2008– ) exports and, 479–480 gold prices and, 71 world influence on stocks, 501 Economic systems, 65, 77 See also specific types Economics, 86–88 Egg PLC, 123 Embargo, 110, 111 Enterprise EthioPEA, 31 Enterprise UK, 176 Entrepreneurs, 174, 175–176 Ernst & Young Nippon, 479 Ethiopia, chickpea program, 31 Etiquette See Business etiquette Euro (currency), 103, 115, 513 Europe apprenticeship programs in, 236 cultural differences, 106 I-26 bIndex_SE.indd 26 economic crisis in, 501 financial markets in, 513 flash-shopping in, 165 online shopping prevalence, 123, 379 Starbucks expansion in, 212 European Alliance, 379 European Central Bank, 513 European Commission, 379 European Financial Stability Facility, 496 European Union (EU) euro in, 103, 104, 115 GDP in, 79 goals of, 114–115 Greece bailout, 71, 501 IFRS standards compliance, 480 Information Technology Agreement compliance, 110 Exchange controls, 111 Exchange rates, 103–104, 479–480, 530 Export management companies, 118 Export trading companies, 117 Exporters and importers, 117–118 Exports, 97, 102 ExxonMobil, 544 F Facebook, 206, 350–351, 497 Factors of production, 98 Fair trade, 519 FedEx (Federal Express), 102, 371 Fiat, 97 Financial markets, 104 Financial system, 513 Finland, mobile commerce use, 128 Fiscal policy, 85 Flexible manufacturing systems (FMSs), 295–296 Floating exchange rates, 103 Foreign Corrupt Practices Act, 108 Foreign currency market, 104, 510 Foreign licensing agreements, 119 France mixed market economy in, 76 publishing industry policies, 110 Franchises/Franchising, 118, 148 Free-trade areas, 113 Friendship treaties, 109 G Gates Foundation, 398 General Agreement on Tariffs and Trade (GATT), 111–112 Geographical departmentalization, 220 Geographical segmentation, 336–337, 341 Germany low-context culture in, 273 publishing industry policies, 110 trade with U.S., 100 Germany, pension fund investments, 506 Gifts, 106 Global business strategies, 121–123 Global Entrepreneurship Week, 176 Global marketplace See World marketplace Global Payments, 441 Global Soap Project, 60 Globalization business strategies for, 121–123 contractual agreements, 118–119 countertrade, 118 decisions for, 115–117 economic challenges of 21st century, 86–88 entrepreneurial opportunities from, 174, 175–176 importance of communication and, 272 importers and exporters, 117–118 international direct investment, 119–120 joint ventures and, 161 multinational corporations, 120–121 offshoring, 119 Google, 206 Government of Singapore Investment Corporation, 538 Government Pension Fund of Norway, 538 Great Britain See United Kingdom Greece debt crisis, 71, 501 hand gestures, 105 Gross domestic product (GDP), 79, 80, 97, 99 Groupon, 119, 120, 401 Guanxi, 122 Gucci, 379 H H&M, 35 Haiti debt forgiveness, 113 earthquake (2010), 85 Halogen Software, 238 Hand gestures, 105–106 Hard currencies, 104 High-context cultures, 273 Holland Car PLC, 279 Hong Kong entrepreneurship rates, 175 Google in, 206 IFRS standards compliance, 480 Hong Kong Monetary Authority Investment Portfolio, 538 Hungary, European trade with, 115 Hunger relief, Ethiopia, 31 I IBM (International Business Machines Corporation), 101 IMF (International Monetary Fund), 112–113, 501 Importers and exporters, 117–118 Imports, 97, 102 India economic growth of, 87 flexible manufacturing systems, 296 GDP growth of, 99 globalization and, 99 high-context culture in, 273 IFRS standards compliance, 480 offshoring in, 19, 98, 119 saffron production in, 100 technology industry in, 101 Indirect exporting, 117 Industrial Revolution, 12 Information economy, shift to, 87 Information Technology Agreement (ITA), 110 Infrastructure, 106–107 Intel Corporation, 539 Intellectual property, A-14 International Index 22/08/12 1:02 PM www.downloadslide.net International Accounting Standards Board (IASB), 480 International Accounting Standards Committee (IASC), 480 International Brotherhood of Teamsters, 251 International direct investment, 119–120 International economic communities, 113–115 International Financial Reporting Standards (IFRS), 480 International fiscal policy, 85 International Franchise Association, 147 International law, A-4 International Monetary Fund (IMF), 112–113, 501 International Organization for Standardization (ISO), 310–311 International regulations, 109–110 International trade See also World marketplace barriers to, 104–111 measuring, 101–104 purpose of, 98–101 reducing barriers to, 111– 115 International unions, 250 Internet accounting process and, 465–466 advertising and, 350–351, 400 banking via, 504 cloud computing, 444, 445, 446, 523 convergence with television, 387–388 copyright infringement and, A-14 coupons via, 405 e-businesses, 15, 109 employee use of, 38, 443 international trade research resources on, 116 intranets, 437, 438–439 job searches using, A57–A-58 legislation on, A-9–A-10 résumé submittal, A-64 VoIP, 437, 440 VPNs and, 437, 439 Internet retailing defined, 374 in Europe, 123, 379 flash-shopping, 165 security concerns, 433 Iran, saffron production in, 100 ISO Standards (International Organization for Standardization), 310–311 Italy, apparel manufacturing in, 110 J Japan beverage industry in, 88 business etiquette in, 105 earthquake and tsunami (2011), 5, 37, 49, 85, 93 Groupon company and, 120 high-context culture in, 273 rare-earth metal lawsuit, A-4 trade with U.S., 100, 102 Joint ventures, 120, 161 JPMorgan Chase, 513 K KPMG AZSA, 479 Kraft Foods, 104 Kuwait Investment Authority, 538 L Labor unions, 250, 253 Languages, as international trade barrier, 105–106 Latin America, cultural differences in, 273, 279 Laws accounting, 480 international trade, 108–110 Leadership, 215–217 Legal differences, as international trade barrier, 107–110 Libya, regime change in, 108 Licensing agreements, foreign, 119 London Stock Exchange, 495, 500 Louis Vuitton, A-13–A-14 Louis Vuitton Moët Hennessey (LVMH), 379 Low-context cultures, 273 Lukoil, 545 Luxury brands, 387 LVMH (Louis Vuitton Moët Hennessey), 379 M Macedonia, apparel manufacturing in, 314–315 Malaysia, computer use legislation, 109 Manufacturing flexible manufacturing systems, 295–296 offshoring of, 19, 119 Marketing mix, 331–332 Mass customization, 332 Matsushita, 120 McDonald’s, 102, 148, 478 Mercedes-Benz, 413 MERCOSUR customs union, 113 Mexico high-context culture in, 273 NAFTA participation, 113, 114 offshoring in, 119 trade with U.S., 100 MF Global, 207 MICROS Systems, 450–451 Middle East baksheesh practice, 108 Starbucks expansion in, 212 Mixed market economies, 77 MNCs (Multinational corporations), 120–121 Mobile commerce, 11, 128 Mobile phones, design of, 128 Mota-Engil, 439 Multidomestic business strategies, 122–123 Multinational corporations (MNCs), 120–121 Multivitamin production, 310 N NAFTA (North American Free Trade Agreement), 113–114, 341 NAICS (North American Industry Classification System), 341–342 Nano car, 106, 107 NASDAQ Stock Market, 498, 499, 500 National Welfare Fund (Russia), 538 Navigation treaties, 109 Nearshoring, 19 Nestlé, 478, 529 Netherlands financial markets in, 102 multinational corporations in, 120 trade with U.S., 100 New York Stock Exchange (NYSE), 498, 500, 513, 519, 544 Non-tariff trade barriers, 111 Nordstrom, 28 North American Free Trade Agreement (NAFTA), 113–114, 341 North American Industry Classification System (NAICS), 341–342 Not-for-profit corporations, 155 Not-for-profit organizations accountants for, 461 advertising by, 398 defined, joint ventures with for-profits, 161 marketing by, 325–328 organizational structures for, 219 overview, 5–6 publicity for, 411 Nuclear power, possible increase in, 92–93 O Offset agreements, 118 Offshoring, 19, 119 Oil industry, divestiture in, 544–545 Okitex, 314 Olympic Games, 327 Olympus, 479 Online shopping, 123 Organization for Economic Cooperation and Development Anti-Bribery Convention, 108 Osechi meals, 120 Outsourcing, 19 Overseas assignments, qualifications for, 130–131 Overseas divisions, 120 P Pacific Bridge Medical, 119 Packaging and labeling issues, 367–368 Pakistan, candy contamination, 309 Panasonic Automotive Systems Asia Pacific, 120 Paraguay, customs union in, 113 Pension funds, 506 Personal space, 279 International Index bIndex_SE.indd 27 I-27 22/08/12 1:02 PM www.downloadslide.net Peso (Mexico), 104, 479–480 Pharmaceutical industry, flexible manufacturing systems for, 296 Pier Imports, 117 Pillsbury, 103 Place marketing, 327 Planned economies, 75–76, 77 Poland, European trade with, 115 Polaris Industries, Inc., 120 Political climate, 107–108 Political differences, as international trade barrier, 107–110 Populations U.S., 18 world, 99 Porsche, 160 Pound (Britain), 103, 530 Prada, 387 PricewaterhouseCoopers, 479 Private enterprise system See also Capitalism basic concepts, 8–9 basic rights in, 9–10 entrepreneurship alternative and, 10–11 vs other systems, 77 types of competition in, 72–75 Privatization, 76 Process layout, 300, 301 Procter & Gamble, 397 Products, with good design, 128 Protective tariffs, 110 Q Quotas, 111 R Radio-frequency identification (RFID), 382 Rand (South African currency), 104 Rapid Response Swift Market Analysis Response Teams (SMART), 265 Rare-earth metal exports, A-4 Real (Brazilian currency), 104 Recalls candy bars, 309 Chinese-made goods, 88 I-28 bIndex_SE.indd 28 Toyota vehicles, 265, 272 Recycling defined, 46 electronics, 46, 47 paper cups, 43 as resource, 46 Red Cross/Red Crescent, 325 Reforestation programs, 109 Regulation, international, 109–110 Relationship management, 14, 15 Religious beliefs, as international trade barrier, 106 Revenue tariffs, 110 Rupee (India), 104, 119 Russia countertrade and, 118 financial markets in, 102 globalization and, 99 vzyatka practice, 108 S SaaS (Software as a service), 446 SAFE Investment Company, 538 Saffron cultivation, 100 SAMA Foreign Holdings, 538 Saudi Arabia, trade with U.S., 100 Scheduling phase, 306 Service sector offshoring of, 19, 119 U.S exports, 102 Shanghai Disney Resort, 102 Shipping industry customs clearing of packages, 371 sustainability initiatives, 61 Shrimp industry, supply changes, 70 Singapore, flexible manufacturing systems, 296 Sinopec, 545 Sleepmaster, 306 Smart Design, 128 Smart phones, 93, 128 Soap, donations to developing countries, 60 Social differences, as international trade barrier, 105–106 Social responsibility, 127 Socialism, 75, 77 Soft currencies, 104 Software accounting, 465–466, 477 business-planning, A-50–A-51 common applications, 437 in information systems, 431, 436–437, 446 overview, 436–437 Software as a service (SaaS), 446 Sony, 210, 325, 363, 399 South Korea mobile commerce use, 128 trade with U.S., 100 Sovereign wealth funds, 537–538 Soviet Union, collapse of, 75–76 Spain, saffron production in, 100 Standardization, 331 Standardization business strategies, 121–122 Starbucks, 102, 212 Stock markets, 500, 501 Strikes, 252–253 Students in Free Enterprise (SIFE), 177 Subcontracting, 119 SUBWAY Group, 331, 332 Switzerland, low-context culture in, 273 Syncrude Canada Ltd., 545 Sysco, 371 T Tap Project, 327 Tariffs, 109, 110 Tata Motors, 106, 107 Temasek Holdings, 538 Terrorism, 87 Theories, X, Y, Z, 250 Tokyo Stock Exchange, 479 TOMS Shoes, 127, 142 Toothbrushes, children’s, 128 Toxic Waste Nuclear Sludge candy bar, 309 Toyota Motor Company, 265, 272, 530 Trade barriers economic differences and, 106–107 political/legal differences and, 107–110 reducing, 111–115 social/cultural differences and, 105–106 trade restriction types, 110–111 Trade deficit, 101 Trade surplus, 101 Treasury securities, 86 Treaties, international trade, 109 Tsunami, in Japan (2011), 5, 37, 49, 85, 93 U UCB/OXO Cimzia, 229 UNICEF, 327 Unilever, 397, 529 United Kingdom cultural differences, 106 financial markets in, 513 multinational corporations in, 120 pound in, 103, 530 trade with U.S., 100 United States (U.S.) cultural differences, 106 major exports and imports, 102 NAFTA participation, 113 population of, 18 Uranium demand, 92–93 Uruguay, customs union in, 113 Uruguay Round negotiations, 112 U.S Agency for International Development (USAID), 31, 315 V Vacation time, 106 Values, as international trade barrier, 106 Venture capital, 145 Vietnam offshoring in, 119 shrimp industry, 70 Volkswagen, 160, 298–299, 400 W Walmart, 48, 100, 433 Walt Disney Company, 102 Water, access to, 327 Wholesalers, 371–373 Wide area networks (WANs), 437, 438 International Index 22/08/12 1:02 PM www.downloadslide.net Widgets, 400 WiFi (wireless fidelity), 438, 439 Wi-Max, 438 Workforce, global competitiveness of, 87 World Bank, 85, 112 World Factbook (CIA), 116, 131 World Food Program, United Nations, 31 World marketplace See also International trade marketing mix for, 331–332 overview, 97–98 packaging and labeling issues, 367–368 size of, 98–100 World Nuclear Association, 92 World Trade Organization (WTO), 112, A-4 Z Zazzle, 117 Zimbabwe, diamond industry, 37 Zipcar, 452 Y Yen (Japanese currency), 103, 104 International Index bIndex_SE.indd 29 I-29 22/08/12 1:02 PM www.downloadslide.net ffirs_SE.indd i 21/08/12 10:49 AM ... of Business A part of every business is change; now more than ever, business moves at a pace that is unparalleled Containing the most important introductory business topics, Contemporary Business. .. Global Business and Economics Career 130 Starting and Growing Your Business Forms of Business Ownership and Organization Most Businesses Are Small Businesses 132 132 134 What Is a Small Business? ... next editions Consider Boone & Kurtz s proven record of providing instructors and students with pedagogical firsts: • Contemporary Business was the first introductory business text written specifically