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PART I Organization of a Business
PART I Organization of a Business
Chapter 1 Planning a Business
CHAPTER 1 Planning a Business
Creditors
Owners
Key Participants in a Business
Employees
Customers
Summary of Key Participants
Interaction among Business Functions
Key Functions of Business
How Some Business Functions Enhance Decision Making
Creating a Business Idea
Examples of Successful Business Ideas
SMALL BUSINESS SURVEY: Charactarittics of Business Entrsperenears
Steps for Creating a Business Iden
Developing the Business Plan
Management Plan
Marketing Plan
Financial Plan
Summary of a Business Plan
SPOTLIGHT ON TECHNOLOGY: Business Planning Suftrars
Assessing a Business Plan
BUSINESS DILEMMA: Dentaping a New Wa?lth Ch? Business
Kcy Terms
Review Questions
Investing in the Stock of a Business
Discussion Questins
Running Your Own Business
Case 1: Starting a New Business
Case 2: Organizing a Business
Video Case: Creating a Successful Business
The Coca-Cola Company Annual Report Project
In-Text Study, Guide
APPENDIX 1 Business Addresses
CHAPTER 2 Selecting a Form of Business Ownership
Chapter 2 Selecting a Form of Business Ownership
Possible Forms of Business Ownership
Scle Proprietorship
Partnership
Corporation
Comparing Forms of Business Ownership
SMALL BUSINESS SURVEY: Key Concerns about Business Owership
Methods of Owning Existing Businesses
Purchasing an Existing Business
Franchising
Assuming Ownership of a Family Business
SPOTLIGHT ON TECHNOLOGY: Organizing Your Bosiness by Dsing the Intarnet
Receiving Assistance as a New Business
How Owners Measure Business Performance
Return on Investment
Risk
SELF-SCORING EXERCISE: Do You N?ve the M?c?ssary Skills to Swccead in Business?
CROSS-FUNCTIONAL TEAMWORK: Sources of Risk Aeross Businass Functions
GLOBAL BUSINESS: O?narship of Forsign Businessat
BUSINESS DILEMMA: Owdership Decision at College Nsalth Clwb
Summary
Discussion Questions
Key Terms
Review Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Decidmg the Type of Business Ownership
Case 2: The Franchising Decision
Video Case: A Business Ownership Dilemma
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: What Is the World Wide Web?
CHAPTER 3 Business Ethics and Social Responsibility
Chapter 3 Business Ethics and Soeial Responsibility
Responsibility to Customers
Responsible Production Practices
How Firms Ensure Responsibility toward Customers
Responsible Sales Practices
How Consumerism Ensures Responsibility toward Custoniers
How the Government Ensures Responsibility toward Customers
Responsibility to Emplovees
Employee Safety
Proper Treatment by Other Employees
Equal Oppornmty
Conflict with Employee Layoffs
GLOBAL BUSINESS: Global Ethics
How Firms Ensure Responsibility
How Stockholders Ensure Responsibility
Responsibility to Stockholders
Conther with Excessive Exeeutive Campensation
Responsibility to Creditors
Responsibility to the Environment
Air Pollution
Land Pollution
Contlict with Fnvironmerital Responsilhility
Responsibility to the Community
Couflict with Vaxinnizing Social Responsibility
SPOTLIGHT ON TECHNOLOGY: When Does Tough Competitlon Become Unethieal?
Summary of Business Responsibilities
SELF-SCORING EXERCISE: Assessing The Ethical Standards of the Firm Where You Work
SELF-SCORING EXERCISE: Assessing Whether Specific Situations Are Ethieal
CROSS-FUNCTIONAL TEAMWORK: Ethical Responsibilities Across Businass Functions
The Cost of Ensuring Social Responsibilities
Cost of Lawsuits
BUSINESS DILEMMA: Social Responsibility at College Health Club
Summary
Review Questions
Key Terms
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: E-mail and Ethics
Case 2: Social Responsibilities to Employees
Video Case: Payback for Social Responsibility
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Finding Information About Firms on the Internet
Summary of Part I
PART II Business Environment
PART II Business Environment
Chapter 4 Economic Environment
CHAPTER 4 Economic Environment
Macroeconomic Factors that Affect Business Performance
Economic Growth
Inflation
Interest Rates
Summary of Macroeconomic Factors that Affect a Firm s Performance
GLOBAL BUSINESS: Capitalizing on Global Economic Conditions
How Market Prices Are Determined
Demand Schedule for the Product
Supply Schedule for a Product
Interaction of Demand and Supply
Effect of a Change in the Demand Schedule
Effect of a Change in the Supply Schedule
Effect of Demand and Supply on the General Price Level
Factors that Influence Market Prices
Consumer Income
Consumer Preferences
Production Expenses
Government Influence on Economic Conditions
Monetary Policy
Fiscal Policy
SPOTLIGHT ON TECHNOLOGY: Manitoring the Economic Emvirsnmest
Summary of Government Influence on Economic Factors
Dilemma of the Federal Government
CROSS-FUNCTIONAL TEAMWORK: Econ??mic Effects Aerass Busimess Fumctions
BUSINESS DILEMMA: Ec?nomic Effects on College Nealth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: How Economic Conditions Influence Business Decisions
Case 2: Supply and Demand for GM Automobiles
Video Case: Exposure to Weak Economic Conditions
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Access to Economic Information on the World Wide Web
Combining Demand and Supply
Effect of a Change in the Supply Schedule
Effect of a Change in the Demand Schedule
APPENDIX 4 How Interest Rates Are Determined
How Interest Rates Change
Demand for Loanable Funds
Supply for Loanable Funds
Factors that Can Affect Interest Rates
Monetary Policy
Economic Grawth
Expected Inflation
Summary of Factors that Affect Intcrest Rates
Savings Behavior
CHAPTER 5 Industry Environment
Chapter 5 Industry Environment
Industry Characteristics that Influence Business Performance
Industry Demand
Industry Competition
Labor Environment
Regulatory Environment
SMALL BUSINESS SURVEY: Are Flms Affectod by Ind?slry Ragulations?
Summary of Industry Characteristics
Industry Sources
Exposure to Industry Conditions
Firm s Market Share
Firm s Focus on Its Main Industry
Competing Within an Industry
Identify the Competitors
SPOTLIGHT ON TECHNOLOGY: How Information Techmology Can Cr?ate A Compotitive Mhcantage
Develop a Competitive Advantage
CROSS-FUNCTIONAL TEAMWORK: Indnstry Effacts Aeress Buslness Funetions
GLOBAL BUSINESS: Assessing the Indestry Envirsa??at from a Glohal Parspctim
BUSINESS DILEMMA: Iadustry Effacts on College Mealth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Exposure of Software Firms to Industry Conditions
Case 2: Impact of Industry Conditions on Pharmaceutical Firms
The Coca-Cola Company Annual Report Project
Video Case: Exposure to Weak Industry Conditions
In-Text Study Guide
Surfing the Net: Access to Industry Information on the World Wide Web
CHAPTER 6 Global Environment
Chapter 6 Global Environment
Why Firms Engage in International Business
Attract Foreign Demand
Capitalize on Technology
Use Inexpensive Resources
Diversify Internationally
Combination of Motives
Foreign Expansion in the U.S.
Foreign Competition
How Firms Engage in International Business
Importing
Exporting
Direct Foreign Investment (DFI)
Strategic Alliances
GLOBAL BUSINESS: Nerverbal Comm??ication in Diffarent Cult?res
Culture
Economic System
How Foreign Characterisics Influence International Business
Economic Conditions
SMALL BUSINESS SURVEY: De Small Firms Conduet International Busiuess?
Exchange Rates
CROSS-FUNCTIONAL TEAMWORK: Managing Inturnational Busimess Aeress Business Functions
How Exchange Rate Movements Can Affect Performance
Impact of a Weak Dollar on U.S. Importers
SPOTLIGHT ON TECHNOLOGY: Mering Taeh??l?gy Aeress Bardars
Impact of a Strong Dollar on U.S. Importers
Actual Effects of Exchange Rate Movements on U.S. Importers
Impact of a Weak Dollar on U.S. Exporters
Impact of a Strong Dollar on U.S. Exporters
Hedging Against Exchange Rate Movements
How Exchange Rates Affect Foreign Competition
BUSINESS DILEMMA: Exchange Rate Effects at Callgea Mealth Clab
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Global Expansion by ABC Records
Case 2: Exposure to Foreign Competition
Video Case: Exposure to Global Conditions
In-Text Study Guide
The Coca-Cola Company Annual Report Project
Surfing the Net: International Business on the World Wide Web
APPENDIX 6 The Forign Exchange Market
Exchange Rate Quotations
Factors that Affect Exchange Rate Movements
Differential Inflation Rates
Differential Interest Rates
Covernment Intervention
Summary of Part II
PART III Management
PART III Management
CHAPTER 7 Fundamentals of Effective Management
Chapter 7 Fundamentals of Effective Management
Levels of Management
Functions of Managers
Planning
Lcading
CROSS-FUNCTIONAL TEAMWORK: Interaction of functions to Achi?v? the Stratagie Plan
Organizing
Controlling
Integration of Management Functions
GLOBAL BUSINESS: Leadaership Styles for Global Business
Managerial Skills
Conceptual Skills
Interpersonal Skills
Technical Skills
Decision-Making Skills
How Managers Manage Time
Summary of Management Skills
SPOTLIGHT ON TECHNOLOGY: Software to Improve Management
Set Proper Priorities
Schedule Long Time intervals for Large Tasks
Minimize Interruptions
Set Short-Term Goals
SMALL BUSINESS SURVEY: Now Managers Run Msslings Effieiently
Delegate Some Tasks to Employees
BUSINESS DILEMMA: Planning at Coll?ge Health Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Busmess
Investing in the Stock of a Business
Case 1: Applying Management Skills
Case 2: Developing a Plan for the Official All-Star Cafe
The Coca-Cola Company Annual Report Project
Video Case: How Effective Management Can Be the Key to Success
In-Text Study Guide
Surfing the Net: Management Training on the World Wide Web
CHAPTER 8 Organizational Structure
Chapter 8 Organizational Structure
How a Firm s Organizational Structure Achieves its Strategic Plan
Chain of Command
Authority of the Board of Directors
SMALL BUSINESS SURVEY: Who Are the Board Members of Small Firms?
Monitoring by Institutional Investors
Span of Control
Organizational Height
Centralization
Decentralization
SELF-SCORING EXERCISE: How Decentralized Is Your Company?
Line Versus Staff Positions
Creating a Stri?cture that Allows More Employee Input
SPOTLIGHT ON TECHNOLOGY: Now Information Systoems Enhance Organizational Stroctures
Informal Organizational Structure
Methods of Departmentalizing Tasks
Departmentalize by Product
Departmentalize by Function
Departmentalize by Location
Departmentalize by Customer
Departmentalize by Various Characteristics
CROSS-FUNCTIONAL TEAMWORK: Interaetion Among Departments
GLOBAL BUSINESS: Drganizational Structure of a Mnltinational Carperation
BUSINESS DILEMMA: Drganizational Structure of College Nealth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Case 1: Creating An Organizational Structure
Investing in the Stock of a Business
Case 2: Restructuring at Apple Computer
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Video Case: Reorganizing to Achieve Business Success
Surfing the Net: Managing by Telecommuting
Chapter 9 Production Management
CHAPTER 9 Production Management
Resources Used for the Production Process
Human Resources
Other Resources
Combining the Resources for Production
Materials
Factors Affecting the Site Decision
Selecting a Site
Evaluating Possible Sites
GLOBAL BUSINESS: Seleeting a Fereign Pr?duction Site
Selecting the Design and Layout
Factors Affecting Design and Layout
Reducing the Layout Space
Production Control
Purchasing Materials
Inventory Control
SMALL BUSINESS SURVEY: Why De Frms Outsa?rea Rather Thea Pr??ea Than Produca Seme Pr??ets Thems?hes?
Routing
Scheduling
SPOTLIGHT ON TECHNOLOGY: Agila Mannfact?ring
Quality Control
BUSINESS DILEMMA: Production at Cotlage Mealth Club
Review Questions
Key Terms
Summary
Running Your Own Business
Investing in the Stock of a Business
Case 1: Selecting the Best Plant Site
Discussion Questions
Case 2: Improving the Production Process
Video Case: How Production Can Be a Key to Success
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Manufacturing Information on the World Wide Web
CHAPTER 10 Improving Production Quality and Efficiency
Chapter 10 lmproving Production Quality and Efficiency
Improving Production Quality with TQM
Specify the Desired Quality Level
Control the Quality Level
Achieve the Desired Quality Level
SELF-SCORING EXERCISE: Are You Mighly Satlsfied As a Castemer?
GLOBAL BUSINESS: Global Quality Standards
Methods to lmprove Production Efficiency
Technology
Economies of Scale
Restructuring
SPOTLIGHT ON TECHNOLOGY: Using Intermation Tnchmslegy to ?mprom Prodmet ?ualty
CROSS-FUNCTIONAL TEAMWORK: Interaetion of Fmmetions Levelrad in Tetal ??alty Menagement
SMALL BUSINESS DILEMMA: T?tal Quality Management at Collega Neslth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Using TQM to Assess Employee Quality
Case 2: Applying TQM to Education
Video Case: How the Focus on Quality Can Lead to Success
The Coca-Cola Company Annual Report Project
In-Text Study Cuide
Surfing the Net: Quality Information on the World Wide Web
Summary of Part III
PART IV Managing Employees
PART IV Managing Employees
CHAPTER 11 Motivating Employees
Chapter 11 Motivating Employees
Hawthorne Studies
Maslow s Hierarchy of Needs
Theories on Motivation
Herzberg s Job Satisfaction Study
McGregor s Theory X and Theory Y
Theory Z
Expectancy Theory
Equity Theory
Reinforcement Theory
Motivational Guidelines Offered by Theories
How Firms Can Enhance Job Satisfaction and Motivation
Adequate Compensation Program
Job Security
CROSS-FUNCTIONAL TEAMWORK: Sproading Motivation Aerass Besiness Fanctions
Elexible Work Schedule
SPOTLIGHT ON TECHNOLOGY: Using Competars to Motivate Emplayess
Employee Involvement Programs
SELF-SCORING EXERCISE: Are You an Empowared Emplayse?
SMALL BUSINESS SURVEY: Do Emplayess Want Mera Inflnenea in Busimess ??
Comparison of Methods Used to Enhance Job Satisfaction
GLOBAL BUSINESS: Metivaling Empleyess Aerass Co?ntries
BUSINESS DILEMMA: Mativation at College Nealth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Using Motivation to Enhance Performance
Case 2: Notivating Young Employees
Video Case: Motivating Emplovees as a Means of Survival
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Employee Ownership Information on the World Wide Web
CHAPTER 12 Hiring, Training, and Evaluating Employees
Chapter 12 Hiring、 Training、 and Evaluating Employees
Human Resource Planning
Forecasting Employee Needs
Job Analysis
Recruiting
Compensation Packages That Firms Offer
SMALL BUSINESS SURVEY: Do Firms Reward Employees far Customer Satisfaction?
Salary
Commissions
Bonuses
Profit Sharing
Emplovee Benefits
Perquisites
Comparison Across Jobs
GLOBAL BUSINESS: Compensating Employees Aerass Countries
Developing Skills of Employees
Technical Skills
SMALL BUSINESS SURVEY: How Do CEOs Allocate Their Time Whan Managing Empleyess?
Decision-Making Skills
Customer Service Skills
Safety Skills
Human Relations Skills
Evaluation of Employee Performance
Segmenting the Evahnation into Different Criteria
SPOTLIGHT ON TECHNOLOGY: Using Computers to Manage and Train Empleyees
Using a Performance Evaluation Form
Assigning Weights to the Criteria
Steps for Proper Performance Evaluation
Dealing With Lawsuits by Fired Employees
Action Due to Performance Evaluations
BUSINESS DILEMMA: Performance Evalmation at Cellage Nealth Club
Employee Evaluation of Supervisors
CROSS-FUNCTIONAL TEAMWORK: How Job Responsibilities Acress Businesa Functions Can Complieats Parformance Evaluations
Summary
Discussion Questions
Review Questions
Key Terms
Case 1: Filling Job Positions
Investing in the Stock of a Business
Running Your Own Business
Case 2: Training on the Job
Video Case: Managing Employees in a Volatile Business
In-Text Study Guide
The Coca-Cola Company Annual Report Project
APPENDIX 12 Labor Unions
Background on Unions
History of Union Activities
Surfing the Net: Information on Human Resource Management
Trends in Union Popularity
Negotiations between Unions and Management
Salaries
SELF-SCORING EXERCISE: The Frazzle Facter
Job Security
Management Rights
Grievance Procedures
Conflicts between Unions and Management
Management s Criticism of Unions
How Firms Reduce the Employee s Desire for a Union
Summary of Part IV
PART V Marketing
PART V Marketing
Chapter 13 Product and Pricing Strategies
CHAPTER 13 Product and Pricing Strategies
Background on Products
Product Line
Product Mix
Identifying a Target Market
Factors That Affect the Size of a Target Market
GLOBAL BUSINESS: Targating Farelgn Ca?tries
Creating New Products
Use of Marketing Research to Greate New Products
Use of Research and Development to Create Products
SMALL BUSINESS SURVEY: What Are the Kays to Crazting Successful Preducta?
Steps Necessary to Create a New Product
CROSS-FUNCTIONAL TEAMWORK: Interaction Among Prodaet Dacisines and ?
Product Differentiation
Unique Design
Unique Packaging
Unique Branding
Summary of Methods to Differentiate Products
Produet Life Cycle
Introduction
Growth
Maturity
Decline
Pricing Strategies
Pricing According to the Cost of Production
Pricing According to the Supply of Inventory
Pricing According to Competitors Prices
SPOTLIGHT ON TECHNOLOGY: Prieing Laformation-Based Preducts
Example of Setting A Product s Price
Break-Even Point
Additional Pricing Decisions
Discounting
Sales Prices
Gredit Terms
BUSINESS DILEMMA: Product Differantiation at Collage Nealth Club
Summary
Key Terms
Review Questions
Disussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Marketing T-Shirts
Case 2: Marketing for“Big Bertha” Golf Clubs
Video Case: Developing a New Product
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Price Information on the World Wide Web
Chapter 14 Distribution Strategies
CHAPTER 14 Distribution Strategies
Channels of Distribution
Direct Channel
One-Level Channel
Two-Level Channel
Summary of Distribution Systems
Factors That Determine the Optimal Channel of Distribution
Seiecting the Degree of Market Coverage
Selective Distribution
Exclusive Distribution
Intensive Distribution
SMALL BUSINESS SURVEY: Are Catalegs Using International Distribntion?
Selecting the Optimal Type of Market Coverage
Selecting the Transportation Used to Distribute Products
Truck
Rail
Air
Water
Pipeline
Additional Transportation Decisions
How to Accelerate the Distribution Process
Streamline the Channels of Distribution
Integrate the Production and Distribution Processes
Background on Retailers
Number of Outlets
CROSS-FUNCTIONAL TEAMWORK: Interaction betwoon Distribution Decisions and Other Business Decisions
Quality of Service
Variety of Products Offered
Store versus Nonstore
Background on Wholesalers
How Wholesalers Serve Manufacturers
How Wholesalers Serve Retailers
Vertical Channel Integration
Vertical Channel Integration by Manufacturers
Vertical Channel Integration by Retailers
GLOBAL BUSINESS: Global Distribotion
SPOTLIGHT ON TECHNOLOGY: Using Techm?logy to lmpreve Distribation
BUSINESS DILEMMA: Ratailing Decision at College Health Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Distribution of Comic Books
Case 2: Distribution Decisions by Transtar
Video Case: Using Distribution to Achieve Success
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Distribution Information on the World Wide Web
Ghapter 15 Promotion Strategies
CHAPTER 15 Promotion Strategies
Background on Promotion
Promotion Mix
Advertising
Reasons for Advertising
Forms of Advertising
SPOTLIGHT ON TECHNOLOGY: Electromic Shopping Offered by Firms
Summary of Forms of Advertising
Personal Selling
Identify the Target Market
Contact Potential Customers
Make Sales Presentation
Answer Questions
Close the Sale
Follow Up
SMALL BUSINESS SURVEY: What Skills Are N?oded to Ba Successful in Salas?
Sales Promotion
Rebates
Coupons
Sampling
Displays
Premiums
Summary of Sales Promotion Strategies
GLOBAL BUSINESS: Promoting Products Across Comntries
Public Relations
Special Events
News Releases
Press Conferences
Determining the Optimal Promotion Mix
Target Market
Promotion Budget
Managing Salespeople
Evaluating the Effects of Promotion
CROSS-FUNCTIONAL TEAMWORK: Interaction betw??n Pronotion Decisiems and Other Business Decisions
BUSINESS DILEMMA: Promotlon Strategy at Collage Nealth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Miller Beer s New Promotion Strategy
Case 2: Using Michael Jordan to Promote Nike Shoes
Video Case: How Promotion Saved a Business
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Promotions on the World Wide Web
Summary of Part V
PART VI Financial Management
PART VI Financial Management
Chapter 16 Accounting and Financial Management
CHAPTER 16 Accounting and Financial Analysis
How Firms Use Accounting
Reporting
Decision Support
Control
Interpreting Financial Statements
Income Statement
Balance Sheet
Ratio Analysis
Measures of Liquidity
Measures of Efficiency
Measures of Financial Leverage
Measures of Profitability
SPOTLIGHT ON TECHNOLOGY: Databsse Acceunting Systems
Comparison of Ratios with Those of Other Firms
Limitations of Ratio Analysis
Sources of Information for Ratio Analysis
GLOBAL BUSINESS: Effect of Exehange hate Mersments of Earmings
BUSINESS DILEMMA: Financial Analysis of College Health Club
Summary
Review Questions
Discussion Questions
Key Terms
Running Your Own Business
Investing in the Stock of a Business
Case 1: Using an Accounting System
Case 2: Achieving Internal Control
Video Case: Responding to Problems Detected by Financial Analysis
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Accounting Information on the Internet
Chapter 17 Financing
CHAPTER 17 Financing
Methods of Debt Financing
Borrowing from Financial Institutions
Issumg Bonds
Issuing Commerical Paper
Impact of the Debt Financing Level on Interest Expenses
Common Greditors that Provide Debt Financing
Methods of Equity Financing
Retaining Earnings
Issuing Stock
SPOTLIGHT ON TECHNOLOGY: Using the Internet for Stock Offerings
Comparison of Equity Financing with Debt Financing
How Firms Issue Securities
Origination
Underwriting
Distribution
Other Methods of Obtaining Funds
Financing from Suppliers
Leasing
Deciding the Capital Structure
Revising the Capital Structure
How the Capital Structure Affects the Return on Equity
SMALL BUSINESS SURVEY: Finaneing Cboiees of Small Firms
GLOBAL BUSINESS: Global Financing
Dividend Policy
Factors that Affect a Firm s Dividend Policy
CROSS-FUNCTIONAL TEAMWORK: Interaction between Finaneing Deci?ons and Other Business Decisions
BUSINESS DILEMMA: Finaneing at Cellage Health Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Financing a New Business
Case 2: The IPO Decision
Video Case: Determining the Proper Amount of Equity
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Financing Information on the Internet
Chapter 18 Business Investment
CHAPTER 18 Business Investment
Investment Decisions
How Interest Rates Affect Investment Decisions
Capital Budget
Classification of Capital Expenditures
Summary of Capital Budgeting Tasks
Capital Budgeting Tasks
Capital Budgeting Analysis
Background on Present Value
SPOTLIGHT ON TECHNOLOGY: Texas Instrumonts Assessment of Prepesed Capital Erpondit?res
GLOBAL BUSINESS: Global Investing
Mergers
CROSS-FUNCTIONAL TEAMWORK: Cross-Funclional Relationships Invelved in Basiness Investment Decisions
Corporate Motives for Mergers
Leveraged Buyouts
Divestiturds
Short-Term Investment Decisions
Liquidity Management
SMALL BUSINESS SURVEY: Investment Decisions by Small Businesses
Accounts Receivable Management
Inventory Management
BUSINESS DILEMMA: Capital Budgeting at College Health Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Benefits of an Acquisition
Case 2: Ford s Merger Decision
Video Case: How Business Investment Decisions Determine Success
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Investment Information on the Internet
APPENDIX 18 The Merger Process
Merger Analysis
Identify Potential Merger Prspects
Evaluate Potential Merger Proospects
Make the Merger Decision
Merger Procedures
Financing the Merger
Tender Offer
Integrating the Businesses
Postmerger Evaluation
Defense Against Takeover Attempts
Summary of Part VI
PART VII Special Topics
PART VII Special Topics
Chapter 19 Management Information Systems
CHAPTER 19 Management Information Systems
What is a Computer?
Computer Hardware
Computer Software
What Are Computers Used For?
Computational Models
Internal Information Systems
Data Processing Systems
End User Productivity Tools
Interorganizational Systems
Managing Today s Information Technologies
Managing the Firm s Information System Architecture
Acquiring Software
Managing the Development of Information Systems
Managing the Implementation of Information Systems
Mananging the Security of Information Systems
SPOTLIGHT ON TECHNOLOGY: Tbe Futmre of the Internet
Emerging Technologies and Their Implications
The Worldwide Network
Truly Intelligent Systems
BUSINESS DILEMMA: Infermation Systems at College Nealth Club
Summary
Key Terms
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Applying Information Systems in Business
Case 2: Will Computers Replace Good Managers?
Video Case: Reliance on Computers for Success
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Internet Resources on the World Wide Web
Chapter 20 Risk Management
CHAPTER 20 Risk Management
Tasks Involved in Managing Risk
Identifying Exposure to Risk
Protecting against Risk
Exposure to the Economic Environment
Exposure to Industry Conditions
Exposure to Economic Conditions
Exposure to Global Conditions
GLOBAL BUSINESS: Risk of Coodvcting Business in Lass-Devsleped Countries
Summary of Exposure to Economic Environment
Hedging Risk from Economic Conditions
Limited Funding
Reliance on One Product
Reliance on One Customer
Exposure to Firm-Specific Characteristics
Reliance on One Supplier
Reliance on a Key Employee
Exposure to Property Losses
Exposure to Liability Losses
Exposure to Employee Compensation Claims
SMALL BUSINESS SURVEY: What is the Cost of Empley?? Injuries?
Summary of Exposure to Firm-Specific Characteristics
Exposure to Lawsuits
How the Threat of Lawsuits Can Affect Business Strategies
SPOTLIGHT ON TECHNOLOGY: Potontial Liability From Using Information Technelegy
Concern about Arbitrary Judgements
Conclusion for Risk Managers
Remedies for Business Failures
Extension
Composition
Private Liquidation
Formal Remedies
BUSINESS DILEMMA: Mzazging Risk at Collage Health Club
Key Terms
Review Questions
Summary
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Selecting the Proper Insurance Coverage for a Business
Case 2: The Decision to Insure a Business
Video Case: Protecting Against Properly Damage
The Coca-Cola Company Annual Report Project
In-Text Study Guide
Surfing the Net: Risk Management Information on the World Wide Web
Chapter 21 Synthesis of Business Functions
CHAPTER 21 Synthesis of Business Functions
Valuation of a Business
How Business Decisions Affect the Firm s Value
Management Decisions
Marketing Decisions
SMALL BUSINESS SURVEY: What Are the Majer Concerns of Small B?siness?
Finance Dccisions
Summary of Business Strategies
Relationship between Organizational Structure and Production
Relationship between Pricing and Production Strategies
Relationship between Pricing and Distribution Strategies
Relationships among Business Strategies
Relationship between Pricing and Promotion Strategies
Relationship between Pricing and Financing Strategies
GLOBAL BUSINESS: Intagrating Business Functiens on a Glehal Basis
SPOTLIGHT ON TECHNOLOGY: Software that Integrates Business Activities
Summary of Relationships Among Business Strategies
Business Strategies Implemented by IBM
Mission and Strategir Plan of IBM
IBM s Social Responsibilities
IBM s Assessment of Its Industry
IBM s Management Strategies
IBM s Penetration in Foreign Markets
IBM s Marketing Strategies
IBM s Finance Strategies
Conchusion about IBM s Strategies
BUSINESS DILEMMA: Integrating Business Daeision? at Collegs Nealth Club
Summary
Review Questions
Discussion Questions
Running Your Own Business
Investing in the Stock of a Business
Case 1: Integrated Decisions at Chrysler
Case 2: Impact of Marketing Policies on Other Business Decisions
Video Case: Integrated Solutions to a Firm s Problems
In-Text Study Guide
The Coca-Cola Company Annual Report Project
Surfing the Net: Directory of Business Information on the World Wide Web
APPENDIX A How to Invest in Stocks
How the Firm s Stock Price and Value are Related
Appendix A How to Invest in Stocks
Understanding Stock Quotations
Fifty-Two-Week Price Range
Symbol
Dividend
Price-Earnings Ratio
Volume
Stock Index Quotations
Measuring the Return on Stocks
Previous Day s Price Quotations
Return-Risk Trade-Off for Small Stocks
Economic Effects
Factors that Influence Stock Price Movements
Market Effects
Industry Effects
Characteristics of the Firm
How Stock Prices Respond to New Information
Identifying Undervalued Firms
Stock Market Efficiency
SELF-SCORING EXERCISE: New Much Risk Can You Take?
Stock Transactions
Market Orders Versus Limit Oredrs
Types of Brokers
Commissions on Stock Transactions
Purchasing Stocks on Margin
Stock Exchanges
Over-the Counter Market
Regulation of Stock Exchanges
Investing in Foreign Stocks
Investing in Mutual Funds
Types of Mutual Funds
Load versus No-Load Mutual Funds
Investing in the Stock of a Business
The Coca-Cola Company Annual Report Project
Key Terms
Surfing the Net: Stock Exchanges on the Internet
Choosing a Career
Type of Job
APPENDIX B Careers
Size of Company
Appendix B Careers
Career Versus Additional Degree
Pursuing a Career and Degree
Pursuing a Career
Choosing a College
Applying for a Position
Internships
Creating a Resume
Interviewing
SELF-SCORING EXERCISE: Cbeckllst for Building or Evaleating Your Rasume
Planning a Career Path
Where the Jobs Are
Survey of Knowledge and Abilities Needed
Working for a Firm Versus Owning a Firm
Surfing the Net: Career Services on the World Wide Web
SELF-SCORING EXERCISE: The Studaut Conter Career Dectar
APPENDIX C Answers to In-Text Study Guide
Appendix C Answers to In-Text Study Guide
How Firms Ensure Responsibility toward Employees