Business essentials 11th global edition ebook pdf by henry.franklin335

business essentials

GLOBAL EDITION

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GLOBAL EDITION

ELEVENTH EDITION

Ronald J. Ebert

Ricky W. Griffin

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business essentials

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The rights of Ronald J. Ebert and Ricky W. Griffin to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

Authorized adaptation from the United States edition, entitled Business Essentials, Eleventh Edition, ISBN 978-0-134-12996-9 by Ronald J. Ebert and Ricky W. Griffin, published by Pearson Education © 2017.

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ISBN-10: 1-292-15224-9

ISBN-13: 978-1-292-15224-0

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Typeset in Palatino LT Pro-Roman by Integra Printed and bound by Vivar, Malaysia

10 9 8 7 6 5 4 3 2 1

For Ben Welch—A steadfast friend, an outstanding colleague, and one of the best men that I’ve ever known.

—R. W. G.

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Part 1: The Contemporary Business World 1 The U.S. Business Environment 34 2 Understanding Business Ethics and Social Responsibility 66 3 Entrepreneurship, New Ventures, and Business Ownership 102 4 Understanding the Global Context of Business 136 Part 2: Managing the Business 5 Managing the Business 168 6 Organizing the Business 200 7 Operations Management and Quality 230 Part 3: People in Organizations 8 Employee Behavior and Motivation 270 9 Leadership and Decision Making 304 10 Human Resource Management and Labor Relations 334 Part 4: Principles of Marketing: Building Relationships with Customers for Competitive Advantage 11 Marketing Processes and Consumer Behavior 370 12 Developing and Pricing Products 406 13 Distributing and Promoting Products 436 Part 5: Managing Information for Better Business Decisions 14 Information Technology (IT) for Business 468 15 The Role of Accountants and Accounting Information 502 Part 6: The Financial System and Issues in Financial Management 16 Understanding Money and the Role of Banking 538 17 Managing Business Finances 572 Appendices Appendix I: Risk Management 611 Appendix II: The Legal Context of Business 615 Appendix III: Managing Your Personal Finances 621 Appendix IV: Unions and Labor Management 633 Glossary 649 Index 669

brief contents

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9 contents Letter from the Authors 19 About the Authors 21 Special Thanks to Our Super Reviewers 23 Preface 25 Acknowledgments 31 Part 1: The Contemporary Business World

The U.S. Business Environment 34 Chapter Opening Case: What Goes Up... Can also Come Down! 37 Business, Profit, and the External Environment 38 Business and Profit 38 The External Environments of Business 39 finding a better way: The B Team 40 Economic Systems 43 Factors of Production 43 Types of Economic Systems 44 entrepreneurship and new ventures: Open Sesame 45 The Economics of Market Systems 47 Demand and Supply in a Market Economy 47 Private Enterprise and Competition in a Market Economy 50 Economic Indicators 52 Economic Growth, Aggregate Output, and Standard of Living 52 Economic Stability 56 managing in turbulent times: What Goes Around… 57 Managing the U.S. Economy 58 summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes

Understanding Business Ethics and Social Responsibility 66 Chapter Opening Case: Simply Divine 69 Ethics in the Workplace 70 Individual Ethics 70 The Law and the Real World 70 Individual Values and Morals 71 Business and Managerial Ethics 71 Assessing Ethical Behavior 72 Company Practices and Business Ethics 73 Social Responsibility 76 The Stakeholder Model of Responsibility 77 entrepreneurship and new ventures: The Electronic Equivalent of Paper Shredding 77 Contemporary Social Consciousness 78 Areas of Social Responsibility 79 Responsibility Toward the Environment 79 finding a better way: Zero Waste 80 Responsibility Toward Customers 82 Responsibility Toward Employees 84 Responsibility Toward Investors 85 Implementing Social Responsibility Programs 86 Approaches to Social Responsibility 86 Social Responsibility and the Small Business 87 The Government and Social Responsibility 88 How Governments Influence Business 89 How Business Influences Government 89 Managing Social Responsibility 90 Formal Organizational Dimensions 91 Informal Organizational Dimensions 91 Evaluating Social Responsibility 92 managing in turbulent times: Watch Out Before You Blow That Whistle! 93 summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes 3 Entrepreneurship, New Ventures, and Business Ownership 102 Chapter Opening Case: It All Started With a Late Fee 105 What Is a Small Business? 106 The Importance of Small Business in the U.S. Economy 107 Popular Areas of Small Business Enterprise 108

& exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes

10 CONTENTS International Business Management 151 Going International 151 entrepreneurship and new ventures: A Better Coconut Water 153 Levels of International Involvement 153 International Organization Structures 154 Understanding the Cultural Environment 155 Values, Symbols, Beliefs, and Language 156 Employee Behavior Across Cultures 157 Barriers to International Trade 158 Economic Differences 158 Legal and Political Differences 159 summary of learning objectives • key terms • questions & exercises • building a business: continuing team

Part 2: Managing the Business 5 Managing the Business 168 Chapter Opening Case: Google Keeps Growing 171 The Management Process 172 Basic Management Functions 172 The Science and the Art of Management 175 Becoming a Manager 175 Types of Managers 177 Levels of Management 177 entrepreneurship and new ventures: Building Your Core 178 Areas of Management 179 Management Roles and Skills 180 Managerial Roles 180 Basic Management Skills 182 Strategic Management: Setting Goals and Formulating Strategy 184 Setting Business Goals 184 Types of Strategy 185 finding a better way: A New Model for Going Green 187 Formulating Strategy 187 A Hierarchy of Plans 189 Contingency Planning and Crisis Management 189 Contingency Planning 190 Crisis Management 190 managing in turbulent times: When Disaster Storms In 191 finding a better way: The Rise of Services 110 Entrepreneurship 111 Entrepreneurship Goals 111 Entrepreneurial Characteristics 111 Starting and Operating a New Business 112 Understanding Distinctive Competencies 112 Crafting a Business Plan 113 Starting the Small Business 114 Financing the Small Business 115 Trends, Successes, and Failures in New Ventures 117 Trends in Small Business Start-Ups 117 managing in turbulent times: The Wide World of Risk 119 Reasons for Failure 119 Reasons for Success 120 Noncorporate Business Ownership 120 Sole Proprietorships 120 Partnerships 121 Cooperatives 122 Corporations 123 The Corporate Entity 123 Types of Corporations 124 Managing a Corporation 125 entrepreneurship and new ventures: More Than Just a Burger and Fries 126 Special Issues in Corporate Ownership 127

Understanding the Global Context of Business 136 Chapter Opening Case: Controlled Tension 139 The Contemporary Global Economy 140 The Major World Marketplaces 141 finding a better way: Too Much of a Good Thing? China’s Success Creates More Jobs in Mexico 143 Trade Agreements and Alliances 143 International Trade 145 Balance of Trade 146 Balance of Payments 148 Exchange Rates 149 Forms of Competitive Advantage 150 managing in turbulent times: The Ups and Downs of Globalization 150

exercise • team exercise • exercising your ethics • cases • crafting a business plan • end notes

summary of learning objectives • key terms • questions

cases • end notes

summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes

7 Operations Management and Quality

Chapter

CONTENTS 11 Creating Value Through Operations 236 Differences between Service and Goods Manufacturing Operations 237 Operations Processes 238 Business Strategy as the Driver of Operations 240 The Many Faces of Production Operations 240 Operations Planning 242 Capacity Planning 242 entrepreneurship and new ventures: Nothing Like a Home-Cooked Meal 243 Location Planning 243 Layout Planning 244 Quality Planning 245 Methods Planning 246 Operations Scheduling 247 The Master Operations Schedule 247 Detailed Schedules 248 Staff Schedules and Computer-Based Scheduling 248 Project Scheduling 249 Operations Control 250 Materials Management 250 Quality Control 252 Quality Improvement and Total Quality Management 252 managing in turbulent times: Quick Footed Egyptian Businesses 253 The Quality-Productivity Connection 253 Managing for Quality 254 Tools for Total Quality Management 255 Adding Value Through Supply Chains 257 The Supply Chain Strategy 257 Outsourcing and Global Supply Chains 258 finding a better way: Too Good to Waste 259 summary of learning objectives • key terms • questions & exercises • building a business: continuing team

Part 3: People in Organizations 8 Employee Behavior and Motivation 270 Chapter Opening Case: Not a Happy Lot 273 Forms of Employee Behavior 274 Performance Behaviors 274 Organizational Citizenship 275 Counterproductive Behaviors 275 Management and the Corporate Culture 191 Building and Communicating Culture 191 Changing Culture 192 summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics •

exercise • team exercise • exercising your ethics • cases • crafting a business plan • end notes

200 Chapter Opening Case: Organizing for Success at South African Airways 203 What is Organizational Structure? 204 Organization Charts 205 Determinants of Organizational Structure 205 entrepreneurship and new ventures: Organizing for Innovation 206 The Building Blocks of Organizational Structure 207 Job Specialization 207 Departmentalization 208 finding a better way: Blending the Old with the New 209 Establishing the Decision-Making Hierarchy 211 Distributing Authority: Centralization and Decentralization 211 managing in turbulent times: Organized for Success 212 The Delegation Process 214 Three Forms of Authority 214 Basic Forms of Organizational Structure 215 Functional Structure 216 Divisional Structure 216 Matrix Structure 217 International Structure 217 New Forms of Organizational Structure 219 Informal Organization 220 Informal Groups 220 Organizational Grapevine 221 Intrapreneuring 222

6 Organizing the Business

230

Opening Case:

233 What Does Operations Mean Today? 234 Growth in the Services and Goods Sectors 235

Satisfaction—but Who to Believe?

summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes 9

summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes 10

12 CONTENTS

Changing Nature of Leadership 317 Leaders as Coaches 317 Gender and Leadership 318 finding a better way: Leading Like a Woman 318 Cross-Cultural Leadership 319 Emerging Issues in Leadership 319 Strategic Leadership 319 Ethical Leadership 319 managing in turbulent times: Leading in a Virtual World 320 Virtual Leadership 321 Leadership, Management, and Decision

321 The Nature of Decision Making 321 Rational Decision Making 323 Behavioral Aspects of Decision Making 325

The

Making

Human Resource Management and Labor Relations 334 Chapter Opening Case: Urgent Harmony 337 The Foundations of Human Resource Management 338 The Strategic Importance of HRM 338 HR Planning 339 The Legal Context of HRM 341 Equal Employment Opportunity 341 Compensation and Benefits 342 Labor Relations 343 Health and Safety 343 Other Legal Issues 343 Staffing the Organization 344 Recruiting Employees 345 Selecting Employees 345 Compensation and Benefits 346 Wages and Salaries 346 Incentive Programs 347 Benefits Programs 347 finding a better way: HongKongLabor Relations 348 Developing the Workforce 349 Training and Development 350 Performance Appraisal 351 entrepreneurship and new ventures: Time to Go 353 managing in turbulent times: Not Just on the Playground 276 Individual Differences among Employees 277 Personality at Work 277 Attitudes at Work 280 Matching People and Jobs 282 Psychological Contracts 282 The Person-Job Fit 284 Basic Motivation Concepts and Theories 284 Classical Theory 284 Early Behavioral Theory 284 entrepreneurship and new ventures: I Get Knocked Down 288 Contemporary Motivation Theory 289 Strategies and Techniques for Enhancing Motivation 291 Reinforcement/Behavior Modification 291 Using Goals to Motivate Behavior 291 finding a better way: Carrot or Stick? 292 Participative Management and Empowerment 293 Team Structures 293 Job Enrichment and Job Redesign 294 Modified Work Schedules and Alternative Workplaces 294

and

304 Chapter Opening Case: Cinna-Yum 307 The Nature of Leadership 308 Leadership and Management 308 Leadership and Power 309 Early Approaches to Leadership 310 Trait Approaches to Leadership 310 Behavioral Approaches to Leadership 311 The Situational Approach to Leadership 312 Leadership Through the Eyes of Followers 313 Transformational Leadership 314 Charismatic Leadership 314 entrepreneurship and new ventures: “Success Unshared Is Failure” 315 Special Issues in Leadership 316 Leadership Substitutes 316 Leadership Neutralizers 317

Leadership

Decision Making

summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • crafting a business plan • end notes Part

summary of learning objectives • key terms • questions & exercises • building a business: continuing team exercise • team exercise • exercising your ethics • cases • end notes

CONTENTS 13 Organizational Marketing and Buying Behavior 392 Business Marketing 392 B2B Buying Behavior 393 Social Media and Marketing 393 The International Marketing Mix 394 Small Business and the Marketing Mix 396 Small-Business Products 396 Small-Business Pricing 396 Small-Business Distribution 396 entrepreneurship and new ventures: Farming Your Niche 397 Small-Business Promotion 397

Developing and Pricing Products 406 Chapter Opening Case: Singing a Different Tune 409 What is a Product? 410 The Value Package 410 finding a better way: Good Deeds, with a Little Entrepreneurship on the Side 411 Classifying Goods and Services 411 The Product Mix 413 Developing New Products 413 The New Product Development Process 414 entrepreneurship and new ventures: Let’s Chat 414 Product Mortality Rates 415 The Seven-Step Development Process 416 Variations in the Process for Services 417 Product Life Cycle 418 Stages in the PLC 418 Extending Product Life: An Alternative to New Products 419 Identifying Products 419 Determining Prices 422 Pricing to Meet Business Objectives 422 Price-Setting Tools 423 Pricing Strategies and Tactics 425 Pricing Strategies 425 Pricing Tactics 426 managing in turbulent times: Fair or Foul? 427 International Pricing 428 New Challenges in the Changing Workplace 354 Managing Workforce Diversity 354 Managing Knowledge Workers 355 Contingent and Temporary Workers 355 managing in turbulent times: Temp or Perm? 356 Dealing with Organized Labor 357

Today 357

358

with Customers for Competitive Advantage

Marketing Processes and Consumer Behavior 370 Chapter Opening Case: Building a Brand with Social Media 373 What Is Marketing? 374 Delivering Value 374 Goods, Services, and Ideas 375 Relationship Marketing and Customer Relationship Management 376 The Marketing Environment 377 managing in turbulent times: Feeling the Pressure for “Green” 379 Developing the Marketing Plan 380 Marketing Strategy: Planning the Marketing Mix 381 Marketing Strategy: Target Marketing and Market Segmentation 384 Identifying Market Segments 385 Geographic Segmentation 385 Demographic Segmentation 385 Geo-Demographic Segmentation 386 Psychographic Segmentation 386 Behavioral Segmentation 386 Marketing Research 386 The Research Process 387 Research Methods 388 finding a better way: The Truth about Your Online Customer Service 389 Understanding Consumer Behavior 390 Influences on Consumer Behavior 390 The Consumer Buying Process 390

Unionism

Collective Bargaining

Principles of Marketing: Building Relationships

Business essentials 11th global edition ebook pdf