S u b j e c t I n d e xABA Banking Journal, 384Absolute advantage, 108Accessory equipment, 422Accommodating style of conflict resolution, 338Accountability, 286Accountants

career options for, 534certified public, 519cost accountant, 519–520government accountants, 520management, 518–519, 534not-for-profit accountants, 520, 534public, 518, 534role of, 518–520tax accountant, 519–520

Accounting, 516–523. See also Budgeting; Ratio analysisaccrual accounting, 525–526balance sheet, 524, 526business activities that involve, 517exchange rates, 533Financial Accounting Standards Board (FASB), 521four largest accounting firms in U.S., 518generally accepted accounting principles (GAAP), 521income statement, 524, 527international, 533–534international accounting standards, 533–534at Krispy Kreme, 542new rules for, 522at Pizzeria Uno, 619Public Accounting Oversight Board, 522Sarbanes-Oxley Act, 40, 42, 46, 47, 72–73, 144, 186, 270, 522statement of cash flow, 524–528story of Enron and Arthur Andersen, 519users of accounting information, 517

Accounting equationasset, 523basic accounting equation, 523liability, 523owners’ equity, 523

Accounting process, 520–523foundation for, 521–522impact of computers and Internet on, 520–521steps in, 520

Accounting software, 521Accrual accounting, 525–526Acquisitions, 129, 187

at Tweeters, 620Active listening, 342Activity ratios, 531Adaptation of marketing mix, 395–396Added value, through customer satisfaction and quality, 387–389Adjourning stage of team development, 336Adopt-a-School program, 314Advertising, 456–463

advantages/disadvantages, 453advocacy, 457

cause advertising, 457comparative, 458cooperative advertising, 470false or misleading, 57–59as global activity, 456, 457informative, 458institutional, 457on Internet, 253media options for, 458–463persuasive, 458product, 457product life cycle and, 458reminder-oriented, 458spending on, 456–457types of, 457

Advertising Age, 459Advertising specialties, 464Advertising vehicle, 452Advocacy advertising, 457Affinity programs, 411African Americans

as entrepreneurs, 208–209Internet use by, 233as market segment, 403small businesses owned by, 157, 174–176unemployment and, 91

Ageaging of population and global economy,

95–96demographic segmentation, 402–403of workforce, 24

Age Discrimination in Employment Act of 1968, 62, 63Agency, 145Agency law, 148Agent, 145

wholesaler intermediary, 433Agriculture

Earthbound Farm growth, 160minority-owned small businesses in, 175as pure competition, 80small business in, 159

AIDS, business’s social responsibility and, 53AIO statements, 403Airline Deregulation Act, 142Airline industry

airline industry and increased security, 489facility layout and, 366Internet and purchasing tickets online, 229–230JetBlue success during recession, 3–4layoffs in, 3, 201online shopping and, 242, 247production by Bombardier Business Aircraft, 368

Alcoholic beverages, social responsibility of sales of, 53Alien corporation, 183Alliances, with small businesses, 173Alternative dispute resolution (ADR) programs, 321Ambiguity, tolerance of, by entrepreneurs, 213, 215Ambition, of entrepreneurs, 211–212American Cheerleader, 162American Federation of Labor–Congress of Industrial Organizations (AFL–CIO), 316American Stock Exchange (AMEX), 583

Americans with Disabilities Act, 62, 63, 143, 300America’s Top 100 Internships (Oldman & Hamadeh), xxxixAnalytic production system, 359Angel Capital Electronic Network (ACE-Net), 171, 222Angel investors, 167, 222Anticybersquatting Consumer Protection Act, 144, 249Appellate court, 140Application service provider, 494–495Apprenticeship programs, 302Approaching, in sales process, 466Arbitration, 318, 321Arbitrator, 318Argentina, 107, 122

ESPN in, 606stability of currency, 550

Articles of Incorporation, 184Aruba, per-capita GDP of, 106Asbestos-related lawsuits, 138–139Asian Americans

as entrepreneurs, 208–209Internet use by, 233as market segment, 403small businesses owned by, 157, 174–176

Assembly line, 358Asset, 523Association of South East Asian Nations (ASEAN), 122ATM

advertising and, 462–463as automatic merchandising, 435growth in popularity of, 558

Audience, in communication process, 340Auditing, by accountants, 518, 519Audit trail, 592Austria, as low-context culture, 347Autocratic leadership, 279Automatic merchandising, 435Automation

in banking, 383in production process and, 358

Automobile industryfacility layout and, 366financing and, 176hybrid cars, 53hydrogen fueling system for cars, 76luxury models, 473pollution, 53product placement at Ford, 449quality at General Motors, Ford, and Chrysler, 3730% financing at General Motors, 515

Avoiding style of conflict resolution, 338

B2B markets. See Business (B2B) marketsB2B products. See Business-to-business (B2B) productsB2C products. See Consumer (B2C) productsBailee, 147Bailment, law of, 147Bailor, 147Baksheesh, 117Balanced budget, 94Balance of payments, 109–110Balance of payments deficit, 109

Balance of payments surplus, 109Balance of trade, 109Balance sheet, 522, 524, 526Bangladesh, population in, 106Banking Act of 1933, 559Bankruptcy law, 148–149

types of, 148–149Banks/Banking

automation in, 383commercial, 558–560community, 383–384, 545–546customer relations and, 383–384electronic, 558Fed reserve requirements, 562–564global perspective, 564–565on Internet, 383–384savings banks, 560small-business credit, 167

Bank Secrecy Act, 144Baron’s, 586Barriers to trade

economic differences, 115–116nontariff barriers, 120political and legal differences, 116–119reducing, 121–124social and cultural differences, 112–115tariffs, 119–120types of, 119–120

Base salary, xlixBasic accounting equation, 523Belgium, 111Benchmarking, 303, 372Benefits sought, market segmentation, 404–405Bermuda, per-capita GDP of, 106Better World Investment Guide, The, 51Big Board, 582Billboards, 461Black Enterprise, 196, 209Board of directors, 185Board of Governors (Fed), 91, 562Bolivia, 122Bomb-screening technology, 489Bonds, 555, 576–578. See also Securities

bond quote tables, 588callable, 577, 578call provision, 578convertible, 577, 579corporate bond price quotations, 588current income, 581debenture, 576face value, 576factors influencing price of, 577government, 576–577junk, 577municipal, 576–577prerefunded, 578public sale of, 555–556quality ratings for, 577retiring, 577–578secured, 576serial, 577

sinking fund, 577, 578types of, 576underwriting, 575

Bonuses, 305Bookselling, on Internet, 158–159, 241–242Book value of stock, 579Bosnia, political change and barrier to trade, 116Bottom line, 524Boycott, 51, 318Brand, 15, 427

China building brand recognition, 104family, 428individual brand, 428licensing, 127–128manufacturer’s (national) brand, 428private (store) brand, 428world’s most valuable, 21, 429

Brand association, 429Brand awareness, 429, 455Branded credit cards, 552Brand equity, 429Branding, 15Brand insistence, 429Brand loyalty, 405, 455Brand manager, 429Brand name, 248, 427

selecting effective, 427Brand preference, 429Brand recognition, 429Brazil, 72, 107, 122

GDP of, 23population in, 106small businesses in, 179

Breach of contract, 145Breakeven analysis, 475–476Breakeven point, 476Broadband technology, 237, 505

types of, 505Broker, 585

wholesaler intermediary, 433Brokerage firm, 585

discount firms, 585–586full-service, 585online firms, 586

Budget, 532cash budget, 532–533preparing personal, 539

Budget, federal, 92–94balanced, 94deficit, 94surplus, 94

Budget deficit, 94Budgeting, 532–533Budget surplus, 94Bulletin boards, 233Bullpens, 337Bureau of Labor Statistics, 10, 89–90Business, 5–13. See also New ventures; Online business; Small businesses

Colonial era, 13forms of, 179–183historical perspective, 13–16

Industrial entrepreneurs era, 13, 14Industrial Revolution era, 13–14marketing era, 13, 15online research by, 234–235production era, 13, 14relationship era in, 13, 15–16relationship marketing and, 409, 410responsiblity to society, 51–65selecting business ideas for new, 216–219use of Internet by, 234–236

Business analysis, stage of new-product development, 426Business (B2B) markets, 400, 405–406

end-use segmentation, 406Business careers. See Careers in businessBusiness cycle, stages of, 85Business ethics, 30, 40–51

advertising by drug manufacturers, 408Arthur Andersen, 519basics of, 43code of conduct, 48computer crime, 43conflict of interest, 45corporate stock dividend tax, 554development of, 44dirty tricks in high-speed Internet industry, 501downloading music from Internet, 474Enron, 519, 573entrepreneurs behaving badly, 214ethical action, 49ethical awareness, 47–48

Business ethics (continued)ethical leadership, 49–51ethical reasoning, 48–49forces shaping, 40–41at GE, 50government regulation and, 42honesty and integrity, 45–46human rights abuses of foreign governments and multinationals, 118incorporation overseas, 184for individuals, 43–46Internet privacy laws, 246at Johnson & Johnson, 41, 42at Krispy Kreme, 152loyalty vs. truth, 46management and, 29–31management setting standard for, 270McDonald’s liability for making people fat, 430monitoring employees, 340Monsanto’s use of PCB, 363new emphasis on, 41–42new focus on, 5nuclear power plants and, 31on-the-job ethical dilemmas, 44of organizations, 47–51price drop and weak economy, 88promotion and, 471–472puffery and deception, 471recent business scandals, 214scandals of, 39–40in securities trading, 591–593socially responsible investing and mutual funds, 590

social responsibility and, 30, 40–41stages of moral and ethical development, 44strike at Hershey, 319structure of ethical environment, 47at Tyco, 39–40undocumented immigrants as employees, 278whistleblowing, 46–47

Business incubators, 172Business intelligence software, 399Business law, 141

contract law and law of agency, 145property law and law of bailment, 146–147trademarks, patents and copyrights, 147

Business plan, 168–171for entrepreneurs, 219–220for small businesses, 168–171

Business product, 394Business-to-business (B2B) products, 394

accessory equipment, 422capital items, 421–422classifying, 421–422component part and materials, 422direct distribution channel, 432expense items, 421–422installations, 421–422marketing strategy for implications, 422raw materials, 422supplies, 422

Business-to-business e-commerce, 239–241Business-to-consumer e-commerce, 241–244BusinessWeek, 39, 234, 293Buyer behavior, 406. See also Consumer behavior

business cycle and, 85–86vs. consumer behavior, 406determinants of business, 408determinants of consumer behavior,

407–408steps in consumer behavior process,

408–409Buyer’s market, 386Buying group, retailer-owned, 434

Cable servicesconnection for Internet, 505television advertising on, 459

CAD. See Computer-aided design (CAD)Cafeteria plans, 306–308Callable bonds, 577, 578Call provision, 578CAM. See Computer-aided manufacturing (CAM)Canada

central bank of, 565dollar, 549Internet use in, 232level of entrepreneurial activity in, 205NAFTA and, 122–123per-capita GDP of, 106SARS outbreak in, 103U.S. imports/exports of, 21U.S. trade with, 107

Capital, 7–8, 78

growth in, as investment motivation, 580Capital gains, 92

corporate stock dividend tax, 554taxes and, 581

Capitalism, 10, 79–82. See also Private enterprise systemCapital items, 421–422Careers in business

for accounting professionals, 534building a résumé, xliii–xlivchoosing right, 10education level and, xxxviiiinternship, xxxviii–xxxixjob interview, xlv–xlviijob search guidelines, xl–xliiilong-range view of, l–linontraditional students, xlviiipreparing your job credentials, xl–xliprojected 2003 entry-level hires, xxxviisalaries and, xlix–lself-assessment for career development, xxxix–xltypes of careers, xlviii–xlix

Cash budget, 532–533Cash flow

free cash flow, 527generating funds from excess cash, 553in small businesses, 166statement of, 524–528

Category manager, 429Cause advertising, 457Cause marketing, 57, 392–393

Avon for breast cancer, 478at Krispy Kreme, 485

Cayman Islands, per-capita GDP of, 106C-commerce, 241CD, price of and downloading music online, 474Cell phone, product life cycle of, 424Center for Entrepreneurial Leadership, 204Center for Science in the Public Interest, 51Centralization, 287Centralized communication network, 345CEO. See Chief executive officer (CEO)Certificate of deposit, 551, 553Certified internal auditor, 519Certified management accountant, 519Certified public accountants (CPA), 519CFO. See Chief financial officer (CFO)Chain of command, 287Change, managers and, 29Change agent, 198–199Channel, in communication process, 339Chapter 7 bankruptcy, 148–149Chapter 11 Bankruptcy, 149Chapter 13 bankruptcy, 148–149Chat rooms, 233Check cards, 558Checks, clearing, 562Cheerleading industry, 162Chief executive officer (CEO)

in finance organization of company, 546in management hierarchy, 267responsibilities of, 185

Sarbanes-Oxley Act and, 186Chief financial officer (CFO), 185, 267

in finance organization of company, 546Sarbanes-Oxley Act and, 185

Chief information officer (CIO), 185, 490Chief operating officer (COO), 185, 546Child labor, 317Children, ethics and promoting to, 471Children’s Online Privacy Protection Act (COPPA), 144, 245Chile, 122China

absolute advantage in silk production, 108building brand recognition, 104communism in, 83comparative advantage, 108corruption in, 117economic effect of SARS, 103–104GATT and, 121GDP of, 23Internet use in, 17, 232ISO standards and, 374manufacturing in, 103–104markets in, 106McDonald’s in, 137PepsiCo in, 347political change and barrier to trade, 116population in, 106software piracy, 119trade relations with, 118U.S. imports/exports of, 21U.S. trade with, 107, 109

Choice, right to, 11, 59CIA World Factbook, 124, 125Cigarette advertising, barriers to trade and, 116CIO. See Chief information officer (CIO)Circuit-CAM, 362Circuit courts, 140Civil Rights Act, 62, 63, 300Classic entrepreneurs, 198Classification of businesses. See North American Industry Classification System (NAICS)Classroom training, 303Clayton Act, 81, 142Click ‘n pick shopping, 243Click-through rate, 253Client, 232Closed corporations, 185Closely held corporations, 185Closing, in sales process, 467Clothing industry

online sale of, 241–242selling to alternative teens, 447teenagers as market segment, 403urban apparel, 454

Cobranding, 411Code of conduct, 48Collaborating style of conflict resolution, 338Collateral trust bonds, 576Collective bargaining, 317College campuses, ethics in promoting at, 472Colonial era in business, 13Comarketing, 411

Commerce Department, export assistance by, 129–130Commercial banks, 558–560

electronic banking, 558mergers of, 558online banking, 559, 560operation of, 558recent changes in banking laws, 559–560regulation of, 559–560

Commercialization, stage of new-product development, 426Commercial paper, 553, 555Commission, xlixCommon law, 141Common stock, 185, 578–579Communication, 339–348

external communication, 346–347formal communication, 341, 343forms of, 341–344high-context cultures, 347–348importance of, 339informal communication channels, 341, 343integrated marketing communications, 450–451internal communication, 344–345international business communication, 347–348Internet use for, 233–234at Le Meridien, 612–613low-context cultures, 347–348nonverbal communication, 341, 343–344nonverbal cues, 344oral, 341, 342within organizations, 344–345outside organization, 346–347personal space, 344process of, 339–341in teams, 345verbal communication, 341, 343–344written communication, 341, 342–343

Communication technology, informal communication channels and, 343Communism, 82–83Community bank, 383–384, 545–546

broad services and customer service of, 545Company, use of term, 184Company news, in financial newspaper, 586Company stock, importance of diversity and, 573–574Comparative advantage, 108–109Comparative advertising, 458Compensation, 304–305

employee stock ownership plans, 330linking rewards to company performance, 329–331stock options, 330–331wages vs. salary, 304

Competing style of conflict resolution, 337Competition, 10

assessing your competitive position, 274–275creating strategies for competitive differentiation, 276cutthroat, 11–12in global market, 20–23monopolistic, 80monopoly, 81–82oligopoly, 80–81pricing to meet, 474pure, 80

right to, 11types of, 80–82

Competitive advantage, exchange rate changes and, 112Competitive differentiation, 11, 276

creating strategies for, 276Competitive pricing, 477–478Complaints, as customer feedback, 389Complementary goods, demand and, 76, 77Component part and materials, 422Compressed workweek, 308Compromising style of conflict resolution, 338Comptroller of Currency, 559Computer-aided design (CAD), 361

at Cannondale, 613, 618Computer-aided manufacturing (CAM), 361Computer-based training, 303Computer crime, 505–507, 506

common, 506encryption and, 506hackers, 506theft of equipment, 507

Computer databases. See DatabasesComputer Fraud and Abuse Act, 144Computer industry

IBM and, 378market for PCs, 473

Computers. See also Electronic commerce (E-commerce); Internet; Software

broadband technology, 505budgeting process, 532computer-based marketing research systems, 399disaster recovery planning for, 508–509handheld devices, 497hardware, 495–497impact of computers and Internet on accounting process, 520–521intranet, 503mainframe, 496market for, 473minicomputers, 496multimedia computing, 502notebook computers, 497operating system, 497personal computers, 496–497product life cycle of, 424software for, 86, 497–501super computers, 496tablet PC, 497types of, 496–497virtual private networks, 504–505

Computer virus, 507Concept development, stage of new-product development, 426Concept testing, 426Conceptual skills, of managers, 269Concurrent engineering, 359Conflict, 336–339

conflict resolution tips, 367styles of conflict resolution, 337–339teams and, 336

Conflict of interest, 45Conglomerate merger, 187Congo, political change and barrier to trade, 116

Construction, minority-owned small businesses in, 175Consultative selling, 468Consumer (B2C) products, 394

classifying, 421convenience products, 421marketing strategy variations, 422shopping products, 421specialty products, 421

Consumer behavior, 406. See also Buyer behaviorbusiness cycle and, 85–86buyer behavior, 406determinants of, 407–408steps in process of, 408–409

Consumer (C2B) markets, 400–405demographic segmentation, 402–403geographical segmentation, 401product-related segmentation, 404–405psychographic segmentation, 403–404

Consumer Credit Protection Act, 143Consumerism, 57–59Consumer orientation, 15Consumer Price Index (CPI), 89–90Consumer product, 394Consumer Product Safety, 143Consumer protection, laws for, 142–143Consumer Reports, 373Consumers. See also Customers

consumer-oriented sales promotion, 463–464consumer perceptions of prices, 478–479number of, and demand, 76, 77rights of, 57–59right to be heard, 59

Consumer spending, in U.S., 94Contests, as sales promotion, 464Context, in communication process, 340Contingency planning, 271Contingent workers, 311Continuous production process, 359–360Contract, 145

breach of, 145requirements, 145

Contractual agreements in international trade, 127–128Control

degree of, and globalization, 125internal locus of, 215inventory, 368–369

Controller, 546Controlling, by management, 269Convenience products, 421Conventional stage of ethical development, 44Conversion rate, 254Convertible bonds, 577Convertible securities, 579COO. See Chief operating officer (COO)Cookies, 244Cooperative advertising, 470Cooperative (Co-op), 189–189

retailer-owned, 434COPPA. See Children’s Online Privacy Protection Act (COPPA)Copyright, 147, 248Corporate charter, 184–185

Corporate culture, 282–283at Hewlett-Packard, 283at Home Depot, 282–283at Krispy Kreme, 379at UPS, 283

Corporate income taxes, as government revenue, 93Corporate philanthropy, 56–57Corporations, 182–186

advantages/disadvantages of, 182assistance to small businesses, 172–173board of directors, 185corporate officers and managers, 185–186employee-owned, 186government-owned, 188incorporation process for, 183–185joint ventures, 188management of, 185–186mergers and acquisitions, 187not-for-profit corporations, 186S corporations, 182stock ownership and stockholder rights, 185types of, 183use of term, 184

Cosmopolitan, 460Cost(s)

breakeven analysis, 475–476marketing intermediaries and reducing, 432overhead, 164of recruitment and selection process, 301–302small businesses and, 164of websites, 252–253

Cost accountant, 519–520Cost-based pricing, 475Cost-push inflation, 87Council on Economic Priorities, 51Counterfeiting, 549–550Countertrade, 127Country Living, 459Coupons, 463Court system, 140CPFaR, 369CPI. See Consumer Price Index (CPI)Creative selling, 465Creativity, 28–29

at Couch, 28–29developing, as entrepreneur, 210of entrepreneurs, 213exercises and guidelines fostering, 29motivational efforts for, 313

Credential file, xl–xliCredit cards

branded credit cards, 552cost of, 552encryption systems, 237financing new businesses, 221fraud and, 552increase in use of, 551at McDonald’s, 551prepaid shopping cards, 552retail credit cards, 552safe online payment systems, 243–244

small businesses and, 166–167smart credit cards, 552subprime lending, 571

Credit unions, 561Critical path, in production control, 372Critical thinking, 28Cross-functional team, 333Crude goods, 90C2B markets. See Consumer (C2B) marketsCuba, communism in, 83Cubicles, 337Culture

cultural differences as barrier to trade, 112–113low- and high-context, 347–348

Currencyconversion of, as barrier to trade, 115–116devaluation, 111–112exchange rates, 110–112hard, 112soft, 112

Current income, as investment motivation, 581Current ratio, 529–530Customer-based segmentation, for businesses, 405–406Customer departmentalization, 285Customer feedback, customer satisfaction and, 389Customer-oriented facility layout, 365, 366Customer preferences, demand and, 76, 77Customer relationship. See Relationship marketingCustomers. See also Consumers

gathering information about, 235lifetime value of a customer, 410marketing era of business, 15relationship era of business, 15relationship management, 18relationship marketing and, 409, 410social responsibility to, 57–59

Customer satisfaction, 19, 387–389delivering added value through, 387–389feedback and, 389Goya Foods, 614–615online shopping, 242technology and, 19–20

Customer servicebanking and, 383–384at Cannondale, 602of community banks, 545distribution strategy, 441–442global economy and, 95–96principles of, 388product distribution, 441–442quality and, 389repair service, 442in retailing strategy, 437small businesses and, 164top 30 companies for, 387warranties, 442

Customization, mass, 395Cutthroat competition, 11–12Cybersmears, 246Cyclical unemployment, 90–91Cynical listening, 342

Cyprus, 123Czech Republic, 123

political change and barrier to trade, 116

Damages, 145Data

external, 397internal, 397marketing research, 397–399primary, 397secondary, 397

Databases, 491–493creating, 492–493data mining, 399in management information systems, 491–493relationship marketing, 411–412U.S. Census Bureau, 492

Data mining, 399, 460, 493at Capital One Bank, 571

Data warehouses, 399Debentures, 576Debit cards, 558Debt

national, 94small businesses and, 166–167

Debt capital, 553, 576compared to equity capital, 555

Debt financing, leverage ratios, 531Debt financing, 220–221Debt-to-equity ratio, General Motors and, 515–516Decentralization, 287Decentralized communication network, 345Deception, 471Decision making, 277–278

information systems for, 493–494nonprogrammed decisions, 277programmed decisions, 277sharing authority of, to empower employees, 329steps in, 277

Decision support system, 493Decline stage of product life cycle, 424Defense, government spending on, 93Deficit, budget, 94Deflation, 89

during Great Depression, 89in U.S., 94

Delegation, 286–287tips on effective, 439

Demand, 73–79equilibrium price and, 78–79factors driving, 74–77international trade and, 105prices and, 74–77primary, 450for recreational vehicles, 75selective, 450terrorism and effect on, 101

Demand curve, 74–76Demand deposits, 551Demand-pull inflation, 87Democratic leadership, 279

Demographic segmentationfor businesses, 405–406for consumer, 402–403

Demonstration, in sales process, 466Denmark, 111

level of entrepreneurial activity in, 205per-capita GDP of, 106technology and productivity, 23

Departmentalization, 285Depository institutions, 557–561Depression, as business cycle phase, 85Deregulation, 82Desktop publishing, 86, 499Devaluation, 111–112Developed countries, markets in, 106Developing countries

countertrade, 127Internet and opportunities for, 17markets in, 106

Die Another Day, 449Digital cameras, product life cycle of, 424Digital Subscriber Line (DSL), 231, 505Direct channel, 439Direct distribution channel, 431, 432Direct exporting, 126Directing, by management, 269Direct investment, 128–129, 586–587

destinations of, by U.S. companies, 130sources of, in United States, 130

Direct mailadvertising and, 460–461e-mail, 460

Direct marketing1-800-Flowers.com, 452online, 452

Direct Marketing Association, 461Directory advertising, 463Direct reports, 286Direct-response retailing, 434Direct-response television, 462Direct selling, 435Disaster recovery planning, 508–509Discount pricing, 477Discount rate, 563, 564Discouraged workers, 90Discrimination

recruitment and selection process, 300–301sex, 301

Dispatching, in production control, 372Distribution

exclusive, 440intensive, 440selective, 440

Distribution channelsdirect distribution, 432selecting, 438–440using marketing intermediaries, 432

Distribution strategy, 394, 431, 431–442customer service, 441–442distribution channels, 431–432logistics and physical distribution, 441

retailing, 434–438selecting distribution channels, 438–440selecting distribution intensity, 440–441wholesaling, 433–434

Diversity, 26benefits of, 26entrepreneurs and, 208–209teams and, 334of workforce, 24–25, 55–56

Diversity training, 126Dividend reinvestment plans (DRIPs), 586–587Dividends

corporate stock dividend tax, 554taxation on, 182

DoCoMo, 54Dollar, 112

Australian, 111Canadian, 111, 549U.S., 549–550

Domain name, 231, 251choice of, and intellectual property, 249

Domestic corporation, 183Do not call list, 467Dot-com businesses, 6, 19, 201. See also Electronic commerce (E-commerce); Internet; Online business

pure play, 247Dow Jones Average, 588

Industrial Average, 588Downsizing, 309

open communication and, 339Drop shipper, 433Drug industry. See Pharmaceutical industryDrug testing, 301Dual roles, 334Dumping, 120DVDs, product life cycle of, 424

Earnings per share, 530E-commerce. See Electronic commerce

(E-commerce)Economic barriers to trade, 115–116Economic conditions, in financial newspaper, 586Economic Recovery and Assistance for American Workers Act, 143Economics, 72

macro-, 73micro-, 72, 73

Economic systems, 72capitalism, 79–82communism, 82–83comparison of alternative, 84evaluating economic performance of, 85–91macroeconomic issues for, 79–84mixed market economies, 83–84socialism, 83

Education. See also Trainingentrepreneurs and, 204income and, xxxviiiover Internet, 234of workforce, 56

EEOC. See Equal Employment Opportunity Commission (EEOC)Elderly. See AgeElectricity

deregulation, 82supply and, 78

Electronic banking, 558Electronic cash, 243Electronic commerce (E-commerce), 236–249. See also Online business; Websites

advantages of, 237broadband technologies and, 237business-to-business e-commerce, 239–241business-to-consumer e-commerce, 241–244career choices and, xlviii–xlixchallenges for, 244–249competition and disagreements among buyers and sellers, 247–248eBay on, 250electronic data interchange, 239electronic exchanges, 240e-tailing and electronic storefronts, 243European customers’ hesitance to adopt, 131extranets and private exchanges, 240–241firewall, 245functions of, for business, 236–237global environment of, 254–255Internet fraud, 246lack of retail experience, 247laws regulating, 144not-for-profit sector and, 238poor web site design and service, 247privacy issues, 244–245profiting from, 238–239protection of intellectual property and, 248–249safe online payment systems, 243–244at Salem Five, 159–160scope of, 237–249traffic jams caused by system overload, 247unreliable delivery and return, 247

Electronic communication network, 584, 585Electronic data interchange, 239Electronic exchanges, 240Electronic funds transfer system (EFTS), 558Electronic industry, 21

comparative advantage of China, 109DVDs, 74online shopping and, 241–242

Electronic résumé, 248Electronic signatures, 244Electronic storefront, 243Electronic wallet, 243E-mail, 17, 233, 491

benefits of, 500computer viruses, 507direct mail, 460etiquette tips for, 504information flow via, 231–232monitoring employees, 340problems with, 342–343software for, 86, 500spam and, 51–52, 236, 342, 461wireless, 502

Embargo, 120Employee benefits, 305–309

European compared to U.S., 305family friendly benefits, 306

at Fannie Mae, 611–612flexible benefit plan, 306–307flexible work plans, 307–309incentive programs, 305pension and retirement plans, 306trends in, 306–308

Employee hot line, 321Employee-owned corporations, 186Employee ownership, 186Employees. See also Human resource management; Workforce

employee-management relations in nonunion organizations, 320–321empowering, 328–331factor in production location decision, 362, 364as human resources, 8–9incentives for, in various economic systems, 84individual business ethics, 43–46legal protection of, 143–144motivating, 311–315right of, in various economic systems, 84social responsibility to, 59–64undocumented immigrants as employees, 278U.S. worker productivity, 364–365

Employee separation, 309–311. See also Layoffscontingent workers, 311downsizing, 309outsourcing, 309–310

Employee stock ownership plans (ESOPs), 330Employers’ association, 320Employment. See also Jobs; Job search

entrepreneurial job generation, 208entrepreneurship and, 12levels of, 90–91

Employment-at-will policies, 302Employment tests, 302Empowerment, 279, 328–331

at Buffalo Zoo, 610linking rewards to company performance, 329–331at Pampered Chef, 353sharing decision-making authority, 329sharing information, 328–329

Encryption, 237, 243, 506, 560End-use segmentation, 406Energy industry

alternative energy supply sources, 71–72business ethics of nuclear power, 31deregulation, 82supply of electricity, 78

Enterprise resource planning, 494Entertainment industry

exports of, 110intellectual property and Internet, 249Internet use for, 236pirate copyrighted works, 507, 508

Entrepreneur, 176, 193, 196, 460Entrepreneurs/Entrepreneurship, 9, 12–13. See also Small businesses

age of industrial, 13, 14Buchanan, Shawn, as, 202business plan for, 219–220buying an existing business, 218buying franchise, 219as career path, 199–203

categories of, 198–199characteristics of, 196–197, 209–216demographics and economic trends for, 205economic influence of, 206–209education and, 204environment for, 203–206financial success and, 201financing for, 220–222Gates, Bill, as, 197global environment for, 179globalization, 203–204human resource management, 297information technology and, 204–205innovation, 206–207job generation by, 208job security, 201–202Kamen, Dean, as, 209–210, 211, 217Kowell, Jeff, as, 197Lange, Liz, as, 200levels of activity around world, 205–206number and age of adults currently starting, 199pros and cons of, 207quality of life, 202–203reasons for choosing, 199–203resources for, 196risk and, 78selecting business ideas for, 216–219self-management by, 200–201Simmons, Russell and Kimora, as, 198vs. small business owner, 196Sobrino, Maria de Lourdes, as, 212at Stacy’s Pita Chip Co., 227teamwork and, 335women and minorities as, 208–209

Entry-level job, xxxvii, xxxviiiEnvironment

business’s social responsibility to, 53–55factor in production location decision, 362–364

Environmental impact study, 362Equal employment opportunity, laws ensuring, 62–63Equal Employment Opportunity Act of 1972,62, 63Equal Employment Opportunity Commission (EEOC), 62

recruitment and selection, 300–301Equal Pay Act, 62, 63Equilibrium price, 78–79Equity capital, 553

compared to debt capital, 555Equity financing, 221–222Esteem needs, in Maslow’s hierarchy of needs, 312, 314Estonia, 123E-tailing, 241, 243Ethical development, stages of, 44Ethics. See Business ethicsEuro, 111, 112, 124European Central Bank, 124European Union (EU), 111, 123–124

international accounting standards, 534ISO standards and, 374social responsibility and, 55

Event marketing, 392Everyday low pricing (EDLP), 477

Exchange controls, 120Exchange process, 385Exchange rates, 110–112

accounting and, 533floating, 111fundamentals of, 111international trade, 110–112

Exclusive distribution, 440Executive information system, 493Executive summary in business plan, 170Executive vice president, 267Exit interview, 309Expansionary monetary policy, 91Expectations of goods, demand and, 76, 77Expense items, 421–422Expert system, 493–494Export management company, 127Exports, 105

balance of trade and, 109direct exporting, 126globalization and, 125–126in global market, 20–21indirect exporting, 126international trade and, 125–126small businesses as exporter, 179sources of assistance for, 129–130of U.S., 105, 109–110

Export trading companies, 126External data, 397Extranets, 240–241

Krispy Kreme, 541

Facial expressions, 344Facility layout, 364–366

customer-orientation layout, 365, 366fixed-position layout, 365, 366process layout, 365, 366product layout, 365, 366

Factors of production, 7–9international sources of, 105supply and, 77–78

Failure, tolerance of, by entrepreneurs, 213Fair Labor Standards Act, 143, 317Family and Medical Leave Act, 62, 63, 143, 305Family brand, 428Family friendly benefits, 306Family leave, 61, 305Featherbedding, 317Fed. See Federal Reserve SystemFederal budget, 92–94Federal Bureau of Investigation, 246, 247Federal Deposit Insurance Corporation, 559Federal Energy Regulatory Commission, 141Federal Food and Drug Act, 143Federal funds rate, 563, 564Federal Open Markets Committee (FOMC), 562Federal Reserve System, 91, 559, 561–564

Board of Governors, 91check clearing and, 562discount rate, 563, 564federal funds rate, 563, 564

interest rates and, 91international market transactions, 564monetary policy and, 91, 562–564open market operations, 563, 564organization of, 562reserve requirements, 562–564responsibilities of, 561–562selective credit controls, 564

Federal Trade Commission Act, 142Federal Trade Commission (FTC), 59, 139, 141

advertising truthfulness, 58green marketing guidelines, 54information on franchising from, 178phone companies and ISPs sharing lines, 501spam and, 501telemarketing rules, 467

Federal Trademark Dilution Act, 147Feedback

in communication process, 340customer complaints as, 389

Field robots, 360Field selling, 465File-sharing technology, 508Finance, 546. See also Financing; Funds

minority-owned small businesses in, 175organizational structure of finance function, 547at Pizzeria Uno, 619

Finance companies, 561profitability online, 238

Financial Accounting Standards Board (FASB), 521Financial control, in financial plans, 548–549Financial institutions

classification of, 557commercial banks, 558–560credit unions, 561finance companies, 561global perspective, 564–565insurance companies, 561pension funds, 561savings banks, 560transfer of funds and, 557

Financial manager, 546. See also FundsBuffett, Warren as, 548money market instruments, 576organizational structure of finance function, 547risk-return trade-off, 547role of, 546–549Sarbanes-Oxley Act, 547

Financial newspaperscomponents of, 586reading, 587–588

Financial plan, 547–549at Tweeters, 620

Financial ratio analysis. See Ratio analysisFinancial section in business plan, 170Financial statements

balance sheet, 524, 526income statement, 524, 527Sarbanes-Oxley Act and, 186statement of cash flow, 524–528

Financial system, 557

Financing. See also Fundsaccounting and, 517angel investors, 222by credit card, 221debt financing, 220–221for entrepreneurs, 220–222equity financing, 221–222by SBA, 171seed capital, 220for small businesses, 166–167, 171venture capitalist, 2220% at General Motors, 515

Finished goods, 90Finland

Internet use in, 231–232level of entrepreneurial activity

in, 205technology and productivity, 23

Firewall, 245, 503First-line management, 268Fiscal policy, 91–94Fixed costs, 476Fixed-position facility layout, 365, 366Flex dollars (credits), 306Flexible benefit plan, 306–307Flexible production, 358Flexible work plans, 307–309Flextime, 308Floating exchange rates, 111Flower industry, 452Focus group, 397Follow-up

in production control, 372in sales process, 467

Food and Drug Administration, 203advertising requirements of, 58–59

Foreign corporation, 183Foreign Corrupt Practice Act, 117Foreign exchange market, Fed and, 564Foreign licensing agreement, 127–128Formal communication, 341, 343Forming stage of team development, 335Fortune, 184, 239, 250, 347Forward lending, 341401(k) plans, 306

importance of diversity, 573–574Fourth market, 585France, 111

GDP of, 23Internet use in, 232level of entrepreneurial activity in, 205McDonald’s in, 137as mixed market economy, 84U.S. and war in Iraq, 114U.S. imports/exports of, 21

Franchise, 127, 176–179agreements, 127, 177benefits and problems of, 178–179Krispy Kreme, 261–262Subway as nation’s largest, 193

Franchisee, 177

Franchisor, 177Fraud

credit cards, 552on Internet, 64–65, 246

Free cash flow, 527Free-rein leadership, 279Free trade

in North America, 122–123WTO and, 121

Frequency marketing, 411Fresno, City of, 520Frictional unemployment, 90FTC. See Federal Trade Commission (FTC)Full and fair disclosure, 591Full-function merchant wholesaler, 433Functional departmentalization, 285Funds

bonds, 555–556debt capital, 553equity capital, 553financial plan for, 547–549generating funds from excess cash, 553leverage, 556long-term sources of, 555–556organizations’ need for, 553private placements, 556short-term sources of, 554–555sources of, 553–556stocks, 555–556transfer of, 557venture capitalists, 556

Gain sharing, 304, 329Games, as sales promotion, 464Gantt chart, 371Gasoline. See Petroleum industryGATT. See General Agreement on Tariffs and Trade (GATT)Gazelles, 208GDP. See Gross domestic product (GDP)Gender segmentation, 402General Agreement on Tariffs and Trade (GATT), 121Generally accepted accounting principles (GAAP), 521General obligation bond, 577Generic products, 428Genetically modified (GM) crops, 55Genetic engineering, 55Geographical departmentalization, 285Geographical segmentation, 401

for businesses, 405for consumers, 401

Germany, 111central bank of, 565entrepreneurship on Internet, 206GDP of, 23Internet use in, 232level of entrepreneurial activity in, 205as low-context culture, 347technology and productivity, 23U.S. trade with, 107vacation benefits, 113, 115

Glamour, 460

Glass ceiling, 174Global business strategies, 131Global economy. See also Globalization; Global market

aging of population, 95–96challenges for, 95competitiveness of workforce, 95–96information economy, 95–96long-term strategy for, 95quality and customer service, 95–96terrorism and, 95–96

Globalizationcontractual agreements, 127–128countertrade, 127electronic commerce, 254–255entrepreneurs and, 203–204imports, 125–126international direct investment, 128–129Internet resources for, 125joint ventures, 129levels of involvement in, 124–129at McDonald’s, 137multinational corporation, 129process of, 124–129productivity and, 22–23small businesses and, 179at Starbucks, 137world’s most globalized nation, 108

Global marketcompetition in, 20–23at ESPN, 606exports in, 20–21Wal-Mart and, 22

Goodsadded value through customer satisfaction and quality, 387–389crude, 90finished, 90intermediate, 90U.S. exporters/importers, 109–100

Government accountants, 520Government bonds, 576–577Government funding, not-for-profit organizations, 7Government regulation

advertising and, 57–59age discrimination, 62antitrust and business regulation, 141–142business ethics and, 42consumer protection, 142–143cyberspace and telecommunications protection, 144deregulation, 142employee protection, 143equal opportunity on the job, 62family leave, 61investor protection, 143–144labor legislation, 316–317of monopolies, 81–82Sarbanes-Oxley Act, 40, 42, 46, 47, 72–73, 144, 186, 270, 522, 547of SEC, 64of securities market, 591–592selecting and hiring employees, 300–301sexual harassment and sexism, 62–64small businesses and, 168

whistleblowing, 46workplace safety, 60–61

Gramm-KLeach-Bliley Act, 142Grapevine, 343

reliability of, 343Great Britain. See United KingdomGreat Depression

deflation, 89unemployment and, 89

Greece, 111Green marketing, 54–55Grievance, 317–318Grievance, for nonunion employees, 320–321Gross domestic product (GDP), 23, 86–87, 140

of U.S., 105of various countries, 23

Gross profit margin, 530Groupware, 502Growth

in income, as investment motivation, 581stage of product life cycle, 424strategies for small businesses, 179at Tweeters, 620

Guerrilla marketing, 455–456Gyandoot, 254

Hackers, 506Handheld devices, 497Hard currencies, 112Hardware, 495–497Health-care benefits, 305High-context cultures, 347–348Highway Beautification Act, 461Hiring process. See Recruitment and selection processHispanic, 196, 209Hispanic Americans

as entrepreneurs, 208–209Goya Foods and, 614–615Internet use by, 233as market segment, 403size of market, 614small businesses owned by, 157, 174–176unemployment and, 91

Home-based businesses, 159on Internet, 159

Home-based work program, 308Homeland Security Act, 144Honesty, 45–46Hong Kong

economy of, 83political change and barrier to trade, 116website for, 234

Horizontal merger, 187Howe, Peter J., 525Huilu, 117Human factor in production location decision, 362Human resource management, 296–315

compensation systems and, 304–309employee benefits, 305–309employee separation, 309–311at Fannie Mae, 611–612

in large organizations, 297motivating employees, 311–315performance appraisals, 303–304planning for, 298recruitment and selection process, 299–302responsibilities of, 298in small organizations, 297training, 302–303union-management relations, 315–320at U.S. military compensation benefits,

295–296workforce trends and, 299

Human resources, 8–9, 78importance of, 9

Human skills, of managers, 268–269Hungary, 123Hybrid cars, 53Hyperinflation, 88

Identity-reading technology, 489Identity Theft and Assumption Deterrence

Act, 144IMF. See International Monetary Fund (IMF)Immigrants

small businesses owned by, 175undocumented immigrants as employees, 278workforce and, 24–25

Implementing production plan. See Production plan implementationImports, 105

balance of trade and, 109globalization and, 125–126international trade and, 125–126of U.S., 105, 109–110

Inbound telemarketing, 467Inc., 196, 460, 517Income. See also Compensation

demand and, 76, 77education and, xxxviiisalary, xlix–lwages, xlixof women, 64

Income statement, 522, 524, 527Income taxes, as government revenue, 93Incorporated, use of term, 184Incorporation process, 183–185Incorporators, 184Independent Means, 174Indexes, stock, 588India

computer industry, 105as emerging market, 107ESPN in, 606GDP of, 23as high-context culture, 347Internet access in, 254markets in, 106population in, 106

Indian Gaming Regulatory Act, 162Indirect exporting, 126Individual branding, 428Individual business ethics. See also Business ethics

development of, 44on-the-job ethical dilemmas, 44whistleblowing, 46–47

Indonesiapolitical change and barrier to trade, 116population in, 106

Industrial Revolution era of business, 13–14Industry. See also specific industry such as Automobile industry

small business creation of new, 161–163Inflation, 87–88

Consumer Price Index (CPI), 90cost-push, 87demand-pull, 87hyperinflation, 88in U.S., 94

Infomercials, 462Informal communication channels, 341, 343Information. See also Management information systems

accounting, 517Internet use for, 234–236providing as promotional objective,

453–454sharing information to empower employees, 328–329

Informational interview, xxxixInformation economy, global economy and, 95–96Information overload, 492Information systems. See also Management information systems

application service provider, 494–495databases, 491–493decision support system, 493enterprise resource planning, 494executive information system, 493expert system, 493–494local area networks, 494protecting, 505–509trends in, 494wide area networks, 494wireless fidelity (Wi-Fi), 494

Information technologyat Cannondale, 618to empower employees, 329entrepreneurs and, 204–205flexible production, 358informal communication channels and, 343Krispy Kreme, 541videoconferencing, 332

Informative advertising, 458Infrastructure, 115In-home demonstrations, 353Initial public offering (IPO), 574

of Krispy Kreme, 598Innovation

entrepreneurship and, 12, 206–207intrapreneurship and, 222–223small businesses and, 163–164supply and, 78

Insider trading, 592Installations, 421–422Instant messaging, 233, 500Institutional advertising, 457Institutional investors, 579

Insurance, janitor’s insurance cases, 45Insurance companies, 561Intangible assets, 523Integrated marketing communications (IMC), 450–451

promotional planning, 456Integrated Services Digital Network (ISDN), 505Integrated software, 498Integrity, 45Intellectual property, 147

protection of, and Internet, 248–249software piracy in China, 119

Intensive distribution, 440Intentional torts, 148Interactive advertising, 461–462Interactive media, 502Interactive television, 462Interest rates, 88, 89

bonds and, 576, 577Federal Reserve System and, 91, 563–564

Intermediate goods, 90Intermittent production process, 360Internal communication, 344–345Internal data, 397Internal Revenue Service, 517, 520International Accounting Standards Committee (IASC), 533International economic communities, 122–124International law, 141International Monetary Fund (IMF), 122International Organization for Standardization (ISO), 373–374International trade. See also Barriers to trade; Global economy

absolute and comparative advantage, 108–109contractual agreements, 127–128countertrade, 127exchange rates, 110–112going global, 124–129international direct investment, 128–129international economic communities, 122–124measuring, 109–112organizations promoting, 121–122reasons for, 105–109regulations in, 118–119restrictions on, 119–120size of international marketplace, 106–107

International unions, 316Internet, 16–17, 230–231. See also Electronic commerce (E-commerce); Online business; Websites

advertising and, 461–462advertising on, 253airline industry and purchasing tickets on, 229–230banking on, 383–384, 559, 560bookselling on, 158–159broadband technology, 505budgeting process, 532business transaction function on, 236–237communication function of, 233–234components of, 230–231computer viruses, 507creation of, 16–17, 230–231as direct distribution channel, 432direct mail, 460dirty tricks in high-speed Internet industry, 501dot.com companies, 201

downloading music from, 474DVD rental service, 163eBay on, 250Elderly Instruments, 609employee inappropriate use of, 329entertainment function of, 236entrepreneurship and, 205, 206finding employment through the Internet, xli–xliifraud on, 246functions of, 233–236global environment for e-commerce, 254–255home-based businesses, 159impact of computers and Internet on accounting process, 520–521information flow via, 231–232information function of, 234–236interactive role of, 17international trade research resources on, 125jobs and, 17Krispy Kreme, 541laws regulating, 144marketing, xlixmarketing research on, 397multimedia computing, 502newspapers on, 4591-800-Flowers.com, 452online brokerage firms, 586online fraud, 64–65online resources for preparing business plan, 220OnStar vehicle communication system, 232operation of, 231–232pop-up ads, 461profit and, 6radio programming on, 459as recruiting tool, 299relationship marketing and, 411–412research on, 234–236retail sales and, 17sale of pharmaceutical drugs on, 173securities trading on, 584, 585small business and global uses of, 179small-business start-ups on, 159small business use, 233software for, 86spam, 461strategic alliances and, 19terminology of, 230–232traffic jams caused by system overload, 247training on, 303use of, in various countries, 17virtual private networks, 504–505Webcasts, 502

Internet Corporation for Assigned Names and Numbers, 251Internet Fraud Complaint Center, 246Internet retailing, 434–435Internet service provider (ISP), 231

high-speed connection, 500Internship, xxxviii–xxxixInterview

exit, 309informational, xxxixjob interview, xlv–xlvii

questions for and employment law, 300–301Intranet, 241, 503Intrapreneurs, 198Intrapreneurship, 222–223

at 3M, 223Introduction in business plan, 170Introduction stage of product life cycle, 423Inventory, vendor-managed, 441Inventory control, 368–369, 441

perpetual inventory, 368vendor-managed inventory, 369

Inventory turnover, 531Investment bankers, 575Investment/Investing. See also Securities

accounting and, 517direct, 587importance of diversity, 573–574scams on Internet, 246socially responsible investing, 590

Investorsindividual, 579institutional, 579legal protection of, 143–144motivations and, 579–581for small businesses, 171taxes and, 581

Investor’s Business Daily (IBD), 586Invisible hand concept, 10–11Iran, 71

embargo on goods from, 120Iraq, 71

central bank of, 565embargo, 120

Ireland, 111small businesses in, 179technology and productivity, 23as world’s most globalized nation, 108

ISO. See International Organization for Standardization (ISO)ISP. See Internet Service Provider (ISP)Israel, level of entrepreneurial activity in, 205IT. See Information technologyItaly, 111

Internet use in, 232ISO standards and, 374level of entrepreneurial activity in, 205U.S. imports/exports of, 21

Janitor’s insurance cases, 45Japan

AFLAC in, 128comparative advantage in electronics, 109deflation, 89GDP of, 23as high-context culture, 347Internet use in, 232ISO standards and, 374motivation and, 315population in, 106U.S. imports/exports of, 21U.S. trade with, 107, 109

Java programming language, 498

Job Creation and Worker Assistance Act, 182Job enlargement, 313Job enrichment, 313–314Job interview

company research for, xlvquestions to ask interviewer, xlviitips for successful interviewing, xlvi–xlvii

Jobs. See also EmploymentInternet use and, 17small business creation of, 161top job losses by industry in recent recession, 90–91

Job searchfinding employment through the Internet, xli–xliijob search guidelines, xl–xliiilearning more about job opportunities, xlii–xliiipreparing your job credentials, xl–xliprivate employment agencies, xliistate employment offices, xlii

Job securityentrepreneurs, 201–202labor unions and, 316in nonunion companies, 321

Job sharing program, 308Joint ventures, 129, 188J-Phone, 54Judiciary, 140Junior Achievement, 314Junk bonds, 577Just-in-time (JIT) system, 369

Korea, Northcommunism in, 83U.S. aid to, 79

Korea, South, 107Internet use in, 232markets in, 106small businesses in, 179U.S. imports/exports of, 21

Krispy Kreme, 485–486Kuwait, 71

Labels, 429–431Labor-Management Relations Act, 317Labor-Management Reporting and Disclosure Act, 317Labor unions, 315–320

arbitration, 318boycott, 318collective bargaining process, 317grievance, 317–318international unions, 316job security and, 316labor legislation, 316–317local unions, 316mediation, 318membership in, 316national unions, 316picketing, 318settling union-management disputes, 317–320strike/walkout, 318union-management relations, 315–320

Landrum-Griffin Act, 317

Languageas barrier to trade, 112–113brand names and, 427–428English as primary language of business, 347

Lanham Act, 147Latin America

as emerging market, 107as high-context culture, 347

Latvia, 123Laws, 141. See also Government regulation; Legal issues; specific acts

to ensure equal employment opportunity, 62–63Layoffs, 85. See also Employee separation

at Mission Controls Automation, 310Plant-Closing Notification Act, 317team building after, 327top job losses by industry in recent recession, 90–91in U.S., 94

Leadership, 279–282autocratic, 279of Bush and Giuliani after September 11, 281corporate culture and, 282–283democratic, 279empowerment and, 279ethical, 49–51free-rein leadership, 279at Southwest Airlines, 279styles of, 279traits for effective, 279

Legal issues, 144antitrust and business regulation, 141–142asbestos-related lawsuits, 138–139bankruptcy law, 148–149consumer protection, 142–143contract law and law of agency, 145deregulation, 142employee protection, 143form of business, 179–183Internet privacy laws, 246investor protection, 143–144labor legislation, 316–317legal environment and barrier to trade, 117legal system and administrative agencies of, 140–141privacy and Internet, 245, 246property law and law of bailment, 146–147recent changes in banking laws, 559–560Sarbanes-Oxley Act, 40in securities trading, 591–593small businesses and, 168tax law, 149torts, 148–149trademarks, patents and copyrights, 147types of law, 141Uniform Commercial Code, 145–146

Lempert Report, The, 399Letters

cover letters, xlivof reference, xli

Leverage, 556Leveraged buyouts, of Krispy Kreme, 598Leverage ratios, 531Liability

corporations, 182partnerships and, 181sole proprietorship, 181

Library of Congress, 147Licensing, international trade and, 127–128Lifestyle, 403–404Lifetime value of a customer, 410Life-work issues

family friendly benefits, 306quality of life and entrepreneurs, 202–203

Limited, use of term, 184Limited-function merchant wholesaler, 433Limited liability companies (LLC), 183Limited liability partnership, 181Limit order, 585Line manager, 287Liquidity, as investment motivation, 581Liquidity ratios, 529–530Lira, 111Listening, 342Living wages, 304LLC. See Limited liability companies (LLC)Load charge, 591Loans. See also Financing

short-term, 555for start-up businesses, 221

Local area networks, 494Local unions, 316Location

location decision at Krispy Kreme, 485in retailing strategy, 437

Lockout, 319Locus of control, of entrepreneurs, 215Logistics, 441Logos, 248London Stock Exchange, 584–585Low-context cultures, 347–348Loyalty, vs. truth, 46Lump-sum bonuses, 305Luxembourg, 111

per-capita GDP of, 106Luxury products, 404

M1, 551–552M2, 551–552Macroeconomics, 73

capitalism, 79–82deregulation, 82mixed market economies, 83–84planned economies, 82–83

Mad cow disease, 79Magazines, advertising, 459–460Mail Abuses Prevention System (MAPS), 51Mainframe computers, 496Make, buy, or lease decision, 366–367Malaysia, 72, 118

as emerging market, 107markets in, 106

Mali, 491, 492Malta, 123Management, 266–282, 296. See also Human resource management; Managers

business ethics and social responsibility, 29–31controlling, 269corporate, 185–186corporate culture and, 282–283directing, 269employee-management relations in nonunion organizations, 320–321functions of, 269–270hierarchy of, 266–268importance of planning, 270–273at Krispy Kreme, 379–380lockout, 319organizational structures and, 283–288organizing, 269planning, 269at Procter & Gamble, 265–266production and operations management, 356setting vision and ethical standards, 270settling union-management disputes, 317–320small businesses and shortcomings in, 165–166strategic planning process, 273–277strikebreakers, 319–320union-management relations, 315–320in various economic systems, 84

Management accountants, 518–519, 534Management development program, 303Management information systems, 490–495

application service provider, 494–495databases, 491–493decision support system, 493enterprise resource planning, 494executive information system, 493expert system, 493–494local area networks, 494wide area networks, 494wireless fidelity (Wi-Fi), 494

Management teams, 333Managers

brand, 429category, 429change and, 29critical thinking and creativity of, 28–29as decision makers, 277–278empowering employees, 328–331vs. entrepreneurs, 197ethical leadership, 49–51Fernandes, Donna as, 610as leaders, 279–282line, 287management teams, 333motivation and attitude of, 314–315product, 429production and operations manager, 364–372skills needed for success, 268–269staff, 287time spent in direct communication by, 339training for, 303traits of effective, 280vision of, 27–28women as, 293

Manufacturers’ agents, 434Manufacturer’s (national) brand, 428

Manufacturers’ reps, 434Manufacturing. See also Production

at Cannondale, 613, 618changing nature of work, 25in China, 103–104computer-aided manufacturing, 361computer-integrated manufacturing, 361–362flexible manufacturing system, 361mass production and, 358minority-owned small businesses in, 175in production era of business, 14relationship marketing, 412subcontracting, 128U.S. output of, 363–364

Maquiladoras, 123Market economy, 79–82Marketing, 384–386

cause marketing, 392–393cause related marketing, 57customer-driven, 382–412determining what customers want, 406–409eras in history of, 386event marketing, 392evolution of, 386–389frequency, 411green, 54–55guerilla, 455–456Internet, xlixat Krispy Kreme, 485marketing era in business, 15marketing minor league sports, 419nontraditional marketing, 391–393not-for-profit organizations, 390–391one-to-one marketing, 411–412organizational marketing, 393place marketing, 391–392product strategy, 420–422relationship, 409–412simplicity marketing, 383transaction marketing, 409tweens, 417utility created by, 385–386

Marketing concept, 386emergence of, 386

Marketing era in business, 13, 15, 386Marketing intermediary, 431

cost reduction and, 432retailers, 432utility creation and, 432wholesalers, 432

Marketing mix, 394–396adaptation, 395developing, 394–395at Mrs. Beasley’s, 394–395price in, 473–479standardization, 395

Marketing research, 396–399application of data from, 398–399computer-based systems, 399data mining, 399Internet and, 397

at Once Famous, 398reasons for, 396secondary sources for, 396types of, 397

Marketing section in business plan, 170Marketing strategy

for consumer and business products, 422developing, 393–396product life cycle and, 425target market selection, 394

Market niches, small businesses and, 164–165Market order, 585Market Reform Act, 591Markets. See also Business (B2B) markets; Consumer (C2B) markets; Global market; Securities markets; Stock market

buyer’s, 386Markets (continued)

determining which market to enter in globalization, 124in financial newspaper, 586major world, 107seller’s, 386

Market segmentation, 400–406business market, 400, 405–406consumer market, 400–405criteria for, 400demographic segmentation, 402–403, 405–406end-use segmentation, 406geographical segmentation, 401, 405product-related segmentation, 404–405psychographic segmentation, 403–404

Market share, 473Market value of stock, 579Markup, 475Maslow’s hierarchy of needs theory, 312–313Mass customization, 395Mass production, 358Materials handling, 441Materials requirement planning (MRP), 369–370Maturity stage of product life cycle, 424Mechanization, mass production and, 358Media, advertising in, 458–463Mediation, 318, 321Medicare, 305

government spending on, 93Medium of exchange, money as, 550Mentoring program, at Fannie Mae, 611–612Merchant wholesalers, 433MERCOSUR, 122Mergers, 187Metro AG, 104Mexico, 72, 107

as high-context culture, 348markets in, 106NAFTA and, 122–123small businesses in, 179U.S. imports/exports of, 21U.S. trade with, 107

Microeconomics, 72forces of demand and supply, 73–79

Microloans, 171Middle East, 108

corruption in, 117

Middleman, 431Middle management, 267–268

planning by, 271–272Military, U.S., 405

advertising and, 469, 470centralized communication, 345compensation benefits for, 295–296outsourcing, 310

Minicomputers, 496Minorities. See also specific ethnic group

as entrepreneurs, 208–209financing new businesses, 221Internet use by, 233as market segment, 403small businesses owned by, 157, 174–176in workforce, 56

Missionary selling, 466Mission statement, 273–274Mixed market economies, 83–84MNC. See Multinational corporations (MNC)Modified breakeven analysis, 476Monetary policy, 91, 562–564

Fed and, 562–564Money

balance of payments, 109characteristics of, 549–550difficulty in counterfeiting, 549–550divisibility of, 549durability of, 549exchange rates, 110–112factors of production and, 8function of, 550inflation and value of, 88portability of, 549stability of, 550

Money market instruments, 576Money market mutual funds, 551Money supply, 550–553

credit cards, 551–552Fed reserve and, 563–564international market transactions, 564M1, 551–552

Monopolistic competition, 80Monopoly, 81–82

deregulation, 82pure, 81regulated, 82short-term, 81

Moody’s bond rating, 577, 578Morale, 311–312Mortgage banking, career choices and, xlixMortgage bonds, 576Motivation, 311–315

for creativity, 313job design and, 313–314manager’s attitude and, 314–315Maslow’s hierarchy of needs theory,

312–313process of, 312Theory X, Y, Z, 315

Motor Carrier Act and Staggers Rail Act, 142

Movie theaters, advertising in, 462Multidomestic business strategy, 131Multimedia computing, 502Multinational corporations (MNC), 129

human rights abuses of foreign governments and, 118top worldwide, 130

Municipal bonds, 576–577Mutual funds, 589–591

distribution of assets by type of fund, 589money market, 551socially responsible investing, 590tables for, 590, 591

Myanmar, 118

Namesdomain names, 249, 251of proposed businesses, 169–170for websites, 251

Nanotechnology, 360–361Napoleonic Code, 146NASDAQ Composite index, 588NASDAQ Stock Market, 576, 583National brand, 428National debt, 94National Do Not Call registry, 435National Environmental Policy Act, 143National Foundation for Women Business Owners (NFWBO), 174National Labor Relations Act, 316National Labor Relations Board (NLRB), 141, 316National unions, 316Native Americans, small businesses by, 162Natural resources, 7, 77–78Needs, Maslow’s hierarchy of needs theory,

312–313Negligence, 148Negotiable instrument, 146Net asset value, 591Netherlands, 111Net profit margin, 530Networks

intranet, 503local area networks, 494wide area networks, 494wireless fidelity (Wi-Fi), 494

New Markets Initiative, 162–163New-product development, 426–431Newsgroups, 234Newspapers

advertising, 456, 459financial, 586job search and, xli, xlii

New ventures. See also Start-upsbusiness plan for, 219–220financing for, 220–222selecting business ideas for, 216–219

New York Stock Exchange (NYSE), 576, 582–583New York Times, The, 234New Zealand, small businesses in, 179Nigeria, population in, 106Nimitz aircraft carriers, 355Noise

in communication process, 341cubicles and, 337

Noncompetitive bids, 575Nondepository financial institutions, 561Nondepository institutions, 557Nonparticipative role, 334Nonpersonal selling, 452

advertising, 452, 456sales promotion, 452, 463

Nonprogrammed decision, 277Nonstore retailers, 434–435Nontariff barriers, 120Nontraditional marketing, 391–393

cause marketing, 392–393event marketing, 392organizational marketing, 393person marketing, 391place marketing, 391–392

Nontraditional students and career search, xlviiiNonunion organizations, employee-management relations in nonunion organizations, 320–321Nonverbal communication, 341, 343–344

cultural differences, 113, 114influence of personal space in, 344

Nonverbal cues, 344Norming stage of team development, 336Norms, team, 336Norris-La Guardia Act, 316, 320North American Free Trade Agreement (NAFTA), 122–123, 141

international accounting standards, 534North American Industry Classification System (NAICS), 406North Korea. See Korea, NorthNorway

per-capita GDP of, 106technology and productivity, 23

Notebook computers, 497Not-for-profit accountants, 534Not-for-profit organizations, 6–7

advertising for, 457as corporations, 186electronic commerce and, 238marketing, 390–391organizational structure for, 284publicity, 469

Nuclear power plants, business ethics and, 31

Nutrition Labeling and Education Act, 143

Objections, handling, in sales process, 467Objectives, 275–276

establishing objectives for organization, 275–276Occupational Outlook Handbook, 10Occupational Safety and Health Administration (OSHA), role of, 60–61Odd pricing, 479Offensive listening, 342Office of Internet Enforcement, 64Office of Small and Disadvantaged Business Utilization, 171Offset agreement, 127Off-the-job training, 303Oil & Gas Journal, 460Oligopoly, 80–81Online business

advertising, 461–462banking, 559, 560brokerage firms, 586customer satisfaction, 242financial services, 132globalization and, 125online shopping comes of age, 241–244retail, 241–244safe online payment systems, 243–244

OnStar vehicle communication system, 232On-the-job training, 302OPEN: The Small Business Network, 172Open-door policies, 321Open office design, 337Operating activities, accounting and, 517Operating system, 497–498Operational planning, 271Opportunities, in SWOT analysis, 274–275Optical networks, for Internet connection, 505Optimism, of entrepreneurs, 212–213Oral communication, 341, 342Order processing, 441, 465Organization, 287. See also Organizational structures

communication outside, 346–347communication within, 344–345

Organizational marketing, 393Organizational structures, 283–288

centralization, 287committee organizations, 288decentralization, 287delegation, 286–287departmentalization, 285line-and-staff organizations, 287–288line organizations, 287matrix organizations, 288, 289organizing process and, 283–284span of management, 286–287types of, 287–288

Organization chart, 284Organization for Economic Cooperation and Development Anti-Bribery Convention, 117Organization of Petroleum Export Countries (OPEC), 72Organizing, by management, 269Orientation, 302Origin and Evolution of New Businesses, The (Bhidé), 206OSHA Act, 143Outbound telemarketing, 467Outdoor advertising, 461Outsourcing, 25, 309–310Overhead costs, 164Overseas division, 129Over-the-counter selling, 465Owners’ equity, 523Ownership

corporate, 188corporations, 182–186employee, 186partnership, 181–182sole proprietorship, 180–181in various economic systems, 84

Ownership utility, 385–386

Pacific Rim, as emerging market, 107Pacing programs, 223Packages, 429–431Packets, 234Paid time off (PTO), 307Pakistan, population in, 106Paradigm shift, 341Paraguay, 122Partnership, 18–19, 181–182

employer-employee partnerships, 25–26joint ventures, 188in relationship marketing, 409, 410

Patent, 147, 248Pay for knowledge, 305, 329Pay for performance, 329PCB, 363Peer-review boards, 321Penetration pricing, 477Pension funds, 561Pension plans, 306Pensions, at General Motors, 515People’s Republic of China. See ChinaPer-capita GDP, world’s top ten nations based on, 106Performance appraisals, 303–304Performing stage of team development, 336Perpetual inventory, 368Personal budget, 539Personal computers (PCs), 496–497Personal digital assistants (PDAs), 513Personal selling, 451, 465–468

advantages/disadvantages, 453conditions for, 465consultative selling, 468creative selling, 465missionary selling, 466order processing, 465recent trends in, 467–468relationship selling, 467–468sales force automation, 468sales process for, 466–467strategies for, 472team selling, 468telemarketing, 467

Personal space, 344nonverbal communication and, 344

Person marketing, 391Persuasive advertising, 458PERT (Program Evaluation and Review Technique), 371–372Peso, 111, 123, 549Pet industry, food market, 80Petroleum industry

demand curve and gasoline, 75–76Strategic Petroleum Reserve, 71Transport 4, 188U.S. economy tied to oil, 71–72

Pharmaceutical industryadvertising by drug manufacturers, 408business ethics and, 44independent pharmacies as small business, 158sale of drugs on Internet, 173short-term monopoly, 81

Philippines, 107abusive working conditions in, 96

Physical distribution, 431, 441form of transportation, 441inventory control, 441materials handling, 441order processing, 441vendor-managed inventory, 441warehousing, 441

Physical factor in production location decision, 362Physiological needs, in Maslow’s hierarchy of needs, 312, 314Pick-and-place robot, 360Picketing, 318Piracy, 508Place marketing, 391–392Placement file, xl–xliPlace utility, 385–386Planned economies, 82–83

communism, 82–83socialism, 83

Planned shopping center, 438Planning, 269. See also Business plan

contingency, 271at different organizational levels, 271–272disaster recovery planning, 272human resource management and, 298importance of, 270–273materials requirement planning, 369–370operational, 271production planning, 370promotional, 455–456strategic, 271, 273–277tactical, 271types of, 271

Plant-Closing Notification Act, 317Plastic money, 551Point-of-purchase (POP) advertising, 464Poland, 107, 123

political change and barrier to trade, 116Polite listening, 342Political climate, barriers to trade and, 116Pollution, 53Population

geographical segmentation, 401world’s top ten nations based on, 106

Pop-up ads, 461Portals, 234Positioning, 454Postconventional stage of ethical development, 44Pound, 111Preconventional stage of ethical development, 44Preferred stock, 185, 579Pregnancy Discrimination Act, 62, 63Premiums, 463, 561Prepaid shopping cards, 552Prerefunded bonds, 578Presentation, in sales process, 466Presentation software, 86, 501Prestige pricing, 475Price, 473

breakeven analysis, 475–476

of CDs and downloading music online, 474competitive pricing, 477–478consumer perceptions of, 478–479Consumer Price Index (CPI), 89–90cost-based pricing, 475deflation, 89demand and, 74–77equilibrium, 78–79everyday low pricing, 477hyperinflation, 88inflation, 87–88Internet and airline industry, 229–230Internet sales and, 248at Krispy Kreme, 485–486in marketing mix, 473–479odd, 479penetration pricing, 477price drop and weak economy, 88price-level changes, 87–90price-quality relationship, 478–479in retailing strategy, 437skimming price, 476supply and, 77–78

Price-earnings (P/E) ratio, 587Price fixing, 474Price war, 474Pricing objectives

to meet competition, 474prestige objectives, 475profitability objective, 473

Pricing strategy, 394, 475–479Primary data, 397Primary demand, 450Primary market, 574–575Principal, 145Print-on-demand technology, 358Privacy

cubicles and, 337monitoring employees, 340

Private employment agencies, xliiPrivate enterprise system, 10–13, 79–82

rights within, 11–12Private exchange, 241Private placement, 556Private property, 11Private-sector not-for-profit organizations, 6Private (store) brand, 428Privatization, 84Problem-solving teams, 333Process departmentalization, 285Process facility layout, 365, 366Procurement Marketing & Access Network, 171Producer Price Index (PPI), 90Product(s), 420. See also Business-to-business (B2B) products; Consumer (B2C) products

accentuating product’s value, 455business, 394consumer, 394generic, 428luxury, 404new-product development, 426–431

Product advertising, 457

Product departmentalization, 285Product development, stage of new-product development, 426Product differentiation, 454Product distribution, customer service,

441–442Product facility layout, 365, 366Product identification, 427–431

brand categories, 428brand equity, 429brand loyalty, 429packages and labels, 429–431selecting effective brand name,

427–428Production, 356, 357. See also Factors of production; Manufacturing

compared with manufacturing, 356computer-aided design/computer-aided manufacturing, 361computer-integrated manufacturing, 361–362controlling production process, 370–372customer-driven, 359facility layout, 364–366flexible manufacturing system, 361flexible production, 358implementing production plan, 366–370information technology, 358just-in-time system, 369location decision for, 362–364mass production, 358materials requirement planning, 369–370methods of, 359–360planning production process, 364process of, 357of Reagan, 355–356robots, 360–361strategic importance of, 357–359team concept and, 359technology and, 360–362typical systems of, 357

Production and operations management, 356, 357Production and operations manager

controlling production process, 370–372determining facility layout, 364–366planning production process, 364

Production control, 370–372critical path, 372dispatching, 372follow-up, 372production planning, 370routing, 370scheduling, 370–372

Production era in business, 13, 14in marketing, 386

Production plan implementationfinding and comparing suppliers,

367–368implementing production plan, 366–370inventory control, 368–369just-in-time system, 369make, buy, or lease decision, 366–367materials requirement planning, 369–370selection of suppliers, 367–368

Production planning, 370

Production pull, 364Production push, 364Productivity, 22–23, 86

globalization and, 22–23U.S. worker productivity, 364–365in U.S., 94

Product liability, 57, 148Product life cycle, 423–427

advertising and, 458marketing strategy implications, 425stages of, 423–424

Product line, 422–423Product manager, 429Product mix, 422–423Product placement, 455

by Ford, 449Product-related segmentation, 404–405

for consumers, 404–405, 404–405Product strategy, 394, 420–433

classifying goods and services, 420–422product lines and product mix,

422–423in retailing strategy, 436

Product usage rate, 405Professional employer organizations (PEOs), 297Professionalism, tips for, 286Profit

electronic commerce and, 238–239right to, in private enterprise system, 11right to, in various economic systems, 84

Profit, 6Profitability objective, 473Profitability ratios, 530Profit-and-loss statement, 171Profit sharing, 304Programmed decision, 277Promotion, 450. See also Promotional strategies

children/teenagers and ethics in promoting to, 471deception, 471ethics in, 471–472importance of, 450in public schools and college campuses, 472puffery, 471sports celebrities as part of promotional campaign, 484

Promotional mix, 451–456advertising, 456–463comparing components of, 453nonpersonal selling, 4521-800-Flowers.com, 452personal selling, 465–468public relations, 468–469sales promotion, 463–464selecting, 469–470

Promotional objectivesincreasing sales, 454product differentiation, 454providing information, 453–454stabilizing sales, 454–455

Promotional planning, 455–456integrated marketing communication, 456

Promotional products, 464

Promotional strategies, 394integrated marketing communications, 450–451primary demand, 450pulling strategy, 470pushing strategy, 470in retailing strategy, 438selecting promotional mix, 469–470selective demand, 450

Property law, 146–147Prospecting, in sales process, 466Prosperity, as business cycle phase, 85Protective tariff, 119–120Psychographic segmentation, 403–404

for consumer (C2B) markets, 403–404Public, business’s social responsibility to, 52–57Public accountants, 518, 534Public Accounting Oversight Board, 522Public broadcasting, 7Public health, business’s social responsibility to, 52–53Public Health Cigarette Smoking Act, 143Publicity, 469Publicly held corporations, 185Public ownership, 188Public relations, 468–469

advantages/disadvantages, 453Public schools, ethics in promoting at, 472Publishing industry, print-on-demand technology, 358Puffery, 471Pulling strategy, 470Pure competition, 80Pure play dot-com retailers, 247Pushing strategy, 470

Qualifying, in sales process, 466Quality, 19

benchmarking, 372customer service, 389delivering added value through, 388–389global economy and, 95–96importance of, 372ISO, 373–374at Krispy Kreme, 379–380price-quality relationship, 478–479quality control, 372–373Six Sigma, 373

Quality circles, as work teams, 332, 333Quality control, 372–373Quantity

demand and, 76supply and, 77–78

Quotas, 120

Rack jobber, 433Radio, advertising, 456, 459Rand, 111Ratio analysis, 529

activity ratios, 531leverage ratios, 531liquidity ratios, 529–530at Pizzeria Uno, 619profitability ratios, 530

Raw materials, 422Reagan, U.S., 355–356, 372Reasoning, ethical, 48–49Rebates, 463Recession, 85

as business cycle phase, 85starting business during, 87

Recovery, as business cycle phase, 85Recreational vehicles, demand for, 75Recruitment and selection process, 299–302

cost of, 301–302drug testing, 301employee referrals, 299employment-at-will policies, 302employment law and, 300–301employment tests, 302external recruiting, 299federal and state regulations on, 300finding qualified candidates, 299–300internal recruiting, 299on Internet, 299selecting and hiring employees, 300–302steps in, 300

Recycling, 54Regional stock exchanges, 583–584Regulated monopolies, 82Regulation

consumer protection, 142–143cyberspace and telecommunications protection, 144deregulation, 142employee protection, 143international trade, 118–119investor protection, 143–144labor legislation, 316–317Sarbanes-Oxley Act, 40, 42, 46, 47, 72–73, 144, 186, 270, 522, 547of securities market, 591–592selecting and hiring employees, 300–301

Regulation FD, 64, 592Relationship era in business, 13, 15–16

in marketing, 386Relationship management, 18Relationship marketing, 409–412

affinity programs, 411benefits of, 410business partners for, 409, 410cobranding, 411comarketing, 411customer partners for, 409, 410frequency marketing, 411Internet and, 411–412one-to-one marketing, 411–412supplier partners for, 409, 410techniques for nurturing customer relationships, 410–412

Relationship selling, 467–468Religious attitudes, as barrier to trade,

113–115Reminder-oriented advertising, 458Repair service, 442Repurchase agreements, 553Research

marketing, 396–399

online, 234–235Reserve requirements, 562–564Respondent superior, 145Restrictions, on trade, 119–120Restrictive monetary policy, 91Restructuring, open communication and, 339Résumé

building a résumé, xliii–xlivchronological résumé, xlivcover letters, xlivdo/don’t tips for, xliii–xlivelectronic, 248functional résumé, xlvorganizing your résumé, xliiiposting on job sites, xli–xliiresult-oriented résumé, xlvisubmitting through automated systems, xliv

Résumés of principals section in business plan, 170Retail credit cards, 552Retailers, 434–438

competition and, 435–438need for short-term funds, 554–555retail credit cards, 552at Tweeters, 620

Retailingautomatic merchandising, 435direct-response retailing, 434direct selling, 435five largest in U.S., 434Internet use and, 17, 434–435minority-owned small businesses in, 175

Retailing (continued)nonstore retailers, 434–435online shopping, 241–244profitability online, 238retail lab, 398small businesses in, 158store retailers, 435warehouse-club, 437wheel of retailing, 435

Retailing strategiescustomer service strategy, 437location strategy, 437pricing strategy, 437promotional strategy, 438store atmospherics, 438target market selection, 436

Retirement benefits, at General Motors, 515

Retirement plans, 306Return on assets, 530Return on equity, 530Revenue tariffs, 119–120Rewards, linking rewards to company performance, 329–331Risk

bond rating and, 577degree of, and globalization, 125entrepreneurship and, 78risk-return trade-off, 547subprime lending, 571

Risk-return trade-off, 547

Robinson-Patman Act, 142Robots, 360–361

field, 360nanotechnology, 360–361

Roles, in teams, 334Routing, 370Ruble, 112Rupee, 111Russia

corruption in, 117countertrade, 127Internet use in, 232open communication style of U.S. firms

in, 348political change and barrier to trade, 116population in, 106

Safetyconsumers’ right to, 57workplace, 60–61

Safety needs, in Maslow’s hierarchy of needs, 312, 314Saffron, difficulty in growing, 108Salary, xlix–l, 304. See also Compensation

vs. wages, 304Sales

increasing, 454nonpersonal selling, 452at Pampered Chef, 353personal selling, 451, 465–468stabilizing, 454–455

Sales branch, 433Sales era, in marketing, 386Sales force automation, 468Sales law, 146Sales office, 433Sales process

approaching, 466closing, 467demonstration, 466follow-up, 467handling objections, 467presentation, 466prospecting and qualifying, 466

Sales promotion, 463–464advantages/disadvantages, 453consumer-oriented, 463–464trade-oriented, 464

Sample, 464Sandwich generation, 61San Marino, per-capita GDP of, 106Sarbanes-Oxley Act, 40, 42, 46, 47, 72–73, 144, 186, 270, 522SARS virus, 4, 407

economic effect of, 103–104Satellite services, television advertising on, 459Saudi Arabia, 71

barrier to trade and, 115Saving accounts, 551Savings banks, 560Scheduling, in production control, 370–372Schools, ethics in promoting at, 472S corporations, 182

Screening, stage of new-product development, 426Search engines, 234Seasonal unemployment, 90Secondary data, 397Secondary Education Partnership, 314Secondary markets, 575–576Secured bond, 576Secure Electronic Transaction, 243Secure Socket Layer (SSL) encryption, 560Securities

bonds, 576–578brokerage firms and, 585–586buying and selling of, 585convertible securities, 579corporate bond price quotations, 588costs of trading, 585direct investing, 586–587importance of diversity, 573–574individual investors, 579institutional investors, 579investment motivations, 579–581legal and ethical issues in securities trading, 591–593limit order, 585market order, 585money market instruments, 576mutual funds, 589–591online trading of, 584, 585primary market for, 574–575at Raymond James Financial, 580Sarbanes-Oxley Act, 40, 42, 46, 47, 72–73, 144, 186, 270, 522secondary market for, 575–576stock, 578–579stock price quotations, 587–588taxes and, 581underwriting, 575

Securities and Exchange Commission (SEC), 270, 519

insider trading, 592Regulation FD, 64, 592regulation on securities market, 591–592Sarbanes-Oxley Act, 40, 42, 46, 47, 72–73, 144, 186, 270, 522, 547

Securities exchange, 582–585electronic communication network, 584, 585foreign stock markets, 584–585fourth market, 585government regulation and, 591–592NASDAQ Stock Market, 583New York Stock Exchange (NYSE),

582–583other U.S. stock markets, 583–584

Securities Exchange Act, 144Securities markets

full and fair disclosure, 591government regulation of, 591–592market surveillance, 592processional rules of conduct, 592self-regulation of, 592

Security (safety), 574airline industry and increased security, 489career choices and, xlixcomputer crime, 505–507

computer viruses, 507e-commerce and privacy issues, 244–245electronic commerce, 241, 243–244firewall, 245online banking, 560

Seed capital, 167, 220Segmentation. See Market SegmentationSegway human transporter system, 469Selective credit controls, 564Selective demand, 450Selective distribution, 440Self-actualization needs, in Maslow’s hierarchy of needs, 312, 314Self-assessment for career development, xxxix–xlSelf-confidence, of entrepreneurs, 212–213Self-managed team, 333Self-management by entrepreneurs, 200–201Seller’s market, 386Sender, in communication process, 339September 11

airline industry after, 3–4air travel after, 229closing/reopening of NYSE, 583consumer behavior after, 407demand for recreational vehicles after, 75disaster recovery planning after, 272disaster recovery planning for computers after, 508–509increased security at airports since, 489Internet traffic jams afterwards, 247layoffs since, 201leadership of Bush and Giuliani after, 281rebuilding SouthWest NY restaurant, 37

Serial bonds, 577Server, 232Service

added value through customer satisfaction and quality, 387–389classifying, 422defined, 356facility layout and, 366minority-owned small businesses in, 175U.S. exporters/importers, 109–100

Service Corps of Retired Executives (SCORE), 172Service industry

in Canada, 123increase in, 25

Set-aside programs, 171–172Sexism, 64Sexual harassment, 62–64

social responsibility and, 62–64Sherman Act, 81, 142Shopping

click ‘n pick, 243online, 241–244retail lab, 398

Shopping centers, 438Shopping products, 421Shortages, 83Simplicity marketing, 383Singapore, 107Sinking fund bonds, 577, 578Six Sigma, 373Skimming price, 476–477

Skunkworks, 223Slamming, 59Slovakia, 123Slovenia, 123Small Business Administration (SBA), 157, 171–172, 175

financial assistance from, 171loans by, 167set-aside programs, 171–172specialized assistance from, 171–172women and, 174

Small businesses, 157–176. See also Entrepreneurs/Entrepreneurshipadvantages of, 163–165business forms for, 179–187business plan for, 168–171defined, 157disadvantages of, 165–168economic contributions of, 161–163vs. entrepreneur, 196financing for, 166–167, 171franchising, 176–179growth strategies for, 179human resource management, 297Internet use and, 159, 233large corporations assistance to,

172–173by minorities, 174–176number of, 157organizations for, 179–183rate of failure, 165recession and, 87regulation of, 168SBA and, 171–172top five industries for, 158typical ventures of, 158–161by women, 174

Small Business Investment Companies (SBICs), 171

Small organizations, teamwork in, 335Smart cards, 243Smart credit cards, 552Social audits, 51Socialism, 83Social needs, in Maslow’s hierarchy of needs, 312, 314Social responsibility, 30, 51–65

business ethics, 40–41corporate philanthropy, 56–57to customers, 57–59developing quality of workforce, 55–56to employees, 59–64forces shaping, 40–41to general public, 52–57to investors and financial communities, 64–65at Krispy Kreme, 152management and, 29–31of Patagonia, 30protecting the environment, 53–55public health, 52–53at Timberland, 603–604

Social Security, 305as government revenue, 93government spending on, 93

Socioemotional role, 334Software, 497–501

accounting, 521applications, 498business intelligence, 399desktop publishing, 86, 499electronic mail, 500e-mail, 86integrated, 498Internet, 86multimedia computing, 502piracy of, in China, 119presentation, 86presentation software, 501spreadsheet, 86, 499–500word processing, 86, 499

Software suites, 498Sole proprietorship, 180–181. See also Entrepreneurs/EntrepreneurshipSouth Africa, 107South Korea. See Korea, SouthSoviet Union, former, as planned economy, 83Spam, 236, 342, 461Span of control, 286Span of management, 286–287Specialization of labor, mass production and, 358Specialty advertising, 464Specialty products, 421Spending, consumer, in U.S., 94Sponsorship, 462

advertising and, 462Sports, profession, promotional campaigns and athletes, 484Sports, professional

marketing minor league sports, 419sponsorship, 462

Sports Illustrated, 459Spreadsheet software, 86, 499–500Stability of principal, as investment motivation, 581Staff manager, 287Standardization

of marketing mix, 395–396mass production and, 358

Standardization strategy, 131Standard & Poor’s

bond ratings, 577, 578S&P 500, 588

Start-up expenses, for small businesses, 166Start-ups

financing for, 220–222small-business start-ups on, 159

State employment offices, xliiStatement of cash flow, 522, 524–528, 525State supreme court, 140Statutory law, 141Steel industry, 359–360

tariffs and, 120Stockholders, 185Stock indexes, 588Stock market, 582–585. See also Securities exchangeStock options, 305, 330–331Stocks. See also Securities

book value of, 579

common, 185, 578–579convertible, 579corporate stock dividend tax, 554initial public offering, 574investment bankers and, 575of Krispy Kreme, 598market value, 579open auction, 575ownership of, 185preferred, 185, 579public sale of, 555–556stock price quotations, 587–588stock quote tables, 587–588underwriting, 575

Stock Watch, 592Store atmospherics, 438Store brand, 428Store of value, money as, 550Store retailers, 435Storming stage of team development, 335–336Strategic alliance, 19

Internet and, 19Strategic Petroleum Reserve, 71Strategic planning, 271

assessing your competitive position, 274–275

creating strategies for competitive differentiation, 276defining organization’s mission, 273–274establishing objectives for organization, 275–276implementation phase of planning, 276monitoring and adapting strategic plans, 276–277

Strategies. See also Strategic planningdistribution, 394, 431–442global business strategies, 131growth strategies for small

businesses, 179Strategies (continued)

marketing, 393–396personal selling, 472pricing, 394, 475–479product, 394, 420–422promotional, 394, 450–451retailing, 436–438

Strengths, in SWOT analysis, 274–275Strike, 318Strikebreakers, 319–320Structural unemployment, 91Subcontracting, 128Subprime lending, 571Substitute goods, demand and, 76, 77Success, 196, 460Supercomputers, 496Supervisory management, 268

planning by, 271–272Suppliers

relationship marketing and, 409, 410selecting in, production plan implementation, 367–368

Supplies, as business goods, 422Supply, 73, 77–79

equilibrium price and, 78–79factors driving, 77–78

factors of production, 77–78price and, 77–78quantity and, 77–78vaccine shortages and, 78–79

Supply chain, 441Supply curve, 77–78Supreme Court, 140Surplus, budget, 94Survey, marketing research, 397SUVs, gasoline for, 76Sweepstakes, as sales promotion, 464Switzerland

as low-context culture, 347per-capita GDP of, 106

SWOT analysis, 274–275monitoring and adapting strategic plans, 276–277

Synthetic production system, 359

Tablet PC, 497Tactical planning, 271Taft-Hartley Act, 317, 319Taiwan, 107

GATT and, 121U.S. imports/exports of, 21

Tangible assets, 523Target market, 394

in promotional mix, 469in retail strategy, 436

Tariffs, 118, 119–120Task specialist role, 334Tax accountant, 519–520Taxes, 149

corporate stock dividend tax, 554corporations, 182dividends, 182fiscal policy and, 91–92as government revenue, 93investors and, 581revenue from, 93small businesses and, 168supply and, 78types of, 149

Tax law, 149Team cohesiveness, 336Team leader, 333

conflict resolution and, 338–339Team norm, 336Teams, 331–339

characteristics of effective, 333–334cohesiveness and norms for, 336communication in, 345diversity and, 334management, 333problem-solving teams, 333quality circles, 332, 333roles in, 334size of, 334stages of development, 335–336team concept and production, 359virtual teams, 332, 333work teams, 332–333

Team selling, 468Teamwork, 331

at Cannondale, 602importance of, 327, 331open office design and, 337playing games for building, 327in small organizations, 335

Technical skills, of managers, 268Technology, 4–5, 16. See also Information technology

at Cannondale, 602, 613–614, 618career choices and, xlixcomputer-aided design/computer-aided manufacturing, 361computer-integrated manufacturing,

361–362cost of, and supply, 78customer satisfaction and, 19–20defined, 7–8fighting terrorism with, 489flexible manufacturing system, 361increasing speed of acceptance, 491Krispy Kreme, 541production process, 360–362productivity and, 23revolution in, 16–17robots, 360–361role of, 8unethical behavior and, 43

Teenagersethics and promoting to, 471as market segment, 403selling to alternative teens, 447

Telecommunications Act, 142Telecommunications industry

cell phone use, 115deregulation, 82laws regulating, 144slamming, 59videoconferencing, 332

Telecommuters, 308benefits of, 325informal communication channels and, 343rising number of, 325

Telemarketing, 435, 465, 467Telemarketing Sales Rule, 467

Amendments to, 144Television

advertising, 456, 459interactive, 462market segmentation and, 400

TeleZapper, 435Terrorism

effect on demand, 101global economy and, 95–96

Test marketing, stage of new-product development, 426Thailand, 107

abusive working conditions in, 96Theory X, 315Theory Y, 315Theory Z, 315Threats, in SWOT analysis, 274–275360-degree performance review, 303–304

Thrift institutions, 560Time, 459Time utility, 385–386Title VII of Civil Rights Act, 62, 63, 300Tobacco industry, social responsibility and, 52Tombstone, 575Top management, 267

planning by, 271–272Torts, 148–149Total asset turnover, 531Total cost, 476Total liabilities to total assets, 531Total revenue, 476Toys, online shopping and, 241–242Trade. See International tradeTrade barriers. See Barriers to tradeTrade credit, 555Trademark, 147, 248, 427Trade promotion, 464Training, 302–303. See also Education

classroom and computer-based, 303diversity training, 126in ethics, 48–49on Internet, 303Krispy Kreme, 541management development program, 303on-the-job, 302

Transaction management, 17Transaction marketing, 409Transparency, 340–341Transportation

comparison of modes, 442as factor in production location decision, 362minority-owned small businesses in, 175physical distribution and, 442

Transportation Security Administration, airport security, 489Travel industry

online shopping, 229–230, 234, 237, 241–242, 247SARS and 9/11 effect on, 407–408videoconferencing as alternative to travel, 332

Treasurer, 546Treasury, U.S.

counterfeiting and money design, 549–550open auction, 575

Treasury bills, 94, 553Fed reserve and, 563–564stability of principal, 581

Trial court, 140Triangle Shirtwaist Factory fire, 60TRUSTe, 244Truth, vs. loyalty, 46Turkey, 107

political change and barrier to trade, 116Tweens, marketing, 417

Ukraine, hyperinflation, 88Underwriting, 561, 575Unemployment, 4

during Great Depression, 89top job losses by industry in recent recession, 90–91types of, 90–91

in U.S., 94Unemployment rate, 90

starting new businesses and, 201–202Uniform Commercial Code, 145–146

puffery and, 471Uniform Partnership Act, 181Unions. See Labor unionsUnited Arab Emirates, 71United Kingdom, 111, 113, 118

GDP of, 23Internet use in, 17, 232level of entrepreneurial activity in, 205U.S. imports/exports of, 21U.S. trade with, 107

United Stateseconomy of, 94exports, 105, 109–100France and war in Iraq, 114GDP of, 23gross domestic product of, 105imports, 105, 109–100Internet use in, 232level of entrepreneurial activity in, 205as low-context culture, 347major trading partners of, 107NAFTA and, 122–123per-capita GDP of, 106population in, 106small businesses in, 179top trading partners with, 21U.S. output of, 363–364U.S. worker productivity, 364–365

Unit of account, money as, 550Universal product code (UPC)

marketing research and, 399packaging and, 430–431

Urban legends, 236Uruguay, 122Uruguay Round, 121U.S. Agency for International Development, 492U.S. Department of Defense, 8U.S. Department of Energy, 72U.S. Department of Labor, 10U.S. District Court, 140U.S. Sentencing Commission, 42U.S. Supreme Court, 140USA Patriot Act, 142USA Today, 234Utility, 356, 385–386

created by marketing, 385–386marketing intermediaries and, 432

Vacation benefits, as barrier to trade, 113, 115Vaccinations, shortages of, 78–79Value (financial), 19Values, as barrier to trade, 113–115Vendor-managed inventory, 369, 441Venture capitalists, 167, 222, 556Verbal communication, 341, 343–344Verbal cues, 344Vertical merger, 187

Vice president for financial management, 546Videoconferencing, 233, 332, 491Vietnam

abusive working conditions in, 96as emerging market, 107

Vietnam Era Veterans Readjustment Act, 62, 63Virtual private networks, 504–505Virtual teams, 332, 333Viruses, computer, 507Vision, 27–28

of entrepreneurs, 209–210management setting, 270of managers, 27–28at Whole Foods Market, 27

Vocal cues, 344Vocational Rehabilitation Act, 62, 63Volume objective, 473Volunteerism, 57

paid time off for, 307, 314Timberland, 603–604

Vzyatka, 117

Wages, xlix, 304. See also Compensation; Incomeliving, 304vs. salary, 304

Wagner Act, 316Walkout, 318Wall Street Journal, The, 575, 586, 588Warehouse-club retail outlets, 437Warehousing, 441Warranties, 146, 442Weaknesses, in SWOT analysis, 274–275Wealth, world’s top ten nations based on, 106Wealth of Nations, The (Smith), 10Webcasts, 502Web host, 253Web sites, 231. See also Electronic commerce

(E-commerce)for accounting professionals, 534building databases and, 492–493content and connections, 252costs and maintenance of, 252–253developing successful, 249–252direct mail, 460international trade research resources on, 125managing, 249–254measuring effectiveness of, 253–254naming your, 251for newspapers, 4591-800-Flowers.com, 452planning and preparing, 251poor web site design and service, 247for preparing business plan, 220profitability of, 238

Wellness programs, 305Wheeler-Lea Act, 57, 142Wheel of retailing, 435Whistleblowing, 30, 46–47Wholesale, minority-owned small businesses in, 175Wholesaler, 433–434Wholesaling intermediaries

independent, 433–434manufacturer-owned, 433retailer-owned cooperatives and buying offices, 434

Wide area networks, 494Wireless fidelity (Wi-Fi), 494Wireless networks, 505, 506Women

earnings of, 64as entrepreneurs, 208–209financing new businesses, 221Internet use by, 17, 232managers, 293market segmentation, 402, 404small businesses owned by, 157, 174tips on speaking up, 338in workforce, 56

WomenAngels.net, 222Women-Owned Business Procurement Program, 174Women’s Business Center, 174Women’s Growth Capital Fund, 222Women’s Network for Entrepreneurial Training, 174Wonderlic Basic Skills, 302Word processing software, 86, 499Workers. See EmployeesWorkforce

aging of, 24changing nature of, 25–26competitiveness of, and global economy, 95–96developing quality of, for social responsibility, 55–56diversity of, 24–25, 26, 55–56education level, 56employer-employee partnerships, 25–26factor in production location decision, 362, 364labor pool for, 24trends in, and recruiting, 299

Work hourscompressed workweek, 308flexible work plans, 307–309in U.S. vs. Europe, 305

Work-life issues, quality of life issues, 61–62Workplace, safety, 60–61Work teams, 332–333World Bank, 121–122World Health Organization, 44World Trade Organization (WTO), 44, 121, 125, 141World Wide Web (Web), 17. See also Internet

software for, 86Written communication, 341, 342–343WTO. See World Trade Organization (WTO)

Yard sale, world’s largest, 392Yen, 111, 112Yugoslavia, political change and barrier to trade, 116