BUSN: Introduction to Business, 12th Edition
Marce Kelly and Chuck Williams
Contents
Part 1
The Business Environment
1 Business Now: Change Is the
Only Constant 2
1-1 Business Now: Moving at Breakneck Speed 2
1-2 The History of Business: Putting It All in Context 5
1-3 Nonprofits and the Economy: The Business
of Doing Good 6
1-4 Factors of Production: The Basic Building Blocks 6
1-5 The Business Environment: The Context for Success 7
1-6 Business and You: Making It Personal 15
2 Economics: The Framework
for Business 18
2-1 Economics: Navigating a Crisis 18
2-2 Economics and the Great Recession 20
2-3 Managing the Economy Through Fiscal
and Monetary Policy 22
2-4 Capitalism: The Free Market System 27
2-5 Planned Economies: Socialism and Communism 31
2-6 Mixed Economies: The Story of the Future 32
2-7 Evaluating Economic Performance: What’s Working? 34
3 The World Marketplace:
Business without Borders 40
3-1 A Dramatic Change 40
3-2 The Global Marketplace: A Huge Business
Opportunity 41
3-3 Key Reasons for International Trade 44
3-4 Global Trade: Taking Measure 45
3-5 Seizing the Opportunity: Strategies for Reaching
Global Markets 46
3-6 Barriers to International Trade 49
3-7 Free Trade: The Movement Gains Momentum 54
4 Business Ethics and Social
Responsibility: Doing Well by
Doing Good 60
4-1 Ethics and Social Responsibility: A Close
Relationship 60
4-2 Business Ethics: Not an Oxymoron 63
4-3 Ethics: Multiple Touchpoints 64
4-4 Defining Social Responsibility: Making the World a
Better Place 67
4-5 Ethics and Social Responsibility in the Global Arena:
A House of Mirrors? 74
4-6 Monitoring Ethics and Social Responsibility:
Who Is Minding the Store? 75
5 Business Communication:
Creating and Delivering
Messages That Matter 78
5-1 Excellent Communication Skills: Your Invisible
Advantage 78
5-2 Nonverbal Communication: Beyond the Words 80
5-3 Choose the Right Channel: A Rich Array of Options 82
5-4 Pick The Right Words: Is That Car Pre-Loved or Just
Plain Used?! 84
5-5 Write High-Impact Messages: Breaking Through
the Clutter 86
5-6 Deliver Successful Verbal Presentations:
Hook ’Em and Reel ’Em In! 89
Part 2
Creating a Business
6 Business Formation: Choosing
the Form that Fits 94
6-1 Business Ownership Options: The Big Four 94
6-2 Advantages and Disadvantages of Sole
Proprietorships 98
6-3 Partnerships: Can Two Heads (and Bankrolls) be
Better Than One? 99
6-4 Corporations: The Advantages and Disadvantages
of Being an Artificial Person 102
6-5 The Limited Liability Company: The New Kid
on the Block 109
6-6 Franchising: Proven Methods for a Price 111
7 Small Business and
Entrepreneurship:
Economic Rocket Fuel 118
7-1 Launching a New Venture: What’s in It for Me? 118
7-2 The Entrepreneur: A Distinctive Profile 121
7-3 Finding the Money: Funding Options for Small
Businesses 123
7-4 Opportunities and Threats for Small Business:
A Two-Sided Coin 126
7-5 Launch Options: Reviewing the Pros and Cons 128
7-6 Small Business and the Economy: An Outsized
Impact 130
Part 3
Financing a Business
8 Accounting: Decision Making
by the Numbers 134
8-1 Accounting: Who Needs it—and Who Does it? 134
8-2 Financial Accounting: Intended for Those on the
Outside Looking in 137
8-3 Financial Statements: Read All About Us 139
8-4 Interpreting Financial Statements: Digging
Beneath the Surface 145
8-5 Budgeting: Planning for Accountability 149
8-6 Inside Intelligence: The Role of Managerial
Accounting 152
9 Finance: Acquiring and
Using Funds to Maximize
Value 156
9-1 What Motivates Financial Decisions? 156
9-2 Identifying Financial Needs: Evaluation
and Planning 160
9-3 Finding Funds: What Are the Options? 164
9-4 Leverage and Capital Structure: How Much Debt Is
too Much Debt? 168
9-5 Acquiring and Managing Current Assets 172
9-6 Capital Budgeting: In it for the Long Haul 175
10 Financial Markets: Allocating
Financial Resources 178
10-1 The Role of Financial Markets and Their Key
Players 178
10-2 Regulating Financial Markets to Protect Investors
and Improve Stability 182
10-3 Investing in Financial Securities: What Are the
Options? 184
10-4 Issuing and Trading Securities: The Primary and
Secondary Markets 190
10-5 Personal Investing 193
10-6 Keeping Tabs on the Market 196
Part 4
Marketing a Business
11 Marketing: Building Profitable
Customer Connections 200
11-1 Marketing: Getting Value by Giving Value 200
11-2 The Customer: Front and Center 204
11-3 Marketing Strategy: Where Are You Going, and How
Will You Get There? 205
11-4 Customer Behavior: Decisions, Decisions,
Decisions! 212
11-5 Marketing Research: So, What Do They Really
Think? 213
11-6 Social Responsibility and Technology: A Major
Marketing Shift 215
12 Product and Promotion:
Creating and Communicating
Value 218
12-1 Product: It’s Probably More Than You Thought 218
12-2 Product Differentiation and Planning:
A Meaningful Difference 222
12-3 Innovation and the Product Life Cycle: Nuts, Bolts,
and a Spark of Brilliance 226
12-4 Promotion: Influencing Consumer Decisions 230
12-5 A Meaningful Message: Finding the Big Idea 231
12-6 The Promotional Mix: Communicating
the Big Idea 232
13 Distribution and Pricing:
Right Product, Right Person,
Right Place, Right Price 244
13-1 Distribution: Getting Your Product to
Your Customer 244
13-2 Wholesalers: Sorting Out the Options 247
13-3 Retailers: The Consumer Connection 248
13-4 Physical Distribution: Planes, Trains, and Much,
Much More 251
13-5 Pricing Objectives and Strategies: A High-Stakes
Game 253
13-6 Pricing in Practice: A Real-World Approach 255
Part 5
Managing a Business
14 Management, Motivation, and
Leadership: Bringing Business
to Life 260
14-1 Bringing Resources to Life 260
14-2 Motivation: Lighting the Fire 264
14-3 Planning: Figuring Out Where to Go and How
to Get There 267
14-4 Organizing: Fitting Together the Puzzle Pieces 271
14-5 Leadership: Directing and Inspiring 274
14-6 Controlling: Making Sure It All Works 275
15 Human Resource Management: Building a
Top-Quality Workforce 278
15-1 Human Resource Management: Bringing Business
to Life 278
15-2 Human Resource Management Challenges:
Major Hurdles 280
15-3 Human Resources Managers: Corporate Black
Sheep? 282
15-4 Human Resource Planning: Drawing the Map 283
15-5 Legal Issues: Hr and the Long Arm of the Law 292
15-6 Diversity in Contemporary Business 294
16 Managing Information
and Technology: Finding New
Ways to Learn and Link 296
16-1 Information Technology: Explosive Change 296
16-2 Cloud Computing: The Sky’s the Limit! 302
16-3 Information Technology and Decision Making:
A Crucial Aid 304
16-4 Information Technology and the World
of E-Commerce 307
16-5 Challenges and Concerns Arising from New
Technologies 312
17 Operations Management:
Putting It All Together 320
17-1 Operations Management: Producing Value
in a Changing Environment 320
17-2 What Do Operations Managers Do? 325
17-3 Implications of a Service-Based Economy:
Responding to Different Challenges 331
17-4 The Technology of Operations 333
17-5 Focus on Quality 334
17-6 The Move to Be Lean and Green: Cutting Cost and
Cutting Waste 339
Personal Finance Appendix 342
Endnotes 357
Glossary 383
Index 394
Online Only:
Appendix 1: Labor Unions and
Collective Bargaining
Appendix 2: Business Law
Chapter Review Cards