............................................................................................................................i
Basic Concepts in Business
Business and Business Regulations ............................................................2
I. Function, Environment, and Social Responsibility of Business .....................................2
II. Business Forms .............................................................................................................6
III. Business Law .............................................................................................................. 11
IV. Case Study 1: Texan Chicken .....................................................................................17
V. Case Study 2: Game Over............................................................................................19
VI. Additional Reading: Business Ethics .........................................................................22
Market and Marketing
Market Theory ............................................................................................... 30
I. Market and Its Nature ...................................................................................................30
II. Market Share and Market Concentration .....................................................................32
III. Case Study 1: Caferoma .............................................................................................34
IV. Case Study 2: Kristal Water ........................................................................................37
V. Additional Reading: Marketing ....................................................................................39
Market Research and Planning ................................................................... 51
I. Market Research ...........................................................................................................51
II. Customer Research ......................................................................................................58
III. Competitor Research and Analysis: From Data to Insight.........................................63
IV. Case Study 1: KGV Europe ........................................................................................66
V. Case Study 2: The Voice of Business ...........................................................................69
VI. Additional Reading: Marketing Planning ...................................................................71
Unit 4 Marketing Mix (I): Product............................................................................ 78
I. Product .........................................................................................................................78
II. Product Planning ..........................................................................................................80
III. Introducing a New Product to Market ........................................................................83
IV. Case Study 1: Fabtek..................................................................................................89
V. Case Study 2: Angel Investments.................................................................................92
VI. Additional Reading: Extending a Product with Service .............................................94
Unit 5 Marketing Mix (II): Price ............................................................................. 100
I. Product Pricing ...........................................................................................................100
II. Pro.ting from Prices..................................................................................................103
III. Pricing Methods ....................................................................................................... 110
IV. Case Study 1: Minerva A. G. ....................................................................................113
V. Case Study 2: ILA Leatherwear Competition ............................................................116
VI. Additional Reading: Running a Price Campaign ..................................................... 118
Unit 6 Marketing Mix (III): Place ........................................................................... 124
I. De.nition of Channels of Distribution ........................................................................124
II. Wholesalers ................................................................................................................125
III. Retailers ....................................................................................................................127
IV. Case Study 1: Ashbury Guitars .................................................................................129
V. Case Study 2: Lifetime Holidays...............................................................................131
VI. Additional Reading: Logistics ..................................................................................132
Unit 7 Marketing Mix (IV): Promotion ................................................................... 141
I. Product Adoption Curve and Promoting Strategy .......................................................142
II. Methods of Promotion ...............................................................................................143
III. Advertising Operation ..............................................................................................145
IV. Case Study 1: Getting to Know You.........................................................................153
V. Case Study 2: Focus Advertising...............................................................................156
VI. Additional Reading: Getting Close to Customers ....................................................158
Unit 8 International Business ............................................................................... 164
I. Globalization of Enterprise .........................................................................................164
II. International Marketing in the New Century .............................................................170
III. Globalization and Business Strategy ........................................................................175
IV. Case Study 1: Zumo—Creating a Global Brand ......................................................180
V. Case Study 2: Marcia Lee Jeans ................................................................................182
VI. Additional Reading: Managing Skills of International Business .............................185
Unit 9 Communicating with Customers .............................................................. 190
I. Communicating Customer Service .............................................................................190
II. Handling Customer Inquiries .....................................................................................193
III. Handling Complaints ................................................................................................199
IV. Case Study 1: Hermes Communications ..................................................................203
V. Case Study 2: Camden Football Club ........................................................................206
VI. Additional Reading: Managing Customers ..............................................................208
Part 3
Accounting and Financing
Unit 10 Accounting and Financial Analysis .........................................................216
I. De.nition of Accounting .............................................................................................216
II. Financial Statements ..................................................................................................216
III. Ratio Analysis of Financial Statements ....................................................................224
IV. Case Study 1: Financial Statement Preparation ........................................................244
V. Case Study 2: Financial Statement Analysis ..............................................................245
VI. Additional Reading: Managing by Open Book ........................................................247
Unit 11 Financing ................................................................................................... 252
I. What Is Financial Management? .................................................................................253
II. Organization of Financial Management Function .....................................................255
III. Financing of Operations ...........................................................................................256
IV. Case Study 1: Valentino Chocolates .........................................................................263
V. Case Study 2: Vision Film Company .........................................................................266
VI. Additional Reading: Managing 21st Century Finances ...........................................269
Part 4
Management
Unit 12 Management ............................................................................................. 276
I. What Is Management?.................................................................................................276
II. Levels and Functions of Management .......................................................................277
III. Management Skills ...................................................................................................279
IV. Case Study 1: The Way We Do Things .....................................................................281
V. Case Study 2: Creating a Sense of Identity ................................................................283
VI. Additional Reading: Business Management in the 21st Century .............................286
Unit 13 Planning and Decision-making............................................................... 299
I. Planning and Planning Process ...................................................................................299
II. Decision-making and Decision-making Process .......................................................301
III. Case Study 1: The Team-building Seminar ..............................................................307
IV. Case Study 2: A Risky Business ...............................................................................309
V. Additional Reading: Creativity and Decision-making ...............................................311
Unit 14 Organizing and Delegation ...................................................................... 317
I. Organizing Company ..................................................................................................317
II. Effective Delegation ..................................................................................................325
III. Case Study 1: Faredeal Travel Agency .....................................................................329
IV. Case Study 2: The New Boss ....................................................................................333
V. Additional Reading: The Critical Factors That Build or Break Teams ......................336
Unit 15 Motivation and Leadership ...................................................................... 342
I. Motivation Theories ....................................................................................................342
II. Leadership Theories ...................................................................................................347
III. Case Study 1: Slim Gyms .........................................................................................352
IV. Case Study 2: Zenova ...............................................................................................356
V. Additional Reading: Succeeding as a New Manager .................................................359
Unit 16 Controlling ................................................................................................. 364
I. Controlling Process .....................................................................................................364
II. Statistical Process Control (SPC) ..............................................................................368
III. Case Study 1: Acquiring Metro ................................................................................372
IV. Case Study 2: ATry at Innovation ............................................................................375
V. Additional Reading: Keeping Control in Nonhierarchical Organizations .................378
References .................................................................................................................384