Business in Action, Global Edition (2024) PDF

GLOBAL EDITION Business in Action TENTH EDITION Courtland L. Bovée John V. Thill Business in Action TENTH EDITION...

GLOBAL EDITION Business in Action TENTH EDITION Courtland L. Bovée John V. Thill Business in Action TENTH EDITION GLOBAL EDITION Courtland L. Bovée Professor of Business C. Allen Paul Distinguished Chair Grossmont College John V. Thill Chairman and Chief Executive Officer Global Communication Strategies Harlow, England London New York Boston San Francisco Toronto Sydney Dubai Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town São Paulo Mexico City Madrid Amsterdam Munich Paris Milan Product Management: Steven Jackson, Daniel J.N. Luiz, Ishita Sinha, Kajori Chattopadhyay, and Drishadwati Bhattacharya Content Production: Naina Singh and Nitin Shankar Product Marketing: Joanne Dieguez Rights and Permissions: Anjali Singh and Ashish Vyas Please contact https://support.pearson.com/getsupport/s/contactsupport with any queries on this content. 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We appreciate the opportunity to play a role in your teaching and learning, and we wish you the very best with your careers. Courtland L. Bovée John V. Thill Contents in Brief New to This Edition 15 Prologue: Using This Course to Launch Your Business Career 26 PART 1 Setting the Stage: The Business of Business 49 1 Developing a Business Mindset 50 2 Economics, Money, and Banking 79 3 The Global Marketplace 113 4 Business Ethics and Corporate Social Responsibility 138 PART 2 Building the Framework: Business Ownership and Entrepreneurship 167 5 Forms of Ownership 168 6 Entrepreneurship and Small-Business Ownership 191 PART 3 Guiding the Enterprise: Leadership, Organization, and Operations 215 7 Management Roles, Functions, and Skills 216 8 Organization and Teamwork 242 9 Production Systems 271 PART 4 Supporting the Workforce: Motivation and Human Resources 295 10 Employee Motivation 296 11 Human Resources Management 320 PART 5 Satisfying the Customer: Marketing, Sales, and Customer Support 355 12 The Art and Science of Marketing 356 13 Product Management and Pricing Strategies 383 14 Customer Communication and Product Distribution 412 PART 6 Managing the Money: Accounting and Financial Resources 447 15 Financial Information and Accounting Concepts 448 16 Financial Management and Financial Markets 475 Appendixes APPENDIX A Business Law A-1 APPENDIX B Risk Management B-1 APPENDIX C Information Technology C-1 APPENDIX D Personal Finance: Getting Set for Life D-1 Glossary G-1 Brand, Organization, and Name Index I-1 Subject Index I-3 5  Contents New to This Edition 15 Achieving Professionalism 66 Prologue: Using This Course to Launch Striving to Excel 66 Your Business Career 26 Being Dependable and Accountable 66 Being a Team Player 67 Demonstrating Etiquette 68 Communicating Effectively 68 PART 1 Making Ethical Decisions 69 Thriving in the Digital Enterprise: Disruptive Technologies Setting the Stage: The Business of and Digital Transformation 69 Business 49 Disruptive Innovations 70 Predicting the Path of Disruptive Innovations 70 Fine-Tuning Your Personal Hype Detector 71 CHAPTER 1 Digital Transformation 72 Developing a Business Mindset 50 Developing Skills for Your Career 74 BEHIND THE SCENES Can Software That Reads Faces BEHIND THE SCENES An Unexpected Turn Launches an Create a New Business? 50 Innovative New Company 75 INTRODUCTION 51 KEY TERMS 76 Understanding What Businesses Do 51 TEST YOUR KNOWLEDGE 76 Adding Value: The Business of Business 51 EXPAND YOUR KNOWLEDGE 76 Competing to Attract and Satisfy Customers 51 Accepting PRACTICE YOUR SKILLS 77 Risks in the Pursuit of Rewards 52 Identifying Major Types of Businesses 52 CHAPTER 2 Making the Leap from Buyer to Seller 54 Seeing Business from the Inside Out 54 Economics, Money, and Banking 79 Appreciating the Role of Business in Society 55 BEHIND THE SCENES Gig Wage: Reinventing Financial Using this Course to Jump-Start Your Career 57 Systems for a New World of Work 79 Recognizing the Multiple Environments of INTRODUCTION 80 Business 58 What Is This Thing Called the Economy? 80 The Social Environment 58 Factors of Production 80 The Technological Environment 59 The Economic Impact of Scarcity 81 The Economic Environment 59 Economic Measures and Monitors 82 The Legal and Regulatory Environment 59 Price Indexes 82 National Economic Output 83 The Market Environment 60 Economic Systems 84 Identifying the Major Functional Areas in a Business The Spectrum of Economic Systems 84 Enterprise 61 Nationalization and Privatization 85 Research and Development 62 Government’s Role in a Free-Market System 85 Manufacturing, Production, and Operations 62 Protecting Stakeholders 86 Fostering Competition 86 Marketing, Sales, Distribution, and Customer Support 62 Encouraging Innovation and Economic Development 87 Finance and Accounting 62 Stabilizing and Stimulating the Economy 87 Human Resources 63 The Forces of Demand and Supply 88 Business Services 63 Understanding Demand 89 Exploring Careers in Business 63 Understanding Supply 90 Operations Manager 64 Understanding How Demand and Supply Interact 90 Human Resources Specialist 64 The Macro View: Understanding How an Economy Information Technology Manager 64 Operates 92 Marketing Specialist 64 Competition in a Free-Market System 92 Sales Professional 65 Business Cycles 92 Accountant 65 Unemployment 94 Financial Manager 65 Inflation 94 6  Contents 7 Money’s Role in Business 96 Strategic Approaches to International Markets 128 The Meaning of Money 96 Organizational Strategies for International Expansion 128 Fiat Money, Cryptocurrency, and NFTs 97 Functional Strategies for International Expansion 129 The Money Supply 98 Thriving in the Digital Enterprise: AI-Assisted Translation 131 Banking Institutions and Services 99 Text Translation 131 The Federal Reserve 99 Real-Time Voice Translation 131 The Fed’s Major Responsibilities 100 The Fed’s Tools for BEHIND THE SCENES Airbnb Succeeds with Global Implementing Monetary Policy 100 Other Government Vision but Local Touch 133 Banking Agencies and Institutions 102 Investment Banks 102 KEY TERMS 134 Commercial Banks 102 TEST YOUR KNOWLEDGE 135 Other Financial Services 103 EXPAND YOUR KNOWLEDGE 135 Banking’s Role in the Economy 103 PRACTICE YOUR SKILLS 136 Shadow Banking 104 The “Too-Big-to-Fail” Dilemma 104 The Boundaries of Investment Banking and Commercial CHAPTER 4 Banking 104 Thriving in the Digital Enterprise: Fintech 105 Business Ethics and Corporate Social Making Financial Services More Inclusive 106 Responsibility 138 Improving the Efficiency of Financial Activities 106 BEHIND THE SCENES Bethany Yellowtail: Creating an Strengthening the Security of Financial Systems 106 Authentic Business and Lifting Her Community 138 Improving the Customer Experience in Financial Services 106 Enhancing Financial Decision-Making 107 INTRODUCTION 139 Ethics in Contemporary Business 139 BEHIND THE SCENES Gig Wage Rethinks Financial Defining Ethical Behavior 139 Software to Meet the Needs of Today’s Business Forces That Promote Unethical Behavior 140 World 108 Management Pressure and Corporate Culture 141 A Willful KEY TERMS 109 Blindness to Harm 141 TEST YOUR KNOWLEDGE 109 Strategies for Supporting Ethical Behavior 142 EXPAND YOUR KNOWLEDGE 110 Guidelines for Making Ethical Decisions 143 PRACTICE YOUR SKILLS 110 Corporate Social Responsibility 145 The Relationship Between Business and Society 145 CHAPTER 3 Taking Sides on Public Issues: Stakeholder Expectations and Company Viewpoints 145 The Global Marketplace 113 Philanthropy Versus Strategic CSR 146 BEHIND THE SCENES Airbnb: From Making a Few Bucks Perspectives on Corporate Social Responsibility 147 to Disrupting the Global Travel Industry 113 Minimalist CSR 147 Defensive CSR 148 INTRODUCTION 114 Cynical CSR 148 Fundamentals of International Trade 114 The Proactive Stance: Moving Beyond CSR 148 Why Nations Trade 114 Resolving the CSR Dilemma 148 How International Trade Is Measured 115 CSR: The Natural Environment 149 Foreign Exchange Rates and Currency Valuations 116 Business Efforts to Conserve Resources and Reduce Pollution 150 Conflicts in International Trade 117 Sustainability and the Circular Economy 152 Free Trade 117 CSR: Consumers 153 Government Intervention in International Trade 118 The Right to Buy Safe Products 154 International Trade Organizations 119 The Right to Be Informed 154 Organizations Facilitating International Trade 119 The Right to Choose Which Products to Buy 154 The World Trade Organization 120 The International The Right to Be Heard 154 Monetary Fund 120 The World Bank 120 The Right to Digital Security 154 Trading Blocs 120 The Right to Equitable Service 155 Canada, Mexico, and the United States 120 The European CSR: Employees 156 Union 122 Asia-Pacific Economic Cooperation 122 Equality in Employment Opportunity 157 The Global Business Environment 123 Fair Compensation 157 Cultural Differences in the Global Business Environment 123 Working Conditions 158 Legal Differences in the Global Business Environment 125 Thriving in the Digital Enterprise: The Ethics of Artificial Tax Havens 125 Bribery 125 Intelligence 159 Forms of International Business Activity 126 Human Biases Embedded in AI Systems 159 Importing and Exporting 126 Lack of Transparency and Explainability 160 International Licensing 127 The Efforts to Make AI a Force for Good 160 International Franchising 127 International Strategic Alliances and Joint Ventures 127 BEHIND THE SCENES Bethany Yellowtail Builds a Foreign Direct Investment 127 Business That Is More Than a Business 161 8 Contents KEY TERMS 162 The Big World of Small Business 192 TEST YOUR KNOWLEDGE 162 Economic Roles of Small Businesses 192 EXPAND YOUR KNOWLEDGE 163 Characteristics of Small Businesses 193 PRACTICE YOUR SKILLS 163 The Entrepreneurial Spirit 194 Why People Start Their Own Companies 194 Qualities of Successful Entrepreneurs 194 PART 2 Innovating Without Leaving: Intrapreneurship 195 Building the Framework: The Start-Up Phase: Planning and Launching a New Business 196 Business Ownership and Small-Business Ownership Options 196 Entrepreneurship 167 Blueprint for an Effective Business Plan 196 Lean Business Planning 198 The Growth Phase: Nurturing and Sustaining a Young CHAPTER 5 Business 199 Forms of Ownership 168 The New-Business Failure Rate 199 BEHIND THE SCENES DoorDash Looks for Ways to Grow Pivoting: When a Better Idea Comes Along 200 Advice and Support for Business Owners 201 Beyond Pandemic Demand 168 Government Agencies and Not-for-Profit Organizations 201 INTRODUCTION 169 Business Partners 201 Mentors and Advisory Sole Proprietorships 169 Boards 201 Networks and Support Groups 201 Advantages of Sole Proprietorships 170 Business Incubators and Accelerators 202 Disadvantages of Sole Proprietorships 170 Financing Options for Small Businesses 203 Partnerships 171 Private Financing 203 Advantages of Partnerships 172 Banks and Microlenders 204 Venture Capitalists 204 Disadvantages of Partnerships 172 Angel Investors 204 Corporate Sponsors 204 Keeping It Together: The Partnership Agreement 173 Credit Cards and Personal Lines of Credit 205 Corporations 174 Small Business Administration Assistance 205 Advantages of Corporations 174 Public Financing 205 Disadvantages of Corporations 175 Crowdfunding 205 Special Types of Corporations 175 The Franchise Alternative 206 Corporate Governance 177 Types of Franchises 206 Shareholders 177 The Money Side of Franchising 206 Board of Directors 178 Initial Franchising Costs 206 Ongoing Franchising Corporate Officers 178 Costs 207 Mergers, Acquisitions, and Divestitures 179 Advantages of Franchising 207 Advantages of Mergers and Acquisitions 180 Disadvantages of Franchising 207 Disadvantages of Mergers and Acquisitions 180 How to Evaluate a Franchising Opportunity 207 Merger and Acquisition Defenses 181 Thriving in the Digital Enterprise: Machine Learning and Corporate Divestitures 182 Deep Learning 208 Strategic Alliances and Joint Ventures 183 Giving Computers the Ability to Learn 209 Strategic Alliances 183 Applying Machine Learning in Business 209 Joint Ventures 183 BEHIND THE SCENES Alyza James Finds a New Purpose Thriving in the Digital Enterprise: Big Data and in Her Purpose-Driven Business 211 Analytics 184 KEY TERMS 211 Big Data 184 TEST YOUR KNOWLEDGE 212 Analytics 185 EXPAND YOUR KNOWLEDGE 212 BEHIND THE SCENES DoorDash Bulks Up for PRACTICE YOUR SKILLS 213 Post-Pandemic Life 186 KEY TERMS 187 TEST YOUR KNOWLEDGE 187 PART 3 EXPAND YOUR KNOWLEDGE PRACTICE YOUR SKILLS 188 188 Guiding the Enterprise: Leadership, Organization, and Operations 215 CHAPTER 6 Entrepreneurship and Small-Business CHAPTER 7 Ownership 191 Management Roles, Functions, and Skills 216 BEHIND THE SCENES Alyza James: Carrying On One BEHIND THE SCENES AMD: An Innovative Company Gets Tradition and Starting Another 191 Help from Innovative Business Management 216 INTRODUCTION 192 INTRODUCTION 217  Contents 9 The Roles of Management 217 Network Structures 249 Interpersonal Roles 217 Distributed and Hybrid Workplaces 249 Informational Roles 217 Organizing in Teams 250 Decisional Roles 218 What Is a Team? 250 The Planning Function 219 Types of Teams 251 Defining the Company’s Purpose and Values 219 Problem-Solving Teams 251 Self-Managed Teams 251 Assessing Strengths, Weaknesses, Opportunities, Functional Teams 251 Cross-Functional and Threats 220 Teams 251 Virtual and Hybrid Teams 252 Developing Forecasts 220 Social Networks and Virtual Communities 253 Analyzing the Competition 221 Ensuring Team Productivity 254 Establishing Goals and Objectives 222 Advantages and Disadvantages of Working in Teams 254 Developing Action Plans 222 Characteristics of Effective Teams 255 The Organizing Function 223 Fostering Teamwork 257 Top Managers 223 Team Development 257 Middle Managers 224 Team Conflict 258 First-Line Managers 224 Sources of Team Conflict 258 Solutions to Team Conflict 259 The Leading Function 225 Managing an Unstructured Organization 260 Developing an Effective Leadership Style 226 Potential Benefits of Unstructured Organizations 261 Coaching and Mentoring 227 Potential Challenges of Unstructured Organizations 263 Managing Change 227 Thriving in the Digital Enterprise: Taskbots and Robotic Building a Positive Organizational Culture 228 Process Automation 264 The Controlling Function 230 Taskbots 265 The Control Cycle 230 Robotic Process Automation 265 Establishing Performance Standards 230 Measuring BEHIND THE SCENES Gojek: The Structure of App-Based Performance and Responding as Needed 231 Business 266 Crisis Management: Maintaining Control in Extraordinary Circumstances 231 KEY TERMS 267 Essential Management Skills 233 TEST YOUR KNOWLEDGE 267 Interpersonal Skills 233 EXPAND YOUR KNOWLEDGE 268 Technical Skills 233 PRACTICE YOUR SKILLS 268 Conceptual Skills 233 Decision-Making Skills 234 CHAPTER 9 Thriving in the Digital Enterprise: Cognitive Production Systems 271 Automation 236 The Cold Truth About Decision-Making 236 BEHIND THE SCENES Reinventing Manufacturing for AI to the (Possible) Rescue 236 a Rapidly Changing World 271 BEHIND THE SCENES Lisa Su Pulls Off the Impossible INTRODUCTION 272 at AMD 237 The Systems View of Business 272 Thinking in Systems 272 KEY TERMS 238 Managing Systems for Peak Performance 272 TEST YOUR KNOWLEDGE 239 Value Chains and Value Webs 275 EXPAND YOUR KNOWLEDGE 239 Extending Organizations with Value Webs 275 PRACTICE YOUR SKILLS 240 Offshoring and Reshoring 276 Supply Chain Management 277 CHAPTER 8 The Strategic Role of Supply Chain Management 278 Organization and Teamwork 242 Supply Chain Systems and Methods 279 Production and Operations Management 280 BEHIND THE SCENES Gojek: The Challenges of Lean Systems and Make to Order Manufacturing 280 Growth 242 Mass Production, Customized Production, and Mass INTRODUCTION 243 Customization 281 Designing an Effective Organization Structure 243 Facilities Location and Design 282 Identifying Core Competencies 243 Forecasting and Capacity Planning 282 Identifying Job Responsibilities 243 Scheduling 283 Defining the Chain of Command 244 The Unique Challenges of Service Delivery 284 Span of Management 246 Centralization Versus Perishability 284 Decentralization 246 Location Constraints and Virtual Service Delivery 285 Rethinking Organization in the Age of Agility 246 Scalability Challenges and Opportunities 285 Organizing the Workforce 247 Performance Variability and Perceptions of Quality 285 Functional Structures 247 Customer Involvement and Service Provider Interaction 286 Divisional Structures 247 Product and Process Quality 286 Matrix Structures 248 Quality and Complexity 287 10 Contents Strategies for Ensuring Product Quality 287 BEHIND THE SCENES Zoom’s Eric Yuan Built Himself Continuous Improvement 287 Statistical Process a Happier Job—and One of the World’s Most Influential Control 287 Six Sigma 288 ISO 9000 288 Companies 315 Thriving in the Digital Enterprise: Industry 4.0 and the Smart KEY TERMS 316 Factory 289 TEST YOUR KNOWLEDGE 316 BEHIND THE SCENES Fictiv Builds a Digital EXPAND YOUR KNOWLEDGE 317 Manufacturing Ecosystem to Meet the Needs of PRACTICE YOUR SKILLS 317 Today’s Customers 291 KEY TERMS 291 CHAPTER 11 TEST YOUR KNOWLEDGE 292 EXPAND YOUR KNOWLEDGE 292 Human Resources Management 320 PRACTICE YOUR SKILLS 293 BEHIND THE SCENES L’Oréal China’s Recruitment Problem 320 PART 4 INTRODUCTION 321 Guiding the Human Side of Business 321 Supporting the Workforce: Contemporary HR Challenges 321 Aligning the Workforce with Business Requirements 322 Motivation and Human Creating Safe and Healthy Workplaces 322 Resources 295 Ensuring Fair Treatment and Equal Opportunity 323 Creating a Sustainable Employee Experience 325 CHAPTER 10 The Evolving Role of HR 326 Managing a Diverse Workforce 327 Employee Motivation 296 Diversity Considerations in the Contemporary Workplace 327 BEHIND THE SCENES Eric Yuan Designs a New Age 328 Gender and Sexual Orientation 329 Dream 296 Race and Ethnicity 329 Religion 329 Physical, Emotional, and Cognitive Traits 330 Education, INTRODUCTION 297 Economics, and Life Experience 330 What Motivates Employees to Peak Performance? 297 Diversity, Equity, and Inclusion Initiatives 331 What Is Motivation? 297 Managing the Employment Life Cycle 332 Classical Theories of Motivation 297 Planning for a Company’s Staffing Needs 332 Taylor’s Scientific Management 298 The Hawthorne Evaluating Job Requirements 332 Forecasting Supply and Studies and the “Hawthorne Effect” 298 Maslow’s Demand 332 Alternative Work Arrangements 334 Hierarchy of Needs 299 Theory X and Theory Y 300 Hiring Employees 334 Herzberg’s Two Factors 300 McClelland’s Three Managing Employee Retirement 335 Needs 301 Terminating Employment 337 Explaining Employee Choices 301 Developing and Evaluating Employees 338 Expectancy Theory 302 Managing Employee Performance 338 Equity Theory 302 Training and Developing Employees 338 The Four-Drive Theory 303 Promoting and Reassigning Employees 339 Motivating with Challenging Goals 304 Compensating and Supporting Employees 340 Management by Objectives 304 Salaries and Wages 340 Risks and Limitations of Goal-Setting Theory 305 Incentive Programs 341 Redesigning Jobs to Stimulate Performance 306 Employee Benefits 341 The Job Characteristics Model 306 Insurance 341 Retirement Benefits 342 Stock Approaches to Modifying Core Job Dimensions 307 Options 342 Other Employee Benefits 342 Reinforcing High-Performance Behavior 308 Understanding the Role of Labor Unions in Today’s Types of Reinforcement 309 Business World 343 Unintended Consequences of Reinforcement 309 Unionization in the United States 344 Motivational Strategies in the New World of Union Organizing and Collective Bargaining 345 Work 310 Organizing Options for the Gig and Creator Economies 346 Beyond Money: Motivating with Meaningful Purpose 310 Thriving in the Digital Enterprise: Workforce Providing Timely and Frequent Feedback 311 Analytics 347 Making It Personal 311 Gamifying for Healthy Competition 312 BEHIND THE SCENES L’Oréal China Uses AI to Drive Addressing Workplace Negativity 312 Diversity 349 Being an Inspiring Leader 313 KEY TERMS 350 Motivating Yourself and Avoiding Burnout 313 TEST YOUR KNOWLEDGE 350 Thriving in the Digital Enterprise: Performance Management EXPAND YOUR KNOWLEDGE 351 Systems 314 PRACTICE YOUR SKILLS 351  Contents 11 Characteristics of Products 384 PART 5 Types of Products 384 Consumer Products 385 Industrial and Commercial Satisfying the Customer: Marketing, Products 385 Sales, and Customer Support 355 The Product Life Cycle 386 Introduction 387 Growth 387 Maturity 387 CHAPTER 12 Decline 387 The New-Product Development Process 388 The Art and Science of Marketing 356 Idea Generation 388 BEHIND THE SCENES Lego: Creating the World’s Top Toy Idea Screening 388 Brand One Brick at a Time 356 Business Analysis 389 INTRODUCTION 357 Prototype Development 389 Test Marketing 390 Marketing in a Changing World 357 Commercialization 390 The Role of Marketing in Society 357 Needs and Wants 357 Exchanges and Product Identities 391 Transactions 357 The Four Utilities 358 Brand Name Selection 391 The Marketing Concept 358 Brand Ownership 391 Packaging 392 Challenges in Contemporary Marketing 360 Labeling 393 Involving the Customer in the Marketing Process 360 Making Data-Driven Decisions and Measuring Marketing ROI 360 Product-Line and Product-Mix Strategies 393 Attribution and ROI 361 Marketing Research 361 Product Lines 393 Marketing with Greater Concern for Ethics and Etiquette 361 Product Mix 394 Marketing as Part of a Sustainable Business Strategy 363 Product Expansion Strategies 394 Creating Satisfying Customer Experiences 363 Product Strategies for International Markets 394 Understanding Today’s Customers 364 Pricing Strategies 397 The Consumer Decision Process 365 Strategic Considerations in Pricing 397 The Organizational Customer Decision Process 366 Cost Structure and Break-Even Analysis 398 Identifying Market Opportunities 368 Pricing Methods 400 Examining the Current Marketing Situation 368 Foundational Pricing Methods 400 Reviewing Performance 368 Evaluating Competition 369 Cost-Based Pricing 400 Value-Based Pricing 400 Examining Internal Strengths and Weaknesses 369 Competition-Based Pricing 400 Analyzing the External Environment 369 Situational Pricing Methods 401 Assessing Opportunities and Setting Objectives 369 Algorithmic Pricing 401 Life-Cycle Pricing 402 Loss-Leader Pricing 402 Auctions and Participative Crafting a Marketing Strategy 370 Pricing 402 Free and Freemium Pricing 402 Dividing Markets into Segments 370 Subscription Pricing 403 Choosing Your Target Markets 371 Price Adjustment Tactics 403 Staking out a Position in Your Target Markets 372 Thriving in the Digital Enterprise: AR, VR, and the The Marketing Mix 373 Products 373 Metaverse 404 Pricing 374 Augmented Reality 404 Distribution 374 Virtual Reality 405 Customer Communication 375 The Metaverse 405 Thriving in the Digital Enterprise: Marketing Analytics 376 BEHIND THE SCENES OXO Gets a Handle on Universal Major Goals of Marketing Analytics 376 Design 407 Data Sources for Marketing Analytics 378 KEY TERMS 408 BEHIND THE SCENES Lego Stacks Billions of Bricks to TEST YOUR KNOWLEDGE 409 Become the World’s Most Valuable Toy Brand 378 EXPAND YOUR KNOWLEDGE 409 PRACTICE YOUR SKILLS 410 KEY TERMS 380 TEST YOUR KNOWLEDGE 380 EXPAND YOUR KNOWLEDGE 381 CHAPTER 14 PRACTICE YOUR SKILLS 381 Customer Communication and Product Distribution 412 CHAPTER 13 BEHIND THE SCENES Tata Harper: Pursuing a More Product Management and Pricing Natural Way to Care for Skin 412 Strategies 383 INTRODUCTION 413 BEHIND THE SCENES OXO: Launching a Design Customer Communication: Challenges, Strategies, Revolution with the Humble Vegetable Peeler 383 and Issues 413 INTRODUCTION 384 Establishing Communication Goals 413 12 Contents Defining Customer Messages 414 Major Accounting Rules 451 Assembling the Communication Mix 415 Generally Accepted Accounting Principles (GAAP) 451 Inbound Versus Outbound Marketing 415 Integrated Non-GAAP Metrics 452 Global Reporting Standards 452 Marketing Communications 416 The Power of Sarbanes-Oxley 453 Personalization 416 Fundamental Accounting Concepts 454 Communication Laws and Ethics 417 The Accounting Equation 454 Advertising and Direct Response Marketing 418 Double-Entry Bookkeeping and the Matching Principle 454 Advertising 419 Using Financial Statements: The Balance Sheet 455 Advertising Appeals 419 Advertising Media 421 Understanding Financial Statements 455 Direct Response Marketing 423 Balance Sheet 457 Personal Selling 424 Assets 458 Liabilities 458 Owners’ Equity 459 Contemporary Personal Selling 424 Using Financial Statements: Income and Cash Flow The Personal Selling Process 424 Statements 459 Sales Promotion 426 Income Statement 459 Consumer Promotions 426 Statement of Cash Flows 461 Trade Promotions 427 Analyzing Financial Statements 463 Social Media and Public Relations 428 Trend Analysis 463 Social Media in the Marketing Process 428 Ratio Analysis 463 Marketing Communication Strategies for Social Media 429 Types of Financial Ratios 463 Brand Communities 431 Social Customer Profitability Ratios 463 Liquidity Ratios 463 Activity Care 431 Ratios 465 Leverage, or Debt, Ratios 465 Public Relations 431 Thriving in the Digital Enterprise: Distributed Ledgers and Product Distribution and Marketing Intermediaries 433 Blockchain 466 The Role of Marketing Intermediaries 433 The Not-So-Simple Process of Recording Transactions 466 Wholesaling and Industrial Distribution 434 Rethinking the Ledger 467 Retailing 435 Business Benefits and Applications of Blockchain 467 Retailing’s Role in the Buying Process 435 The Challenging Blockchain in Financial Services 469 Blockchain in Economics of Retailing 435 The Outlook for Retailing: Supply Chain Management 469 Blockchain in Human More Disruption, More Innovation 435 Resources 469 Manufacturers’ Distribution Decisions 437 BEHIND THE SCENES IBM’s Food Trust: Improving Thriving in the Digital Enterprise: AI-Enabled Clarity and Confidence in the World’s Food Marketing 439 Communication and Customer Service 439 Supply 470 Content Development 440 KEY TERMS 471 Marketing Planning and Campaign Management 441 TEST YOUR KNOWLEDGE 472 EXPAND YOUR KNOWLEDGE 472 BEHIND THE SCENES Staking Out a New Position in the PRACTICE YOUR SKILLS 473 Skin Care Market 442 KEY TERMS 443 TEST YOUR KNOWLEDGE 444 CHAPTER 16 EXPAND YOUR KNOWLEDGE 444 PRACTICE YOUR SKILLS 445 Financial Management and Financial Markets 475 BEHIND THE SCENES Building the Roadmap for Black PART 6 Women Tech Founders 475 Managing the Money: Accounting INTRODUCTION 476 and Financial Resources 447 The Role of Financial Management 476 Developing a Financial Plan 477 Monitoring Cash Flow 477 CHAPTER 15 Managing Accounts Receivable and Accounts Payable 478 Financial Information and Accounting Managing Inventory 478 Managing Cash Concepts 448 Reserves 479 The Budgeting Process 479 BEHIND THE SCENES IBM: Accounting for the World’s Budgeting Challenges 480 Types of Budgets 481 Food Supply 448 Financing Alternatives: Factors to Consider 482 INTRODUCTION 449 Debt Financing Versus Equity Financing 482 Understanding Accounting 449 Length of Term 483 What Accountants Do 449 Cost of Capital 483 Private Accountants 450 Risk 483 Interest Rates 483 Opportunity Public Accountants 450 Cost 483  Contents 13 Financing Alternatives: Debt Financing 485 KEY TERMS 497 Short-Term Debt Financing 485 TEST YOUR KNOWLEDGE 498 Credit Cards 486 Trade Credit 486 Secured EXPAND YOUR KNOWLEDGE 499 Loans 486 Unsecured Loans 486 Commercial PRACTICE YOUR SKILLS 499 Paper 486 Factoring 486 Long-Term Debt Financing 487 Appendixes Long-Term Loans 487 Leases 488 Corporate Bonds 488 APPENDIX A Financing Alternatives: Equity 489 Business Law A-1 Venture Capital and Other Private Equity 490 Public Stock Offerings 490 APPENDIX B Financial Markets 491 Risk Management B-1 The Stock Market 491 The Bond Market 492 APPENDIX C The Money Market 492 Information Technology C-1 The Derivatives Market 492 Investment Strategies and Techniques 493 APPENDIX D Establishing Investment Objectives 493 Personal Finance: Getting Set for Life D-1 Learning to Analyze Financial News 494 Creating an Investment Portfolio 494 Glossary G-1 Buying and Selling Securities 494 Thriving in the Digital Enterprise: Smart Contracts 495 Brand, Organization, and Name Index I-1 BEHIND THE SCENES Black Women Talk Tech—and Subject Index I-3 Venture Capital 496 This page is intentionally left blank  New to This Edition From the world-changing impact of the pandemic to the prospect of conducting business in the metaverse to a spark of hope in the union movement, the past several years have been momentous for business. Now in its 10th edition, Business in Action has been comprehen- sively revised to reflect all these changes and to help students prepare for the complexities and expectations of today’s workplace. Preparing Students for a Vastly Changed World of Work The business world that students will enter or reenter upon graduation has changed dramat- ically from just a few years ago. The concepts of remote work and hybrid work models have gone from rarity to mainstream. Leaders find that conventional motivational techniques are no longer as effective as the pandemic gave millions of employees the opportunity to step back and reevaluate their relationship with work. Companies are expected to take a stance on public controversies that continue to divide the population. Virtual reality is spread- ing from the gaming universe and isolated business applications to the intriguing idea of conducting business in the metaverse. The pandemic disrupted supply chains to such an extent that many firms are rethinking their entire operations strategies. The use of artificial intelligence to enhance or replace human activities in business continues to grow. The 10th edition of Business in Action tackles all these issues head-on with extensive updates that help students grasp these important topics. The pandemic helped accelerate the transition to the digital enterprise concept that we introduced in the 9th edition, and this new edition keeps that conversation moving forward with the latest advances in innovative, data-driven business technologies. 15 16 New to This Edition REFLECTING THE FACES AND VOICES OF CONTEMPORARY BUSINESS The past few years have also witnessed a long-overdue reckoning with bias in the workplace, and responsive businesses are rethinking everything from recruiting strategies to executive mentoring programs. In addition to addressing these changes through updated chapter content, the special features and visual presentation of the 10th edition were reimagined so that students can see their cultures and lived experiences reflected in the material. More than half the “Behind the Scenes” case narratives were replaced to highlight a more diverse range of entrepreneurs and executives. More than 70 new photos were added to show the rich diversity of today’s workforces and other stakeholder groups. The Pandemic as a Teaching Opportunity By touching virtually every aspect of business, the pandemic presented a variety of ways to show students how external forces affect business management. The 10th edition explores these learning opportunities in such areas as employee motivation, leadership styles, orga- nizational models, and the design trade-offs that made global supply chains so vulnerable to disruption. Extensive Content Enhancements The 10th edition features numerous major improvements: More than half the “Behind the Scenes” vignette/case study features are new More than 750 new and updated citations reflect the depth of research that went into preparing this new edition The unique “Thriving in the Digital Enterprise” sections were updated to show the latest advances in the digital transformation of business Every chapter was carefully evaluated for currency and then comprehensively revised as needed; the following section emphasizes the depth and extent of these changes  New to This Edition 17 Chapter-by-Chapter Enhancements and Updates Dozens of chapter sections are new, updated, or substantially revised to reflect the latest research and practices in business. Here are the most significant changes and improve- ments, organized by learning objective: Chapter 1: Developing LO3: Recognizing the Multiple Environments of Business: Added an a Business Mindset introduction to the pandemic’s impact on business (this theme is revisited in multiple chapters) LO7: Thriving in the Digital Enterprise: Disruptive Technologies and Digital Transformation: Major updates and additions, including new sections Predicting the Path of Disruptive Innovations and Fine-Tuning Your Personal Hype Detector Chapter 2: Economics, New Behind the Scenes chapter opener and case study on the fintech Money, and Banking company Gig Wage, which is helping companies and workers navigate the financial aspects of the gig economy LO5: Money’s Role in Business: Updated coverage of cryptocurrencies and new coverage of NFTs LO6: Banking Institutions and Services: Numerous edits and new section Shadow Banking LO7: Thriving in the Digital Enterprise: Fintech: Significant updates throughout Chapter 3: The Global LO3: International Trade Organizations: New material on the Marketplace United States–Mexico–Canada trade agreement that replaced NAFTA New Exhibit 3.7 Translation Apps Chapter 4: Business New Behind the Scenes chapter opener and case study on the fashion firm Ethics and Corporate B. Yellowtail, featuring Native American designer Bethany Yellowtail and her Social Responsibility quest to respectfully integrate Indigenous design traditions in contemporary fashion LO1: Ethics in Contemporary Business: Streamlined and updated LO2: Corporate Social Responsibility: New section Taking Sides on Public Issues: Stakeholder Expectations and Company Viewpoints LO4: CSR: The Natural Environment: Business Efforts to Conserve Resources and Reduce Pollution revised to include carbon offsets, carbon markets, and other topics; Sustainability and the Circular Economy adds coverage of the circular economy concept LO5: CSR: Consumers: The Right to Digital Security expanded with more discussion of privacy and the Internet of Behaviors; new section The Right to Equitable Service discusses racial inequalities in financial services and other aspects of consumer fairness LO6: CSR: Employees: Equality in Employment Opportunity has nearly all new material; new section Fair Compensation focuses on minimum wage/ living wage; Working Conditions expanded with discussion related to the pandemic and work-from-home arrangements. LO7: Thriving in the Digital Enterprise: The Ethics of Artificial Intelligence: Human Biases Embedded in AI Systems revised and updated with clearer explanation of how AI systems are trained; Lack of Transparency and Explainability revised to cover the conundrum of explainability in AI systems; The Efforts to Make AI a Force for Good updated with coverage of the uneven distribution of AI resources and talent Chapter 5: Forms of New Behind the Scenes chapter opener and case study on DoorDash’s use Ownership of acquisitions to keep fueling its pandemic-driven growth surge LO4: Corporate Governance: Board of Directors has new material that simplifies and updates the role of boards LO5: Mergers, Acquisitions, and Divestitures: New section Corporate Divestitures discusses corporate spin-offs New Exhibit 5.6 Big Data and Analytics 18 New to This Edition Chapter 6: Entrepreneur- LO5: Financing Options for Small Businesses: New section Corporate ship and Small-Business Sponsors Ownership LO7: Thriving in the Digital Enterprise: Machine Learning and Deep Learning: Reorganized for clearer coverage of the technology and its business applications Chapter 7: Management LO2: The Planning Function: Revised to discuss using the mission statement Roles, Functions, and to guide strategy and incorporating ESG concerns in the values statement Skills LO4: The Leading Function: Developing an Effective Leadership Style updated to discuss value of autocratic leadership during extraordinary circumstances; Coaching and Mentoring expanded to discuss inclusivity issues with mentoring programs; Building a Positive Organizational Culture significantly updated to talk about how social forces and the pandemic have affected organizational culture LO6: Essential Management Skills: Decision-Making Skills added intuition as a decision-making method and discussed its use alongside process-driven decision-making Chapter 8: Organization New Behind the Scenes chapter opener and case study on Indonesian and Teamwork startup Gojek’s growth and organizational structure LO2: Organizing the Workforce: Virtual and Hybrid Teams revised extensively to reflect new hybrid work models LO5: Fostering Teamwork: Team Development has revised discussion of norming to include the possibility of negative behavioral norms LO6: Managing an Unstructured Organization: Updated with current terminology and the shift in perspective among independent workers about financial security Chapter 9: Production New Behind the Scenes chapter opener and case study featuring Fictiv, a Systems digital manufacturing ecosystem now used by several thousand companies LO2: Value Chains and Value Webs: Extending Organizations with Value Webs expanded with new discussion and examples; Offshoring and Reshoring clarified pros and cons of offshoring; added reshoring as a key term; discussed the pandemic’s influence on reshoring decisions LO3: Supply Chain Management: Significantly expanded with more discus- sion of how supply chains work and new coverage of how the pandemic disrupted supply chains and prompted new thinking in the field of supply chain management; The Strategic Role of Supply Chain Management expanded discussion of risk; Supply Chain Systems and Methods expanded discussion of blockchain and AI optimization in supply chains LO4: Production and Operations Management: Lean Systems and Make to Order Manufacturing has new discussion that compares make to inventory with make to order manufacturing LO5: The Unique Challenges of Service Delivery: Location Constraints and Virtual Service Delivery added discussion of virtual/remote service delivery, including future possibilities in the metaverse; Scalability Challenges and Opportunities has new discussion of digital transformations that make it possible to scale services LO6: Product and Process Quality: Strategies for Ensuring Product Qual- ity expanded discussion of statistical process control with pareto charts and the 80/20 rule; expanded discussion of Six Sigma to include cautions about its potential downsides New Exhibit 9.3 Gantt charts Chapter 10: Employee New Behind the Scenes chapter opener and case study featuring Zoom Motivation founder Eric Yuan and his quest to launch a company where people would be excited to come to work LO2: Explaining Employee Choices: Now includes the four-drive theory as one of three contemporary theories that explain employee choice LO6: Motivational Strategies in the New World of Work: Expanded to six strategies; new section Beyond Money: Motivating with Meaningful Purpose reflects the growing emphasis on purpose; Addressing Workplace Negativity expanded with growing incidences of “no jerks” policies and the QuitTok phenomenon on TikTok; expanded Being an Inspiring Leader; Motivating Yourself and Avoiding Burnout expanded to include discussion of burnout  New to This Edition 19 Chapter 11: Human New Behind the Scenes chapter opener and case study featuring L’Oréal Resources Management China’s use of AI solutions to overcome its recruitment challenges LO1: Guiding the Human Side of Business: Contemporary HR Challenges has new discussion of the Great Resignation; Aligning the Workforce with Business Requirements is mostly new material; Creating Safe and Healthy Workplaces is mostly new material; Ensuring Fair Treatment and Equal Oppor- tunity is nearly all new material; Creating a Sustainable Employee Experience is all new material with new focus on the employee experience; The Evolving Role of HR is all new material LO2: Managing a Diverse Workforce: Entire section is mostly new; Diversity Considerations in the Contemporary Workplace extensively updated and expanded to six sections (age; gender and sexual orientation; race and ethnicity; religion; physical, emotional, and cognitive traits; education, economics, and life experience); Diversity, Equity, and Inclusion Initiatives updated LO3: Managing the Employment Life Cycle: Planning for a Company’s Staffing Needs has mostly new material; Forecasting Supply and Demand is all new material that includes coverage of using non-employee workers, who now make up nearly 50 percent of the U.S. workforce; Alternative Work Arrangements has all new material that covers three dimensions of flexibility: place, time, and career path; Hiring Employees has numerous updates including new coverage of quality of hire LO4: Developing and Evaluating Employees: Managing Employee Performance retitled to reflect shift from annual review to continuous, interactive feedback, with new key term employee performance management LO5: Compensating and Supporting Employees: Updated and simplified LO6: Understanding the Role of Labor Unions in Today’s Business World: Nearly all new material, with three major sections: Unionization in the United States (brief history and current state of the union movement), Union Organizing and Collective Bargaining, and Organizing Options for the Gig and Creator Economies LO7: Thriving in the Digital Enterprise: Workforce Analytics: All new material organized by major uses of analytics systems Three new exhibits: 11.1 Contemporary HR Challenges, 11.8 Unionization: Employer and Employee Perspectives, 11.9: Workforce Analytics Chapter 12: The Art and LO2: Challenges in Contemporary Marketing: Making Data-Driven Science of Marketing Decisions and Measuring Marketing ROI was updated with all new material on attribution and marketing ROI; Marketing with Greater Concern for Ethics and Etiquette was revised to clarify separate discussions of ethics and etiquette; nearly all new material LO7: Thriving in the Digital Enterprise: Marketing Analytics: Numerous updates in Major Goals of Marketing Analytics Chapter 13: Product LO3: Product Identities: Expanded the layers of brand meaning Management and Pricing LO5: Pricing Strategies: Expanded discussion of customer perception in Strategies pricing with psychological pricing, reference prices, and MSRP LO6: Pricing Methods: Expanded coverage of algorithmic pricing LO7: Thriving in the Digital Enterprise: AR, VR, and the Metaverse: Nearly all new coverage throughout, including new coverage of the metaverse 2 new exhibits: 13.8 Augmented Reality, 13.9 Toward the Metaverse 20 New to This Edition Chapter 14: Customer LO1: Customer Communication: Challenges, Strategies, and Issues: Communication and New introduction to contemporary challenges; new section The Power of Product Distribution Personalization; several updates to Communication Laws and Ethics LO2: Advertising and Direct Response Marketing: Multiple updates to Advertising and Direct Response Marketing sections LO4: Sales Promotion: Consumer Promotions has updates on experiential marketing and POP displays; Trade Promotions has updates on slotting fees LO5: Social Media and Public Relations: Multiple updates in Social Media in the Marketing Process LO6: Product Distribution and Marketing Intermediaries: The Outlook for Retailing: More Disruption, More Innovation has multiple updates on the future of retailing LO7: Thriving in the Digital Enterprise: AI-Enabled Marketing: All new section 4 new exhibits: 14.4 Emotional Advertising Appeals, 14.8 Using Social Media to Deliver Value-Added Content, 14.9 Media Relations, 14.12 AI Applications in Marketing Chapter 15: Financial New Behind the Scenes chapter opener and case study featuring IBM’s Information and Food Trust blockchain and its impact on the global food supply chain Accounting Concepts LO2: Major Accounting Rules: Updates to non-GAAP metrics and GAAP-IFRS convergence; streamlined discussion of Sarbanes-Oxley Chapter 16: Financial New Behind the Scenes chapter opener and case study showcasing how Management and the networking and training initiative Black Women Talk Tech is working to Financial Markets close the venture capital funding gap for Black women company founders LO4: Financing Alternatives: Equity: Simplified the coverage in Venture Capital and Other Private Equity; Public Stock Offerings adds coverage of special purpose acquisition companies (SPACs) to reflect their growing role in IPOs Appendix A: Business 2 new exhibits: A.2 Elements of a Contract, A.3 Categories of Intellectual Law Property Appendix B: Risk Added discussion of ransomware, pandemics, and climate change effects to Management the types of risks that businesses must assess and manage Replaced section on health insurance with simpler overview and updated coverage New exhibit B.3 Cost Components of Health Insurance Appendix C: Information Replaced Types of Information Systems with Enterprise Information Systems, Technology providing all new material focused on modern modular enterprise systems Updated Ensuring Security and Privacy with discussion of social engineering and deepfakes in phishing attacks Replaced coverage in Monitoring Productivity and Misuse Appendix D: Personal Cut text by roughly 15 percent; replaced most of Life Stage 1: Getting Finance: Getting Set for Through College with updated advice Life New exhibit D.6 Investment Simulators  Solving Learning and Teaching Challenges High-Efficiency, Objective-Driven Learning. Every chapter is divided into seven concise segments, each focused on its own learning objective and offering a comprehensive check- point to help students review and reinforce what they’ve learned. With this approach, each learning objective segment is treated as a mini-chapter within the chapter, letting students pace their intake and memorization, rather than trying to review an entire chapter at once. Interpreting and Summarizing the Changes in Contemporary Business. A major point of emphasis in our revision efforts is developing thoughtful interpretations and summaries that highlight the forces at play while avoiding getting bogged down in details. Visual Learning for a New Generation of Students. Business in Action takes efficiency and student-friendly design to an entirely new level with nearly 120 Exhibits That Teach. With these unique diagrams, infographics, and other exhibits, the emphasis throughout is on productive learning—on helping students minimize the time they spend reading while maximizing their learning outcome. Vignettes and Case Studies That Bring Business Concepts to Life. Every chapter is bookended with a vignette/case study pair that help students grasp the principles covered in the chapter. The chapter-opening vignette introduces a company faced with a major strategic challenge or opportunity and encourages students to imagine how they would address that challenge. The chapter-closing case study describes the strategic choices the company’s leaders made, including how they applied the concepts students just learned in the chapter. Three critical thinking questions require students to apply the concepts covered in the text. The 16 narratives present a mix of companies that students probably know, including Airbnb, L’Oréal, Zoom, Lego, and DoorDash, and up-and-coming innovators such as Affectiva, Gig Wage, Fictiv, and B. Yellowtail. BEHIND THE SCENES L’Oréal China’s Recruitment Problem and innovation and research center. It also offers a very presti- gious internship and graduate trainee scheme. In 2015, when Jacob Bonk was serving as a recruitment director at L’Oréal China, the scheme received 33,000 for 70 places. This was a significant challenge for his team. China produces around seven million graduates a year, and Lou Linwei/Alamy Stock Photo L’Oréal had recognized by then that its reliance on CV screening was not delivering the candidates it wanted. Reviewing so many applications is time consuming, labor-intensive, and expensive, so L’Oréal China would limit their search to the graduates of most pres- tigious top-tier universities. But L’Oréal had also adopted a global mission of achieving more diversity, and this was clearly misaligned with its hiring practices, which amounted to excluding a huge pro- portion of potential applicants from diverse socio-economic back- L’Oréal China must sift through a flood of job applications to find the grounds. Moreover, as Bonk noted, when a company hires, it looks right people to hire. for candidates who match the company’s culture while possessing the right competencies, and having studied at a certain university is L’Oréal, the globally known French cosmetics giant, operates in hardly likely to guarantee those traits. What L’Oréal sought instead 130 countries. In 2022, it employed over 88,000 people world- from university candidates was simply raw talent. wide, and as a global brand, the company is an attractive place L’Oréal has been ranked as one of China’s most attractive BEHIND THE SCENES L’Oréal China Uses AI to Drive Diversity An excess of applications is an issue for many large companies. as the technology was available 24/7, application processing The growth of online advertising and the digitalization of the times also shortened significantly, making the recruitment pro- application process means that applying for jobs has become cess much more efficient. cheaper and easier, with the result that many large compa- L’Oréal is not alone in using AI in recruitment and selection. In nies have been overwhelmed by applications. The process of 2019, as much as 88 percent of companies around the world used meticulously going through each of them is a hugely time- and AI in some capacity in their HR practices; 55 percent of this imple- resource-consuming process. What could an HR team do? mentation was in China. Nevertheless, like any innovation, the risks Clearly reducing the pool of candidates to top-tier univer- of using AI technology in recruitment must be considered before it sity students was not fair or consistent with L’Oréal’s pursuit of is implemented. Although L’Oréal appears to have been successful diversity. In China, as in many other countries, the education in using AI to extend its pool of applicants, thereby improving diver- system may be stacked against a candidate who may be bright sity, many have raised concerns about whether implementation of but comes from a less-privileged background. As Niilesh Bhoite, AI can really lead to less biased outcomes. For instance, software L’Oréal’s Chief Digital Officer of Global Human Resources has like Seedlink typically works by comparing an applicant’s data to that of top performers in a company; while this may have increased 21  Developing Employability Skills With its comprehensive coverage of contemporary business topics and a broad array of student activities, Business in Action helps students develop the skills that experts say are vital for success in the 21st-century workplace: Communication. The Sharpening Your Communication Skills activity in every chapter is an opportunity to practice communication skills while exploring real-life business issues and challenges. Critical thinking. In many assignments and activities, students need to define and solve problems and make decisions or form judgments. Collaboration. The Building Your Team Skills activity in each chapter provides students with multiple opportunities to work with classmates on reports, presentations, and other projects. Knowledge application and analysis. The five diverse Practice Your Skills activities in every chapter let students put their developing business skills to work right away. Business ethics and social responsibility. Ethical choices are stressed from the beginning of the book, and the Resolving Ethical Dilemmas activity in every chapter encourages students to be mindful of the ethical implications that they could encounter in similar projects on the job. Information technology skills. Projects and activities in every chapter help students build skills with technology, and the Intelligent Business Technology research activity in each chapter encourages students to explore the major tools in use today. Data literacy. Many of the activities require students to develop data literacy skills, including the ability to access, assess, interpret, manipulate, summarize, and communicate data. 22  Instructor Teaching Resources Detailed information and resources are available at https://www.pearson.com/ en-gb.html. This program comes with the following teaching resources: Supplements available to instructors at www.pearson.com Features of the Supplement Instructor’s Manual Chapter summary authored by Maureen Steddin Chapter outline Teaching notes Suggested classroom exercises Test Your Knowledge answers Expand Your Knowledge answers Practice Your Skills answers Test Bank Over 1,500 multiple-choice, true/false, and essay questions authored by Susan Schanne from Answer explanations Eastern Michigan University Keyed by learning objective Classified according to difficulty level Classified according to learning modality: conceptual, application, critical thinking, or synthesis Learning outcomes identified AACSB learning standard identified (Written and oral communication, Ethical understanding and reasoning, Analytical thinking, Diverse and multicultural work environments, Reflective thinking, Application of knowledge, Interpersonal relations and teamwork, and Integration of real-world business experiences) Computerized TestGen TestGen allows instructors to customize, save, and generate classroom tests. edit, add, or delete questions from the Test Item Files. analyze test results. organize a database of tests and student results. PowerPoints Slides include all the graphs, and tables, and equations in the authored by Jeffrey Anderson textbook. PowerPoints meet accessibility standards for students from Ohio University with disabilities. Features include: Keyboard and screen reader access Alternative text for images High contrast between background and foreground colors 23  About the Authors Courtland L. Bovée and John V. Thill have been leading textbook authors for more than two decades, introducing millions of students to the fields of business and business communication. Their award-winning texts are distinguished by proven pedagogical features, extensive selections of contemporary case studies, hundreds of real-life examples, engaging writing, and thorough research. Each new edition reflects the authors’ commit- ment to continuous refinement and improvement, particularly in terms of modeling the latest practices in business and the use of technology. Professor Bovée has 22 years of teaching experience at Grossmont College in San Diego, where he has received teaching honors and was accorded that institution’s C. Allen Paul Distinguished Chair. Mr. Thill is a prominent communications consultant who has worked with organizations ranging from Fortune 500 multinationals to entrepreneurial start-ups. He formerly held positions with Pacific Bell and Texaco. Courtland Bovée and John Thill were recently awarded proclamations from the Governor of Massachusetts for their lifelong contributions to education and for their commitment to Courtland L. Bovée the summer youth baseball program that is sponsored by the Boston Red Sox. John V. Thill 24  Acknowledgments The 10th edition of Business in Action reflects the professional experience of a large team of contributors and advisers. A very special acknowledgment goes to George Dovel, whose superb writing and editing skills, distinguished background, and wealth of business experi- ence assured this project of clarity and completeness. The supplements package for Business in Action has benefited from the able contributions of numerous individuals. We would like to express our thanks to them for creating a superb set of instructional supplements. We want to extend our warmest appreciation to the devoted professionals at Pearson Higher Education for their commitment to producing high-value, student-focused texts, including Andrew Gilfillan, Vice President, Product Management; Krista Mansbach, Director, Product Management; Kathryn Brightney, Content Analyst; Simon Jacobs, Commercial Product Manager; Bhanuprakash Sherla, Content Producer; Sugandh Juneja, Manager, Content Production; Melissa Feimer, Manager, Content Production; Ashley Santora, Director, Production and Digital Studio, Business and Economics; and Nayke Heine, Senior Higher Ed Product Marketer. We are also grateful to Kathy Smith and Nicole Suddeth of Straive. Courtland L. Bovée John V. Thill Global Edition Acknowledgments Pearson would like to thank the following people for their work on the Global Edition: CONTRIBUTORS Maria Adamson, Queen Mary University of London Jon Sutherland REVIEWERS Kate Barnett-Richards, CU London Michelle Kehoe, National College of Ireland Swapna Koshy 25  Prologue: Using This Course to Launch Your Business Career Using This Course to Launch Your Business Career Have you already chosen a business profession or field of concentration? If so, this course will help you see how