Pride/Hughes/Kapoor
Business, 11th Edition
ISBN: 053847808X
Transition Guide from Pride/Hughes/Kapoor’s Business 10e to 11e
New coverage in this edition closely examines cutting-edge topics like the impact of the economic crisis and political
climate on business, green and socially responsible business, and sustainability. In addition to updating and revitalizing
the content, the authors have redesigned the entire textbook program to highlight its strengths as the most accessible
and student friendly program on the market.
The theme of success is highlighted throughout this new edition to give students an insight into best practices for
attaining business and career goals.
All Inside Business vignettes are new to this edition, including the Return to Inside Business feature which helps students
relate chapter content to a real-world business situation. Topics highlight the factors that have led to business success,
including GE’s world renowned training and development program, Amazon’s marketing of the Kindle, Ford’s financial
strength in the midst of the economic crisis, Apple’s successful marketing of the iPhone and iPad, and Panera’s social
media campaign.
Each chapter has been thoroughly updated to provide the most recent data and examples. New topics include the most
recent economic crisis and political developments, such as the controversy over off-shore drilling and the BP oil spill,
Toyota’s quality crisis, the impact of high unemployment, the state of manufacturing in the U.S., the continuing growth
of the service sector, merger activity, productivity concerns, and technology developments including the growing
importance of computer apps for cell phones and iPods, social networking, computer backup issues, and green IT.
All themed inserts are new in the 11th edition and include: Career Success, Entrepreneurial Success, Going for Success,
and Ethical Challenges and Successful Solutions. Sustaining the Planet inserts have been retained and updated, and allnew Spotlight features present factual data in an easy to understand, illustrated format.
All videos and video cases are new in this edition and feature companies such as E*Trade, L.L. Bean, Whirlpool, and
Chase Bank, among others.
A completely new ongoing video case featured at the end of each Part provides students with an insider’s perspective on
Graeter’s, a specialty ice cream retailer. This firsthand look into one business’s day-to-day operations allows students to
gain a better understanding of the real challenges business owners face. Students can also apply what they learn by
analyzing problems, solutions, and actions taken at the company.
In addition to the robust online support materials already provided for the package, this edition includes CourseMate, a
premium Web site program that allows instructors to track student performance and progress. New student study tools
include interactive video exercises and completely new interactive quizzes that hyperlink to the student ebook for
content reinforcement. CengageNow has also been significantly improved with the addition of brand new exercises and
homework tagged according to AACSB guidelines and Bloom’s Taxonomy.
New in Chapter 1: Exploring the World of Business and Economics
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A new Inside Business feature describes the history of Amazon and how it developed and marketed the Kindle.
Current economic problems and how they affect both businesses and consumers are included in the introductory
paragraph for this chapter.
New URL information for the student Web site is provided in the first section of Chapter 1.
A new Figure 1.1 shows how attaining more education can increase annual salary amounts for the average worker.
The Jump-Starting Your Career feature has been deleted.
A new Career Success feature describes how employees can use online networking to click their career into high
gear.
New information on the characteristics that employers look for when hiring employees is presented in the section
“To Be a Successful Employee.”
A new section entitled “To Improve Your Management Skills” is included in the first part of Chapter 1.
New examples of companies (Lehman Brothers, AIG, and mortgage lenders Freddie Mac and Fannie Mae) that
fudged their sales and profit amounts are included in “Business Profit” section.
New material from the General Mills Social Responsibility Report is included in the section “Business Profit.”
A new Entrepreneurial Success feature “Rob Kalin’s Etsy Success”describes how this entrepreneur built a successful
small business by marketing hand-crafted items on the Web.
The Entrepreneurial Challenge feature has been deleted.
Current data for gross domestic product and real gross domestic product are included in the section “Important
Economic Indicators that Measure a Nation’s Economy.”
Figure 1.6 has been revised to reflect the current data for gross domestic product and real gross domestic product
presented in the text.
New information on the unemployment rate and how it affects the economy and consumers is included in the
section “Important Economic Indicators that Measure a Nation’s Economy.”
A new Spotlight feature shows historical and 2010 unemployment rates.
New information about the amount of the national debt is provided in the section “The Business Cycle.”
New updated price information for a bushel of wheat is supplied in the section “The Equilibrium or Market Price.”
Figure 1.7 has been revised to reflect the current price of wheat presented in the chapter content.
The definition of monopoly has been revised
Figure 1.8 has been revised to include the green movement, economic crisis, iPad, and netbooks.
The material in the section Business Development in the 1900s has been revised and shortened.
More information about the service economy is included in the section “A New Century: 2000 and Beyond.”
The Business of Green feature has been deleted.
A new Sustaining the Planet feature “How the Sun and Earth Help Frito Lay” is included in the section “The Current
Business Environment.”
A revised list of questions that business must answer in the future is included in the section “The Challenges Ahead.”
A new Return to Inside Business feature about Amazon is provided at the end of the chapter.
A new video case highlighting Nederlander Concerts focuses on the exciting business of live entertainment.
A new Case 1.2 describes how Caterpillar operates in a very competitive industry.
New in Chapter 2: Being Ethical ad Socially Responsible
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A new Inside Business feature describes how Divine Chocolate has cooked up an effective recipe for sales success
and social responsibility. The company has not only made a name for itself in the world of premium chocolate, it has
improved the lives of thousands of cocoa farmers throughout Ghana. The Return to Inside Business discuses how
Divine chocolate makes a difference in the everyday lives of cocoa farmers who are part-owners of Ghana's Kuapa
Kokoo cooperative.
A new discussion of John and Timothy Rigas' prison terms and how John Rigas' request for a Presidential pardon was
not considered by George W. Bush.
A new addition of Bernard Madoff's conviction and how he defrauded his clients.
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An update on Mr. Kozlowski, who is serving up to 25 years in prison and that in 2009, the U.S. Supreme Court denied
his petition for a judicial review.
A new Ethical Challenges and Successful Solutions box is included on “Green or Green Washing.” To earn and retain
the trust of their customer, companies must be as transparent as possible about how green their products and
processes really are.
An update on Jane Turner, the famous whistle-blower. In 2008, the U.S. government was ordered to pay $1 million
in legal fees to Turner.
An update on General Mills Foundation. In 2009, the Foundation contributed nearly $21 million in grants to its
communities.
An update on Michael and Susan Dell Foundation.
IBM hosting first-ever Smarter Planet University Jam in 2009.
A new discussion on GE's efforts to making communities around the world stronger. The GE foundation reallocating over $20 million in 2009 to give greater support for organizations providing basic needs, such as food,
clothing, and shelter.
A new discussion on how Charles Schwab Foundation matches employees’ gifts that go to education-related and
health and human services charities.
A new discussion on more than 24,900 ExxonMobil employees and retirees who have donated more than 690,000
volunteer hours to 5,350 charitable organizations in 30 countries.
A new discussion on President Obama's call to action for all Americans to participate in the annual national day of
service and AT&T's response.
A new discussion on how the Merck Company Foundation has contributed more than $560 million to develop and
initiate programs that help improve the health and well-being of people around the world.
A new Sustaining the Planet feature discusses what major companies and non-profit groups are doing to preserve
the environment.
Table 2.4 has been revised and Credit Card Accountability, Responsibility and Disclosure Act of 2009 is added.
A new discussion of the Wall Street Reform and Consumer Protection Act of 2009, sponsored by Congressman
Barney Frank. Also, the 2009 list of proposed legislation to protect consumers and investors.
Completely updated Figure 2.3 shows the median household incomes of Asian, White, Hispanic and AfricanAmerican workers in 2008.
Revised and updated Figure 2.4, “Relative Earnings of Male and Female Workers in 2008.”
Table 2.5: Added American Recovery and Reinvestment Act to the Summary of major environmental laws.
The Business of Green feature has been deleted.
A new Spotlight: Recession and Responsibility? Do they go hand in hand?
Previous edition Sustaining the Planet feature has been deleted.
New Entrepreneurial Success box discuses how Yale University undergraduates are recycling electronic devices.
New Return to Inside Business.
New Video Case about Scholfield Honda describes how alternative energy "green" vehicles are making their way to
the Midwest. The owner, Mr. Scholfield, has even opened a "Honda Green Zone" conference room on the premises.
New end-of-chapter Case 2.2 discusses how Belu Water aims to change the world.
New in Chapter 3: Being Ethical and Socially Responsible
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A new Inside Business feature describes how Samsung Electronics has grown into an international corporation
offering everything from cameras and computers to cell phones and semiconductors, even dishwashers and disk
drives.
An updated Spotlight shows that the U.S. balance of payments has consistently run large deficits since 1992.
New, revised paragraph describes our exports and imports in 2009.
Figure 3.2, “U.S.-International Trade in Goods and Services” is updated with 2008 and 2009 data.
New antidumping duties example about China's exports of steel products to the United States.
All new discussion and up-to-date examples on the extent of international business and the world economic outlook
for 2010 and 2011.
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Ethics Matters feature from previous edition has been deleted.
New discussion on the economic outlook for Asia and Emerging Europe, with 2010 data.
New material on how U.S. exports supported more than 10.3 million jobs in 2008.
Table 3.1 shows how economic growth is being led by developing countries and emerging markets.
Table 3.2, “Value of U.S. Merchandise Exports and Imports” is updated to reflect 2009 data.
Figure 3.3, “U.S. Goods Export and Import Shares” has been updated with 2009 data.
New Figure 3.4 shows that 153 World Trade Organization (WTO) member nations account for over 97 percent of
the world's merchandise trade.
A new section on “World Trade and Global Economic Crisis” has been added.
An update on the Central American Free Trade Agreement (CAFTA) is incorporated in the section "International
Economic Organizations Working to Foster Trade."
A new feature Going for Success describes how LEGO builds on licensing for global growth.
Going Global feature from previous edition is deleted.
Table 3.3,"The Ten Largest Foreign and U.S. Multinational Corporations" is revised to reflect 2009 data.
A new Career Success feature emphasizes the importance of volunteering abroad.
A new Sustaining the Planet feature describes how the Ex-Im Bank promotes sustainability through its export
financing program.
New material is added in the Export-Import Bank of the United States discussion.
The discussion on the World Bank has been expanded to better reflect its goals and efforts around the world.
Entrepreneurial Challenge feature from the previous edition is deleted.
International Monetary Fund discussion is expanded and the bank's main goals are now listed.
Return to Inside Business describes how Samsung, from its modest roots as a food exporter, has grown into a worldclass powerhouse that exports over $50 billion worth of products annually.
New Video Case 3.1 on Evo. Based in Seattle, Evo is an online retailer of skiing, wake boarding, skateboarding and
snowboarding equipment and clothing with $10 million in annual sales. Despite management's conviction that its
domestic business probably brings a better return on investment for now than its global operations, Evo can still
proudly call itself a multinational firm.
New Case 3.2 discusses how McDonald's serves 60 million customers everyday in its restaurants worldwide.
New in Chapter 4: Choosing a Form of Business Ownership
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A new Inside Business case describes how Aaron Patzer developed the concept and obtained the financing needed
to start Mint.com—a Web site devoted to helping people manage their money.
New information about why Mint.com chose the corporate form of ownership is presented in the introductory
paragraph for the chapter.
Current statistics for the number of sole proprietorships, partnerships, and corporations are included in the chapter
content.
Figure 4.1 has been revised to illustrate the current number of sole proprietorships, partnerships, and corporations.
Current statistics for sales revenues earned by sole proprietorships, partnerships, and corporations are included in
the chapter content.
Figure 4.2 has been revised to illustrate the sales revenues earned by sole proprietorships, partnerships, and
corporations.
A new Entrepreneurial Success feature: “Student Business Incubators” describes how colleges are helping
entrepreneurs start successful small businesses.
A new Spotlight feature illustrates how the majority of employees work for firms that have 100 or fewer employees.
Information about Procter & Gamble’s social responsibility efforts is provided in the section “Corporations.”
Based on 2010 revenues and profits amounts, Table 4.1 has been revised to include the seven largest corporations in
the United States.
The Entrepreneurial Challenge feature from the previous edition has been deleted.
The section on government-owned corporations has been deleted.
More information on how to form a not-for-profit corporation and why more people are choosing to work for a notfor-profit corporation is included in this chapter.
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Specific examples of why people chose to work in a not-for-profit corporation are provided in the new Career
Success feature.
A new example describes how Bank of America, J.P. Morgan Chase, and Goldman Sachs formed a syndicate to sell
shares of stock in Symetra is provided in the section “Syndicates.”
The Ethics Matters feature has been deleted.
The new Sustaining the Planet feature describes the steps businesses are taking to achieve a more sustainable
planet.
New examples of horizontal, vertical, and conglomerate mergers are included in the section “Growth Through
Mergers and Acquisitions.”
The Jump-Starting Your Career feature has been deleted.
Figure 4.5 has been revised to provide current examples of horizontal, vertical, and conglomerate mergers.
A new section “Merger and Acquisition Trends During an Economic Crisis” describes how merger activity has been
affected by the economic crisis.
A new Return to Inside Business feature about Mint.com is provided at the end of the chapter.
A new video case about Annie’s Homegrown Foods describes how an entrepreneur developed a company that is
now recognized for its natural and healthy foods products.
A new Case 4.2 traces the development of Berkshire Hathaway into a large, successful, and well-respected
company.
New in Chapter 5: Small Business, Entrepreneurship, and Franchises
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A new Inside Business feature describes how Five Guys Burgers and Fries has a simple recipe for success in a
competitive fast food restaurant industry. To expand more quickly, Five Guys started franchising and within 18
months, Five Guys had 300 franchised restaurants. The Return to Inside Business discusses Five Guys' plans to build
on its current franchising success by expanding in the European market.
A revised Table 5.1 shows SBA's "smallness" guidelines for the various industries.
An updated section for “The Small Business Sector.”
The Business of Green feature has been deleted.
An updated section for “Women as Small Business Owners.”
An updated section for “Why Some Entrepreneurs and Small Businesses Fail.”
A revised Table 5.3 shows the latest statistics on U.S. Business Start-ups, Closures, and Bankruptcies.
A new example of Waymon Armstrong, the owner of a small business that uses computer simulations to help
government and other clients prepare for and respond to natural disasters and medical emergencies. How Waymon
Armstrong is a perfect example of the innovation; inspiration and determination.
Added new material on how the business cycle is an important factor in the creation or loss of jobs during the 20082009 recession.
Entrepreneurial Challenge feature has been deleted.
A new Sustaining the Planet feature provides tips from the Environmental Protection Agency.
The Spotlight for Small Business Bankruptcies has been deleted.
A new Entrepreneurial Success feature how successful entrepreneurs are always perfecting their "elevator pitch," a
quick, to-the-point summary of the business proposition.
Some of the most requested courses from the Small Business Training Network are added in the “Management
Courses and Workshops” section.
A new Going for Success feature describes how Tony Clarke is building his microbrewery business with the help from
SCORE volunteers.
The section on SCORE is updated with the 2009 data.
New material on the SBA's Online Women's Center is added in the “Help for Minority-Owned Small Business”
section.
In the “SBA Financial Assistance” section, new material is included on the Deepwater BP spill and how SBA is
offering economic injury loans to fishing and fishing dependent small businesses.
A revised section on the Small Business Investment Companies using 2009 data.
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A new B-head section on the “State of Small Business During the Recession” and Federal Government's pledge to
help small businesses.
A new discussion on the April 20, 2010 Deepwater BP oil spill that shut down commercial and recreational fishing
along the coasts.
Going Global feature has been deleted.
Table 5.7, “Entrepreneur's Top Ten Franchises” has been updated with the 2010 data.
A new example of Daniel J. Nanigian, President of Nanmac Corporation, that manufactures temperature sensors
used in industrial applications. The company is making a strong presence in China, and is expanding in other
markets including Latin America, Singapore and Russia.
A new video spotlighting Murray's Cheese describes how people come from all over to sample Murray's cheeses and
how the company is selling its products to Kroger supermarkets.
Revised end-of-chapter Case 5.2 discusses how Tumbleweed Tiny House Company builds and provides plans for
several different models and sizes of tiny houses.
New in Chapter 6: Understanding the Management Process
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The learning objectives for this chapter have been revised.
A new Inside Business feature describes the reason behind Procter & Gamble’s success: excellent management.
The definition of “strategic planning” has been revised, and the term is now discussed more in depth.
SWOT Analysis is now discussed in this chapter. This discussion includes the addition of the key terms “SWOT
Analysis” and “core competencies,” as well as Figure 6.3, “Elements and Examples of SWOT Analysis.”
A new Going for Success feature stresses the importance of having a contingency plan.
A new Sustaining the Planet feature highlights Walmart’s way of becoming a leader in sustainability.
The section discussing key management skills has been thoroughly revised. The new skills discussed are: conceptual
skills, analytic skills, interpersonal skills, technical skills, and communication skills. These skills are further illustrated
with the addition of Figure 6.8, “Key Skills of Successful Managers.”
The section in the previous edition that discussed managerial roles has been deleted. Information in this section
was used to create aforementioned section on skills.
The section discussing the “Styles of Leadership” has been revised: the new styles are autocratic, participative, and
entrepreneurial leadership. The following section, “Which Leadership Style Is Best,” was therefore also revised to
reflect the new styles.
A new Table 6.1, “Tips for Successful Leadership,” has been added to this chapter.
A new Spotlight feature shows the top-ranked traits of successful female leaders.
A new Ethics feature questions whether social media use by workers has helped their employers or created more
problems for them.
A discussion of the new key term benchmarking has been added to the total quality management section.
The “What It Takes to Become a Successful Manager Today” section from the previous edition has been removed.
The end-of-chapter summary and review questions have been revised to reflect the changed learning objectives and
chapter sections.
A new video case highlighting L.L. Bean focuses on the ways the company uses its core values to direct its
management strategy.
Case 6.2, which discusses DocuSign’s decision-making, has been revised.
New in Chapter 7: Creating a Flexible Organization
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The learning objectives for this chapter have been revised.
A new Inside Business feature discusses how Unilever restructured using mobile technology.
A new Going for Success feature discusses how Google changed its corporate culture in order to stay ahead of the
ever-changing business environment.
A new Career Success feature discusses the eco-friendly career paths that exist.
The “Chain of Command: Line and Staff Management” section from the previous edition has been revised and
moved the section discussing organizational structures as new key terms “line structure” and “line-and-staff
structure.”
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The section discussing the “bureaucratic structure” has been deleted.
A new Spotlight feature shows the top barriers that women encounter in the workplace.
A new Sustaining the Planet feature emphasizes General Electric’s integration of sustainability into a part of its
corporate culture.
The sections on “Intrapreneurship” and “Coordination Techniques” have been deleted.
The end-of-chapter summary and review questions have been revised to reflect the changed learning objectives and
chapter sections.
A new video case on Numi Organic Tea focuses on the importance of teams and organizational culture.
A new Case 7.2 discusses how HP remains agile and responsive in the constantly changing business environment.
New in Chapter 8: Producing Quality Goods and Services
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A new Inside Business case showcases how Nestle manufactures quality products around the globe.
Additional information about Nestlé’s manufacturing processes is provided in the introductory paragraph for this
chapter.
New information about the status of manufacturing in the United States is provided in the section “How American
Manufacturers Compete in the Global Marketplace.”
A new Sustaining the Planet feature describes the type of information contained on the Sustainable Manufacturing
Clearinghouse Web site.
A new Ethical Challenges and Successful Solutions feature describes the problems associated with Ecotourism and
solutions that minimize the damage to environmentally-sensitive areas.
A new example describes how Maggiano’s Little Italy restaurants improves customer services is provided in the
section “The Increasing Importance of Services.”
Apple’s iPad and Amazon’s Kindle are new examples of new products in the section “Where Do New Products and
Services Come From?”
The Business of Green feature from the previous edition has been deleted.
Updated information for the 3M Company includes the current number of researchers and the amount of money
the company invested in research and development over the last five years.
A new Spotlight feature provides information about the percentage of the U.S. workforce employed in
manufacturing industries.
The Ethics Matters feature from the previous edition has been deleted.
Additional examples of companies (Honeywell Federal Manufacturing and Technologies and Cargill Corn Milling
North America) that have won the Malcolm Baldrige award are included in the section “Quality Control.”
The Entrepreneurial Challenge feature from the previous edition has been deleted.
The section “World Quality Standards: ISO 9000 and ISO 14000” has been revised to provide more information
about the importance of standardization.
The Entrepreneurial Success feature describes how small manufactures achieve big productivity gains.
The section “Productivity Trends” has been heavily revised with updated statistics.
While many executives, managers, and business owners often cite government regulations as a reason for poor
productivity, a new example suggests that more regulation of off-shore drilling and BP might have prevented or at
least reduced the effects of the oil spill in the gulf.
A new Return to Inside Business about Nestle is provided at the end of the chapter.
A new video case about Burton’s Snowboards focuses on the importance of quality.
Case 8.2, “Toyota’s Quality Crisis” has been heavily revised to reflect the automakers quality problems and efforts
to correct serious safety problems.
New in Chapter 9: Attracting and Retaining the Best Employees
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A new Inside Business feature discusses why Wegmans has “a propensity to serve.”
A new Sustaining the Planet feature highlights the Green Collar Association’s Web site as a source of information
about careers in sustainability.
The percentages of the workforce that are female, African American, and Hispanic have been updated.
A new Career Success feature discusses what a career coach can do for you.
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A new Spotlight feature shows the top-ranked answers to the question “when should a job candidate as about
salary?”
A new Going for Success feature discusses how Salesforce.com uses social networking to recruit.
A new Table 9.2, “Interview Questions that May be Difficult to Answer,” has been added.
Information regarding the national minimum wage level has been updated.
The average cost of benefits from an employee’s total compensation has been updated.
A new paragraph has been written about some of the most unusual benefits offered by some of Fortune’s “Best
Companies to Work For” annual list has been revised to reflect the most recent listing of companies.
Information regarding the new healthcare bill, the Affordable Care Act, has been added to Table 9.3, “Federal
Legislation Affecting Human Resources Management.”
Video Case 9.1 about Whirlpool Corporation shows that a diverse workforce can be a powerful advantage.
Case 9.2, which discusses Domino’s Pizza, has been revised.
New in Chapter 10: Motivating and Satisfying Employees and Teams
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A new Inside Business feature discusses how General Electric motivates its employees.
A new Table 10.1, “The Ten Best Companies to Work For,” has been added referencing Fortune’s most recent
annual listing.
A new Sustaining the Planet feature provides information about eBay’s “Green Team.”
A new Spotlight feature shows the most common motivation techniques used by employers.
A new Entrepreneurial Success feature discusses how Bonobos motivates its employees.
The top company for telecommuting has been updated to Deloitte.
The definition of the key term “team” has been revised.
A new Going for Success feature focuses on a recent trend of companies giving their employees paid time off to
volunteer.
Video Case 10.1 discusses the ways in which L.L. Bean’s employees are motivated by sharing a sense of ownership in
the company.
Case 10.2, which discusses Google’s great benefits, has been revised.
New in Chapter 11: Enhancing Union-Management Relations
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A new Inside Business feature discusses Southwest Airlines’ struggles with its pilot’s union.
Figure 11.1, “Historical Overview of Unions,” has been updated.
A new Going for Success feature focuses on players’ unions in Baseball, Basketball, Football, and Hockey.
The percentage of U.S. workers who belong to a union, as well as the total number of members in the AFL-CIO,
USW, and UAW have been updated.
A new Spotlight feature shows that for the first time, there are more union members in government jobs than in
private companies.
The percentages of health care premiums paid by union workers versus nonunion workers have been updated.
Information regarding the NYU graduate students’ attempts to form a union has been updated.
Information regarding the minimum wage has been updated.
A new Sustaining the Planet feature describes how Sierra Club is promoting green jobs by working with legislators.
The number of strikes in 2009 has updated the 2007 statistics from the earlier edition.
A new Ethics feature answers the question “How much say should unions have?”
Information regarding the Federal Mediation and Conciliation Service’s negotiations and success rates has been
updated.
Video Case 11.1 focuses on the Writers Guild of America (WGA), a longstanding and potent force in the media
business.
A new Case 11.2 discusses what happens when unionized nurses and hospital administrators don’t agree.
New in Chapter 12: Building Customer Relationships Through Effective Marketing
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A new Inside Business feature discusses how Apple puts customers’ experiences first.
The definition of “customer lifetime value” has been revised.
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A new Sustaining the Planet feature highlights California’s recycle store.
A new Ethics feature discusses whether or not online marketing has gone too far and invaded users’ privacy.
A new Spotlight feature shows what 12-17 year-olds deem necessities.
A new Career Success feature discusses how you can market yourself during a webcam interview.
A new Table 12.6, “Sources of Secondary Information,” has been added.
Social media is now covered in more depth in this chapter.
A new Video Case 12.1 focuses on how E*Trade builds long-term customer relationships.
A new Case 12.2 discusses how PepsiCo tailors tastes for certain target markets.
New in Chapter 13: Creating and Pricing Products that Satisfy Customers
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A new Inside Business feature discusses how customers design the products at Threadless.
Information regarding Apple’s products and their features has been revised.
Information regarding the number of Procter & Gamble brands and product categories has been revised.
Information regarding Coca-Cola and Pepsi’s products has been updated.
A new Table 13.1, “Top Ten New Products of the Decade,” has been added.
The percentage of products sold in supermarkets that are private-branded items has been updated.
A new Table 13.3, “Top Ten Most Valuable Brands in the World,” has been added.
A new Career Success feature discusses how to build your own personal brand.
A new Sustaining the Planet feature highlights on how the Sustainable Packaging Condition works to make product
packaging more eco-friendly.
A new Entrepreneurial Marketing feature how small businesses are using daily-deal sites to market their products.
A new Spotlight feature shows which online content people are willing to pay for.
The section discussing discounts has been revised.
A new Table 13.4, “Discounts Used for Business Markets,” has been added.
Video Case 13.1 about Blue Dot Furniture examines the company’s specialized product lines.
A Case 13.2, which discusses how Apple adjusts its iPhone prices based on customer demand, has been revised.
New in Chapter 14: Wholesaling, Retailing, and Physical Distribution
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A new Inside Business feature discusses how GameStop markets itself across the globe.
Information in the section regarding “Market Coverage” has been revised, and the section is now “Level of Market
Coverage.”
A new Figure 14.2, “Levels of Market Coverage,” has been added.
Table 14.1, “Top 10 Largest U.S. Retailers,” has been updated.
The number of convenience stores in the U.S. has been updated.
A new Sustaining the Planet feature describes how the Food Marketing Institute offers a way for food retailers and
wholesalers to find out their carbon footprint.
A new Spotlight feature shows that most consumers are willing to pay more for a luxury item at a brand store than
at a discount store.
Walmart’s power to crush its competition, specifically former category killers, is now discussed.
A new Going for Success feature focuses on how goods and services are using direct marketing through the party
plan.
The definition of “direct-response marketing” has been revised.
The section regarding the FTC’s do-not-call registry, including the number of phone numbers registered and the
amount of fines to telemarketers, has been updated.
A new Entrepreneurial Marketing feature discusses how the owners of a furniture store used an unusual location, an
old skating rink, to their advantage.
A new Figure 14.4, “Proportional Cost of Each Physical Distribution Function as a Percentage of Total Distribution
Costs,” has been added.
Table 14.2 and Figure 14.3 from the previous edition have been combined into a new and updated Table 14.2,”
Characteristics and Ratings of Transportation Modes by Selection Criteria.”
Video Case 14.1 examines the various distribution channels for Taza Chocolate.
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Case 14.2, which discusses Costco’s philosophy and growth throughout the years, has been revised.
New in Chapter 15: Developing Integrated Marketing Communications
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A new learning objective, “Identify and explain the criticisms of promotion,” has been added.
A new Inside Business feature discusses Panera Bread’s use of marketing communications.
A new Career Success feature discusses how you can prepare for a career in the marketing communications field.
The amount of money spent on advertising in the U.S. in one year has been updated.
Figure 15.3, “Proportion of Total Advertising Dollars Spent on Selected Media,” has been updated.
The cost of a full-page four-color ad in Time magazine has been updated.
A new Sustaining the Planet feature highlights how the U.S. Postal Service is going green.
A new Spotlight feature shows various attitudes toward Super Bowl commercials.
The cost of a 30-second commercial spot during the Super Bowl has been updated.
A new section discussing the use of social media as an advertising platform has been added after the “Internet”
section.
A new Ethics feature questions how many times a company can violate a customer’s trust.
A Table 15.1 has been updated and is now titled “Who Spends the Most on Advertising?”
The “Social and Legal Considerations in Advertising” section has been deleted.
Information regarding coupon distribution and usage numbers had been updated.
A new “Criticisms of Promotion” section and corresponding Table have been added to this chapter.
The end-of-chapter summary has been revised to reflect changes to Learning Objective 4’s summary and the
addition of Learning Objective 10.
Video Case 15.1 examines the variety of promotion methods L.L. Bean employs to communicate with customers.
Case 15.2, which discusses Columbia Sportswear’s mother and son leadership team.
In the end-of-chapter Building Skills for Career Success section, the “Researching Different Careers” discussion has
been revised.
New in Chapter 16: Understanding Information and e-Business
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A new Inside Business feature describes the luxury fashion Web site Net-a-Porter and how it sells expensive
women’s clothing online.
Additional information about Net-a-Porter’s online marketing efforts is provided in the introductory paragraph for
this chapter.
The Business of Green feature from the previous edition has been deleted.
A new Spotlight feature provides historical data for the number of computers that were sold and projections for
future worldwide computer sales.
Figure 16.4, “Statistics,” has been deleted.
A new Entrepreneurial Success feature describes how apps for cell phones and iPods have become big business.
Seven new tips that can be used to improve email communication are included in the section “Helping Employees
Communicate.”
A new section “Telecommuting, Virtual Offices, and Technology” has been added to the chapter.
A new section “Computer Backup and Disaster Recovery” has been added to the chapter.
The Jump-Starting Your Career feature from the previous edition has been deleted.
The Going Global feature from the previous edition has been deleted.
The “Ethics of Ethical Hacking” is now discussed in a new Ethical Challenges and Successful Solutions feature.
Figure 16.6, “Planning for a New Internet Business or Building an Online Presence for an Existing Business,” has been
redesigned.
The section “Internet Growth Potential” has been heavily revised with new statistics.
The section “Internet Growth Potential” now includes material on social networks.
A new section “Ethical and Legal Concerns is now included in this chapter.
The section “Future Challenges for Computer Technology and E-Business” has been revised.
A new Sustaining the Planet feature explains how information technology is going green.
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A new Return to Inside Business feature about Net-a-Porter is provided at the end of the chapter.
New key terms in this chapter include virtual office, computer backup, social networking site, spamming, cookie, logfile records, data mining, malware, computer virus, and green IT.
A new Video Case 16.1 focuses on how E*Trade uses e-Business to meet customer needs.
Case 16.2, “How E-Bags Does E-Business,” has been revised.
A new Building Team Skills Exercise asks students to form a focus group and research a product or service.
New in Chapter 17: Using Accounting Information
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A new Inside Business feature showcases the accounting firm of Deloitte Touche Tohmatsu and how it helps clients
manage their finances and accounting records.
Additional information about how Deloitte Touche Tohmatsu’s creates a people culture where all employees from
all kinds of background have a chance to grow is provided in the introductory paragraph for this chapter.
The section “Recent Accounting Scandals” has been revised and shortened.
New information on efforts to create one set of accounting standards that can be used by both U.S. firms and
multinational firms is included in the section “Why Audited Financial Statements Are Important.”
The Global Reporting Initiative—an effort to develop a standardized framework for reporting sustainability programs
and achievements is highlighted in the new Sustaining the Planet feature.
The Ethics Matters feature from the previous edition has been deleted.
A new Spotlight feature contains information about starting salaries for certified public accountants.
A new Career Success feature describes efforts by the Big Four accounting firms to recruit new accountants and
auditors.
New information about starting salaries for accountants with a bachelor’s degree is provided in the section “Careers
in Accounting.”
A new Ethical Challenges and Successful Solutions feature discusses accounting fraud in U.S. companies.
The Entrepreneurial Challenge feature has been deleted.
The section “Statement of Cash Flows” has been revised.
A new Figure 17.6 has been included in the section “The Statement of Cash Flows.”
The Business of Green feature has been deleted.
A new section “Using Accounting Information to Evaluate a Potential Investment” is now included in this chapter.
Figure 17.6 has been revised and now includes new amounts for Microsoft’s revenue, R&D spending, operating
income, and sales and marketing expense.
A new Return to Inside Business feature about Deloitte Touche Tohmatsu is provided at the end of the chapter.
A new Video Case 17.1 focuses on the importance of accounting to small companies such as The Little Guys.
Case 17.2, “Making the Numbers or Faking the Numbers?” describes the potential problems associated with a
questionable accounting procedure for one firm’s employees, management, and lenders.
New in Chapter 18: Understanding Money, Banking, and Credit
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A new Inside Business feature describes how TD Bank uses customer service to “wow” its banking customers.
A new introductory paragraph describes how the economic crisis has affected individuals, businesses, and the
banking and financial industry
The section “Important Characteristics of Money” has been revised and shortened.
Figure 18.1 has been revised to include 2010 figures for the consumer price index and the purchasing power of a
dollar.
Figure 18.2 has been revised to illustrate current amounts for the money supply in the United States.
The Going Global feature from the previous edition has been deleted.
A new section “Economic Crisis and the Fed’s Response” describes how the Federal Reserve’s actions provided
liquidity for both businesses and banks, supported troubled financial markets, supported important financial
institutions, and conducted stress tests of major banks.
New information about the Fed discount rate is provided in the section “Regulation of the Discount Rate.”
A new section “Banking and Financial Reform: New Regulations” describes the goals of the government’s new
banking and financial regulations.
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Table 18.2 has been updated to list revenues, profits, and number of employees of the seven largest U.S. banks.
A new Sustaining the Planet feature describes how the United Nations has made $200 million in small loans
available to entrepreneurs in dozens of the world’s least developed nations.
The Business of Green feature from the previous edition has been deleted.
A new Going for Success feature describes how individuals can use their cell phones to complete everyday banking
activities.
Updated information about the amounts of deposit insurance is provided in the section “The FDIC and NCUA.”
A new Spotlight feature provides statistics for FDIC insured banks and savings institutions.
A new Ethical Challenges and Successful Solutions feature explains how banks are now considering environmental
issues before approving loan applications.
The Entrepreneurial Challenge feature from the previous edition has been deleted.
A new section “New Protection for Consumers: The Credit Card Act of 2009” describes how this new federal
legislation attempts to protect credit card customers.
A new Return to Inside Business feature about TD Bank is provided at the end of the chapter.
A new Video Case 18.1 describes the services provided by Chase Bank for small businesses.
A revised Case 18.2 helps students assess their knowledge about consumer credit and outlines some of the common
problems that students often experience.
A new Developing Critical-Thinking Skills exercise points out the need to compare interest rates when obtaining an
automobile loan or a home mortgage.
New in Chapter 19: Mastering Financial Management
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A new Inside Business feature describes how Ford used financial management to avoid bankruptcy during the recent
economic crisis.
A new introductory paragraph illustrates how affective financial management can make a difference during both
prosperity and an economic crisis.
The Entrepreneurial feature from the previous edition has been deleted.
A new example about the cost of 3M research and development efforts is included in the “Long-Term Financing”
section.
A new section “Financial Management During the Economic Crisis” is included toward the beginning of the chapter.
A new section “Financial Reform after the Economic Crisis” discusses proposed regulations to regulate the financial
industry.
A new Figure 19.2 illustrates the recent increase in business bankruptcies.
A new Entrepreneurial Success feature describes how business owners are using barter.
A new example about the cost of the Geico advertising program is included in the section “Establishing
Organizational Goals.”
The recent acquisition of candy maker Cadbury by Kraft Foods is used as an example of an investment that requires
construction of a capital budget.
Details about AIG and how it sold assets to raise capital is included in the section “Identifying Sources of Funds.”
The Jump-Starting Your Career feature from the previous edition has been deleted.
Figure 19.6 has been revised to include the prime interest rate for May 2010.
The material on floor planning has been deleted from the section “Loans Secured by Inventory.”
Material in the section “Initial Public Offering and the Primary Market” has been moved from Chapter 20 to this
chapter to emphasize the importance of selling stock to raise capital.
The Ethics Matters feature from the previous edition has been deleted.
A new feature Going for Success describes what makes a good IPO?
A new section “The Secondary Market” has been moved from Chapter 20 to this chapter to illustrate how the ability
to buy and sell stocks improves liquidity for investors and makes corporate stock a more attractive investment.
The material on convertible preferred stock has been moved to Chapter 20.
A new Sustaining the Planet describes how the U.S. Department of Energy provides green energy loans for high
potential alternative energy projects.
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A new Spotlight features illustrates average yields for highly rated corporate bonds.
A new Return to Inside Business feature about Ford is included at the end of the chapter.
New key terms for this chapter include primary market, secondary market, securities exchange, and the over-thecounter market.
A new video case illustrates how one company—Nederlander Concerts—uses financial management to improve
profits, price tickets, and pay expenses for different entertainment events.
A new Case 19.2 about Darden Restaurants describes how this national restaurant chain uses financial management
to improve profits and expand its restaurants.
New in Chapter 20: Understanding Personal Finances and Investments
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A new Inside Business feature illustrates how Raymond James uses customer service to help investors reach their
investment goals.
The first major section in this chapter is now titled “Managing Your Personal Finances,” and includes specific steps
that students should take to prepare for an investment program.
A new Career Success feature stresses the importance of beginning an investment program sooner rather than later.
The section “Important Factors in Personal Investment” is now a major section with its own learning objective.
In the section, “Important Factors in Personal Investment” the rate of return example for Home Depot has been
updated with current amounts.
The section “Managing Your Investments in an Economic Crisis” now includes a suggestion to sell investments
before a crisis or downturn in the market in order to conserve value.
The material on the primary market and secondary market is now covered in Chapter 19, “Mastering Financial
Management.”
Material about submitting complaints about investment losses to an arbitration board is included in the section
“Brokerage Firms and Account Executives.”
The example to illustrate a limit order to sell shares of Coca Cola uses new share values that were current at the
time of publication.
The material on discretionary orders has been deleted.
The Ethics Matters feature has been deleted.
The information about commissions charged to purchase investments and Table 20.2,Typical Commission Costs
Charged by Online Brokerage Firms, has been revised.
A new major section “Factors that Can Improve Your Investment Decisions” has been added to the chapter. This
section includes existing material on asset allocation and portfolio management and includes a new section “Your
Role in the Investment Process.”
The Going Global feature from the previous edition has been deleted.
A new Spotlight features illustrates that the more people make, the more they can invest.
The example of a Medtronic convertible bond has been revised and includes current information on the number of
shares that investors receive if convertible bonds are exchanged for common stock.
Table 20.4, Sample Stock Transaction for General Mills, has been revised to include up-to-date amounts for share
values and dividends.
More information about exchange-traded funds is provided in the section “Mutual Funds and Exchange-Traded
Funds.”
New information about expense ratios is included in the section “Mutual-Fund Sales Charges and Fees.”
A new Ethical Challenges and Successful Solutions feature describes how investors can balance returns and social
responsibility.
The example of selling short illustrates how investors could have made money by using the selling short technique
with Barnes and Noble stock.
A new Sustaining the Planet feature describes the type of investment information available in the GreenMoney
Journal.
The financial coverage for stocks (Figure 20.2), bonds (Figure 20.3), and mutual funds (Figure 20.4) has been revised.
The Business of Green feature from the previous editionhas been deleted.
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Figure 20.5 includes a Mergent Professional Advisory report for The Coca Cola Company.
A new Return to Inside Business feature about Raymond James in included at the end of the chapter.
A new video case 20.1 describes how E*Trade helps investors obtain their investment goals.
Case 20.2 has been revised and stresses the importance of students managing their personal finances and beginning
an investment program as soon as possible.
A new Researching Different Careers exercise asks students to explore a career in financial planning.