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Business Essentials

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User name: Grux G Book: Business Essentials, Sixth Canadian Edition Page: iv No part of any book may be reproduced or transmitted by any means without the publisher's prior permission. Use (other than qualified fair use) in violation of the law or Terms of Service is prohibited. Violators will be prosecuted to the full extent of the law.

Library and Archives Canada Cataloguing in Publication Business essentials I Ronald J. Ebert ... [et ai.].-Qth Canadian ed. Includes bibliographical references and indexes. ISBN 978-0-13-706986-6 1. Industrial management-Textbooks. 2. Business enterprises-Textbooks. 3. Industrial management-Canada-Textbooks. 4. Business enterprises-Canada-Textbooks. I. Ebert, Ronald J. HD70.C3E32 2011



Copyright© 2012,2009,2006, 2003,2000, 1997 Pearson Canada Inc., Toronto, Ontario. Pearson Prentice Hall. All rights reserved. This publication is protected by copyright and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. For information regarding permission, write to the Permissions Department. Original edition published by Pearson Education, Inc., Upper Saddle River, New Jersey, USA. Copyright© 2011, 2008 Pearson Education, Inc. This edition is authorized for sale only in Canada. ISBN 978-0-13-706986-6 Vice-President, Editorial Director. Gary Bennett Editor-in-Chief: Nicole Lukach Acquisitions Editor: Nick Durie Marketing Manager. Cas Shields Developmental Editor: Pam Voves Project Manager: Sarah Lukaweski Production Editors: Judy Phillips, Lila Campbell Copy Editor: Melissa Churchill Proofreaders: Judy Phillips, Jennifer Mcintyre Compositor: MPS Limited, a Macmillan Company Permissions and Photo Researcher: Heather Jackson Art Director: Julia Hall Interior Designer. Quinn Banting Cover Designer: Anthony Leung Cover Image: Gettylmages For permission to reproduce copyrighted material, the publisher gratefully acknowledges the copyright holders listed on pages 496-497, which are considered an extension of this copyright page.



Printed and bound in the United States of America.




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Dedicated to my loving companion Riley. Earning her trust showed me how simple kindness overcomes fear and begets unconditional friendship. - R. J. E. For Pap, who influenced my life in more ways than he ever knew.

- R.W.G. To Ann, Eric, and Grant. - F.A.S.

To Nitsa. Thank you for your patience and support. - G.D.


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Preface Canadian entrepreneurs who saw an opportunity to provide a new product or service in the marketplace, and the activities they carried out in order to be successful. The third series--entitled "Managing in Turbulent nmes"-focuses student attention on both the disappointments and unexpected opportunities that arise during economic crises such as the one that occurred during the 2008-2009 recession. The fourth series--entitled " E-Commerce and Social Media"-describes how rapidly changing technology has provided business firms with many new ways to connect with customers, and how the new technology has given customers a level of control over businesses that they have not previously had.

Welcome to the sixth Canadian edition of Business Essentials. In this edition, we continue to emphasize our long-standing principle of "Doing the Basics Best.· Cutting-edge firsts, up-to-date issues that shape today's business world, and creative pedagogy help students build a solid foundation of business knowledge. This new, sixth edition continues with the strengths that made the first five editions so successful-comprehensiveness, accuracy, currency, and readability.

What's New to the Sixth Canadian Edition The Impact of one of the most significant events of the past 70 years-the financial crisis that began in 2008-is examined in depth in several different ch apters of the text. For example, the opening case in Chapter 16 explains the causes of the financial meltdown and its impact on banks, the stock market, sub-prime mortgages, and the economy and business in general. Chapter 16 also includes an end-of-chapter case describing the commercial paper crisis that hit Canada just prior to the more general financial crisis. The opening case of Chapter 15 describes the ups and downs of the world's stock markets during the last decade and explains how the financial crisis of 2008 led to dramatic declines in shareholder wealth. The impact of the financial crisis on business firms and on government involvement in the economy Is analyzed In Chapters 1 and 2, and In other chapters as well. The sixth Canadian edition of Business Essentials incorporates many of the changes suggested by professors and students who used the fifth edition. This new edition also Includes changes suggested by reviewers. The following changes have been made: •

The text contains four series of boxed inserts that are positioned at strategic points in the chapters so as to complement the main text. The first of these--entitled 'The Greening of Buslness"-analyzes what businesses are doing to be more environmentally friendly. These boxed inserts Identify both the opportunities and challenges that businesses are encountering as they try to be more socially responsible. The second series--entitled " Entrepreneurship and New Ventu res"-provides all new, real-life examples of

All of the chapter opening cases are either brand-new or updated. Opening chapter cases on Research In Motion, Toyota, Air Canada, Tim Hortons, lululemon, Parasuco, and others win be of great interest to students.

Two video cases appear at the end of each of the five major sections of the text. Nine of these ten video cases are new.

Many new examples of business practices have been included in each of the chapters. Some of these examples are brief and some are more detailed, but they all help students to better understand important business concepts.

Three appendices are newly placed at the end of relevant chapters in the text. The first appendixwhich focuses on Business Law-is included at the end of Chapter 1. This appendix includes key topics such as contracts, the concept of agency, warranties, and bankruptcy. The second appendix-on Information techno logy (IT)-is included at the end of Chapter 11. It focuses on the dramatic changes In information processing that are occurring in business firms and the need to manage these changes. We discuss the impact that IT has had on the business world, the IT resources businesses have at their disposal, the threats information technology poses for businesses, and the ways in which businesses protect themselves from these threats. The third appendixentitled " Managing Your Personal Finances" is found at the end of Chapter 16. This feature has been overwhelmingly requested by students and instructors, and presents a down-to-earth, handson approach that will help students manage their



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personal finances. The practical information found in this feature includes a worksheet for determining personal net worth, insightful examples demonstrating the time value of money, a method for determining how much money to invest now in order to build a future nest egg of a certain size, suggestions on how to manage credit card debt, guidelines for purchasing a house, and a personalized worksheet for setting financial goals. This information, which complements the managing of business finances material that is presented in Chapter 16, will be immensely useful to students. •

Important statistics have been updated to reflect the latest possible information on Canadian business.

The book has been completely redesigned to convey the excitement and importance of the modem business world. The book's new design and Improved art will also help students to better process and understand chapter content.

Large amounts of new material and new examples that demonstrate key conceptual points are found In this new edition of the text. Illustrative (but not exhaustive) examples include the following: Chapter 1-new material on topics such as privatization, deregulation, and nationalization; these ideas have been influenced by the recent financial crisis Chapter 2-new material on the political-legal environment of business, the BP oil spill, and acquisitions and mergers Chapter 3-new material on individual ethics, global warming, cap-and-trade systems, price fixing, counterfeit brands, insider trading, and misrepresentation off111ances Chapter 4-new material on small business incubators, entrepreneurship, and franchising C hapter 5-new material on the growing importance of emerging markets In the global business context; new material on the BRIC nations (Brazil, Russia, India, and China); new material on the financial crisis In the so-called PUGS (Portugal, Italy, Ireland, Greece, and Spain). Chapter 6-new material on the planning activities of McDonald's (indicating how these activities demonstrate the planning model presented in the text), prediction markets, human relations skills, the impact of environmental change on companies (for example, Ontario's pharmacy rule changes), contingency planning, crisis management (for example, Toyota, McCain, and BP), and corporate culture

Chapter 9-new material on empowerment, goal setting, reinforcement theory, team management, telecommuting, and leadership styles Chapter 1 0-new material on process flowcharts, new data on productivity in various countries around the world, and coverage of the problems that Toyota experienced with quality control in 2010 (opening case)

Chapter 11-new material on international accounting standards, forensic accounting, and the accounting cycle Chapter 13-new material on branding, brand loyalty, new product development, patents and copyrights, outdoor advertising, word-of-mouth advertising, internet advertising, and online marketing Chapter 14-new material on pricing, discounts, internet sales, and the dispute between the Competition Bureau and the Canadian Real Estate Association Chapter 15-new material on changes in the bankIng Industry, banks selling Insurance, and venture capital firms

Major Themes Six major themes continue to be evident in this new edition: change, International business, ethics and social responsibility, small business, information and communication technology, and the quality imperative. It is important that students understand these themes, since their careers in business will be signif icantly affected by them.

The Theme of Change The dramatic changes that have been occurring during the past decade continue apace, and these changes have been complicated by the financial crisis of 20082009. The development of new business processes, new products, and new services all make the study of change in business exciting and necessary. In nearly every aspect of business today there are totally new ways of doing things. These new Wffo/S are replacing traditional business practices, usually with surprising speed and often with better competitive results. Given these developments, we as authors felt that our goal had to be to communicate the theme of change by describing how real-world business firms cope with the need for change. Thus. we have tried to capture the flavour and convey the excitement of the "new economy" in all of its rapidly evolving practices. Prebtt



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The Growth of International Business The globalization of business is one of the dominant challenges of the twenty-first century. To keep students aware of this challenge, we've Included many examples and cases that describe the experiences of Canadian companies in the global marketplace. We also describe how global companies have impacted the domestic Canadian market. In addition to these examples throughout the text, we devote an entire chapter to international business (Chapter 5, The Global Context of Business).

The Role of Ethics and Social Responsibility The topics of business ethics and social responsibility are generating a sharply increased level of discussion and debate as a result of the highly publicized criminal trials of top managers at companies like Llvent, Enron, and WorldCom, and because of the questionable financial practices that led to the economic crisis of 2008-2009. We devote an entire chapter to the discussion of ethical and social responsibility issues (Chapter 3, Conducting Business Ethically and Responsibly) because these issues are so important to modern business. Ethical issues are also raised in nearly every chapter of the text, and a team ethics exercise at the end of each chapter further focuses student attention on this Important Issue.

the 1990s. These topics continue to dominate the thinking of managers in the twenty-first century, and we devote a substantial part of one chapter to their coverage (Chapter 10, Operations Management, Productivity, and Quality).

Major Features of the Text Part Opener At. the beginning of each of the five major parts of the book is a brief outline introducing the material that will be discussed in that part. These outlines give students a glimpse of the "big picture" as they start reading about a new area of the business world.

Chapter Materials Each chapter contains several features that are designed to stimulate student interest in, and understanding of, the material being presented about business. These features are as follows: Chapter Learning Objectives A list of numbered learning objectives is presented at the beginning of each chapter. These objectives-which help students determine what is important in each chapter-are also referenced beside headings for the relevant content In the chapter.

The Significance of Small Business Since many students will not work for major corporations, we have provided coverage of both large and small companies throughout the text. In various chapters, the implications of various Ideas for small business are discussed. As wei~ a major part of Chapter 4 (Entrepreneurship, Small Business, and New Venture Creation) contains new material focusing on small business, entrepreneurship, and new business ventures.

The Importance of Information and Communication Technology In our information-based society, the people and organizations that learn how to obtain and use information will be the ones that succeed. The explosive growth and change in these systems is recognized as we Include a rewritten appendix on the management of information at the end of Chapter 11.

The Quality Imperative Quality and productivity became the keys to competitive success for many companies in the global marketplace during xvtll

Chapter-Opening Case Each chapter begins with a description of a situation that is faced by a real Canadian or international company. The subject matter of the opening case is relevant to the material presented in the chapter and is designed to help students bridge the gap between theory and practice. Boxed Inserts As noted above, four series of boxed inserts are found in the text. These boxed inserts provide interesting information on topics that are discussed in the text, and they help students understand the dynamics and complexities of the business wor1d. Critical thinking questions are found at the end of these boxes. These questions can be used as the basis for class discussions about the implications of the material that is presented in the boxed inserts. Examples In addition to the boxed inserts, each chapter contains numerous examples of how businesses operate so that students can gain a better understanding of the dynamics of business practice both in Canada and elsewhere. These examples-which range in length



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from one sentence to several paragraphs--help students understand concepts that are introduced in the text. Key Terms In each chapter, the key terms that students should know are highlighted in the text and defined in the margin.

Business Case Each chapter concludes with a case study that focuses on a real Canadian or international company. These cases are designed to help students apply the chapter material to a real company that is currently in the news. At the end of each case, several questions guide students in their analysis.

End-of-Part Mat erial Figures and Tables Figures and tables are updated throughout the text.

End-of-Chapter Material Several important pedagogical features are found at the end of each chapter. These are designed to help students better understand the contents of the chapter. Summary of Learning Objectives The material in each chapter Is concisely summarized, using the learning objectives as the organizing scheme. This helps students understand the main points that WfJ/:e presented in the chapter. Questions and Exercises There are two types of questions here: "Questions for Analysis" (Which require students to think beyond simple factual recall and apply the concepts they have read about), and "Application Exercises" (which require students to visit local businesses or to Interview managers and gather additional Information that will help them understand how business firms operate). Tum Exercises Two team exercises are included at the end of each chapter. The "Building Your Business Skills" exercise allows students to examine in detail some specific aspect of business. The exercise may ask students to work individually or in a group to gather data about an interesting business issue, and then develop a group report or a class presentation based on the information that was gathered. Each exercise begins with a list of goals, a description of the situation, a step-by-step methodology for proceeding, and follow-up questions to help students focus their responses to the challenge. The "Exercising Your Ethics" exercises ask students to take on the role of an employee, owner, customer, or investor and then examine a chaptfJI:-related business ethics dilemma through the perspective of that role. By working together as a team, students decide which outcome is ultimately best in each situation, learn how to cooperate with each other. and see an ethical dilemma from various points of view.

Crafting a Business Plan This feature, which Is tailormade to match and reinforce book content, appears at the end of each major section of the text. The business plan project is software-independent and provides students with an easy-to-understand template that they work from as they create their business plan. Based on reviewfJ/: feedback, the business plan project has been divided into logical sections, with each part of the project at the end of each relevant main section of the text. With five parts in all, students can gradually apply the concepts they've learned in the chapters to their business plans throughout the course. You will find the templates for the Business Plan project online in MyBusinesslab. Video Cases At the end of each of the five major parts of the text, written summaries of two video cases are presented. The instructor can show the video in class, and then either conduct a class discussion using the questions at the end of the written case as a guide, or ask students to complete a written assignment that requires answering the questions at the end of the written case. This approach to teaching adds a positive dynamic to classes because students will be able to relate text material to actual Canadian business situations. The cases are also available through the MyBusinesslab tor Business Essentials, Sixth Canadian Edition.

Supplemental Materials MyBusinessLsb ( b) is an online grading, assessment, and study tool for faculty and students. It engages students and helps them focus on what they need to study. It can help students get a better grade because they are learning In an interactive and focused environment. MyBusinesslab delivers all classroom resources for instructors and students in one place. All resources are organized by learning objective so that lectures and studying can be customized more conveniently than ever before. A complete description of the student and Instructor resources available Is provided on the MyBusinessl ab insert included with this text. Preface



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For Instructors Instructor's Resource Centre Instructor resources are password protected and available for download via www For your convenience, these resources are also available on the Instructor's Resource CD-ROM {ISBN 978-0-13-038830-8) and available online at www in the instructor area. Test Item File This substantially enhanced test bank in Mia"osoft Word format contains over 5100 multiplechoice, true/false, short-answer, and essay questions. The Test Item file enables instructors to view and edit the existing questions, add questions, and generate texts. This robust test bank Is also available In MyTest format {see below). MyTest The new edition test bank comes with MyTest, a powerful assessment-generation program that helps instructors easily create and print quizzes, test, exams, as well as homework or practice handouts. Questions and tests can all be authored online, allowing instructors ultimate flexibility and the ability to efficiently manage assessments at any lime, from anywhere. MyTest can also be accessed through MyBusinesslab. Instructor's Resource Manual The Instructor's Resource Manual contains chapter outlines, teaching tips, in-class exercises, and suggestions on how to use the text effectively. The manual also provides answers to the end-ofchapter questions and team exercises Oncluding Building Your Business Skills and Exercising Your Ethics), case study questions, and the end-of-section video case questions. PowerPoime Presentations PowerPoint Presentations offer an average of 40 PowerPoint slides per chapter, outlining the key points in the text. The slides include lecture notes that provide page references to the text, summaries, and suggestions for student activities or related questions from the text. Personal Response Questions This set of interactive Clicker PowerPoint™ Slides contains thought-provoking questions designed to engage students in the classrooms using "clickers" or classroom response systems. CBC Video L1brary (OVD: ISBN 978-0-13-237727-0). The CBC Video Library for Business Essentials, Sixth Canadian Edition, includes 10 segments that focus on Canadian companies and discuss business issues from a Canadian point of view. The cases can also be viewed online at eocentral

and answers to the discussion questions are provided in the Instructor's Resource Manual. Contact your Pearson Canada sales representative for details. Acadia/Pearson Business Insider Series Videos This online selection of videos provided on MyBuslnesslab contains interviews of industry leaders and top executives from Canada and abroad. The videos provide an effective link from the textbook to the real world. Included on MyBusinesslab is a table correlating pertinent videos to the chapters and topics in the textbook. Pearson Custom Publishing ( custombusiness). Pearson Custom Publishing can provide you and your students with texts, cases, and articles to enhance your course. Choose material from Darden, lvey, Harvard Business School Publishing, NACRA, and Thunderbird to create your own custom casebook. Contact your Pearson Canada sales representative for details. Online Learning Solutions Pearson Canada supports instructors interested in using online course management systems. We provide text-related content In Blackboard/ WebCT and Course Compass. To find out more about creating an online course using Pearson content in one of these platforms, contact your Pearson Canada sales representative. Your Pearson Canada Sales Representative Your Pearson sales rep is always available to ensure you have everything you need to teach a winning course. Armed with experience, training, and product knowledge, your Pearson rep will support your assessment and adoption of any of the products, services, and technology outlined here to ensure our offerings are tailored to suit your individual needs and the needs of your students. Whether it's getting instructions on TestGen software or specific content files for your new online course, your Pearson sales rep is there to help. Ask your Pearson sales rep for details. Technology Specialists Pearson's Technology Specialists work with faculty and course designers to ensure that Pearson technology products, assessment tools, and online course materials are tailored to meet your specific needs. This highly-qualified team is dedicated to helping schools integrate a variety of Instructional materials and media formats. Your local Pearson sales rep can provide you with more details on this service program. CourseSmart for Instructors CourseSmart goes beyond traditional expectations, providing instant, online access


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to the textbooks and course materials you need at a lower cost for students. And even as students save money, you can save time and hassle with a digital eTextbook that allows you to search for the most relevant content at the very moment you need it. Whether it's evaluating textbooks or creating lecture notes to help students with difficult concepts, CourseSmart can make life a little easier. See ho.v when you visit

For Students MyBusinesslab is an online grading assessment and study tool for both faculty and students. It generates a personalized study plan that focuses students on what they, individually, need to study. It engages students through an interactive and focused environment. All resources are organized by learning objective so that studying can be customized more conveniently than ever before. A complete description of the student and Instructor resources available is provided on the MyBusinesslab insert included with this text. Scanlifen• 20 Barcodes and Study on the Go Featured at the beginning and end of each chapter, the ScanlifeTN barcodes provide an unprecedented seamless Integration between text and online content for students.

The free, do.vnloadable app (for instructions go here: http:l/ s_en/download-applicat ion) enables students to link to Pearson Canada's unique Study on the Go content directly from their smartphones, allowing them to study whenever and wherever they wish! Upon scanning, students can follow the online instructions to search the rich study assets, including Glossary Flashcards, Audio Summaries, and Quizzes. Crafting a Bus~ness Plan A business plan project, tailor-made to match and reinforce book content, appears at the end of each major section of the book. The business plan project is software-independent and provides students with an easy-to-understand template that they work from as they create their business plans. Files to complete the project are available at www.pearsoned. ca/mybuslnesslab. CourseSmart for Students CourseSmart goes beyond traditional expectations. providing Instant, online access to the textbooks and course materials you need at an average savings of 50%. With instant access from any computer and the ability to search your text, you'll find the content you need quickly, no matter where you are. And with online tools like highfighting and notetaking, you can save time and study efficiently. See all the benefits at www. coursesmart.cornlstudents.




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Acknowledgments We owe special thanks to Melissa Churchll~ copyeditor, Judy Phillips and Ula Campbell, Production Editors, Sarah Lukaweski, Project Manager, Karen Elliott and Nick Durie, Acquisitions Editors; Pamela Voves, Developmental Editor, and others at Pearson Canada who assisted with the production, marketing, and sales of this edition.ln addition, we would like to acknowledge the contributions of Sheny Finney of Cape Breton University who prepared many of the Entrepreneurship and New Ventures boxed features. We appreciate the insights and suggestions of the following individuals who provided feedback on the fifth edition or reviewed the manuscript for the new sixth edition:

Gina Grandy, Mount Allison University Kandey L..arden, l..angara College Peter Morgan, BCIT Stephen Rose, University of Ontario Institute of Technology (UOil) Lucy Silvestri, Niagara College Dan Wong, SAlT Polytechnic Dustin Quirk, Donald School of Business - Red Deer College Rob Anderson, Thompson Rivers University Or. Scott MacMillan, Saint Mary's University Morris Nassi, Champlain College, Saint-Lambert



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earned his MBA at McGill, as well as a graduate diploma in education and a graduate degree in applied management. Mr. Dracopoulos has taught a broad range of business courses. He is an advocate of experiential learning and dedicates a significant amount of class time to handson assignments. His primary interests are in the fields of marketing and management. Outside his teaching career, Mr. Dracopoulos has worked in various marketing and sales positions. In addition to this text, he has worked on many publishing


projects providing web content as well as supporting multimedia and supplemental academic material. While completing his university education, he spent a semester abroad studying management globalization issues in Europe. He has also spent a considerable amount of time coaching high-level sports and organizing events in his spare time. Recent Pearson publications include Business in Action, In-Class Edition, Second Canadian Edition {2009), co-authored with Courtland L. Bovee and JohnV. Thill.

About the Authors


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From the Authors Ron Ebert, Ricky Griffin, Fred Starke, and George Dracopoulos Businesses today face constant change-change in their competitive landscape, change in their workforce, change in government regulations, change in the economy, change In technology, change i'l ... well, you get the idea As we began to plan this revision, we too recognized the need for change-changing demands from Instructors, changing needs and preferences of students, and changing views on what material to cover in this course and how to cover it. These have all affected how we planned and revised the book. This time, though, we took change to a whole new level. A new team of reviewers gave us great Ideas about the content changes we needed to make, and a new editorial team was assembled to guide and shape the creation and development of the book. The business world itself provided us with dozens of new examples, new challenges, new success stories, and new perspectives on what businesses must do to remain competitive. And a

new dedlcatlon to relevance guided our work from beginning to end. For example, we know that some business students will go to work for big companies. Others will work for small firms. Some will start their own business. Still others may join a family business. So we accepted the challenge of striving to make the book as relevant as possible for all students, regardless of their personal and career goals and objectives. We met this challenge by incorporating many new features i'l this edition (see the Preface for a list of these new features). We also carefully reviewed the existing book line by line. New material was added and older examples were updated or replaced with newer ones. We worked extra hard to make our writing as clear and as crisp as possible. We think that these changes will help make the material even more alive and personal for you. We believe that we have taken this book to a new, higher level of excellence. Its content Is stronger, its learning framework is better, its new design is more reader-friendly, and its support materials are the best on the market. We hope that you enjoy reading and learning from this book as much as we enjoyed creating it. And who knows? Perhaps one day we can tell your story of business success to other students.



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So, How Will This Text Help You? The world today Is populated with a breathtaking array of businesses and business opportunities. Big and small businesses, established and new businesses, broadbased and niche businesses, successful and unsuccessful businesses, global and domestic businesses-regardless of where your future plans take you, we hope that you will look back on this course as one of your positive first steps. Keep In mind that what you get out of this course depends on at least three factors: •

One factor is this book and the information about business that you will acquire as a result of reading it.

Another factor Is your instructor. He or she is a dedicated professional who wants to help you grow and develop intellectually and academically.

The third factor is YOU. Learning is an active process that requires you to be a major participant. Simply memorizing the key terms and concepts in this book may help you achieve an acceptable course grade, but true learning requires that you read, study, discuss, question, review, experience, and evaluate as you go along.

Tests and homework are necessary, but we hope that you will finish this course with new knowledge and increased enthusiasm for the world of business. Your instructor will do his or her part to facilitate your learning. The rest, then, is up to you. We wish you success.


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Introducing the Contemporary Business World Part Summary Part 1, Intr o duc ing th e Conte mporary Business World, provides a general overview of business today, Including Its economic roots, the environment in which It operates, the ethical problems and opportunities facing business firms, the importance of entrepreneurship and the various forms of ownership available to business firms, and the globalization of business.

n the opening cases in Chapters 1 to 5, you will read about five interesting situatio llS: (1 ) op portunities and challe nges in the mobile p ho ne marke t, (2) inflatio n and deflatio n, (3) the unethjc al be haviour of business managers at Livent, (4) fumjly business sto ries, an d (5) Tim Hortons' international strategy. All of these situations, and many mo re that are describe d in this text, have a common t hread: they all demonstrate the key elements of business, as weU as the exciteme nt a nd complexity of b usiness activity. Each case te lls a part of the story of our contemporary business world.


We begin in Chapter 1, The Canadian Business System, by examining the role of business in the economy of Canada and other market economies. '.Ve al90 present a brief history of buslness in Canada.

Then, in Chapter 2, The Environment of Business, we examine the external environments that influence business activity. These include the economic, technological, sociocultural, legal-political, and general business environments.

Next, in Chapter 3, Conducting Business Ethically and Responsibly, we look at indvidual ethics and corporate social responsibility, and how these affect the firm's customers, employees, and investors.

In Chapter 4, Entrepreneurship, Small Business, and New Venture Creation, we examine the important concepts of entrepreneurship, small business, and the various forms of business ownership that have evolved to facilitate business activity.

Finally, in Chapter 5, The Global Context of Business, we look at why countries engage in international trade, how companies organize to operate intcmotionolly, tho development of free trade agreements, and factors that help or hindef- international trade.


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Understanding the Canadian Business System After reading this chapter, you should be able to:


Define the nature of Canadian business and Identify Its main goals.


Describe different types of global economic systems according to the means by which they control the factors of production through input and output markets.


Show how demand and supply affect resource distribution in Canada.


Identify the elements of private enterprise and explain the various degrees of competition In the Canadian economic system.


Trace the history of business in Canada.

ScanlifeTM Barcode: At the beginning and end of each chapter in the book, you will find a unique 20 barcode like the one above. Please go to http:!/ to see how you can download the ScanUfe app to your smartphone for free. Once the app is installad, your phone will scan the code and link to a website containing Pearson Canada's Study on the Go content, including the popular study tools Glossary Flashcards, Audio Summaries, and Quizzes, which can be accessed anytime.


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Opportunities and Challenges in the Mobile Phone Market uring the last decade,a Canadian company called Research In Motion (RlM) has emerged as a high-tech t\VO engineering studentsDouglas Fregin at the University o f\Vindsor. Its first wireless handheld device-called the Jnter®ctive Pager-was introduced in l 996.1l1e now-famous BlackBerry hit the market in l998.1l1e BlackBerry 850, which combined email, a wireless data network, and a tiny QWERTY keyboard, was introduced in 1999. Other products have been developed since then, including How Will This Help Me? the BlackBerry Pearl (2006), the Blac kBerry 8300 (2008), the BlackBerry Storm 2 (2009), a 3G versio n All businesses are subject to the influences of of its Pearl flip phone (2010), and OS 6.0 (2010). economic forces. But these same economic Tite latter product is a touch-screen smart phone forces also provide astute managers and that is designed to browse the web faster than preentrepreneurs with opportunities for profits vious models. ln the fi rst quarter of 2010, RIM was and growth. The ideas presented in this one of the top five mobile phone companies in the chapter will help you to better understand world, and at the 2010 Wireless Enterprise ¥ffipo(1) how managers deal with the challenges and sium trade show, Lazaridis announced RIM's plans opportunities resulting from economic forces, to dominate the global smart phone market. and (2) how consumers deal with the chalRll\1 raised $30 million from venrure capital lenges and opportunities of price fluctuations. firms in the years before its initial public offering (IPO) in 1998 that raised $115 million . RIM was

D star in the mobile phone industry.The company was started in 1984 by Mike Lazaridis at the University of\Vaterloo and

f; in na t iona lizati on-converting jTQCtice, typic8 of most private firms into governmentnatiala' economies. owned firms. Venezuela, for PRIVATIZATION example, nationalized its teleThe transfer of activities communications industry. from the government to D eregula t ion means a the private eector. reduction in the number of laws NATIONALIZATION affecting business activity and The transfer of activities in the powers of government from private frm9 to the government enforcement agencies. This trend also developed during DEREGULATION the 1990s, and deregulation A reduction in the number of laws affecmg occurred in many industries, business actM!y. including airlines, pipelines, banking, trucking, and communications. But this trend has also slowed (and even reversed in some cases) due to the 2008 recession. For example, there have been calls for a dramatic tightening up of the laws regulating business activity, particularly in the financial sector. The British Petroleum (BP) oil spill in the Gulf of Mexico in 2010 caused the U.S. government to put pressure on BP to reimburse




FIRMS • Supply products in output markets • Demand resources in input markets


• Demand products in output markets • Supply resources in input markets



Entrepreneurs Natural resourc.::es

Information resourJ

~ ~~





Circular flow

in a market economy.

Otapter 1: Understanding the C2nadian Business System



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CBnadian broadca&ting ayatem. CANADIAN WHEAT BOARD R~1111 the price fanners r.ceiYe for their wMat.

Individuals and businesses that were harmed by the spill. Incidents like these have created a dilemma for government policy makers; a 2009 study by the Conference Board of Canada showed that deregulation {In tandem with privatization and increased competition) caused a sharp increase in productivity in sectors like freight and airlines.1o

Despite becoming a territory of the communist People's Republic of China in 1997, Hong Kong remains one of the world's freest economies. In Hong Kong's Lan Kwal Fong district, for example, traditional Chinese businesses operate next door to well-known international chains.

As a result of the recession of 2008, mixed market economies are now characterized by more government involvement than was evident just a few years ago. Governments In mixed marlplying products (like that done by Coca-Cola that are similar but distinctive enough from and PepsQ. Monopolistically one another to r;jve competitive businesses may firms eome ability to be large or small, because it influence price. is relatively easy for a firm to OUGOPOLY enter or leave the market. For A mEI'ket or indust ry example, many small clothing characterized by a small numt::e.. of vety manufacturers compete sucIEr"ge firms that have cessfully with large apparel the power to influence makers. Product differentiation the price of their product and/or resolrCes. also gives sellers some control over the price they charge. Thus, Ralph Lauren polo shirts can be priced with little regard for the price of shirts sold at the Bay, even though the Bay's shirts may have very similar styling.

Oligopoly When an industry has only a handful of very large sellers, an oligopoly exists. Competition is fierce ortant Wid powerf\A emerging 1"118l11ets In the busineM wald: Brazi, 1\Jaeia, lrda, and Chna.

The Rising Power of Emerging Markets: The Role of BRIC BRIC is the term that is often used in international trade magazines and newspapers to describe the increasing importance of four specific nations in global trade: Brazil, Russia, India, and China. The BRIC concept was first used by Goldman Sachs in 2001; since that time BRIC investment funds have become an Important group for money managers and International analysts. These four nations have even begun to act like a unit, and an unofficial BRIC meeting took place In 2009. The status of these four nations has risen In International trade for different reasons. Brazil is strong in commodities and agriculture, Russia Is a powerful energy supplier, and China is a major hub of manufacturing activity. India has become a leading service provider at various levels ranging from basic customer service call centres to engineering solutions providers. The growth and quick market development of the consumer market In these four nations is also providing tremendous sales opportunities for foreign companies In many industries, Including car manufacturing and highend clothing brands. o

The g rowth in international commerce has led to the emergence of several major marketplaces. Much of the international commerce in these marketplaces, in tum, is managed from major cities. Traditional centres of international commerce include New York, London, Paris, Brussels, and Tokyo. In recent years, though, cities like Shanghai, Beijing, Hong Kong, Dubai, Vancouver, Bangalore, and Kuala Lumpur have taken on increased importance. For example, international business now defines the glittering skyline of Shanghai.

The old International trading patterns and activities are changing. Once upon a time, Western companies used less developed markets to acquire natural resources supplies and to carry out simple assembly tasks. But these four nations now demonstrate relationships that are much more complex. A clear signal of this shift was evident a couple of years ago, when Indian car maker Tala acquired

Cluprer 5: The Global COntext of Business



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ADVANTAGE The abity to produce aomething more efficiertly than Bnf other OOI.I"Itry. COMPARATIVE

ADVANTAGE The abolty to produce some products more efficiently thon Olhera. NATIONAL COMPETrrtVE


lrternatlonel competitive advantage

etemmong from a oombirotion ol factor conditione: denwld oondlbone; related and ~ llldJStriM; and finn strategies, struct\les, and nvelnea.

Jaguar and Land Rover from Ford. Earlier that year, Tata Steel bought the Anglo Dutch steel maker Corus Group LLC for US$12.1 billion. This was not quite business as usual.7 Of the four countries, Russia has encountered the most profound troubles in recent years. Some analysts have even called for the exclusion of Russia from this supergroup. Among the reasons cited were corruption and excessive levels of bureaucratic red tape. For example, in 10 years in the Russian marl or

more LANa tllrclugl a the pubic network,


internet, to M\19 rT'QOfiiY

lorafwm. WIRELESS WIDE AREA N ETWORK S (WWAN) A natwork that ~ airtxme electroric eiglels ineteed d wirae to Ink oomputen1 end electronc de..;cee CNe/{ long cistencee.

Figure 8.2 BlackBerry wireless internet architecture.

of network used in businesses is a client- ser ver network. In client-server networks, clients ars usually the laptop or desktop computers through which users make requests for information or resources. Servers ars the computers that provide the services shared by users. In big organizations, servers are usually assigned a specific task. For example, in a local university or college network, an application sarver storss the wordprocessing, spreadsheet, and other programs used by all computers connected to the network. A print server controls the printers, storss printing requests from client computers, and routes jobs as the printers become available. An email sarver handles all incoming and outgoing email. With a client-server system, users can share rssources and internet connections--and avoid costly duplication. Networks can be classified according to geographic scope and means of connection (either wired or wireless).

linked over long distances--province-wide or even nationwide--through telephone lines, microwave signals, or satellite communications make up what are called wide area networks (WANs). Firms can lease lines from communications vendors or mai'ltain privata WANs. Walmart, for example, depends heavily on a private sateUita natwork that links thousands of U.S. and international retail stores to its Bentonville, Arkansas, headquarters. Local Area Networks (LANs) In local area networks (LANs), computers are linked in a smaller area such as an office or a building. For example, a LAN unites hundreds of operators who enter call-in orders at TV's Home Shopping Network facility. The arrangement requires only one computer system with one database and one software system. Virtua l private networks (VPNs) connect two or more LANs through a public network like the Internet. This saves companies money because they don't have to pay for privata lines, but It is Important that strong security measures are in place so that unauthorized parsons can't gain access.

Wireless Networks Wireless networks use airborne electronic signals to link network computers and devices. Uka wired networks, wireless networks can reach across long distances or exist within a single building or small area. For example, the BlackBerry system shown in Figura B.2 consists of devices that send and receive transmissions on the w ireless w ide area networks (WWANs) of more than 100 service providers--such as Cellular One (United States), T-Mobile (United Kingdom and United States), and Vodafone (ltaly}-ln countries throughout the world. The wireless format that the system relies on to Networks Area Wide control wireless messaging Is supplied by Research In (WANs) Computers that ars Motion (RIM), the Canadian company that makes the BlackBerry, and is installed on the userWireless Wide computer.15 company's Firewall Area Networks A firewall provides privacy protection. We'll discuss firewalis in more detail later In the appendix.

User Company's Computer and System Software

BlackBerry Handheld



Pan Ill:

M~tuglng Operatloos and

Wi-Fi Hotspots are locations, such as coffee shops, hotels, and airports, that provide wireless internet connections for people on the go. Each hotspot, or Wi-Fi (short for wireless fidelity) access point, uses



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its own small netwot1ped the Cork Monopoly; The Wall StrtJetjoumal, May I , 20JO,AI.

16. Hollie Shaw, "Bogus Ads: If You Mislead the Consumer, Be Ready to Suffer the Financial FaUout,• National Post, May 22, 2009, FP12.

29. ' Royal Mail's Reign Comes to an

1.7. Shirley Won andjacquje McNish,

30. Eric Bellman, "As Economy Zooms,

'Antitnrst Watchdog Loses Beet Battle;' The Globe and ;Ifail, i\b.r ch 29. 2007, BI, B6.


Postmen Struggle to Adapt," The Wall Stroetjoumal, October 3. 2006, AI , A12.

18. Steven Chase andjacquie McNish, ' Prentice Probes Watchdog's Coun Cooduct,· The Globe and MaU, January 30, 2008, 81-82.

31. For an lo.deplh analysis of lh~ history of Carudhn business, see Michael 8tiss, N orthum Enterprisl! (Toronto: McClelland and Stewan, 1987).

19. John Gray, "Texas Fold ' Em; Cormdia11 Business, October 9 - 22, 2006, 44-46.

32. Man Hanley, "The Ooud Is the Great Equatizer; 'It's E,·erywhere," National Post, .May 25, 2010, FP14.

20. 'Video ~ming: 1be Next Level,· Ventun1, March 20, 2005.

Chapter 2

21. ''Albena Film,TV Production Faces Decline; May 19,2010, CBC News, I 0!05/ 18/alberta.ftlm-production-decline. html. 22 . .Jelllllfer AUen, ' New Lobbj• Rules Mean More Work for Lawyers," TIX! Globe and Mail, August 13, 2008, 65. 23. "Can.1da's Maple Syrup Output Rises in ·~; National Post, March II , 2010, FP6. 24. For a detailed analysis of the rise in food prices, see Sinclair Stewart and P:lul Waldie, "The Byzantine World of Food Pricing: How Big Money Is Wreaking Havoc," The tablesectJlst.Jistetableauxsect-eng.htm.

34. Geoffrey York, 'Nationalization Talks Put Miners on Edge," The Globe aruJ Mall, February 2, 2010, 83. 35. David Ebner,'BP Spill Causes Trans. atlantic Tensions; Tho Globe and Mail, )lllle I I , 20 I0, 85; Eric Reguly, "Now Come the Lawyers," The Globe and Mail, )lllle 5, 2010, 13 I, B4; Peter Coy and Stanley Reed, ' Lessons of the Spill;' Bloom, bet'g BuslnessWeek,May 10- 16,2010. 36. Richard Bl3ckweU, ''The Greening of the Corner Office," T1x! Globe and Mail, March 26, 2007, Bl, B4. 37. Michael Potter, Competitive Strat. egy: Tecbulqucsfor Analy zing ltuJus. tries and Competitors (N~w York: The Free Press, 1980).

38. Judy Strauss and Raymond Frost, E.Jfarketing {Upper Saddle Rh1:t, NJ: P~ntice Hall, 2001), 245-246. 39. Lee J. Krajewski and Larry P. Rllmun, Operations Management Strtlll!'JIY and Ana{rsls,6Lh ed. (Upper S~ddle River, NJ: Prentice IIaU, 2002), 3- 4.

(Onawa: Minister of Industry, 2009).·x/ 2009000/IOO}eng.hml.

40. Lee). Krajewslci and Larry P. Ritzman, Operations Man.agement: Strfii"11J' a1uJ Analysis, 611> ed. (Upper Saddle River, NJ: Prentic~ Hall, 2002), Chapter 3.

29. Statistics Canada, 2008,/Jtdustr/al Resem·dJ and Development: I nten· tlons, C.'ltalogue no. 88-202·X, Table 4,

41 . Gordon Pins, " Krnft CEO Still DigeSlillg Cad bury Takeover," The Globe and Mail, June 7, 2010, 88.

Concenrration ofTotal lntramural Researc h and Development Expendi· rures by Companies Size, www.statcan.·x/2009000/ t05().eng.htm.

42. Tim Kil.~dze, 'T:tkeover ActivIty Eases Off," Tho Globe aud Mall,

28. Statistics Canada,l,.dustrial Research and Detl(!lopment:Jntentions

30. Invest in Ontario, ' Canadian lndustriallntr:unural R&D Expenditures, Selec ted Industries," 3 1. Intel website, Moore's Law, "'~· intelcom/technology/mooreslaw/, accessed June 11, 2010.

June II , 2010, B6. 43. Andrew Willis, "Couche-Tard Shows No Stomach for Casey's fight," The Globe and Mail, j une 9, 2010 , Bl6 .

44. Lawrence Sunees, ''Takeover Co~ cern Prompts BCE Poison Pill Plan,' T1x! Globe and Mall, F~bruary 25, 2000, 85. 45. "Culture of fun Benefits Oients, Suff," .AW, October 27, 2008, R'12.

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Chapter 3 1. Sinclair Stewart, "QBC Sues 6 Fonner Employees, Alleges They Took Confidential Data, Recntited Colleagues to Upstart Genuity," Tbe Globe and Mall, January 6, 2005, IH , B4. 2. Howard Levitt, "Managers Have Duty to Remain Loyal to Employer; Court Penalizes Merrill Lynch for Taking RBC StaO', • Nfltional Post, November 12, 2008, FP15. 3. Ronald Ebert and Ricky Griffin, Busi· ness Essentials (Upper Saddle River, NJ: Prentice Hall, 2009). 4. Thomas Donaldson and Thomas W. Dwlfee, "Toward a Unified Concep. tion of Business Eth.ics: An Integrative Social Contracts Theory," Academy of Management Review, Vol. 19, Issue 2 ( 1994): 252-284. 5. "Drug Companies Face Assault on Prices," 1bc Wall Strootjour-nal, May 11, 2000, Bt , B4. 6. John Saunders, '"Bitte r Air C1rrier Dogfight Heads to Court," The Globe and Mail, .July 8, 2004, B3. 7. And1·ew Crane, "Spyillg Doesn ' t Pay; Inte llige n ce Gathet·ing Is Still an Ethic al and Legal Minefield," NatlollfliPost, November 11,2008, FP12. 8. Mike Ester! and David Crawford, "'Rocky Future' Ahead as Sie me ns Probe Widens,• 11Ja Globe rmd Mail, APril27, 2007, B7; David Crawfo:rd and Mike Ester!, "At Siemens, Witnesses Cite Pane m of Bribery," Tbe Wall Street ] o umai, January 31, 2007, Al , AIO. 9. Ann Zlmmennan and Anita Raghavan, "Diamond Group Widens Probe of Bribe Charges,' Tbe Wall Street journal, Marc h 8 , 2006, Bl- B2. 10. Steve Laduramaye, "Maple Leaf Battered by Meat RecaJJ Costs, • The Globe and Mail, October 30, 2008, B3; Kris tine Owram, "Maple Leaf Claims ' Progress' after Recall," TI:X! Globe aud iffail, Febn1ary 25, 2009, B5. 11. M"rk Schwartz, "Heat's on to Get an Effective Code," Tho Globe and Mail, November 27, 1997, B2. 12. Julie Schmidt,"Nike's Image Problem;' USA Todrzy,October 4 , 1999, IB, 2B. 13. Ali:x M. Freedman, •As Unicef Battles Baby-Formula Makers, Mrican

Infant$ Sicken.," Tbe Wall SttYJet]ow·. nal, December 5, 2000, Al , Al8. 14. Jeffrey S. Harriso11 and R. Edward Freeman,"Stakeholders, Social Responsibility, and Performance: Empirical Evidence and Theoretical Perspectives;• Acadamy ofMmwgementjoumal, Vol42,Issue 5, 1999,479-485;also David P. Baron, Business and Its Etwimnment, 3rd ed. (Upper Saddle River, NJ: Pre ntice H.1JJ, 2000). 15. Richard Blackwell, "The DoubleEdged Sword of Corporate Altntism," 11Je Globe and Mail, November 10, 2008, B5. 16. Milton Friedm:m, Capitalism and Freedom (Qucago: University of Chicago Press, 1962). 17. Je re my M..1i.n, "Here Comes the Big Ne w Cle anup," Forttme, Nove mber 21, 1988, 102-118. 18. Neil Rey nolds, "The Dirty Tn1th of C hina's Energy," 1bc Globe a11d Mail, I\>L1rc h 28, 2007, B2.

28. Geoffrey Scotton, "Cleanups Can Hurt, Companies Warne d ," Tbe PlnancialPost, jtme 25, 1991,4. 29. Marc Huber, •A Double-Edged Endorsement," Cnt7.adiatz Bri.Sitwss,

January 1990,69-71. 30. Daniel M..-.chalaba, • As Old Pallets Pile Up, Critics Hammer Them as New Eco-Menace,' The Wall Street journal, April 1, 1998,At. 31. Claudia C1tt:meo,"Talisman Braces for Jungle Standoff.Threats ofViolence," National Post, November 14, 2008, FPl. 32. Banry Critc hley, "Gold Industry Eage r to Send CSR Message," N ntlor1al Post, May 25, 2010, FP2. 33. Emily Steel, "Nestle Takes a Beating on Social Media Sites,• 11M Wall SttYJat ]ottmal, Marc h 29,2010 , B5.

34. Steve Ladurantaye, "Maple Leaf Battered by Meat Recall Costs, • The Globe alld Mail, October 30, 2008, B3.

19. Bill Curry, •ottawa Wants Kyoto Softened," Tbe Globe and Mail, May 12, 2006, AI , A7.

35. Nic ho las C1sey, Nic holas Zarniska, and Andy Pasztor, "Mattei Seeks to Pia· cate China with Apology on Toys, • The Wall Street journal, September 22-23, 2007, Al , A7.

20. Jeffrey Ball,' U.N. Effort to Curtail Emissions in Turmoil; Tbe Wall Street joumal,April 12-13,2008,Al , A5.

36. Jolm Wilke, "U.S. Probes tee Makers Collusion Case,' The Wall Streetjour· 1lal, August 7, 2008, Bl , BlO.

21. Patricia Adams, "The Next Big FP15.

37. Paul Waldie, "Chocolate B.1r Mak· ers Probe over I'rices, • Tbe Globe cmd Mail, November28, 2007, Bl , BlO.

22. buren Etter,"For Icy Greenland, Global\v.1nning Has a Bright Side,'TI:X! Wall Sttwt]ottmal,July 18,2006, AI , A12.

38. "Chocolate Makers Face Legal C halle nges, • 11Je Globe mzd Mail, Fe bru~ry 20, 2008, B9.

23. "Going Green Losing Its Shine Among World's Citizet1s: Poll," Witmipcg Free Press, November 28,2008, A20.

39. Jasuu Ma!!wa'-e and C.W. Hofer, ''Theorizb1g aboul Emrepreneurship, • EiJtroprommrsiJip Theory and Practice, Vol. 16, Issue 2(\Vinter 1991): 14; Donald Sexton and Nancy Bownun-Upton, Ent1vptvmmrsiJ(j>: Creativity and GrowtiJ(New York: Macmilbn, 1991), 7.

J J . Fred Vogelstein, "How Mark Zuckerberg Turned Facebook into the Web's Hottest Platform," Wirod, September 6, 2007, www.wired. com/techbl.z/startups/news/2007/ 09/ff_facebook?currenlP•ge=3: Ellen McGirt, "Hacker, Dropout, CEO,· Fast Comp(my, May 2007, www.f•stcomJXUIY·com/m.~~zine/ 11 5/open_features­

hacker-dropoutk,July 13.2009,33.

9. Tavla Grant and Brian Milner, "Why Brazil Stands Out,· TIJe Globe and Mail, June 10, 2010 , B l , ll6. 10. Ricl..-y W. G riiTID and Michael W. Pusray, lntcrnatiotUJI Business: A M anagerial Perspective, 2nd rd. (Reading,

MA: Addison-Wesley, 1999), Qupter 3; DomJ.nick Salvatore, lntcmatioual Economics, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1998), 27 -33; Karl E. Case and Ray C. Fair, Principles of J:i'cono mfcs, 5th cd. (Upper Saddle River, NJ: Prentice llall, 1999), 8 13-817.

J J . This section is based o n Michael Potter, TIJe ComjJotitit)(J Aduautage ofNations (Boston : Harvard Business School Press, 1990), 01apters 3 and 4; Warren). Keegan, Global Marketing M a llagoment, 6 th ed. {Upper Saddle River, NJ: Prentice Hall, 1999), 3 12-32 1; Jolu1). Wild, K~nneth L. Wtld, and Jerry C.Y. Han, International Busiucss: An b ttogroted Approacl.J (Upper Saddl~ River, NJ. Prentice Hall, 2000), 175-178. 12. Wor1d Economic Forum wd>site, www.weforum org/enfmiriat.i ves/gcp/ G1oba"'20Competitiveness%20Repon/ index.htm, accessed March 21, 2010 .

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13. Dank of Canada website, http://test. bankofca, T:lble J2, Bank of Canada Bankillg and Finan,. cial Statistics (March 2010): S.112, accessed March 28, 201 0.

1 4 . K.ul E. Case and Ray C. Fair, Prln· clpli!S of Economics, 5th ed. (Upper

Saddle River, NJ: Prentice Hall, 1999), 818-821. 15.Je t e rny Torobin, ' Do UM at Par: The Ne w Nonnal," 11Ji! Glolx! mul Mall, M:uch 18,2010, D1, ll6; Bank ofC.-.nada website, fa.mecgi_fdps, accessed March 27, 2010. 16. LuAnn LaSalle, "Clearwate r· Eyes Produc tivity to Offset High Loonie,• 11Jo Globe and Mail, March 24, 2010, Bl. 17. Gordon Pitts, "How Captain High Llne r Dear the Do llar Odds," TIJc Gl obo and Mail, Marc h 16, 2010, BI- D4. 18. Geoffrey York, "McC.'Iin Laying Down Its Chips on African Strategy," 17>c Globe and Mail, December 22, 2009, B3. 19. M.-.rk MacKinnon, "RIM's Indonesian Bonanza," Tho Glolx! and Mail, March 25, 2010, Dl. 20. Diane Francis,"China Learns the Lingo," Tlx! National Ebst,)anuary 16, 2010,FP2;ShirleyWon,"Small Firms Beating a Path to the Middle Kingdom;• Tbo Glolx! nnd Maii, August 31,2004, D7. 21. Ray August, Iutornatio 1wl Btt.sini!SS Law: Text, Casos, and Roaditzgs, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 2000), 192- 197. 22. FotttUle 500 we bsite, Global 500 Ilankings, http:/ / magazilles/fomme/global500/2009/ it1dex.hnnl, accessed March 28,2010. 23. W:ure nJ. Keegan, Global Market· i11g Matmgomont, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1999), 290-292; Ricky W . Griffu1 and Michael W. Pustay, Intc mntlo nat BusltJcss: A Mmwgo·rlalP,>rSJX'Ctluo, 2 nd ed. (Reading, MA:

Addison-Wesley, 1999), 427-431 ; John J. Wild, Kenneth L. Wild, and Jeny C.Y. Han, Intematiorull Busitwss: A11 Itlte. gmted Approacb CUPI>er Saddle River, NJ: Pre ntice H.11l, 2000), 454-456. 24. Ricky W. Griffin and Michael W. Pustay, International Bzzsini!SS: A Managerial Perspective, 211d ed. (Reading, 1\-lA: Addison-Wesley, 1999), 431-433;

John J. Wild, Kenneth L. Wild, and Jetty C.Y. Han, Intematio nal Bttsini!SS: An Intogmtod Approacb (Upper Saddle River, NJ: Prentice Hall, 2000), 456-458 . 25. Shirley \Von, "Small Firms Beating a Path to the Middle Kingdo m," Tbe Glolx! ami Mr~il, August 31,2004, B7. 26. Shirley Won, "Small Fim1s Beating a Path to the Middle Kingdom," Tbe Glo!Jc and Mail, August 31,2004, B7. 27. Gaurav Raghuvanshi and Eric Bellman, "'Val-Mart Tiptoes into India's Marketplace,' Tbe Glolx! and .Mail, Febnmry 21 , 2010, B1 3. 28. John) . Wild, Ke nneth L. Wild, and Jetty C.Y. Han, International Btzsiness: An Integrated Approacb (Upper Saddle River, NJ: Prentice Hall, 2000), Chapte r 7; Ric ky W . Griffin and Michael W. Pustay, bltenJatlo rwt Business: A Mat~ agorlalPerspectlve, 2nd ed. (Reading, MA: Addison-Wesley, 1999), 436-439. 29. Carolynne Wheeler, "Bombardier Laid Trac k Long Ago fo r Deal in Olina," 17~1! Globe rmd Moil, October I , 2009, D1 ; Bertrand Marotte, "Bombardier Speeds Ahead in China," Tbe Glolx! and Mail, September 29, 2009, Bl. 30. Eric Beauchesne, "Foreign Control of Economy Hits 30-Year High," Witmi· peg Froe Press, November 19, 2005, B7. 31. Jane t McFarland, "Corporate Canada Easy Prey fo r Foreign Buyers, Tlx! G/o bl.l' atzd Mail, February 27,2008, D1-B2. 32. Roma Luciw, "Hollowed Out Fears? Relax, Foreigners Lead o n Hiring," 17Jo Globe rmd M a il, july 14,2006, Bl - 82. 33. Gordon Pitts, "Mixed Messages on Danger of Foreign Takeovers,• TIM Glolx! rmd M ail, September 18 , 2006, Dl , B3. Fo r an e xtensive analysis of the effect of foreign takeovers of Canadian business firms, see Roger Martin and Gordon Nixon, ''\Vho, Canada," Tho Glolx! and Mail, July 2, 2007, B1 - B3. 34. Jollll Partridge, "Foreign T:~keover Fears Played Down,• Tbe Globo and Mail, August 22, 2007, B3. 35. Marcus Gee, "Green Hats and Othe r W:1ys to Blow a Deal in 01ina,• Tbe Glolx! rmd 1l1ail, August 27, 2007, Bl. 36. Steven Cbase, "C.1 nada Slaps Duties on Chinese-Made B:ubecues," J1Je Glolx! atzd Mail, August 28, 2004, B2.

37. Peter Kennedy, "Softwood Decision Gets Mixed Revie ws," 17Jo Glo bo and Mail, December 8 , 2005, 136. 38. Jemlifer Ditchburn, "C.1nada, U.S. Pen Deal to End Lumber Dispute,• 17Jo Wimzlpeg Free Press, July 2, 2006, A6. 39. Paul Veira, "Emerson Wat11s Lumber Leaders of 'Consequences,.. Tbe Financial Post, August 1, 2006, FP1 , FP5; also Steve Me ni, ' Lumber Exporte r·s Taste Sting of Softwood Deal,'' TIJi! Wimzlpeg Fmc Pmss, September 22, 2006, B5. 40. "\VTO Strikes Down U.S. Cotton Subsidy Appeal,· Tlx! Glolx! and Mail, Marc h 4, 2005, 810. 41. Scott Kilman and Roger Thurow, 'To Soothe Anger over Subsidies, U.S. Cotton Tries Wooing Africa," TIM Walt Stt'Cotjo llmal, August 5, 2005, AI , A6. 42. Simon Tuck, "Farmers to \VTO: If It Ain't Broke ... ,• 11Je Glolx! and Mail, August 9, 2004, B1 -B2.

43. Antho ny DePaltna ,"Chiquita Sues Europeans, Citing B.umna Quo ta Losses,' Tbo NC!W Ym·k Timos ,January 26,2001 , C5;Brian L1very," Feud on Bananas Not as Clear as It Looks," TfM New York Tim(!s, Fe bnmry 7, 2001 ,WI ; David E. Sanger,• Miffed at Europe, U.S. Raises Tariffs for Luxury Goods," Tlx! New Yot·k Timi!S,March 4,1999, Al ,A5. 44. We ndy Stueck, "Mining Pirrns Hit Again by Chavez TI1reat,• 11Jo Glolx! and Mail, Septembex 23, 2005, 134; also Barrie McKenna , "A Nation of Big Riches, Bigger Risks," TIJC! Globe Globe mtd illnil, May 27,2008, 8 1, 86.

22. Andrew Willls, •ttecord Boelus Pool Building at Can ada's Banks,· Tho Globe nudMaii, June 2, 2010 , B tl.

23. Cathryn Atkinson, "The Total

34. Jennife r Pelcz, •fired NY Banker's

46. ElizabetJ1 Church, "Store Owners Struggle with Sl3ffing," Jbo Globe and Mall, November 25, 1996, 86. 47. Kim Vem1ond, "Get 1l1is: Lame Summer Internships Now Sizzle," Tho Globe and Mail, July 19. 2008, 8 17. 48. Greg Keenan, "CAW Rewriting Playbook to Keep fdclories Rwming," Tho Globe and Mall, September 5, 2006, 83.

49. Virginia Galt, "Worn-Out Middle Managers May Gee Pro tection,· The Globe a11d Mafi,January 3. 2005. Bl, 88. 50. P~ul Waldie, "How Health Costs

May Never Be Done,· The Globe a11d Mail, March 28,2006, 81, B4.

37. .\lk luel Moss, "For Older EmpiO)'

51. David Ebner, "Potash Workers Rat-


On-the-Job Injuries Are More Often Deadly," Tho Wa/ISttwt]ollnuti, June 17, 1997, AI , AlO.

ify Deall11at Ch• nge5 LittJe," The Globe and Mail, November 15, 2008, 87.

38. Jill Mahoney, ''Visible Majority by

Pressing Their C.1se-and, • The Globe arul Mafl,)une 30, 2010, Bl, B6.

36. OmarEIAkkad, "A Woman's Work

2017," Jbe Globe a11d Mail, March 23, 2005, AI, A7. (Oxford: Oxfo rd University Press, 1998).

24. J ennifer Myers, "1l1e Right Way to

40. Statistics Canada website, www40.

Reward,· The Globe aud Mail, April 3, 2010, 813. VcstO l/laborl2-eng.hun, accessed July 1, 2010.

25. Canada's Economic Action Site web-

4 1. Tavia Gt:lllt, "Financial Crisis Sparks

site, '''{miciativcs/ eng/index. asp ?mode=2&initiativel D=77, accessed June 30. 2010.

More Denund for Temps at the To p," The Globe a tid ilfail, November 14, 2008, Bl 6.

26. Craig Mclnncs, "Pumped Up and Ready to Pay Out,· Vanco11ver Stm ,

42. Citizenship and lmm.igntion Canada



shtml, accessed July I , 20 I 0; Patrick Bretbour and I le ather Scoffield, "Plenty of Wo rk, Not Enough Bodies," The Globe atUI Mafl, August 21, 2006, B4.

Hurt the Big Three," The Globe and Jltail, March 22, 2005, Bl - 8 2; Virginia Galt , "Companies, Unions Expect Unle Relief,· Tho Globe and ltlail, September 15,2004, B4.

Package: Anatomy of a Greac Place to Work,• The Globe tmd .Mall, July 2, 2008, 136.

January 12, 2009.

45. Hunun Resourets and Skills Development Canada w ebsite, www.hrsdc.

39. .Max Bo isoc, Knowledge Assets

website, index.asp, accessed july l , 2010.

52. Paul Waldie, "01ina's Workers

53. Jack Mintz, "The Pe rils of the Picket line," Canadian Businass, February 27-Match 12,2006, 15.

54. Alison Auld, "N.S. Nunes Defy Strike Law," 11Jo Globe nml Mt1il, June 28, 2001, 81, 0 2. 55. "Petro-Canada Workers Locked Out Last Year Advised co Accept Contract ," Nntlona l Post, December 20, 2008, FP2. 56. Murray McNrill, "Hotel Workers Sever Rebtio nship with Union," 1'lw Wl1111i~ FreePre.u, July 22, 2005, B1 4.

Notes, SOurces. and Credits


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57. "Staff Shuns Offer, ~bgn:t PL~nt to er Saddle Rivet, NJ:Prentice Hall, 2001), 325-329. 25. James Evans and James Dean Jr., Total Quality: Ma11agemtmt, Organi=tiot~ and Slmtegy, 2nd ed. (Cinc innati, OH: id=48153&la_ id= I &print=tn1e.

3. "CGA-Canada Allllmlllces 2008 Fellowship Recipients," ca/en/ re leases/arc hive/Febnlary2009/ 05/c5463.html

South-Weste n1, 2000), 230.

4. Certified Management Accountants of

26. Margot Gibb-Clark, "Hospital

Canada w ebsite,

Managers Gain Tool to Compare Notes," 11Je Globe rmd Mail, Septe mber 9, 1996, B9.

27. Del Jones, "B:udrige Award Honors

5. Ho llie Shaw, "Accounting 's Big Bang Mo me nt: Swirc h fro m GAAP,'' Natioual Post, Septe mber 24,2009, FPI.

6. Virginia Galt, "It's Crw1ch Time as

Record 7 Quality Winners," USA Today, November 26, 2003, 6B.

Accounting Otanges Loo m," The Globe mut Maa,]une 17,2010, BlO.

28. "Cus to me r Service Yo u Can Taste,' Canadian Busitless, July 1991, 19 -20.

7. AJ Rosen, "Cookillg with !FRS,' Canadian Busitless, July 20, 2009, 12.

5. James Hagerty and Dennis Bennan, "New Banleground in Web Privacy War: Ads That Snoop, • The Wall Street journal, August 27, 2003, AI , AS.

6. Mike L1zaridis, "Because Som eone Had to Stand Up fo r All Those Fn•stt'.tted Engineers,• brc., April 2005, 98; "BbckBerty Subscribers Surge to over Three Million,' May 9, 2005, www. b lac pr-09_05_2005.0 l .sh tml.

7. "Northrop Gnmunan Awards International Contracts for F-35 Joint Strike Fighter," Not1brop Grumman News Release, Septe mber 29, 2005, www. r. httnl?=86963&print= 1; Faitl1 Kee11an and Spellcet E. Ante, "The New Team-

29. members.

8. Rac he l Sandersoll, "IASB Softens

wotk,llt BusinessWeel..1CJtllitze,

30. Robelta S. Russell and Be rnard W. Taylor IU, Operations Mtmagement,

Stance o n Accounting Convergence," Fiu a u clal Tlmos, Febn1aty 16, 2010, 16.

Febnmry 18 , 2002.

4th ed . (Uppe r Saddle Rivet, N.J: Prentice Hall, 2003), 137-140.

9. David Milstead, •A Oose Inspection

31. Sunil Cho pra and Peter Meindl, Supply Choin Mmwgemont: St,r ategy, Plmming, and Opomtlon, 6th e d .

(Upper Saddle River, NJ: Prentice Hall, 2001), 3-6; Lee J . Krajews ki and Larry P. Ritzman, Opemtions 111anagement· Stratogy rmd Analysis, 5th ed. (Reading, MA: Addison-Wesley, 1999), Chapter II ; Roberta S. Russell and Bernard W. Taylo r III, Oporamm.s Ma11agoment , 4 th ed. (Uppe r Saddle River, N.J: Pre ntice Hall, 2003), Chapter 7; and Thoma;~; Foster Jr., Managing Q"atity: Atl Jntegmtivo Approach (Upper Saddle Rive r, NJ: Pre ntice Hall, 2001) , 01apte r 9.

32. Sunil 01opra and Peter Meindl, Sup. p ly Chain Managem011t: Strategy, Planni11g, and Operation, 6 th ed . (Upper

Saddle Rive r, NJ: Pre ntice Hall, 2001), Otapte r20.

33. Christina Passarie llo, "Louis Vuit· ton Tries Modem Methods on Factoty Lines," The Wall Street]ounwl, October?, 2006, Al , Al 5.

Chapter 11

of Shoppers' Revenue Accounting," The Globe m•d M ail, May 17, 2010, B8.

10. Charles T. Ho tngren, W1ile rT. Harrison Jr., and Linda Smith 8.1mber, Accountitlg, 5oth ed. (Upper Saddle River, NJ:Pre ntice H.-.11, 2002), 11- 12,39-41. 11. ChariesT. Homgre n , Wa lterT. Harrison Jr., and Linda Smith 8.1mbe r, Accout1ting, 5oth ed. (Upper Saddle River, NJ: Prentice Hall, 2002), 17 -20.

12. Billie C unningham, Loren Niko lai, and Jolm Bazley. A ccotmting: hifor· mationjor Businl!Ss Docisions (Fort Worth, lX: Dryden, 2000), 133-134.

1.3. Charles T . Hon>gren, Walte r T. Harrisotl Jr., and Linda Smith B:1mbe r, Accotmti1l..utered Accountants Congran.late 2,701 Candidates Who Passed the 2008 Uniform Evaluation,"

4 . Simon Tuck , "Security Rate d Top Ot:>Line Fear,' Tbe Globe and Mail, July 5, 1999, B5.

8. Laura No rthn1p, "Tilnbuk2 Really, Really Wams You to Be Happy with Their Bags," The Cons,.mer/st, June 5, 2009, at www.con sume ris 5280357/timbuk2_ reaUy-reaUy·wantsYOl>to-be. Emily Wal2er, "Have It Your Way," SGB, Vol. 38 , Issue 1 (Januaty 2005): 42.

9. David Milstead, ' A Rocket , a Meteor- Or a One Tric k Po ny?" T/:10 Globe a11d 1\1{Ji/, Januaty, 29, 2010, B9.

1.0. Boyd Eml.m, "Online Brokerage Muscles in o n the Road Show,' 11Jo Globe and Mall, March 29, 2010 , B5.

11. 3D System s, "3D Systems Helps Walter Reed Army Medical Center Re build Lives,' July 6, 2005, www.3dsystems.cotn. 12. 3D System s, "3D Systems He lps Walter Reed Army Medical Center Rebuild Lives," a ppsolutions/casestu d les/wa lter_reed . asp ; also Hannal1 Hic key, "C.1 me ra in a Pill Offers Cheaper, Easier Window oil Your Insides,• U\, Januaty 24, 2008, htrp://uwnews.ol-g/alticle. asp?article id=39292. 1 3. David LaGesse, "How to Turn Social Networking into a Job Offer," U.S. News & World Report, May 11, 2009, www. us news.coln/artic les!bus iness/careers/ 2009/05/11/ h ow-to . 14. "ABN AMRO Mortgage Group Offers One Fee to Ford Motor Company Employees," Mo rtgage Mag, February 14, 2005, www.mongagemag.colll/n/ Notes, Sources, and Credits



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502_003.htm; also ~An ln!r.Ulet's Ufe Cycle;, june 16, 1999, staned/....-ebsite/d92824785l .brc.


Figure B.2 is a modified version of diagrams on the BlackBerry website, Research In Motion Ltd., techn.ic:U images, www.bbckberry .colt\limages/ technicallbes_exchange_•nhitecture.gif.

16. Ga}1e Balfour, "Tile Wisdom of the Ooud," Backbone, May 2009, 16-20; Salesforce.con1 website,, accessed July 7, 2010.

17. 'Kroger Tailors Ads 10 hs Custom· ers, • Columbia Daily Tribune, January 12, 2009, 7 8. 18. )o Merchant, 'Vlnual Fosslls Reveal How Andent Creatures Uved," NewScientlst, May 27, 2009, www. 103. 500.vinual·fossllHeveaJ. how-andent· cremures-lived.htm.l.

19. Geoffrey Rowan, "Unique Software Ttunks Uke a Human," The Globe and Mail, December 3 1, 1996, Bl , 84. 20. Kenneth C. Laudon and Jane P. Laudon, Esstmtlals oflllanagemeut lnfomlfltion Systems, 3rd ed (Upper Saddle River, N)" Prentice tbll, 1999), 383-388: E. Wainwright Martin, et al Managing ltifonnation T«bnology: Wbat Managers Need to Know, 3rd ed (Upper Saddle River, NJ: Premice-liall, 1999). 225-227

24. Alex Leary, ·w~Fi Ooaks a New Breed oflntruder," St Petersburg Times, July 4 , 2005, 2005/07/04/State/Wi_Fi_cloaks_a_ new_ br.shtml.

2S. "Fraud Prevention,· Ibe Globe and Mat1, March 29, 2010, FPI.

9. Rasha Moutarda, "Gerontologists Go Beyond the Numbers,· The Globe a11d Mail, February 19, 2010, B9. 10. Aparita Blundari. "Ethnlc Marketing-It's More than Skin Deep," Ibe Globe and Mail, September 7, 2005, B3.

retariat website, www.tb$ pgol-pgedlpiarp-pfefvp/course l/mod2/ mod2-3-eng.asp, accessed July 6, 20 10.

11. Canadian Media Directors Council, Mod/a Digest, 2009-2010, Ethnic Media, Pl6 (foronto: .\larketing. 2009), 40, Digesc_2009.pdf.

27. Sioblun Gorman, ' The Cold War Goes Digit;~l-and Corporate," Tl:w Globe and Mail, January 14, 2010, B7.

12. Lauren Goldstein, - Dressing up an Old Brand," Fortune, No\"ember 9, 1998, 154- 156.

28. spyware.html.

13. Peter Gumbel, "Mass vs. Class,T'Or·tune, September 17, 2007,82.

29. "Ferris Research and Abaca Tech-

J 4. Tamara Audi, "Las Vegas Goes All Out to Attract Gay Travelers,· The Wall Streetjo11mol, November 2, 2007, Bl.

26. Treasury Board of Canada Sec-

nology Corporation Hold Anti-Spam Webinar," NewswimToday, April 9, 2008, 325311-

Chapter 12 1. Philip Kotler, Marketir~g Managenumt, 11th ed. {Upper Saddle River, NJ: Prentlce HaU, 2003), 76-78.

2. HarlOJ>Davidson Inc.: 2009 Ammo/ Report (Milwaukee: Hartey-Oavidson, 2009), 7; Pbilip Koller, Marlreting Management: Analysis, Planning, lmpl~ mentation, and Control, 9th ed. (Upper Sadd.l e River, NJ: Prentice Hall, 1997). 12-13. 48-51.


1 Philip Kotler, Ma,.keting MatJUgomont, lith ed. (Upper Saddle River, NJ: Pre ntice Hall, 2003), 292-294.

16. Naoufel Daghfous. john V. Perrof, and Fmnk Pons, "Values and Innovations A Cross-cultural Study," The jour· nal ofConsumer Marketing, Vol. 16, !m oe 4 ( 2009): 3 14 - 331. 17. Lauren Goldstein, "Dressing up an Old Bnnd, • Forlww, Nm-emher 9. 1998, 154-156. 18. Mall Pltlllips, ""Pow! Rorrutnce! Comics Coun Girls,- Ibe Wall Street jo11n10/,June 8, 2007, Bl .

21. Emily Smith, ' Turning •n Expen's Skills into Computer Sollwa.r e, • B11sl· uossWeck, October 7, 1985. 104- 107.

3. Pbilip Kotler, AJarketing Mallagement: Analysis, Planning, lmplemen· tat/on, a11d Control, 7th ed. (Upper Saddle River, NJ: Prentice Hall, 1991).

19. John Morton, "llow to Spot the Really lmpona nt Prospects," Br.siness ;11mwting, January 19')0. 62-67.

22. Phuong Tmm, "Facebook and

4. Philip Kotler and Peggy Cunnlnglum,

Pants, Metro Is Watching You," The Globe and Mall, November 19, 2009, 81.

Privacy lnvasions,' Imprint Online, june 15, 2008, http://imprint.uwate J· index.php?option=com_conte nt&t:ts k= view&id=2570&Jremid=57; also Jacqui Cheng, 'Carutdian Group: Facebook a Minefield of Privacy Invasion," May 30, 2008, tech-policy/news/2008/05/c:u~ad iangroup-file5-eomplalnt-over.facebookprivacy.ars; also "CeU Phones a Much Bigger Privacy Risk llun Facebook," Fox News, Febrwry 20, 2009, www. 0,3566.497544 ,00.html

Marketing Management (Toronto:

Prentice Hal~ 2004), 18.

S. Greg Keen:m, "8l\1W Canada Seeks Top Luxury Spot; The Globe and Mail, june 15, 2009. 85. 6. ~brina Strauss, ' Canadian Tire


21. Emily Nelson, "P&G Checks Out Real Ufe,'' The Wall Stroot jormwl, May 17, 2001, 81 , 84.

Targets the Price Sensitive, • The Globe and Mall, .\lay 15, 2009, B4.

22. Susan Berfield, "Getting tl1e Most Out of Every Shopper.· B11sinessWeek, February 9. 2009, P-i5.

7. Eric Reguly, •Hard Tune: Makers o(

23. joseph Pereira, "Spying on the Sales

Luxury Watches Qock a Slow Return to Sales lieahh,• The Globe and Mail, February 2, 2010, Bl.

Floor," The Wall Stroot journal, December 21 , 2004, Bl, 84.

8. Chris Isadore, ·sweet Spot: Luxury

23. Danny Bradbury, "Predicting 20 10: Backbone magazine, March 2010, 23.

20. Marina Strauss, "You, in the Yoga

SUVs Are Hot,• CNN/JJfoney, www., january 7, 2004.

24. Julie Jarson, "IGwi Goes beyond Shine In Effort lO Step up Sales.· The Wall Stroot jounUJl, December 20. 2007, Bl.

Notes, SOurces. and Ctecllts


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25. t\Luina St.1'3uss, "Mining Customer Feedlxtck, Fil'tn5 Go Undercover and Online," Tbe Globe a nd Mail , May 13, 200i, Bl, B25.

4. Susanna R:ry,"Dreamliner a Sched u1ing Nightmare; Delayed yet Again; BoeingTilis Tune Cites Strike and Fastener Problem;' Nallotwl AMI, December 12, 2008,FPI2.

News, June 2 1, 1993, I; Nancy J. Kim, "Back to lhe Drawing Board," 1be Bergen {New j ersey/ Record, December 4, 1994, Bl, 84.

26. Deborah Ball, Sarah Ellison, and Janet Adamy, "Probing Shoppers' Psyche," TW Wall Stroot joun~al, October 28, 2004, 81, 88.

5. James C . Anderson and James A.

19. MSN website, Steve Mcrtl, "Buick l.1Crosse's F~nch Slang Lat· est Enmple of Pitfalls of Car Names,· hnpJ/autos ca

27. Peter Monon; at Face Value; National Post,July II, 2007, FP3.

28. Emily Nelsoll, "P&G Checks Out Real life," 1be Wall Street jollrtUJI, May 17, 2001, Bl, 84.

29. Robyn Greenspan, "TI1e Web as a Way of life," May 2 1, 2002, www. cyberatlu.cotn. 30. O mar El Ak.kad, "Canadian Inte rnet Usage Grows," TlxJ Globo tmd Mall, May II, 2010, 89.

31. Thomas Ru~l~ Gle nn Verrill, and W. Ronald Lane , 1..'1icana Discov· ers Some Buyers Are Passionate about P:tclc.1glng,' The Wall Streetj o llrnal, November 17, 2005, Bl, 8 5.

29. Deborah llall, "The Perils ofPackag· ing: Nestle Ainu fo r Easier Openings, • Tbe Wall Strootjournal, February 23, 2009. 30. Kei1J1 McArthur, "Oh ? C:mada? Ads Beg to OUTer,· 1be Globe and Mail, July I , 2004, 81, 818.

3 1. Canadtl.n Meoo Directors Council, Media Digest, 2009-2010, Net Advertising Volume by Medium, P13 (foromo: NoteS, SOurces, and credits 481


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Muketing, 2009). 14, pdUMedia_ Digest_2009.pdf.

32. Caludian Media OireC10t$ Coun· cil, Media [)(gest, 2009-2010, D:tily Newspapers, P l 3 (Toronto: 1\l-ui.:eting, 2009). 40, www erode ca/pdf/Media_ Digest_2009.pdf.

33. Andrew Wahl, "Red All Over,Cimndiall Busi11ess, February 13-26. 2006, 53-54.

34. Susan Krash.imlcy, "Repons oflV's Death Greatly Exaggerated,• 1be Globe and Mail, April 13, 2010, 81.

45. "30 Second Spot:Dispatches from the World of Media and Ad,-ettising," The Globe and Jlfail, October 31, 2008, 88.

46. Aaron 0 . Palrick,"Technology Boosts Outdoor Ads as Competition Becomes Fiercer,· The Wall Stroot f oul' nai,August 23, 2006, A1 ,AIO; Gtmt Robertson,"Growth in Internet Ads Out· paces All Ollters," The Glo be and Mail, June 23. 2006,84; Canadian Media Direc· tors Council,Meg Ft·ee Pmss, Nove m· ber 18, 2008, B5. 28. Geoffrey Fowler, "EBay Retreats in We b Re tailing,' Tbe Wall Stmet]ournal, M.1rch 12, 2009, Al , All. 29. Bertrand Marotte, "Reeling in Fresh Customers, • Tbe Globe and MrJil, April 20 , 2010, B3.

30. D:IVid Milste ad, ''Coke Gets B.1c k imu lht! Buuliug Bu~ittt!Ss, • TI.HJ Globe and Mail, February 26, 2010, BIO.

31. · wahnart to Assume Product ShiJ> ping,' Natio11al Post, M.1y 22, 2010, FP4. 32. Kerry Capell, "Z.1ra Thrives by Breaking All the Rules," Bloomber-g BustnessliJCok, Apri1 26, 2010.

Dig Out of De bt,• Witm ijJCg Ft-ee Press, December 12, 2009.

9. k/Visa_(V), accessed Septe mber 7 , 20 I 0. 10. Boyd Erman, "Visa's IPO Taps i11to the World's Love of Plastic," Tbe Globe a nd M a il, Fe bn1ary 26, 2008, BI , B6. 11. Tara Perkins,"Credit C.1 rd Perks Putti11g the Squeeze on Retailers,' TI:Je Globe and MrJil, June 24, 2008, B1 , B5. 12. •Re taile rs Want Ottawa to Regulate De bit and Credit Ca.r d Fees, • CBC.crJ, 21/fees.httnl.

13. Danny Bradbllly, "Be tte r Safeguards in the C.1 rds; Credit C:u-d Safe ty,' March 12, 2009, FP12.

Natiot~al Post,

14. Tom Lowry, "Thieves Swipe Credit with C.1 rd Re ade rs,'' USA Today, june 28, 1999, lB. 15. Geoff Ki.rbyson,"High-Tech Credit Cards Latest Crime-FightingTool," Wimzipeg Froe P.ross, December 23, 2008, A5. 16. Bank of C.1nada B:mking and Fillancial Statistics, Series C1 , Chartered B.1nk Assets, May 2010, S17.

16. Bertrand Marotte, "Contraband Killing Convenience Stores,· 1be Globe and Mail, April 7, 2010, B9.

33. GordonJa.remko,"River Highway in c.~nada's North Open for Business," 1be Wimzipeg Fme Pmss,July 2 5, 2006, 810.

17. Direct Selling Association webs ite, www

Chapter 15

17. Tara Pe rkins and Grant Robertso n , "The B.1nk M.1c hine with 11 I'e rsonal Touch," TIJC Globe at1d Mail, }: A Byzantine Cross-Bo rder Investment Regime Is Killing the Can • dian Venture· Capital and Technology Industries," Natiorml Post , May I , 2009, FPII. 29. "Venture Capit>llnvestment IN Q I 2010: Slower Decline," Canada's Venture Capital and Private Equity Association website, May 18, 2010, www. 1_20 I 0_ VC_t>ress_Re.leue.)'lNALpdf , accessed ~hy 29,2010 . 30. Tbe Economist website, Big Mac lndex, M•rch 18, 20 I O, www. disphlystory.cfm?story_id= l S71S 184, accessed May 29, 2010. 484

3 1. Roben J. C.rbaugh, llltematio nal Economics, 5th ed. (Cincinnati: SouthWestern, 1995), Chapter 11. 3 2. Da>id Pukinson, "The Lost Decade,· TlHl Globe attd Mofl, December 3 1, 2009, 81.

33- Canadian Busin'cn'itTimes,Deccmber 12, 1997, FI. Tiu: Gt"Cenlng of Business: This Is On e G reen (:Uld SodttUy Res po n , lble) Compan y1 HoiUe Sltaw, "Keeping It Green; OutdoorRecre:uion Retaller Finds Ways to Draw Customers," Natlotwl Post, November 28, 2008, FPt4: laura Pratt, "Sustainabllity Reponing," CGA , September-October 2007, 18- 2 1; Sbarda Prasb;td, "Good Green Go:lls," 1be Toronto Star. April 22, 2007, www.; Ralph Shaw, "Peak Performance (Mountain Equipment Coop)," Altornatit"'5 j oumal, Vol 3 l , lssuc I Qanuary/ Fe~·2005): 19-20.

Managin g in Turbulent Times: Coun terfeit Products: Who' s Accountable? "c&y Oaims Court Victory in Belgium over l 'Oreal in Counterfeit Goods Case," National Post. August 13, 2008, ''''''w.nationalpost . com/story-printer.html?id=7 18982; "EBay Quasltcs Ttfbny Trademark Suit," Tbe Globe and Mall, july 15, 2008, B6; "The End of louis Vuiuon on eBay?" 63035, acces.sed july 29. 2008; Maureen Fan, • Qliru 's 01)1npic Turnabout on Knockoffs," Jwte 13, 2008, AI ; Aileen McCabe, "China's Knock-Off Sho ps Help tlte Rich Scrape By," Winnipog Free JTess, April l 9, 2008, C19; Da.ryllynn Carlson, 'The Costly Reality of Fakes," The National Post, December 5, 2007; Daryl-lynn Carlson, "Canada's 0' Protection Laws Soft,• 71Je National Post, December 5, 2007; Paul Waldie , ' Court Clobbers Store for Selling Vuiuon Fakes, • The Globe and Mail, November 26, 2007, B3; Jonatltan Cit eng, • A Small Firm Takes on Chinese Pirates,· Tbc! Wall Streetjoumai, JuJy 5, 2007, lll B2; Suey Meichtry, "Swell o r Swill?" 1be Wall Streetjourual, August 10, 2006, Bl - B2; Alcssandra Galloni, "A5 luxury Industry Goes Glob:ll, KnockOff Merclunrs Follow,· Tbe Wall Strwt j oumal, january 31, 2006. AI , Al3; Alcssandra Galloni, "Bagging Fakes and Sellers," 7be Wall Sfrl!(!tjounral , janu~·3 1 , 2006, BJ-B2; Go~n

Fairclough, ' Tobacco Finns Trace fakes to North Korea,- The Wall Street joumal, ]anuary 27, 2006, Bl-B2; Jeff Sanford, "Knock-Off Nation,· Canadian BtiSftwss, November 8-21, 2004, 67-71; Shawn McCartlty, "Crackdown on New Yoti('s Canal Street," The Globe and Mail, August 30, 2004, Bl, Btl. futll'e p rcne uJ·sh ip and New Ventures: How Gr een Is That Oran ge? "Frequently A.sked Questions,• Attbur's juice website, ltttp://, accessed May 12, 2009; The Packaging A.s50ciatio n of Canada website, www. Conf_3info.l:ll:tli'•Travis_Bcll, accessed M:Jy 12, 2009; Karen Davidson, •New Products Spott Green Nut:rition," Tbc! Grower, May 1, 2009; Randy Ray, • fresh Ideas for Green Manuhcturing," Tbc! Globe and Mail. April 22. 2009. El 0: Cleve Dbeensaw, ' 100 Marathons Earn Place on Walk of,- Times Colonist,

October I I , 2008; Rick Spence, "Top 100 Ust Reveals He:llthy &onomy,· Tbe Financial Post , june 2, 2008, FP5; Ken !Umstead. '11lejuices Ate Flowing," Canadian Grocer, Vo l. 121, 1ssue 3 (April 2007): 53. Busine.s Case 3: PoUullon o n the lllgh Sens Bruce Stanley, "Ships Draw Fire fo r Rising Role in Air Pollution,· Tbo Wall Stroot joumal, November 27,

2007, A I , Al 6; Bill McAlliste r, "Alaska Still Out From o n Environmental Monitoring,· 1bl!]llttMII Empire, May 29, 2004; Marilyn Adams, "Fomter Carnival Exec Says He Was Fired for Helping Federal Inquiry," USA Today, November 8- 10, 2003; .\larilyn Adams, "Cruise-Ship DtUnpl.n g Poisons Seas, Frust rates U.S. Enforcers,'' USA Today, NO\•etnber 8- 10, 2003; Michael Connor , "Norwegian Cntisc Line Pleads Guilty in Pollution Case,• Reutors, December 7, 2002; "What Is a Dead Zone?' Oceana Interactit>O, )lllle 10, 2004, www. cfm? sectionlD 5 ll&fuscaction59 Case 5• Bomba r-dier's Global Str ategy Bombardier's Globa l Strategy: Eric Regtdy, "Beaudoin's Big, Bold Bet," Tbo Globo a ud Malt, july 14 , 2008, 01 , BIO; Tu Tiunh Ha, "A Power Pbnt That Is Quieter, Fuel Efficient but Sti.ll Years Awoy," Tbo Globe and Mail, july 14 , 2008, B l , BiO; Shawn McCarthy and Eric Reg>oly, "Carudan Hopes, Global Risks,' 7be Globe and Mall, july 14 , 2008, AI , A6.

Chapter 6 Corpor:~te Culture

Christopher Swann, "You Can Trust Us Most: Survey," National Post, February 23, 20i 0, FP2; "Corporate Culture Gives an Edge: Despite Recession, Record Number

Notes, SOurces. and Ctecllts


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of Nominatio ns in Survey," Natlcnral Post, November 12,2009, f l' l 2; Meagan Fitzpatrick, "RCMI' 'Horribly Broke n,' Need Fix Qulc kly: Re pon," Wirmipog Free Pt-ess, June 16,2007, A9; Roma ludw, "No. I Employee Not AIW11ys Your No. I Monager," 1be Globe and Mail, f ebruar,• 17, 2007, BIO; Calvin Leung, "Culrure Oub ," Canadian Business, October 9-22, 2006, LI S-120; Andrew Wahl, ·culntre Shock," Crmrtdlrm Busltwss, October 10-23, 2005, 115-116; Gordon Pitts, ' It Boiled Down to a Culture Oash," 1be Globe and Mail, June II , 2005, BS; Do ug Nairne, "Mounties Riding the Vision Thing," Winnipeg Free Pr'CSS, September 16, 1996, AS. Managing in Turbule nt. Times : What Do Managers Ac ttmlly Do? He nry Mintzbetg, 17:X1 Nattti'O ofA1mwgerial Wol'k (New York: ll:u·pc r and flow, 1973); Harvey Schachter, "Mo nday Morning Manager,· 1be Globe and Mail, November 8, 2005, 82. Figure 6.4 Ricky W . Griffin, Management, 8th ed. (Boston:

Ho ughton Mifflin, 2005), 282. Fl~ttrre 6.5 Based on Ste phe n P. Robbins and Ma.ry Coulte r, M rm tiBOIIIOIII, 9th ed. (Uppe r Saddle River, NJ: Pre ntice Hall, 2007), 199.

Figure 6.6 Based on Thom.'l5 l. Wheel:m and J. David Hunger, Strategic Mmutgamenl and Busin ess Policy, 7th ed. (Upper Saddle River, NJ: Premice Hall, 2000), 13. The G•·eening of Uus lnesso Setting G t•ecn Go:llsAlex:llldi"J Lopez. Pac heco, "Planet-Friendly Offlces; Natiotzallt>st, October 2. 2009, FP12; · Rona Wins Kudos on Green Initiative; 1ba Globe and Mail, November 22, 2008, 87; Marjo Jo hne, "ShOJ>pers Get a Brand New Bag," 17Jo GloiJo and Mail, October 20,2008, E5;Jo hn Murphy, ' Honda CEO Vies for Green Malltle," Tbo Wall Street]ormwi ,June 16, 2008, OI - B2; "0eadUne Set for Big Po lluters; lt>st, December 13,2007, ws/canadal st of)•.httnl?id=l64992;"Going Green: The Future of the Retail Food Industry;

Sharda Prashad,"Good Green Goal~," Tbe Tomuto Star,April 22, 2007, www. thest:lr.corn/printArticle/20 5855. E-Uuslncss and Social Media Solutlo nso Print Medin: Are E-Rendc~ the Solutio n or u New Pro b le m ? Jordan Timm, "Indigo 2.0," Report on Brtsiness, March I, 2010, 29; Susan Krashinski, · upstan Kobo Ainu at KJndle,' Tbo Globe and Mail, February 9, 2010, B7; Yukurl lwatlni Kane and Geoffrey A. Fowle r, ' ApJ>Ie Foes ~lave Head Start o n E-Contenr,• Tbo Globe and Mail, April3, 2010, B5; John Barber, "Arrival of iPad Gives Publisher Clout in e-Book Pricing; Tbe Globa atul Mall, February 2, 2010, BS; John Barber, "Why Old Media Loves Apple's New Thing," The Globe and 111ail, January 27,2010, B7; ' Taiwan's AsusTek Unveils iPad Collll>etiro r,• 17Jo Globe and M (l/1, june I, 2010, BIO; Geoffrey A. Fowler, · u>ad Enjoys Strong Start, but Now Long?" Tbe Globe and Mail, April 5, 2010, B7; Rach el Metz, "il'ad Coldd Be Kindle's First Big Threat,· Tbo Globe and Mail, March 30, 2010, Bl 0; Susan Krashinski, "Magazine Sales lilt liard at Newsstands," Tbe Globe and Mail, February 9, 2010, B7; Simon Avery, "Amazo n Slides afte r iPad Launc h,' 1bo Globe rmtl M ail, Febn~ary 3. 2010, 16; Omar E1 Akkad, "&Reader Rivals Jostle for Position," 1be Globe and Mail, January 7 , 20l0, B7; Jason IGrby and Katie Engelhart, ·Rupert Murdoch vs. the Internet," M aclemr.'s, January 18, 2010, 40-42;.Jim Harris, "Newspapers Are Suffe ring," Backbmw, Nove mber 2009, 10; Mari na Strauss, " rurning a Page into the Digital Age," Tbo Globe aut/ Mttii,June 27, 2009, B3.

Agrir:rtlturo ami Agri-Food Canada,

Entreprene urship and New Ventures: From a Missouri Garnge to llollywood Photo-!, http:// pho to-kicks.corn/, accessed june 5, 2008; 5000, www.lne.corn/ inc5000/2007/company-profile. html?id+200705920, accesse GlobC! and i l1ail, September 25, 2002, B7; Marie Drolet, ''The Male-Female \Vage Gap," Perspectives Otl Labottr and lncoma, Online Edition, December 2001, 490

01201/4095957-erlg.html; Elizabeth Church, "Women Still Shut Out of Many Top l'osts, • The GlobC! ortbusilless.conl/web/online/ Tot>-News-Headlbtes/FAA-knew-of.MI). 8Q.wiring·(>toblem-in·2003/l $18873; MSNBC News Services, •American's Ml).80s Cleated to Fly Again," April 14, 2008, www.msnbc.msn. com/id/24029455/; Brent D. Bowen and Dean E. Headley, '2008 Airline Quality Rating," April 2008, http://aqr. aero/aqrreponsn008aqr.pdf, 'Survey: Airline Complaints Sb:y High" CBS News, April7. 2008, www.cbsnews. conl/storiesn008/04/07/business/ rnaln3996989.shtml; MSNBC News Services, • Americm Airlines Grounds Fleet of MD.SOS, • March 26, 2008, www.msnbc.msn.conl/id/23808n2/.

Chapter 11 What's the Latest on Pension Accounting? "OMERS Gains Don't Cover Deficit Hole; Obligations Grow Faster than Contributions," Notional Post, March 2, 2010, FP3;Janet McFarland, "Pension Plans Tagging Along with Surge i:n Stock Markets," 17Jo Globe a11d Moll, January 7, 2010, B3; Boyd Erman, ''Teachers Books WorstEver Year after 18 percent Plunge," Too Globe and Mail, April 3, 2009, 114; Janet McFarland, ' Who's Responsible?' TIXJ Globe and Mail, March 6, 2009, Bl ; Lori Mcleod, "Pension Plans Suffer Historic Losses," TIJe Globe aud Moil, January 9, 2009, Al; Janet Mc Farland, ' Returns Forecast This Year \ViU Do Lillie to Offset 2008 Shortblls," The Globe atuJ Mail, January 14, 2009, 83; janet McFarland, ·Relief FaUs Shon, Pension Plans Warn,· 1be Globe ntJd Moil, November 28, 2008, B1;

Elizabeth Church, ''Pension Funding Shortfall Inc reases Dr;m.atlcally," Tho Globe mod Mall, November 8, 2005, B5; Elizabeth Church, 'Pension Fund Shortfall Soars in First Half,· 1be Globe nnd Moil, November 23, 2005, 81, 87; Elizabeth Church, 'Cost of Retiree Benefit Liabilities 'Sleeping Giant,·• 1be Globe and Mall, August 23, 2004, 84; Paul Waldie and Karen Howlett, " Re(>Orts Reveal Tight Grip of Ebbers on WorldCom," Tbo Glovo n11d Moll, June II , 2003, B I, 87; Barrie McKenna, K:tren Howlen, and Paul Waldie, "Probes Cite Ebbers in 'Fraud," 1be Glo/)(1 mrd Mall, June 10,2003, 81 , 8 16; Elizabeth Omrch, "Accotulling Overlta ul Coming, • 17Ja Globa rmd Mail, December 23, 2002, Bl , 86; Richard Blackwe ll,' OSC Targets Tech Accounting," TIXJ GloDo rmdMn#, Scptembct· 26, 2000, 0 I, 116. Th e Greening of Uuslncss• Th e Gr een Revolu tion lilts Accounting Ken Garen, "Are You Ready to Prosperi" Too PractJc"l Acoowotrmt,June 2008, SR29;Jell'Sanford, ''The Next Pension Crisis," Conadlmo Buslnoss, August 13, 2007, Vol. 80, Issue 14/15, 62-63; Dom Serafmi, "Regubtions Are the Consum· ers' BeSI Friends," lutormodla,July 2004, 32, 2, ABVINFORM Global, 23. Man ag.i ng In Turbulen t 11mes: Opporttudlle~ In Forensic AccountIn~ Dolly Glen nor, AI , accessed March 6. 2009. from Canadian Newsstand Core database (Docrunem ID: 165294426 1); Randy Ray, "It Is a Sexy Environmem and We Are the CSis," 17)(1 GloDo and Mall, October 10, 2007, 88; 01a11ered Accountants of Cau•ite, www.dc.::u:•; Elbabeth Bumiller, "Bush Signs Bill Aimed at Fraud in Cort>Orations," Tbo Notv York Tlmos, july 3 1, 2007; Kroll hwestlg.1· tive Services website,; "Some Lottery Retailers Don't Obey the Rules; Winnings 20% Faile d Ant~Cheat­ ing Test," February 28, 2009. llusiJJhp?section=article&:ln ic leid=297, accessed january 29, 2010 ; Jeff Buc kstein, ·sox Provision Holds M:magemen!"s Feel to the Fire,· 7be Globe and Mail, April 19. 2006, Bl3; Claire Gagne, "The SarbanesOxley Act Rescores Shine to Auditors' Reput11tlon-and Fills Their Coffers,' Ctmadian Business, September 27-0ctobet 10, 2004, 47-49; Karen Howlett, "livem's Auditors Charged with Misconduct ,• Tbo Globe and Mail, April 6, 2004, 81 , 04; Karen Ho wlett, ·Accounting Hearing Is To ld Miscondua Charges Against Auditors Are ' Rubbish," 17Je Globe and Mall, April 14. 2004, B3; Shawn McCanhy, "Investors Expec t Too Muc h: Delohte CEO," Tho Globo cmd 111ail, Oclober 17 , 2005, BIO; Elizabeth Omrch, •Accounting Overhaul Coming,• Tbo Globe and Mail, December 23. 2002, Bl , B6; Richard Olad:we ll, • Auditlng firms Gel Tiglner Rtdes," Tho Globe a lUI Mail, )my 18, 2002, Bl , B4; jolm Partridge and Karen Howleu, "CIDC Restricts Its Auditors," Tho Gloixl tmd Mail, March 1, 2002, Bl , ll4; Uly Nguyen, •Accoumams Primed for Ounge, • Tho Globe and ilfail, february 4, 2002, B9; Richard Olad:well, ·Accountants to Issue New Rtdes," Tho Globtl and Mail, March 28, 2002, 81 , B7; j o hn Gray, "Hide and Seek," CtmtJdltm Business, April 1, 2002, 28-32; Steve Liesman, jonathan \Veil, and Mic hae l Schroeder, "Accou nting Debac les Spark C:alls for Ounge: Here's the Rundown ,' 17X! Wall Shwtjoumal, February G, 2002, A1 , AS; Edward Clifford, ·oig Accounting FimlS Face Insurance Crunch," The Globe and Mail, Nove mber 13. L993. B3; 1' Lush, "Gap Widens Between Views on Auditor's Ro le in C:mada,• 1bo Globe atJd Mail, February 14, 1986, B3; Oatis Robinson, "Auditor's Ro le Raises To ugh Questions," 17Jo flfnrmclal Post, June 22, 1985.

Cha pter 12 luJuJemon: A Cle:aa· Markctln.g Su·atcgy, Even ln Trying Times "Lulldemon to Open 25 New Stores by June as Profits Nearly Triple," Canadian Business, March 25, 201 0;

Marina Strauss, "Lululemon Rides out Recession In Quality Fashion," TIX! Globe mul Mall, Match 29, 2010, Bl; Marilla Strauss, "Lululemon Ramps up PL1ns to Hit tlle Net,· Tho Gloixl and Mall, Mnrch 27, 2009, 88; lululemotl webslu:, www.lwulemon .com, accessed April 22, 2010 ; Sunny Freeman, "Lululemon Tatgeting 45 :\larke ts for Showroom Openings to Create Brand Buzz," Ctmadlan Bu.slrJess, March 25, 2010; Sunny Freeman, "Ask the legends: Chip Wilson,' Pmjit, March 20 I 0 ; Canadian Business website, accessed April22, 2010; Marilu Strauss, ·New ~tmtra Pays Off for Lululem o n , • The Globe and Mall, December 10, 2009. 82; Aili McConnon, "Lulwemo n 's Next Workout,· Busirres:sWeek, June 9 , 2006, 42-43; Marina Strauss, "Lulule mo n 's Plan for Lean Times," Tho Globo rmtl Mt1ll, March 28, 2009, D3; .Je tmlfcr Wells, "Now Is Her 01ance to Stretch,• 1bo Globe and Mail, April 3 , 2008, B1 , 84; John Partridge, "Lululemon Shops for New Re12Hing Head at Starbucks," 1bt1 Globe and Mail, j anuary 5. 2008, 08 ; Paul Waldie and Marina Strauss, "Lulu le mon Supplier Navigates Rod.')' Shoals," The Globe and Mail, November 16 , 2007, B3.

TI1e GreenirtA of Uus incs." ' Gu elph TI'llnks G o·cen American Pet Ptoduc ls M:anuf:ac turing Assoda~ion­ website, www .appma.otg/ptess_ indusrryrrends.asp; Blair Coursey, "No nh Ame rica: Plastic Waste-More Dangerou~ I han Global Wam1ing, • Elhic:ol earporaHon , May 8 , 2007.

1\-Uac._• lnu.s and Social Mc.~lla Solutions: Apps, Apps, :md lllorc ApJ>S: N ew Age Product Opponunltles ~lans Wagner, •whone 4: Numbers to Grow.· 1bt1 Globe and Mail, July 9. 2010 ;John Lorinc, "The Age oftlle App," Report OtJ Business, April 20 I 0, 47 -50; Peter Burrows, "Apps Tnunp Tunes at API>Ie," Busi.nossWook, September 28, 2009, 34;Jim Harris, '1'alking about a Re•'Oiutio n,• Backbone, December 2008, 10; Brian X. Chen, Wired website;Coder's Half~lillion·Dollar Baby Proves iPhone Gold Rush Is Still On; www. 02/ shoot·is-iphone/, accessed April 22, 20 I0; Matt Asay, CNET News website, "API>Ie Ch:mnels Google, Microsoft to Attrdc t Develol>ers; http://news.cnel. conl/8301 -13505_3·20003211· 16. hunl, accessedAprii22,2010;CNET News Website, Rick Broida,"l Ordered an iPad.WhatApps Should llnsmll Fir.t?• hup:// 830 1-3 1747_7·20003145-243.lllllll, accessed April 22, 2010; Omar El Akkad, "Apple Rides iPhone, Mac to Record Profit," Tbe Globe atzd Mail,)anuary 26, 2010, BI , B6.

Pssll Old You lle:u · the Latc.'St? Hollie Sluw, "Reaching Out via Web; :\farketers Look for Creative Ways to Draw in Constuners," National Post, November 7, 2008, FPI4; Nick Turne r, "Cupcake Business Reaps Sweet Rewards: Location and Word of Mouth Key to Success,' National Post, October 27, 2008, fP9; Sam Cage, "Word of Mouth Sells

Busincs.-; C:tse 12: Dell Facillg Serious C hnlle nges Connie Guglielmo, "Dell Profot Margin Misses Estimates :as Eamings Slip," Bu.sllwssWeek, Febnmry 18, 2010; Scott Moritz, "Hewlett·Packard Rings Dell's Bells,· 17X! Globe and Mall, November 24 , 2009, 01 ;Jessica Mintz, ·oeu Profit Pltunmets 63 Per Cem, • Tbt1 Gloho and Mall, May 28, 2009, 08; Agam Shagh, "Dell Taking Sm.mphone Business to New Areas,'' BuslnessWook, April 14, 20 10;Joel Hruska, "Apple, Dell Dig M"tkel Sha1·e Winners for the first Quat·let," A•~ T(!Cimlca, AJ>ril 17, 2008; Kevin Maney, "Dell to Dive illlo Consumer Electronics Market,• USA Today, Septe mber 25, 2003, 18-28; David Teat her, "Michael Dell Quits as Chief of lli5 Own Company." The Gum·dian, March 5, 2004.

Chapt er 13


C..etn.~ ,·

Natinnnl Pru/ 1

September 15, 2008; Sinclair Stewart, "Hey, Did Yo u Hear about Tlut Great New Toothpaste?" The Globe and Mall, November 20, 2007, 8 3; Erin White , "Word of Mouth Makes Nike Slip-On Sneakers Take Off,• Tbe Globe and Mall, June 7, 2001, Bl, 134; Mike Blaney, "Word of Mouth Advertising." blog , www.thelnarke 2007/1 0/09/word-of.mouth.adverti sing; www.theinOuencers.c~hy_wo m .php. The G reenlnA of Uus lncss: Pro mot· Ing a G a~cn llu;,lncss Image Simon Haupt, "TI1e Green Gap Is Wide Open: Survey Results Show That Canadian Companies Leave Public Perception Wanting,' Tho Globe and ilia if, June I, Notes, Sources, and Credits 493


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2010, B2; Hollie Shaw, "Making the Case that Wearing Fur C1n Be Reo-Friendly, • Wlmzifx!g Free PrC!Ss, December 5, 2008, B6; Daryl-Lynn Carlson, "Advertising Guidelines Target 'Greenwashing, '" Wimzipcg P'roo Press, November 2 1, 2008, B6; Marina Strauss, 'Standing Om in a Sea of Green," The Globe rmd Mail, August 16, 2008, B3; Randy Boswell, "Oilsands Ad 'Greenwash' Environment Group Crow s,· The Globo and Mail, August 14,2008, CS; Richat'd Blackwell, "Eco-Friendly? Canadians Want to See the Proof," The Globe and Mail, July 28, 2008, Bl, B3; Shawn McCarthy, "Oil Sands Tries Image Makeover," Tbo Globo aiUi tl1rlil, June 24, 2008, Bl , B7; Sharon Epperson, "BP's FW1damental but Obscured Energy Contradiction, •, May 21 , 2008, www.cnbc. com/id/24758394; Carly\Veeks, "Ne w Scr·utiny for G reen Clallns," 11Jo Globe and 1l1ail, Marc h 11, 2008, Bl, B6; "Oil Company BP Pleads Guilty to Environmental Crllne, • International Herald Tt·ibutw, Nove mber 29, 2007, articles/ap/2007/1 1/30/business/ NA-FlN-US-BP-SettJement-Aiaska. php1page= 1; Terry M.-.calister, "Greenl>eace Calls BP's Oil Sands Plan An Environmental Crime,·, Decembe r 7, 2007, uk/business/2007I dec/07/bp. E-Busincss and Social Media Solullons• llatt1llan Embraces the Intern et Age "Batman Film Series," May 23, 2008, http:/ /en. Batman_%28film_series%29; Claude Bro desser-Akner, "Hyping Jo ker-Witho ut Exploiting Heath's Death," Adwrfisitlg Ago, May 12, 2008, http://adage. cotn/atticle.php?article_id=126981; Clumgaiz, blog, "New B.1tman Dark Knight Continues, Fantastic!" December 13,2007, www. new-batman-dark-knight -marketingcontinues-fantastic; Chris Lee, "The Dark Knight Marketin g Blitz," Los Angelos Times, Marc h 24,2008, entertainment/et-batmanviral24. See also;; http:// Entrepreneurship and New Ventures: Fuelling the World of Bmndcd Entertai.tunentJotlathan Paul, "RPGs Look for Bra.nds to Play With," Strat494

ogy, April 2009, 33; Frank Armstrong,

National Post, Octobe r 23, 2008, FP2;

"Fairytale Ending for Tiny Ottaw:1Finn,• Tbe Globe and Mail, November 11, 2008; Lana Castleman, "Virtual Worlds on the Menu at Kids Marketing Agencies," KidScroou, October 2008, 79; Lana C1stle m:m, ' McDonald's Is Lovin' Customer Content," KidScroon, May 2008, 26; Rob Gerlsbeck, "Fuel Industries," Markoting112, 21 (2007): 22.

David Hutton, "Conswuers Get Less B.1ng for Their Buc k," 11Jc Globo and Mail, July 8 , 2008, B2; Ann Zimmerman, "Behind the Dolbr-Store Boom: A Nario11 of Bargain Hunte rs," 1bC! Wall Stro(!tjormwl , December 13, 2004, AI , A10; Gordon Fairclough , "Four Biggest Cigarette Makers Can't Raise Prices as They Did," The Wall Streetjournal, October 25, 2002, At , AS; Timothy Aeppel, "After Cost Cutting, Companies Tun1 toward Price Increases," Tbe Wall Stroctjournat, September 18,2002 , Al, A12.

Uus iness C:1sc 13• Me as uring the Effccliven ess of Advet·tlshig Grant Surridge, "People, Lend Them Your Ears: More Accurate Radio Monitoring,' National Post, November 26, 2008, FPl; Coogle an:1lytics websil·e , cotn/anaJytics/index.html, accessed April 27, 2010; Emily Steel, "Google Set to Roll Out \Veb-Measurement Tool," The Wall Strootjoumal,June 24, 2008, Bl4; Je nnife r Wells, ''The Brain Guy \Vants to Get Inside Yo ur Head ," 7bc Globe and Mail, March 15, 2008, B4- B5; "lV Networks Pay Advertisers," National Post, De=mber 13, 2007; David George-Cosh, "Fighting Click Fr:1ud: Is It Really Down for the Count?'' Tbe Globe and Mail, August 23, 2007, B7; Brooks Barnes, "New TV Ratings Will Produce Ad-Price Fight," 1bC! Wall Streot}ottma/, December22, 2005, Bl , B3; Brooks Barnes, "Whe re're the Ratll1gs, Dude?" TI.Jlness Case 14: Changing Ols to·lbullon Channe ls In the 1\tuRic Uus lncss Jefl'Grny, "Canada Reb\lked ns Have n fo r Digital Music Pirates,· Tho Globe alld Mail, April29, 2010, B2; Barrie McKenna, '"The (LegaO Music Fades Out for Canadians," The Glolxl a/Ill Mc11l, October 20, 2009, 814; Matt Hartley, 'from Pirate Bay, a Torpedo to Illegal File Sharing,' The Globe and Mail, April 18, 2009, 83; Grant Robertson, "Death KneU Sounds for Q)s, • The Glolxl and Mail, June 19, 2008, B3; Shawn McCarthy, "U.S. Court Shuts Door o n Internet File-Sharing," 1bo Globo nlld M ail, June 28, 2005, 8 3; also ' File Sharing Finn WiU Shut Down," Wllm/jJ£'8 Jlr£'(J Pt'I!SS, November 8, 2005, A II ; also Nick Wingfield, "Onllne Music's Latest Tune,• Tbe Wall Street joumal, August27, 2004, B1, B2; also Nick Wingfield, 'New File-Swapping Software Umits Sharers to a Select Few," The Wall Street journal, October 4 , 2004 , Bl , B4; also Sal'llh McBride, ' Stop the Music!" 1be Wall Street jounml, August 23, 2004 , Bl ; also Vauhini Vara , •o n Can11>Us, rrunes Finds an Illicit Groove, The Wall Streetjoumal, August 23, 2004, Bl - B2; also Nick Wingfield and Sarnh McBride, "Green light for Grokster," Tho Wr11t Stt·oet joumal, August 20, 2004, BI , B3; :tlso Nick Wingfield, 'The Day the Music Died, • The Wall Streetjoumal , May 2, 2003. BS; ' The End of File.Shares as We Know 111em,• Tbe W/nni~ Fru Pt'I!SS, July 4, 2003, AS; Ted 8irdis, "Music Industry Escalates Net Fight ," The Winnipeg Froo Press, June 26, 2003, Al2; Mauhew lngr:am, "Digital M11sic Ind ustry Gets New Spin on Napster Judge 's Decision,• Tho Globo and M all, Fcbmary 26, 2002; Nick Wingfield, "Napste r Boy, lntetn•l>ted," The Wa ll St·, .oot}oul'lwl, October 1, 2002, 8 I, 133; Anna Mauhews and Charles Goldsmith, ' Music lndusrry Faces New Threats o n Web," Tbe Wall Street joumal, February 2 1, 2003, Bl, B4.

Chapter 15 Mo ney, Money, Mo ney "SMEs Tum to B:lneri.n g, Saving Cash, • National Post, January 5, 2009, FPS; Torn Hundley,

"So Why Does the $1 Bill Still Exist?" nJo Buffalo News, July 20, 2008, D3; Yaroslav Trofunov, "Shrinking Dollar Meets Its Match in Dolphin Teeth," nJe Wall Street joumnl, April 30, 2008, AI, A13; Ro ma Luciw, "Goodbye Pe nny, liello $5 Coinr Tlxl Globo a nd Mall, Aptil 10,2008, 8 5; Tara Perkins, "Lose the Loose Change? Bank Study Proposed Dropping Pelllly,• 11.Hl Glolxl fiiUI Mriii,July 3. 2007, B3; "Wh:u Is Moneyl" Roy:~.l Caru~dian Mint website, htrp:// RCM_09AR_ENG_FA.pdf, accessed Ma)' 26, 2010; Annual Repon, P44, The Britl~h Museum, www.brilishmuseum. org/explore/tllerneS/money/ what_is_money.aspx. !!-Business and Soclal.l\ledla Solullo nsr O nline and Mobile Banking Solutions Stt·aight to li1e Consume•· Tara Pe rkins and Jan Marlow, "Mobile Danking ~bkes Inroads," Tho Globo and Mail, February 8, 2010, B3; Rob Carrick, ' Before You Hit ' Buy," Tbe Glo lxl and Mail, March 4, 2010, 8 7; Rob Carrick, ' Ditching Your Adviser Has Never Been Easier," 1be Glo ixlatld Mail, Augusr 27, 2009, BIO; Valerie Bauman, "Video Game Helps Student• Score In fiscal Skills ," Tbe Globa and Mall, December 14, 2009, 136; Lauren Young, ' Big 8at1ks Take a Him from, • Bu.sine.rost>ccts Ahead Kevin Ca rmichael, 'A World Awash in Debt,'' nJo Glolxl aud ;l1aiJ, November 28, 2009, 81 ; 'The Big Global Screw.tJp, • Natlo twl Post, Febn1ary 24, 2009, fPII ; Frank P:utnoy, "f inancial Refo rm: Lessons from 1929," Busft~essWeek, October 12, 2009, 84; Malcolm Morisson, TSX Ends 2009 Trading Higher,. c,nadian Press, December 3 1, 2009; Tavia Gram , ' lktilouts Tied to Curbing Executive Pay," 1bo G lobe ami M all, October 15, 2008, B4; Jonathan Ratner, "TSX Falls 35% in 2008," nJo Jlnnnclal Post, DeceJnber 3 1, 2008; Marcus Walker, Sara Scluefer-Munoz, and David Gauthier-Villars, "Bailout Price Tags Raise the Question: Howl" The Glolxl and Mail, October 14, 2008, B II ; Richard Blackwell, •From Subprime to Stock Sw oon," nJo Glo lxl and Mail, October 13, 2008, 83; Joel Schlesinger, •A Blief History of a Financial Meltdown," Winni~ Free Pmss, October 12,2008, B9; ·wall Notes, Sources, and Credits 495


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Street's Rescue," 11Je Globe and Mail, October6, 2008, B4; "Contagion," Wimzipcg Free Press, October 3. 2008, A15; "Invest ors Lost Billions, Large Banks and Brokerages Failed, Wall Street's Troubles Went Global,• The Globo atul LWt#/1, October I , 2008, Bl; Rachel Puffer, "Easy Money," Canadian Business, September 29,2008, 38;Janet \Vhittnan, "Scramble to Start FiJlallcial Rescue, • National Post, September 22, 2008,; Eoin Callan, "Paulson Bailout Extended,' National Post, September 22, 2008,; Jeanne Aversa and Julie Davis, ·u.s. Puts Taxpayer on Huge Hook," WimlljXJg Free Press, September 20, 2008, B11; Kristine Owram, "Happy Days Here Again?" Witmipcg Froe Press, September 20, 2008, Bl 'l ; Barrie McKenna, "A Desperate Disease, a Desl>erate Remedy," The Globe a11d Mail, September 20, 2008, B5; Derek DeCioet, "Five Days That Shook the Financial \Vortd," The Globo and Mail, September 20, 2008, B2; B.1rrie McKenna, • Fannie, Freddie Stay in Free Fall on Bailout Talk," TIXJ Globo and Mail, August 21, 2008, B9. EtHre rwencuJ'Sillt> and New Ventures: An Online Community fot· People 50 a n d Oldet' 5S.Alive website, accessed May 25, 2010; ''Towne Square," 55-Alive!, www.55-alive. com/index.php; Peter Corbett, "2009 Facebook Demographics rutd Statistics Repott: 276% Growth ill 35-54 Year Old Users,' iStrategybbs, January 5, 2009, www.istrategylabs. cotn/2009-filcebook·demographics-:,ndstatistics-rcpott-276-growth·il>-35·54year-old-users/; Dahli.1 Fahmy, "5S.Alive! Wants to Be MySpace for the Baby Boomer Set,· Inc., October 1, 2007. Man aging in Tut'buJe n t Times: A Q u icken Cout'se in Accountability Inmit website, http://about. press_release/atticles/2009/ InmitReports-Solid2009-FiscaJYeat· Results.html, accessed July 10, 2010; MichaelS. Ho pkins, "Because He Leat.ns and Teaches' Inc., April2004, 119-120. Busin ess Case 16: Th e Commet'cial Papet' Crlsiis Boyd Em1an, "Crutaccord Turns the Page 011 ABCP," The Globe and Mail, May 19, 2010; Boyd Em1an, 496

"Commercial Paper Mat'ket Shows Few Signs of Recovery," T/J(J Globl! rJnd Mail, April tO, 2010; Philip Li11g, "$4.45 Billion Ftmd to Ensure ABCP Solution: Backstop ill Place; Major Hurdle in Process Crossed, Purdy Says,' NatloualPost, December 27,2008, FP4; Boyd Erman, "A Long, Tough Stntggle Ends Fi11ally, with a Deal,' The Globo and Mail, December 26, 2008, B4; "Strategem Issues ABCP Warning," Natlourll Post, www .narionalpost. cotn/st:ory·print:er.h tml?id=209530; John Greenwood, "Frustrated as Hell," NatiotlaiPost, October 21, 2008, www.natio na Ipost: .com/story-printer. html?id=895020; Janet McFarland, Boyd Erman, Karen Howlett:, and Tara Perkins, "Ordiltary People, rut Extraordinary Mess,• 11Je Globe and Mail, August 9, 2008, B4- B6: David Friend, ' Investors in ABCP Approve Restructuring,' Winnipeg Fraa Pmss, April 26, 2008, B13; Boyd Erman, "DBRS to Roll Out: a New Road !'.L1p on Risk," The Globo a11d Mail, February 8, 2008, B1 , B6; Gary Norris, 'Financial Rescue lias Holes,' Win11ipcg Frea Pt·ass, December 26, 2007, B17; Duncan Mavilt, "Subprilne Torpedoes CIBC," WimlijXJg Ft·eePt·ass, December 7, 2007, B1; Matthew McQearn, ' The Asset·B.1cked Commercial Paper Crtmch Has Burned Investors: Now bwyer Purdy Crawford Is Trying to Sort Out the Mess," Crmadian Business, November 5, 2007, 130-139; Thomas Watson, ' Issues of Trust,' Canadian Business, Novenlber 5, 2007, 141- 147; Aaron Lucchetti and Kara Scannell, "Ratings Firms: A DoUar Short and Day bte?" Tbo Walt Straat]ortl'tlal, September 26, 2007, CI -C2; Karen Ma:wrkewich and John Greenwood, "Caisse Top ABCP Holder," National Post, September 18, 2007, FPI , FP5; Peter E.wis, "Oh , lhe l'eople You'll Blame,'' Fortuna, September 17,2007, 118-124;John Greenwood, "Banks Left on Hook in Credit Market Freeze," Nfltio11al Post, Se)>t:e mber 15, 2007, FI'7;Jo hn Greenwood and Duflcan Mavin, ' Credit Rout Far from Over," National Post, Sep tember 12, 2007, FPI , FP13; Jeff Sanford, ' How This Hap. pened," Cmwdimz 8usi11oss, Septembet· 10,2007, 8 7-88; Doug Alexander, "Brulks Feel Heat of ABO' Meltdown,· Natiotzal Post, September 8, 2007, FP7; Tara Perkins, "Misguided, or Mistnlderstood?" The Globe and Mail, Septem· ber 8, 2007, B4-B5; John Greenwood,

"ABCP Losses Could Hit: 50%," Natio11al Post, September 5, 2007, FPI , Fl15; Kara Scannell ru1d Deborah Solomon, "Unravelillg the Subprilne Mess," TIXJ WaliStmetjoumal, September 4, 2007, A6; "Mottgage Mayhem," Fo;·ttmo, September 3. 2007, 82-83; Jon Bilger, "Markdown," Fo·r tune, September 3. 2007, 77- 78; Shawn Tully, "Risk Returns with a Vengeance," Fort,.ne, September 3. 2007,5 1-56; Boyd Ennan, "Commercial P11per Had Never Suffe red for a uck of Buyers and Sellers-Until Recent Liquidity Concerns Sent Investors Runtung for the Exits,• 1ba Globe and Mail, August 25, 2007, B2; Jo hn Greenwood, "Legal Actions Looming," National Post, August 24,2007, FPl , Fl'3; Batilara Shecter, "Greenspan's Rate Cuts Helped Create a Culture of Debt That Ignored Bot·ders and Was Ultimately Slnmned as Too Risky,· National Post, August 18, 2007, FPI , FP4; Sean Silcoff, •warn. i11gs Were Issued Well Ahead of Crisis," Nati.ollal Post, August 18,2007, FP1 , FP3; Andrew Willis and Boyd Erman, "Credit Cnu1ch Claims Vi ctim in Catlada," Tbl! Globo muiMail, August 14, 2007, B1 , B4; David Wolf; ''The Butterfly Market," Canadian Business, August 13-27,2007, 15.

Photo Credits l':u·t One Hemeraffhinks tock, page I Chapter 1 BlackBerry®, RJM®, Research In Motion®, SureType®, SurePressr>t and related trademarks, names and logos are tJ1e propetty of Reseai'Ch In Mo tion Limited ~nd at·e regist:et·ed and/or used ill the u.s. an!! countries arotm!l the world, pages 2 & 3; Sctdpies/Dteatnstime.coru, page 6, top left; TinabeUe/Dreamstime. com, page 6, top right; EschCollection Prilne/Aiamy/, page 6, bottom left; Prebranac/ Get:Stock.cotn, page 6, bottom right; Frederic J. Brown/AFP/Getty Images, page I 0; Tim Pohl/iStockphoto, page 12; iStockphotoffhinkstock, page 16; Masterfile, page 18; Ritz Sino/1bc New Yot'k Times, page 21; Hemeraffhinkstock, page 26 Ch aptct· 2 Couttesy of Air C1 n~da, pages 34 & 35: Betu:n:uul/O:>Jbis, J:XIge 42; Fredrik Renander/Alamy, page 49; Courtesy of Corus® Entettainment Inc., page 50; Chris Wat:tie/Reuters/ Corbis, J:XIge 56

Notes, Sources, and Credits


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Chapteo· 3 Tomnto Stnr/GerStock . com, pages 58 & 59; Michael Appleto n/ 1bo No-w Yo1·k Timas, page 62; Antony Nettle/Aiamy, page 63, left; David Osborll/Aiamy, page 63, right; Tony K.1nunba/AFP/Getty Images, [>age 66; Adek Berry/AFP/Getty Images, page 68; Court.,.;y of Fo rd Motor Company, page 70; Courtesy of lnfrastnJcture Health & Safety Association, page 73; Marketwire Pho to/Mc Donald's Restaurants of C1nad:1 limited/Q> Images, page 76; R. Peterk:in/Shutterstock, page 82 Chapter 4 Courtesy of Parasuco Jeans Inc., pages 84 & 85; Courtesy of Alilnentatio n Couche-Tard Inc., page 87; Craig Ruttle/AP I'ho to/CI1 Images, page 88; Heather Annstrong Photography, page 91; Kehin Jay Wakefield/iStockphoto, page 95; Courtesy of Business De velop. ment 13-: mk of C1nada ( BDC). page 96; Scott Anderson, page 99; David Lees/ Corbis, page 110 d-mpter 5 Dick Hemingway, pages 112 & 113; Vincent Yu/AP Images, [>age 115; Index Open, page 117; Tosh ifumi Kitamura/AFP/Getty lln:lges, page 122; Mark Gibson/Digital Vision/Getty Images , page 127; Courtesy of\Vamer Bros. Interactive Entertail1ment, page 128; Courtesy of Bombardier· Inc. :md used lUlder License, page 136 Part Two Comstock Images/Thil1k· stock, page 143 Chapter 6 Greg Fulmes/CP Images, pages 144 & 145; Adrian Dermis/AFP/ Getty Images, page 147, left; Darryl Dyck/CP Images, page 147, middle; Fred R. Conrad, Peter Yates/Too Now Yo•·k Times, page 147, right; STR!AFP/Getty Images, page 149; Frank Slreman/A.G.E. Foto Stock/First Light, page 150, top; Pho to Aito/Alamy, page 150, middle; Colo rBlind Images/Getty Images, page 150, bottom; G. Newman Lowranct"/ Allsport Conceprs/Getty Images, page 154; Oliver Fantitsch/AP Images, page 155; 1\btthew Mcvay/Corbis, page 162; Bo b Daemmrich/111\otoEdit Inc., page 163; Tony Avelar/AFP/Getty Images, page 164;Jiri Voves, page 168 Chapter 7 canadabriall/Aiamy, pages 170 & 17'1; Hulto n Arcltive/Getty Images, page 174, left; Damien Meyer/ AFP/Getty Images, page 174, right; Steve Jones Photography, page 174, bottom; Dick Hemil1gway, page 175;Julio Cortez/ CP Images, page 177; Adamsmith/

Taxi/Getty Im.1ges, page 179; Courtesy of Hydro-Quebec, page 18 1; Chiaki Tsukumo/AP Images , page 182; Bob Scott/The Image Bank/ Getty Images, page 185; Courtesy of Frantic Films, page 189 Ch :tptet· 8 Clement Allard/0' Images, pages 192 & 193; Yellow Dog Produc· tions/Riser/Getty Images, page 199; Ryan McVay/Photodisc/Getty Images, page 200; Knthy Kmonicek/AP Photo/ CP Im.1ges, page 203; Sean Locke/ iStockphoto, page 207, left; Gary Douglas-Beet/iStockphoto, page 207, right; llnageSource, page 208; Chi· courimi Le Quotidien-Rocker L1voie/ CP Images, page 218 Chapter 9 C!'"eatas Images/Thinkstock, pages 220 & 221; Lester Lelkowitz/lvy/ Corbis, page 223; Courtesy of AT&T Archives and History Center, page 226; Masterfile, page 231, top; Jacob Wackerhausell/iStockphoto, page 231, bottom; Jan Peter K.-.sper/epa/Corbis, page 233;Jusrin Sullivan/Getty Images, page 234; Brad B:ukei/Getty Images, page 240, left; Jo hn M:tcOougaiVAFP/Getty Images, page 240, right; Frank Gurul/CP Images, page 246 Part Tlwcc Hemet'll/fhinkstock, page 255 Chapter 10 Paul Sancya/AP Photo/ CP Jm.-.ges, pages 256 & 257; Charles Eshehnan/FilmMagic/Getty Images, page 259, left; Andy Kt·o pa/Redux, page 259, right; Masterfile, page 262; A.G.E. Foto Stock/First Light, page 263, top left; Stockbyte/Thillkstock, page 263, to p middle; Kim Steele/Digital Vlsion/fhlnkstock, page 263, top right; C:omstoclc Jmage.!ii{fhitlkstock,

page 263, bottom left; Keitll Brofsky/ Pho todisc/Getty Images, page 263, bottom right; Steve Prezant/Masterfile, page 264; Courtesy of Jaguar Cars Limited, page 270; Toshifumi Kitamura/ AFP/Getty Images, page 273; Chm1g Sw1g Jull/Gerty Images, page 276; Damian Oovarganes/AP Photo/CP Images, page 284 Chapter 11 Artifacts Images/Digital VlsioJl/Getty Images, pages 286 & 287; Damir KararlliStockpho to, page 290; carroteater/Shutterstock, page 294; Photodisc/Thinkstock, page 297; Goodshoot/Tbinkstock, page 300; Francis Vachon/CP Images, page 304

Appe ndix U Ron Sachs-Pool/Getty Images, page 307; Re uters/Cor'bi.s, page 310; Justin Sullivan/Getty linages, page 313 Pa rt Four Wernet Dieterich/Photogra. phe r's Choice/Getty linages, page 325 Chapter 12 Christopher Mo nis/Corbis, pages 326 & 327; Ting Shl, page 329; Thierry Roge/Reuters/L1ndov, page 330; Courtesy of BMW Group Canada, page 333. top; Courtesy of Grand & Toy, page 333. bottom; Feathercraft Products Ltd., page 340; Courtesy of DeU, page 344 Chat>tCJ" 13 Jeff}. Mitc he iVGeuy Images, pages 346 & 347; Steve White/ CP lln:lges, page 349; Courtesy ofTesla Motors, Inc ., page 351, top; Photodisc/ Getty Images, page 351, bottom; Scott Anderson, page 354; Medioim:tges/ Photodisc/Thinkstock, page 361; David Burtow/Redux Pictures, page 364; Todd Gipsteil1/Encyclopedia/Corbis, page 366; Stockbyte/Thinkstock, page 370 Chapter 14 NajL1h Feanny/Corbis, pages 372 & 373; Ed Kashi/ferra/ Corbis, page 375; Guillermo Granja/ Corbis/Reutets Atnet;ca LLC, page 378; Cultura/Aiamy, [>age 379; Jim West, page 380; Courtesy ofQVC, ll1c., page 387; TovaR. 8.1ruch, page 388; Courtesy of Canadian National, page 389; Wu Kaixiang!Xinhua!L1ndov. page 393 11nrt l' lve Courtesy ofTSX, page 399

Chapter 15 Hemera/fhillkstock, pages 400 & 401, left; Corey Hochachka/ Design Pies Inc./Aiamy, page 401, right; Tom Hanson/CI1 Images, page 403; Macduff Everton/Eucyclopedi.1/Corbis, page 405; Kathy deWitt/Aiah>y, page 407; Nikolai Ignatiev/ arabianEye FZ U C, page 408; Digital Vision/ T ltillkstock, page 409; Courtesy of McDonald's Corporatio n, page 414; Chang W. Lee/Tbe New Yo1·k Times, page 418 ; Reproduced with the permission of the Minister of Finance, page 420; Graham Iiug hes/CP Images, p:1ge 430 Chapter 16 Andy Dean/Dreamstime. com, pages 432 & 433; Use of the Bel~ South bond certificate photo is g ranted under permission by· AT&T Intellectual Property, page 439; Frederic.J. Brown/ AFP/Getty Images, page 440; Courtesy of ll1tuit, page 444; Courtesy of B.'lffulland Iron Mines Corporation, page 449

Notes, Sources, and Credits 497


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Name and Organization Ind ex Numbers/Symbols i-800-GOT-)UNKJ, 164, 231 3M, 157, 175, 264 42 Em"tuinm " nt, 361 55-Alive!, 442 7-Eieven, 153, 383 92.5 Joe FM, 50 99.3 ~ Fox, 50

A ABB ASCI Brown Boveri, 116 Accor SA, I 25 Acer, 344, 345 Ackbnds-G rainger Inc., 146 ActiveSute Software Inc., 198 Acura, 362 Adidas, 156, 355 Adolp h Coors Co., 51 Adveni5ing Stand:u-ds Canada, 71 AES Co rporation, 232 Agnico-E.agle Mines, 74, 431 AgrtTech Park, 96t AlG, 203 Air Canada, 9. 34/. 35-36. 37. 63. 74, 102, 103. 146, 150, 151, 172, 207, 2 15. 439 Air France, 36 Air France-KL\1, 36 Air Miles, 158 Airbus, 130, 137, 155, 156,350 Alba, Jessica, 85 Alcan Aluminum , 125. 263, 270-271 Algordonza, 348 All Girl Arcade, 363 Altern:ue ReaJiry Gaming Network, 361 Aluminum Comp:my of C.1nada, 179 ~azon, 159. 354. 386, 405,428 AlnericanA lrUnes, 155,284 ~erican Express, 367, 404 ~erican Home Producrs, 297 American lntem:uionaJ Group (AlG), 434 Anglo ~erican PLC, 193 Anglo Dutc h, I 18 Aon Consulting , 205 Apple. 4 , 14, 152, 183. 240, 241, 330, 339. 353,355,3 94, 409.418 , 428 Apple Sm.11l Business, I 09 Aqualife AS, 387 Arctic Gbcier Inc.. 71 Ariba, 385 Annani, 45, 280 Arnold, Patircia, 24 1 Anhur Andersen, 54, 240 Arthur's Fresh, 77 ASEAN (Associatio n of Somheast Asian Nations), 13 2

Asia-Pacific Economic Cooperatio n, 132 Ask jeev~. 386 Astral Media, 199 Astros, 54 AsusTek, 159 Atco Ltd., 157 Atlantic Lottery Col'(>oration, 291 Atlantic-Plus-Plus, 36 Atlantic Richfield, 270-271 ATN, 334 Atorite des n13l'Cb6 financiers (AMF) , 430 AT&T, 227u, 360 Audit Bureau of Circulation s, I 59 Awhors Guild, 354 Auto Vault , 376 AutoTrade r, 159 Avis, 377 A.-on, 379, 384

B Babock & WLicox Canada, 235 Oaffinland Iron Mines Col'(>., 450 Baldu, 4 18 Ballard Power Systems, 43 Balsillie , 4 Dank of ~erica, 434 Dank of Canada, 42-43. 56, 57, 402, 403- 404,407, 4 10 , 410/, 4 1 I , 427, 433 BUlk of Montreal (DMO). 73, 334, 404, 407, 408, 409, 4 15, 445 Bank of N., 241 BUlk of Nova Scoili. See Scotiabank Barnes and Noble, 159 Barrick Gold, 70, 203 B:utetult.T I, 251, 402 Bano n, Do minic, 24 I Banz, Carol, 18 1 Baskin-Rob bins, 92 Oaumol, William, 274 The Bay, 17 , 337, 364-365, 383, 386 Darer Inc., 197 BBM Canada, 360, 37 1 BBVA, 225 B C. Tel, 236 BCE Inc ., 51, 161 Bear Stetn5, 434 Beddoe, CHve, 149, 195 lkcr. J ohn, 60 Be ll, Travis, 77 Bell Canada En.terprises, 103, 180, 235, 246, 387, 440/ Ben Bany Agency, 90

Bennenon , 73 Benuetton USA, 73 Bent all Developm ent Inc., 236 ~t8uy, 98, 148, 336, 345 Better Business Bureau, 78 Dh:lrti Enterprises, J 25 Bijouxbead , 141 Bio,':lil. 103 Bitton, David, 86 Bbck, Conrad, 60 Bbck & Decker, 350 Black Di2mond Group, I 03 Blackme r, 233 Blogger, 98 Bloor Strt'et Diner, 404 BlueSteps. com, 197 BMO MasterC'Itd . Sec MasterC1rd B.\10 Nesbitt Burns, 440 8.\IW, 8, 332, 332/. 376 BMW C.'IJlada, 332 Boring, 43. 130, 137. 155, 156, 24 1, 350 Bolduc, S}1vie, 246 Bombardie r In c., 23, I 03. 125, I 28, 136, 137. 2 17, 267, 350, 425 Bombardie r Sifang (Qingdao). 125 Bond, Chris, 189, 190, 191 Boory Camp Fitness luc., 871 Boster, Adam, 162 Bouchard, Gabriel, 196 Bowen, Bren, 284 Bo)·d Autobody, 164 Bre-X, 431 Brin, Sergie , 6 Bri!on, Scott, 137 Bristo l Aerospace , I 52 Britis h Airways, 36. 155 Rritietrnl,.um ( RP), 10 47, 69 163, 276.357, 428 Brol>ac k, Sh irley. 9 1 Brown, David, 146 Brown, Jamie, 189, 190, 19 1 Brown & Williamson , 374 Buck o r Two, 374 Buckley's, 358 Budget , 377 Budweiser Canada, 361 Buell, Mali Corporation (Freddie .\lac), 434 federal Industries, 161 federal National Mong;~ge Association (fanllle .\he), 434 ft>detated Co-operatives, 105 FedEx. Soo ~deral ExpresJ (Fed Ex) fedEx-Kinko's, 269 Ft>ndi, 134, 168 fields, Debbie, 173-174 First Ontario Credit Union, 406 flair, 141 Flavell, joseph, 20 FUdcr, 50, 328 Ford, lienry, 259 Ford Motor Company, 8 , 43, 71 , 116, 118, 123. 124. 172, 176, 181, 258. 269 Ford Motor Company of Can.1da, 126l, 193 fording Colli, 51 Fo~ign Investment Review Agency ( FlRA), 125 Fo~st Stewardship Council, I 58 f ormula One, 339 Forrester Research, 385, 394 ,:nrtunn, 4

Four Seasons H01els and Resorts, 125, 163, 164, 193 Name and Organization Index



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Fox, Sally, 93 Fnnkfo rt, Lew, 168 Fn.n tic Films, 189-191 , 189/ Fregin, Oougbs, 3 Friedman. Milton. 66 Fuel Industries, 363 Fuji-Xerox, 233 Fulrui, Takeo, 158 Fuler. Anhur, 384 The Fuller Brush Company, 384 Fung, Guy, 61 Fur Council of Canada, 357 Furst, Oan, 24 1 Furure Shop, 197

G GaUup Organiz.,tion, 222 Gandalf Group, 357 Gap, 336, 160 Gartner Inc., 330 Gateway, 345 Gannt, Bobbie, 193 Geico, 379 Geist , Michae~ 364 Gemological Institute o f America

(GIA), 64 General Electric (GE), 77. 93. 157, 158, 182, 259. 285 General Foods, 18 General Mills, 18 , 374 General Motors Acceptance Corpor:ation (GMAC), 4 11 General Motors (GM), 9 , 52, 116 , 126-127, 178, 214, 258. 355. 374, 4 11, 437 General Motors of Canada, 193. 334 Genstar Shipyards Ltd., 180 Genuity Capital Markets, 62 Genuwine Q:IL,rs, 7 George, Barbara , 140 George Weston Ltd., 1021, 103 Gibr-.Uu.r Soluliut~> Luc., 871 Gildan Acth·ewear, 16 1 Gill, Gary,60 Girl G uides, 75 Glenora DistiUeries, 46 Global Research Consortitun (GRC), 184 The Globe and M ail, I 03, II 5-1 16 , 203, 222 Globe Investor, 428 GlobeScan, 8 Glocer, Thomas, 153 GM. 5(!(1 General Motors (GM) GM Canada, 5 Godfrey, Paul, 145 Godi-.-... 377 Golden Rule Resources Ltd., 431 Goldman Sachs, 117 , 12 1 Golkorp Inc., 70 502

Gompf, Tyler, 92 Good)'ear, 379 Good)'ear Canada, 200 ~e. 4,6, 65, 159, 348.353. 354. 371, 386, 412 Gottlieb, Myron, 59--60. 304 Gounnel,


Government of Canada, 96, 420 Graham, BiDy, 384 Grand & Toy, 333 Grandi, Thomas, 328 Great Basin Gold Ltd., 45 Great l..ittle Box Company, 204 Great-West life Asswance Company, 76, 233 Greater Toronto Airpon Authority (GfAA), 200

Green, Erin, 9 1 Green, Phil, 57 Green Emerprise Ontario (GEO), 90 Green Please! Inc., 91 Green World Solutions (GWS), 332 Greenpeace, 357 Greyhounh Lines of Can.,da, 279 Griffith, Scon, 92 Grmovsek, Stan, 74 Grokster, 394 Gucci Group, 134, 168, 280, 335 Guinnus, 365 Gtdak, Ben, 259

Hesperian Capit::ll Management, I 03 Hewlett.Packard {liP), I 48, 149, 277, 344. 345. 387 High Liner, 12 I HMV, 386 Hollinger International, 60 Home IXpot, 297, 386 tlome O utfitters, 52, 161 Honda. 43. 119, 158, 258, l69 Honda Can.1da Inc., 1261 tlong Kong Shipowners Association, 82 Hood Group, 87t Hook Communications, 361 Hoshino, Senlchl, I 50 Ho usehold Finance Corpontion, 412 tU'. 51!(1 llewlect.Packard 0-IP) Hu, Stem, 129 Hubbert , M.K., 26, 27 Hudson, Kme, 85 Hudson's Bay Colnl>any 0-IBC), 52, 16 1, 196, 337 liughes , Clai"J, 328 Htunber College, 72 HtUlt, Oud, 196 Husky Energy Inc., 1261 Huslo.-y Injection Mo lding Systems, 196, 205 Hydro One, Hydro Q\•ebec, I 0 Hyd~uebec, 180 Hyundai Motor Comparry, 266, 334


H tL'IIde, Jean-Rene. 123 H.,umarf< Cards, 357 tL'llllpton Inn & Suites. 214 H.~~'. Wayne, 219 H., n shin Tigers, 150 H.u grove, Buzz, 2 10 H.ttley-Davidson, 29- . 331, 354. 364 H.ttley Owners Group (HOG), 331 H.,rper, Glen, 431 I·b rper, Stephen, 137 H.,rpetS, 269, 389 U.S. Cellular, 197 U.S. Coast Guard, 8 3 U.S. Cotnmerce Deparrmenr, 127 U.S. Environmental Protection Agency (EPA), 369 U.S. Federal Aviation Administration, 163 U.S. Federal Reserve, 56. 57, 433 U.S. Federal Trade Commission, 397 U.S. Geological Survey (USGS), 26 Ubi~fl.

U.S. Treasury. 434 U.S Federa l Aviation Admin~tntion (FAA) . 284

v Vale, 29. 164 nn Henen, Ashley, 332 '"'n Wiltenburg, &in, 77 VanCOU\·e r City Savings Credit Union, 194 Vancouver Island Baby Fair, 9 1 Vanvou\'er City Savings Credit Union, 104 Venhtre, 252 The Venture Centre, 96t Verizon, 4 Versace, 280 Victoria's Secret , 73, 385 Viigo, 50 Virnml Worlds Management, 363 Visa, 404 , 405, 409 Vistn Projects Ltd., 87t Viterra, 151 Viz Media, 336 Vlaslc, 175 Vocalpoint, 348 Volkswagen, 116, 125. 266, 334 Volkswagen Canada, 348 Volvo. 16 1, 331 VoxPo p, 364

w Wagnun, Tamar, 9 1 Waite, )oD.1than, 361 Waii, George. 324 Wall & ~btes, 324 Wall Street jo~tmal, 276 Watman, 5, 37. 48, 125. 129, 148, 149, 158, 16 1, 169, 182, 183. 2 17, 2 18 - 2 19, 267, 271 , 333. 336. 350, 354. 373. 374, 375, 378, 379. 382, 383. 386, 388 Walnun Caiuda Corp., 1261, 146 Walsh, David, 431 Walt Disney, 37. 152, 162, 239. 363 Walton, Sam, 149 Wanu~rBros., 128, 1 2~350 Waste Management·, 153 Waterstone Human Capital, 146 , 164 Watso n Gardner Brown, 445 Watson Wynu Ca nndn, 222 Wellington West Holdings Inc ., 5 1, 145 Wendy's, 37 Western Compensatio n & Benefits Consultants, 5 1 Western Electric Company, 227 Wesrjet Airlines, 36, 37, 63, 74 , 145, 149. 150, 164. 195, 219, 230. 231. 425 Wesrjet Vacations. 195 Weston, Galen , 66

506 Name and Orpl!Zatloo Index


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White Pages, 16 1 Wilkinson, K~ndl':l, 36S Willard, Bill, 196 Williams, Evan, 98 Williams,Then=, 252 Wilson, Brett, 259 Wllsoo, Olip, 327 W~son. Sandra, 141 Wmdsurfer, 355 Wtnks, 51 Wirclns Enterprise Symposium, 3 WoUf, ~Uuun,332

WomCtls Wear Dall)•.


Wong, Sal':l, 196 Word of Mouth ~tarketing associatloo, 361 Workopolis, 197,225 World Bank, 16, 116, 415 World Economic Forum, 119

World ofWarcraft, 14 World Tl':lde Organization (WfO). 33. 127, 128, 130, 136, 137 WorldatWork. 235 WorldBiu, 230, 231 WorldCom, 60,241,303 Wl':lllgler, 183 Wrigley, 374

X X:lllga, 98 xe~. 183, 201 , 277,355

y Yl 08, 50 Yahoo!, 181,354.386, 387,394 Yahoo!H01jobs, 197 Yelland, Shannon, 197

Yellow l':lges, 161. 362 Yip, Christopher, 397 Yoga journal, 328 YouTube, SO. 6 1, -o, 86, 98,

361, 36S Yum! Brands Inc., Sl , 236

z ZaccardelU. Giuliano, 140, 146 Zara, 389 Zellers, 52, 76, 16 1, 373 Zem M01ors, 93 Zorn!ak, Ken, 189, 190, 19 1 Zuckerberg, Mark, 6, 88, 88/ Zynga , 14

Name and Organization Index



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Subject Index Note: f denotes a figure, and t denotes a table.

Numbers/Symbols 360-degree feedback, 201

A ABMs, 406 absenteeism, 223 absolute advantage, 118 accommodative stance, 75 :ICCOlUltabUity, 177, 445 :ICCOlUltants acco·wlting services, 291-292 certified general accountant (CGA), 290-291 cert!Jjed management accountant (CMA), 291 chartered accountant (CA), 290 controller, 290 forensic accountants, 291 private accountants, 292-293 professional accountants, 290-291 accotUlting acco~mtants. See accoW1tants accmmting cycle, 293, 293f acccnuning equation, 293-294 accotmting information system (AlS), 289 acco~mting rules, 288 bookkeeping, 288 defined,288 described, 288-289 double-entry accotmting systems, 294 financial accotmting system, 290 financial statements. Soc financial statements generally accepted accotUlting principles (GAAP), 291 green revolution, 289 international accounting standards, 291 managerial (management) accounting, 290 pension accounting, 287-288 users of accotmting information, 289, 290 accotmting cycle, 293, 293f accotUlting equation, 293-294 accounting services

auditing, 291 management consultant services, 292 tax services, 291 -292 accotUlts payable, 296, 436 accotmts receivable, 295, 436, 438 accredited investors, 421 acquisition, 49-51

administrative expenses, 297 administrative l:l\v, 29 advertising advertising meditun, 358- 362 counterfeit brands, 72 defined, 358 ethics in, 71-73 global advertising, 366-367 guerilla advertising, 72- 73 measurement of effectiveness, 370-371 morally objectionable advertising, 73 recruitment through, 196 slogans, 358 stealth (undercover) advertising, 72-73 truth in advertising, 71 advertising me diwn defined,359 direct mail, 360 Internet, 361 magazines, 360 media mix, 362 newspapers, 359 outdoor advertising, 360 strengths and weaknesses, table of, 360t television, 359-360 virtual advertising, 362 word-of-mouth (WOi\>1) advertising, 361 Africa, 116, 132, 324 ageney,30 agency-principal relationship, 30 agents, 380, 382 aggregate output, 38 aggression in the workplace, 223 agreeableness, 224 A~reetnent ottlntetllal Trade (All), 121> air freight, 388 air pollution, 68-69 AU-Star Execs list, 151 alternate banks, 411 alternatives, evaluation of, 339 ambush marketing, 366 Americas Free Trade Area (AFfA), 132 analytic process, 263 angels, 95 anti-combines. legislation, 20 anti-competitive restrictions, 381 anti-discrin1itmtion laws, 205-206 anti-virus software, 319 application fo.rms, 199 applied R&D, 43 appraisal methods, 202, 202f appraisal process, 201-202, 202f arbitration, 214-215 artificial intelligence (AI), 317

ASEAN Free Trade Area, 132 As~-.. 132 sec also Pacific As.ia Asia-Pacific Economic Cooperation, 132 assembly lines, 267 assembly processes, 263 assessment centre, 200 assets, 293, 294-296 assignment of tasks, 1 76-1 77 ATMs, 406 attitudes, 225 audit, 291 Australia, 117 authority, 177 committee and tean1 authority, 1 79 distribution of, 177- 178 fonns of authority, 178-179 line authority, 178-179, 171'!( staff authority, 178f, 179 autocratic style, 238 automated banking machines (ABMs),406 automated teller machines (ATMs), 406 average demand, 266 average inventoty, 300

B bailment, 30 bailor-bailee relationship, 30 babnce of payments, 119-120 balance of trade, 40, 119, 120 balance sheet, 93 balance sheets, 294-296, 29'if Bank Act, 405, 406, 410 bank credit, 443 bank loans, 407 Bank of C'\Jlnda, 42, 410- 411, 410f bank tate, 410 bankersacceptance,406 bankntpt person (or company), 32 bankruptcy, 32 Bartk•tt}Jfcy tmd In.solooncy Act, 32 banks alternate banks, 411 chattered banks. See chartered bank as debt tinancit1g source, 96 international bank. strucnu·e, 413 bargain retailers, 383 barriers to international trade business-practice, 129 c:utels, I 29 dtunping, 129 economic differences, 126-127 embargo, 127 European Union (EU), 130-131, 13lf General Agreement on Tariffs and Trade (GATT), 130 Subject Index 509


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bartierstointe mational ttade(continued) legal and politic:~! differences, 127-129 local-content laws, 128-129 North American Free Trade Agreement (NAFTA), 131 overcomi ng barriers to trade, 130- 132 protectiOJlism, 128 protectionist tariffs, 127 quotas, 127 revenue tariff, 127 social and cultural diffet·ences, 126 subsidy, I 26- 128 tariff, 127 World Trade Organization (WTO), 130 basic communications protocols, 310 basic com1>ensation, 203 basic (pure) R&D, 43 BalUnol's Disease, 274 bear markets, 424 behaviour modification, 229- 230 behavioul'lol approach, 238 behavio ur.ol :ospects of decisio n making, 156 behaviours of employees. See employee behaviour bell curve, 202 benchmarking, 278 benefits, 329 benefits (employee) cafeteria-style benefit plans, 205 collective bargaining, 213 defined, 204 health insurance, 204 importance of perks, 205 mandated protection plans, 204 o ptio nal pro tectio n J>lans, 204 paid time off, 205 protection plans, 204 wellness programs, 205 "big five' personality traits, 224, 224{ Big Mac currency index, 4 13, 4 13t bill of materi:ols, 273 Bills of /Jxcbange Act, 31 biomass, 70 blue-sky laws, 426 BNA Act. Soe British Nortb A met·lca Act board of directors, I 02-103 bona fide occ upational requiremem , 205 bond indenture, 440 bonds bearer bo nds, 420 bond quotations, 423, 424/ bond yield, 424 caUable bond, 420 convertible bonds, 420-421 corpo rate bonds, 4 19-420, 439-440 coupon r11te, 423 defmed, 419 goveMlJlle nt bo nds, 4 19 interest payment, 420 ratings, 419, 419t

registered bonds, 420 retirement of bonds, 420-421 secured bonds, 420 serial bond, 420 sinking-fund provision, 420 bonus, 204 bookkeeping, 288 bootstrapping, 95 bmmdaryless organization, 182-183 boycott, 214 BP oil spill, 10, 47 branch offices, 125 brand awareness, 355 brand equity, 354 brand insistence, 355 brand loyalty, 355 brand names, 354-355 brand prefel'ence, 355 branding brand equity, 354 brand loy:olty, 355 brand names, 354-355 deflned,353 e-business, and international branding, 355 Brazil, 117-118 breach of contmcr, 30 break-even analysis, 376-377, 377/ break-even point, 377 bribes, 64 Bruc, 117- 118 Brltlsb Not1b America Act, 29, 211 t brokers, 380, 382 budget, 298 budget deficits, 40 bull markets. 424 business defmed, 5 distribution of employment by size of firm, 89 etnpowet·ment, 231 environment of business. See ctwiroruncllt of business family business, 99, 110- 111 global business. Sae global business government, influence of, 10-13 government, influence on, 13 govetruneJlt-bus iness interac tions,

10- 13 hisroty of, in Canada, 18-22, 19t international business. Sao global business Part 2 of business plan, 248-250 responsible business behaviour, 46-47 business analysis, 352 business cases

see also opening cases Are We Running Out ofOill, 26- 27 Bombardier's Global Strategy, 136-1 37

The Business of B.1gging Custo mers, 168- 169 Changing Distribution Channels in tl1e Music Business, 393- 394 The Commercial Paper Crisis, 449- 450 Dell Facing Serious Challenges, 344- 345 Family Business, 110-111 Inflation, Deflation, and the Validity of the CPI, 56-57 Me:osuring the Effectiveness of Advettising, 370- 371 Pollution on tl1e High Seas, 82-83 Quality Problems in Service Businesses, 284-285 Repo tts from the Wal-matt-Unio n Battlefield, 218-219 Stock Market Games aJld tl1e Dark Side of Financial Advising, 430-431 Stnocture Evolves at Frantic Films, 189- 191 What About Telecommuting/, 246-247 Who Will Take the Blame, 303-305 business cycle, 38, 31V' Business Development B::tnk of C.1 nada (BDC),96 business ethics, 61 business incubators, 96, 96t business law sao also l:ow agency,30 bailment, 30 bankruptcy, 32 contracts, 30 deflned, 29 imernational framewotk, 33 negoti.1ble instrtunents, 3 1-32 property law, 31 totts, 3 1 warranty, 31 business-level (competitive) strategy, 160, 161 business ownership fo M11s. See fortns of business o wnersll ip business plan defmed, 94 PattI of business plan , 138- 139 Patt 3 of business plan , 321-322 Patt 4 of business plan , 395-396 well-written business plan, 95t business-practice laws, 129 business process management, 49 business process re-engineering, 279 Buslnass Rag/stat·, 87 business-to-business (B20) brokers, 385 business-to-business (B20) transactions, 8

business-to-consumer (B2 C) traJlsactions, 8

510 Subject Index


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buyers, 48 buying an existing business, 99 buzz marketing, 339

c cafeteria-style benefit plans, 205 caisses populaires, 411 call option, 422 call price, 4 17, 420 callable bond, 420 callable stock, 4 17 campus interviews, 196 Canada balance of trade, 40, 119 budget deficits, 40 C.1nadian dollat·, 120, 121 ean,tdian vs. u.s. banks, 415 capital requrrements, 412 competition policy, 11 Corr1.1ption Percel>tions Index, 129 creditor nation, 40 exports, 119/ foreign buyouts, 125 GDP per capita, 39 glob:1l competiriveness ranking, 119 government bailout$, 9 as high-income cmmtry, 116 history of busine,ss in C.1nada, 18-22, 19t imports, 119/ management of Canadian economy, 42-43 management styles, 241 market economy in, 13-16 mergers and acquisitions, 51 mixed market economy, 10 productivity levels, 274 rate o f price increases, 4V R&D spending, 43 role in global economy, 116 top fureigll·conttolled companies, 126t top smaiJ and medium-sized employers, 87t top ten corporations, 102t venture capital industry, 412 World Trade Organization, founding member of, I 30 Canafkl Bu.si11ess Corporations Act, 103-104 Canada Business program, 13 Canada labour Corle, 2 11-2 12 C.1nada J>ension Plan, 204 Canada Savings Bonds, 420 Canada Stnall Business Funding Program, 443 Canada Wato1· Act, 12 Canadiar1 Cbartor of Rfgbts rmd Freedoms, 212 Canadian dollar, 120, 121 , 413

Canadlau Envlroumontal Pmtoctlon Act, 70 Canadian financial system alte1'11ate banks, 411 cha.r tered banks, 405-411 financial institutions, 405-412 "four financial pillars, • 405 govett11llent financial institutions and granting agencies, 412 investment dealers, 412 oUlet· sources of funds, 4 12 specialized lending and savings intermediaries, 411-412 Ca11adian Huma11 Rig bts Act, 205, 207, 212 Canadim Radio-television and Telecommunications Commission (CRTC), 10 Canadian stock exchanges, 418 Canadia n Wheat Board, 10 cap and trade system , 68 capacity planning, 266 capital, 6 capital expenditures, 437 capital items, 350 capital market, 412 capital requirements, 94 capitalism, 8 carbon credits, 422 carbon dioxide emission.s , 68, 68f cartels, 129 cases. See business cases; openit1g c ases; video cases

cash, 295 cash budget, 93 cash discotUlts, 379 cash flow managemem, 298, 435 cash-flow requirements, 443, 443{ cash flows from financing, 298 cash flows from investing, 298 cash flows from operations, 298 casual g:urting industty, 363 catalogue marketing, 385 catalogue showrooms, 383 cause and effect diagrams, 275, 275/ cellular layout, 267 centtalized orga11ization, 177 certificates of deJ>osit (CDs), 404 certified gene:ral accountant (CGA), 290-291 certified management accountant (CMA), 291 chain of command, 172-173 change management, 164 channel captain, 382 cll3nnel conO.ict, 381-382 channels of distribution, 379-380, 379/ charismatic leadership, 239-240, 239/ charitable donations, 76 chattered accountant (CA), 290 chanered bank

automated banking machines (ABMs), 406 bank loans, 407 bat1k rate, 410 branch offices, 410 in Crutada, 406 changes in banking, 408-409 consumer demand, d1anges in, 408-409 as creators of money, 407-408, 4 O&f de fined, 406 det-egulation, 408 drrect deposits and withdrawals, 406 e-cash, 407 electronic funds tl':lllsfer (EF'I), 406-407 fltl3ncial advice, 406 international bat1king, 410 international services, 406 online and mobile banking solutions, 409 pay-by-phone, 406 pension services, 406 point-of-sale ttansactions, 407 sel'\1ces offered by, 406-407, 407/ sm:1rt cards, 407 trust services, 406 t~ U.S. banks, 415 chemical processes, 263 cheque kiting, 74, 404 chief executive officer (CEO), 103, 151 chief finat1cial office:r (CFO), 151 chief i11forn13tion officers, 314 chief operating officer (COO), 151 China, 117, 118 cigarette i11dustry, 374 classical theory of nwtivation, 226 clerical processes, 263 client relationships, 234 client..server network, 3 11 cloud computing, 3 15 co-operative, 104-1 05 coaches,240 code of ethics, 62, 64-65, 6'!{ COLA c lauses, 2 13 collateral, 95, 438 collective bargaining bargaining cycle, 2 12-213 bargaining zone, 2 13[ benefits, 213 compensation, 213 conttact issues, 213 defined,210 failure of, 213-214 history of, 2 11 job security, 213 man.1gement right.s, 2 13 management tactics, 214 mediation and arbitration, 214-215 other union issues, 2 13 reaching agreement, 212-213 union tactics, 214 Subject Index 511


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collectivism, 241 collusion, 7 1 command economy, 7, 8 commercial paper, 439. 449-450 commerciaHzation, 352 commitment fee, 438 committee :md team authority, 179 commodities, 421-422 common law, 29 Common Market, 131 sec also European Union (EU) common stock, 102, 296, 417,440 common usage, 355 communication of corporate culture, 164 communism, 7 company productivity, 274 comparable worth, 207 comparative advantage, 118 comparison. shopping, 386 compensation basic comp ensation, 203 collective b:~rg.~ining, 213 defined, 203 incentive programs, 203-204 cotnpetition defined, 17 degrees of competition, 17-18 and exchange rates, 120-121 in market economy, 11 monopolistic competition, 17 monopoly, 18 oligopoly, 18 perfect competition, 17 and private enterprise, 17-18 CompctitionAct, 11, lit, 18 comperition policy, II competitive advantage, 93. 118-119 competitive espionage, 63 competitive forces, 248 competitive product analysis, 277 competitive strntegy, 160, 161 compressed workweeks, 235 compulsory arbitration, 215 cotnputer~1ided design (CAD), 316 computer graphics, 313 computer tl.etwork, 311-313 computer vintses, 318, 319 concentration strategy, 160-16 1 concept testing, 351 conceptual skiJJs, 153 Co11ciliatio~z Act, 2 11 t conflict of interest, 63 conglomera.te diversification, 16 1 conglomera.te merger, 51 conscientiousness, 224 Co11.stitutio11 Act, 29, 211 consumer behaviour altematives, evaluation of, 339 constm>er buying process, 338-339. 338/

cultural influences, 338 defined,337 influences on, 337-338 information seeking, 338 personal influences, 337 posr..purchase evaluation, 339 p roblem/need recognition, 338 psychological influences, 337 purchase decision, 339 social influences, 337 understanding, 337-339 consumer buying process, 338-339, 331!(. 358/ consumer fmance company, 412 consumer goods, 329 consumer marketing, 329 Co11sumer Packagi11g rmd Labelling Act, 356 consumer price index (CPI), 41, 56-57 consumer products, 349 consumer protection, 11 - 12 consumer rights, 70-71 cottslllnerism, 70 consumers, interactions with, 262 contemporary social consciousness, 66-67 comingency appro:1ch to leadership, 238 contingency planning, 162-163 contingent workers, 209-210 contracts, 30 contracnml VMS, 382 conrributions, 225 control charts, 278 control systems, 106 controller, 290 controlling, 150, 1 50/ controlling for quality, 276 convenience goods, 349 convenience services, 349 convenience stores, 383 conve rtible bonds, 420-421 convertible money supply, 404 copyrights, 356 core competencies, 48 core principles, 65 corporate bonds, 4 19-420, 439-440 cot·porate boundaries. Soo organiz.1tional boundaty corporate charitable donations, 76 cofJ>orate culture, 145-147, 163-164 cot·porate-level strategy, 160, 161 corporate noiders, 2 1 corporate social responsibility (CSR) accommodative stance, 75 approaches, 75-77, 75/ areas of social responsibility, 67-74 contemporary social consciousness, 66-67 corporate charitable donatioll.S, 76 customers, responsibility toward, 70-73

defensive stance, 75 defined,66 employees, responsibility toward, 73- 74 environmental responsibility, 67-70 implementation, 74-75 investot-s, responsibility toward, 74 management of social 1-esponsibility programs, 76- 77 obstructionist stance, 75 1>roactive stance, 75-76 and the small business, 77-78 social audits, 76 triple bottom line reporting, 77 corporate sponsorships, 366 COf]>orate VMS, 382 corpornt lott advantages of incorporation, 104 board of directors, 102-103 common sock, 1 02 corporate name, I 04 defined, 102 disadvantages of incot-porntion, 104 dividends, 102 financial corporations, 411 - 412 as form of business ownership, 102-104 formation, 103-104 income tntst, 103 parent corporation, 52 private corporatiotl, 103 private equity firm, 103 public corporation, 103 stockltolders, 102 subsidiary corporation, 52 sustainable corporations, 77 top m:magers, I 03 top ten corporations in Canada, 102t types of, 103 Cm·ruptiotl of Fomign Public Officials Act, 129 Corruption Perceptions Index, 129 cost leadership, 161 cost of goods sold, 297 cost-of-living adjustment (COLA), 21 3 cost·· orie nted pricing, 375-3 76 costs fixed costs, 376 of purchase decision, 329 variable costs, 376 cotnlterfeit brands, 72 cotmterfeiting, 403 cmmterproductive behaviours, 223 cotmtervailing powers, 21 coupon rate, 423 coupons, 365 court system, 29 courteous service, 71 CPl. Sec consumer price :index (CPl)

credit card fraud, 404- 405 credit cards, 404-405

512 Subject Index


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credit default swaps, 402 credit policy, 436 c redit lUiions, 96, 411 creditor nation, 40 creditors, 289 crisis management, 163 c ritic:1l incident melhod, 202 cross-culturalleadersiiip, 241 crowdsourcing, 259 cultural change, 146 c ultura I differences, 62, 126 culturaJ influences, 338 cultura.l receptiveness, 367 culture (national), 233, 241 culture surveys, 146 c urrency, 403-404 curre ncy exchange, 406 curre nt assets, 294 currenr liabilities, 296 curreln ratio, 298 customer departmentalizMion, 174-175 customer preferences and tasles, 45-46 c ustomers, 66, 70-73, 123, 278-279 customization, 309 cybem1alls, 387 cycle ti me, 4 5 cyclical unemployme nr, 41

D damages, 30 data, 314 dam mining, l 15 data warehousing, 315 day traders, 425 debenmres, 420 debit card, 407 debt, 298 debt fm:mcing, 95, 96, 439-440, 441 -442, 442/ debt-to-equity ratio, 299 debtor nation, 40 decentralized approach, 366 decentrnli'7.ed orga11i1:atioh, 177-1 7R

decertification, 214 decisio:n-lnaking hierarchy nssignment o f tasks, 176-177 distri bution of authority, 177-178 forms of authority, 178- 179 perfonning tasks, 177 decision-lnaking skills, 154- 156 decision suppo rl systems (DSSs), 316 dec line stage, 353 deed, 31 defensive stance, 75 deficit, 119 deflation, 4 1, 56-57 d egrees of competition, 17-18 delegation, 177 demand average demand, 266 defined, 14

demand and s upply schedule, 14- 15 human resou rces demand, 195- 196 international demand, 122 law of demand, 14 market demand, and business s uccess, 105 in market economy, 13-15, 15/ peak demand, 266 demand and supply schedtde, 14-1 5 demand curve, 15, 15/ demand deposits, 404 democratic style, 238 demographic variables, 334-335, 334/ department stores, 383 departmentalization, 174-175, 176/ depreciation, 295 depression, 38 deregulation, 9, 408 Designated Public Office Holders (DPOHs), 13 de tailed schedules, 271 developing cotmtries, 116 development of htunan resom·ces, 200-202 differentiation, 16 1 di.rect channel, 379 direct deposits and withdrawals, 406 direct mail, 360 direct-response retailing, 384-385 direct selling, 384 directors, 102- 103 discharge, 30 discount, 379 discount brokerages, 409, 418 dissatisfied employees, 225 distribution brokers, 380 channel captain, 382 cl13nJiel conflict, 381-382 channel leaders hip, 381-382 detined,333 direct c hanne l, 379 distribution c-hannel, 379-3!!0, 379/ distribution mix, 379-382 distribution strategies, 381, 381/ e-dlsltibution oppommities, 386 exclusive distribution, 381, 381/ of goods and services, 379-380 intensive distribution, 381, 38!f intermediaries, 379 inteMlationnJ distribution, 340 and marke ting mix, 331, 333 in music business, 393-394 nondirect distribution, 380-381 physical distribution, 387-390 re tail distribution, 379 retailers, 3 79, 382- 387 sales agents, 380 selective distribution, 381, 38!f small-busi11ess distribution, 341 vertical marketing systems (VMSs), 382

wholesale distribution, 380 wholesalers, 379, 382 distribution centres, 388 distributio11 channel, 379-380, 379/ distribution mix, 379-382 distribution of authority, 177-178 disturbance lt.1ndle r, 148 diversification, 161 diversified product lines, 350 divestitures, 51 divestme nt, 161 dividends, 102 divisional structure, 179-180, !SOt Doha Rol111d, 130 donations, 76 double-entry accounting systems, 294 double taxation, I 04 Dow jones Industrial Average, 374, 424 dow11sizing, 178 drug testing, 73, 200 dumping, 129 dynamic pricing, 3 78

E e-agents, 385 e-brokers, 381, 382 e-business sl!l! also lllle rnet e-disrtibution opportllllities, 386 e-readers, 159 entrepreneurs, and Twitter, 98 ethics, 61 inten1ational branding, 355 new age product oppomulities, 330 online and mobile bankit1g solutions, 409 open source autornoblle n13nufac turing, 2 59 recruitment in social media era, 197 vimtal goods, 14 e-cash, 407 e-C'~talogues, 385 e-conunerce, 8, 116, 262, 307, 385 e-itnermediaries, 385 e-mail, 318-319 e-readers, 159 e-tailing, 385 early belt.wioural tbeoty, 227 early years, 18-20 earnings per s hare, 299 Economic Community of Celllral African States, 132 economic differences, 126-127 economic environment

defined, 37 economic growlh. 37-40 economic stability-, 41-42 management of Cat13dian economy, 42-43 economic forces, 248 economic growth, 37-40 Subjectlndex 513


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economic stability, 41-42 economic syst·e m command economy, 7, 8 defined, 5 factors of production, 5-6 market economies. Sec marke r economies llllxed market economy, 9- 10 types of economic systems, 6-10 effectiveness, 147 efficiency, 147 electTonic conferencing, 311 electronic funds transfer (EFt), 406-407 electronic purses, 407 electronic retailing, 385 electronic Slorefronts, 387 embargo, 127 emerging matkets, 117-118, 175 emissions tradit1g, 422 emotiot13.1 intelliget1ce, 224-225, 238 e mo tional motives, 339 emotional quotient (EQ), 224-225 emo tionality, 224 empathy, 224-225 employee behaviour counterproductive behaviours, 223 defined, 223 fonns of, 223 organizational citizenship, 223 perfom1ance behaviours, 223 e mployee engage me nt, 230 employee health and safety, 207-208,212 employee infonnation systems, 196 employee-oriented, 238 cllll>loyee-owned corporations, 51 employee stock ownership plans (ESOPs), 51 employees sec also human resource management (HRM)

behaviour of. Sao employee hehaviour

dissatisfied employees, 225 drug testing, 73 employment standards, 2 12 idea sharing, 233 illdividual differences, 223-225 job satisfaction, 225 marke r value, detem1ination of, 203 marc hing people and jobs, 225-226 organizational commitment, 225 performance appraisals, 201-202, 202/ l>rivacy, 73 recruiting, 196- 197 responsibility toward, 73-74 safety, 207-208, 212 selection process, 197-200 as stakeholders, 66 tests, 199- 200

as users of accmmting information, 289 whisrleblowers, 73-74, 141 employers' associations, 214 employment agencies, 196 Employment Eqt~ity Act of 1986, 206 e tnploy ment insurance, 204 employment standards, 212 employment tests, 199-200 empowerment, 231-233 encryption system, 319 endorsement, 32 enterprise porrals, 311 e nterprise resource planning (ERP), 308 entrepreneur-oppornm.ity fit, 97 entrepreneur-resources fit, 98 entrepreneurial era, 20 e ntrepreneuria l process building the right team, 97 described, 92 fit between elements, 97-98 identification of oppo rrunities, 92-95 in ne w venture context, 91[ resources, accessmg, 95-96 entrepreneurs deftned,6,88 as factor of production, 6 imrapreneurs, 88 managers as, 148 mompreneurs, 91-92, 141 nascent entrepreneurs, 87 enu·epreneurship, 88 the environment soo also green business emissions tradiJ~, 422 environmental responsibility, 67-70 ISO 14000, 279 po llutio n, 68-70 environment of business economic environment, 37-43 emergmg c hallenges and opporttmities, 48- 49 external e nviro nment, 37, 373 industry e tlvitohlne ht, 47-4R

multiple organizational e nvironments, 37 orgmliz.'ltiona.l boundaries, 37 po litic:•l-leg.'ll etwironment, 45 soci-eultural environment, 45-47 technological envirotunent, 43-45 e nvironme ntal ana lysis, 160 Enviromnental Contaminants Act, 12 environme ntal protection, 12 Environmental Protection atld Enhancement Act (Alberta), 69 envirolllnental responsibility, 67-70 equal emJ>Ioyme nt regulations, 205-206 equal wages for jobs of comparable value, 207 eql.1ilibrium price, 15 equipment companies, 96

equity financing, 95, 96, 440-441, 442, 44?[ equity (owner's), 293-294, 296 equity (stockholders), 417 equity theory, 229 escalation of commitment, I 56 essential services, 13 esteem needs, 228 ethical behaviour, 61, 64 ethical compliance, 46-47 e thical funds, 421 etlticalle:•dership, 241 ethics ill advertisillg, 71-73 assessment of ethical behaviour, 64 business ethics, 6 1 code of elllics, 62, 64-65, 64f cultural differences, 62 defined,60 ethical behaviour, 61, 64 ethical compliance, 46- 47 ethics director o r officer, 65 e thics m:111agement, 64-65 ethics programs, 65 individual ethics, 61-66 in It1te rne t age, 6 1 managerial ethics, 62-64 responsible business behaviour, 46-47 social responsibility. See corporate social responsibility (CSR) e thics directot· or officer, 65 euro, 120 Europe, 116, 121 see also European Union (Ell) European Union (Ell), 68, 116, 120, 121, 129, 130, 131, 13V, 422 Eurozone, 120-12 1 evaluation of alternatives, 339 evaluation of employee perfonnance, 201-202, 202/ exchange rates, 120-121, 413, 4 1Y exclusive distribution, 381, 381/ executive search firtns, 1%

exit costs, 93 expectancy theory, 228-229, 229/ expense items, 349 experimentatio n, 337 expen system, 317 exporter, 124 exports, 40, 115, 119/ express contract, 30 express wat·ranty, 31 external environment business environment, 47-49 defined,37 econom.ic environmem , 37-43 industry en virotunent, 47-48 politica~legal environment, 45 socio-cultural environmem , 45-47 technological environment, 43-45 external failures, 278

514 Subject Index


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external recruiting, 196- 197 extern:-~! staffing, 196 exte rtl:tl supply, 195 extr:onets, 311 e-xtraversion, 224 extroverts, 224

F f~bric:ation

processes, 263 4 11 factoring accotuus receivable, 438 factoring compan y, 4 11 factors of production , 5-6, Sf, 7, 8 factory outlets, 383 factory system, 19-20 failed products, 351 f~ilure, 106, t06t fair employmem practices, 2 12 family business, 99. I 10-111 federal government, 42-43 federal labour legislation, 2 1'1-212 ligureltead, 148 finance, 435 finance companies, 96 finance era, 21 financial accounting system, 290 financial assistance, 12-13 financial control, 436 financial corporations, 4 1 I -412 financi.-.1 crisis, 38, 433-435 financial disclosure, 63 linanci:tl fo recasts, 93 lin:tncial informatio n services, 423-424 fin:mcial instimtions alternate banks, 411 c hanges affecting, 405 chartered banks, 405-4 11 d ebt financing, source of, 96 "four financial pillars,' 405 gove rnme nt fin:mclallnstitut lons, 4 12 investment d ealers. 4 12 f~ctor,

'flt-Nalized lending nntl


intermediaries, 411-4 12 t)'J)eS of, 405 financial management financing. SC!C! fmancing small businesses, 443- 445 financial mattagers, 152, 435-436 financial manipul:.tio n, 2 1 financial tnismanageme nt, 74 fill.'lncial misrepresentatio n, 74 fin:tncial plan, 436 fin:mcial resources, 95-96 financial scandals, 291, 303-305 fin.-.ndal statemen t5 activity ratios, 299-300 analysis of, 298-30 I balance sheets, 294- 296, 294! budget, 298 defmed, 294

income &rarements, 296-297, 296/ prollt~nd-loss stateme nt, 296-297, '196/ prollutbility ratios. 299 solve ncy ratios, 298-299 stateme nt of cash flows, 297-298 ftna nc ial viability, 93 financ ing funds, need for, 436-437 long4erm funds, sources of, 439-443 risk-return relationship, 442- 443, 443[ sho n-tenn funds, sources o f, 437-439 finished goods inventory, 437 firew:olls, 3 19 ftrst-Llne managers, 151, 152 fiscal po licies, 42 ftshbone d iagrall15, 275. 275/ Flsl.xtrlos A ct, 12 five forces model, 47-48, 47/ faed assets, 295 faed costs, 376 fixed pricing, 378 nexlble m:onufacturing syste m (FMS), 269 ncxtlme, 235, 235/ focus groups, 337 focus strategy, 161 fo llow-up, 271 Food and Dmg Acl, 12 forecasting HR demand and supply, 195-196 fo recasts, 266 fo reign buyou ts, 125 fo reign direct investment (FDI), 125 Fo reign Investment Revie w Age ncy, 125 foreign stock exchanges, 418 forensic accountants, 291 fonn utility, 260 fonm of authority, I 78- 179 fonns of business ownershiJ> co-operative, 104-105 comparison of, 1OSt corporatio n, 102-104 p:onnership , 101- 102 VIIlannillg, 266 classification of, 349-350 consumer goods, 329 convenience goods, 349 distribution of, 379-380 goods-producing processes, 263 goods pro ductio n, 259 industrial goods, 329 layout planning, 267-269, 267/ location pl:mning, 266 marketing of, 329 methods .improvement, 269 scheduling, 270-271 shopping goods, 349 specialty goods, 349 tangible goods, 329 goods-producing processes, 263 goods productio n, 259 goodwill, 296 government business, influence of, 13 business, influence o n, 10- 13 competitio n, promotion of, 11 as competitor, 10 consumer protection, 11-12 as custo mer, 10 envit·onmenral protectio n, 12 essential services, provider of, 13 fuuncial assistance, 12-13 govenlme llt-business imeractions, 10- 13 incentives, provider of, 12-13 rnat1age 1ne tlt of lanadiat1 eco11o1ny,

42-43 as regulator, 10 socia.l go~Js, 12 as taxation agent, 12 government aget1cies, 96 government bonds, 419 government financial instiwtio ns and granting agencies, 412 government-operated enterprises, 8 government regulatory agencies, 289 granting agencies, 4 12 grapevine, 185 graphic rating scale, 202 Great Depression, 21, 38, 66, 78, 434 Greece, 121 green busin.e ss accounting, 289 bag controversy, 383

emissions tradin,g, 422 four-day workweek, 236 green business image, 357 green goals, 158 green recn1iting, 196 g reen stn1cn1res., 183 Green Wo rld Solutions, 332 hydrogen fuel ceU, 43 Mountain Equipment Co-op (MEC),67 small businesses, 90 telecommuting, 236 Walmart, 271 greenhouse emissions, 68 gross domestic product (GOP), 38-40 gross margin, 297 gross natiotml product, 39 gross profit, 297 group-based training, 201 group incentives, 204 group leader, 151 groupware, 3 14 gt·owth, and specializ.-.tion, 173-174 growth stage, 352 growth strategy, 161 guerilla advertising, 72-73 Gulf Cooperation Cotmcil , 132 Gulf of Mexico oil spill. See BP oil spill

hackers, 317 harassment. 207, 223 hard-core unemployed, 73 hardware, 313 Hawthorne effect, 227 H azardous Products Act, 11 health insur.u1ce, 204 hedge fllllds, 421 hierarchy of h\Unan needs model, 227-228, 227f hig h-contact processeortutlity, 205-206 evaluation of employee perfonnance, 201 - 202, 202/ forecasting HR demand and supply, 195-196 foundations of, 194-196 green recruiting, 196 human resource plalllling, 195- 196 incentive programs, 203-204 job analysis, 195 knowledge workers, 209 legal context of HRM, 205-208 matching HR supply and demand, 196 new c hallenges, 208-210 organized labour. Soe 1.-.bour unions recnliting, 196-197 replacen1ent cltarts, 195 retirement, 208 selection, 197-200 sexual hat·:tssment, 207 skiUs inventories, 196 staffing the organization, 196-200 strategic importance of, 194-195 traitting and develo pment, 201 workfot·ce diversity, 208-209

hig h-incom e countries, 11 h

huh1an tesnutc:e mahagers, 15'1

high prices, 16 high-tech bubble burst, 38 history of business in Canada early years, 18-20 emrepreneurial era, 20 factory system, 19-20 finance era, 21 global er:1, 21-22 important dates, 19t Internet era, 22 marketing era, 21 production era, 20-21 sales era, 2 1 holidays, 212 Hong Kong, 117 horizontal integration, 161 horizontal merger, 51 hostile takeover, 51

human resource planning, 195-196 human resources, 5 human-resources model of motivation, 227 lnmch, 156 hybrid financing, 441 hydrogen fuel cell, 43 hygiene factors, 228, 221l{ hypertext tr.msfer protocol (HTI"l'), 311


idea generation, 92-93 idea sharing, 233 ideas marketing, 329 identification of products, 353- 356 identity theft, 317-318,319 image differences, 367 implied contract , 30

516 Subject Index


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implied warranty, 3 1 importer, I 24 unports,40, 115, 119/ utcentive programs, 203-204 incentives

government incentives, 12- 13 incemive programs, 203-204 purc hasmg mcentives, 365 illcoble

net mcome, 297 operating income, 297 before t~xes, 297 income statement, 93 utcome statements, 296-297, 296/ I11coma Tax Act, 29 income tntst, 103 incubators, 96, 96t utdependent agent, 124 India, 117-118 mdwidual differences attitudes, 225 defined,223 emotiotul uttelligence, 224-225 personality, 224, 224/ mdividual ethics, 61-66 individual incentives, 204 individttal values, 62 utdividualism, 241 Indonesia, 117 mducements, 225 I11dush-ial Dispt.tte.~ !tlvestigatio.z Act, 211t industrial goods, 329 utdustr:ialma.rketmg, 329 utdustr:ial products, 349-350 Industrial Revolutio n, 19-20 industry e nvironmem , 47-48 utdustry productivity, 274 Wlation, 39. 41, 56-57 infomtal groups, 184- 185 info rmal org.1 niz.1tio n, 184- 185 info rmation, 314 lnfomtatlott age, 209 illformatlon n1a11agers, 152 illformation resources, 6 info ttnation seeking, 338 lttformatiott system (IS), 314-317 lttformatlott systems managers, 314 utfomtation technology (n) business resources, 310-313 data minu1g, 315 data warehousutg, 315 illtpact of, 306 infonnatiott system (IS), 314-317 netwot·ks, 3 11-313 protection measures, 3 19-320 remote access, 307-310 risks and threats, 317-319 initial public offering, 103 mnovative products, 94 mput market, 8-9

inside directors, I 03 insider tradlttg, 74, 426,430-431 lttsolvem person (or company), 32 lttmngible assets, 296 intangible services, 262 integration strategy, 16 1 inte llectual propen·y, 318, 355-356 intensive distribution, 381, 381/ ltttentional tort, 31 interactive marketing, 387 interest , and bonds, 420 interest rates, 439 Intergoventmental Panel ou Climate Cbange, 68 mtemtediaries, 379 inte nnediate goals, 157 inte nnodal transpottation, 389 mtemal failures, 278 ltttemal recruiting, 196, 197 intemal staffing, 196 inte rnal supply, 195 international accounting standuds, 291 lttternational bank strucntre, 413 international banklttg and finance changes in, 410 exchange rates and imernatio nal tt:tde, 413, 4 13[ mterttational bank structure, 413 International Monetary Ftmd (IMF), 415 international payments process, 4 13,413{ law of one price, 413 World Bank, 415 mternational business. See global business i.nte rnntional competitiveness, 119 mtertt.1tional demand, 122 lttterttational distribution, 340 International Financial Reporting Standards (!FRS), 291 intertlational firm, 124 illtertt.1tional L-.w, 33 lttterttational marketing mix, 48-49 International Monetaty Fund (IMF), 56, 12 1,402,4 15 intemation:tl organization.'ll structures, 124-125, 181- 182, 182/ mtemational payments process, 413, 413.{ international prices, 339-340 ime rnational products, 339 inte rtt:ttional promotion, 340, 366-367 mtemational sources of funds, 412 lttterttational trade sec a~w global business barriers, 126-132 d esctibed, 115 and exclt.Utge rates, 413, 41:V Internet sea also e-busmess advertisillg, 361

communication resources, 3 10-311 comparison shop(>ing, 386 cybertnalls, 387 defined, 311 e-agents, 385 e-bt·okers, 381, 38.2 e-catalogues, 385 e-comrnerce, 8, 262, 307, 385 e-mtermed:iaries, 385 e-tailmg, 385 electronic storefro nts, 387 employees' market value, 203 enterprise portals, 311 extranets, 311 hypertext transfer protocol (m'TP), 3 11 impact of, 22 1nterner2, 311 Internet-based stores, 385 Internet eta, 22 Intetllet marketing, 307 intmnets, 311 o nline trading, 418 physical distribution for e-customers, 389 post office protocol (POP), 311 resources for new venntres, 97 simple message transfer t>rotocol (SMTP), 311 usage, 306 virtual storefronts, 387 wikis, 232 lnternet2, 3 11 Internet-based stores, 385 mterttships, 197 interviews, 200 imraday trades, 425 intranets, 311 ltttrapreneurs, 88 introductioll stage, 352 introverts, 224 mtuitlo n, I 56 invetttoty, 300, 437, 438 lttvemoty control, 271 invemoty turnover r:atio, 300 investment bankers, 415-4 16 Investnlettt Canada, 125 lttvestment dealers, 412 lttvestrnent reduction, 161 investments sao also securities bonds. See bonds commodities, 421-422 hedge funds, 421 mutual funds, 421 stock optio ns, 422-423 stocks. Sea stocks mvestor rebtions, 417 lttvestors, 66, 74, 289, 374 Ireland, 121 Ishikawa diagrams, 275, 275/ Subject Index 517


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ISO 9000, 279 ISO 9000:2000,279 ISO 14000, 279 Italy, 121

J Japan, 117, 62 job analysis, 195 job commitment, 225 job descriptio n, 195 job enric hment, 234 job evaluation, 203 job fair, 197 job redesign, 234 job rotatio n , 20 I jo b satisfactio n, 225 job security, 213 job sharing, 23 7 job shops, 267 job specialization, 173- 17 4 job SJ>eciflc:alion, 195 just-in-time (fiT) production systems, 272- 273

K Koy Small Business Statis/:l.cs, 87 knowledge information systems, 3 16 knowledge workers, 209 Kyoto Summit, 68

L labels, 356 labour, 5 labour Porco Sun'ey, 87 labour markets, and kno wledge wo t·kers, 209 labour prod.uctivity, 273 labour shortage, 42 labour unions Canada labour Code, 211-212 coUective bargaillillg, 210, 2 11, 212-215 dealing with organized labour, 2 10- 211 decertificatio n, 2 14 defined, 2 10 federal labour legislation, 211 - 212 fumre of unions, 211 histo rical steps for labour legislation, 211t leg.~l enviro nment, 211- 212 management tactics, 2 14 provincia I labour legislation, 21 2 unio n hiti ng halls, 196 union-m:magement rel:ations, 2 I 0 union tactics, 214 unionism today, 210 as users of accounting information, 289 laissezf'aire, 20 land poUution, 69-70

language barriers, 126 language differences, 366 law administrative law, 29 business Jaw. See business Jaw common law, 29 court system, 29 defined, 29 international law, 33 sources of law, 29 statutory law , 29 law of demand, 14 law of o ne price, 413 law of supply, 14 layout pl~nning, 267-269, 267/ leadership approaches to, 237-238 behavioural approach, 238 Canadian vs. A1nericat1 managemem styles, 241 channel leadership, 381- 382 charismatic leadership, 239-240, 239/ coaches, leaders as, 240 cominuum, 239/ cross-culntralleadership, 241 defined, 237 and effective org.1 t1izations, 237 employee-oriented, 238 ethical leadership, 241 and gender, 240 leadershit>styles, 238 managers and, I 48 and mo tivation, 237-242 quality, leading for, 276 recent trends, 239-242 sinoatio nal (contingency) approach, 238 strategic leaders hip, 241 task-oriented, 238 trait approach, 238 transactional leadership, 239 transformational leadership, 239 virtual leadership, 241-242 leading, 149 lean manufacnoring, 267 leaming organization, 184 lease, 3 1 legal comext of HRM comparable worth, 207 employee health and safety, 207- 208 equal employme nt o ppomonity, 205-206 retirement, 208 sexual harassment, 207 legal differences, 127-129 legislation anti-combines le gislation, 20 anti-discrimination L~ws, 205- 206 b1ue-sl1' laws, 426 consumer protection legislatiot1, 11- 12 corporations, influence of, 13

employee health and safety, 207-208 environmental protect ion legisL~tion, 12 equal employment regulations, 205- 206 labour unions, 211- 212 , 21lt securities regulatio n, 425-426 sexual harassment, 207 letter of credit, 406 leverage, 299 leveraged buyouts, 299 leveraging, 421 liabilities, 293. 296 liaiso n, 148 licensed brands, 354 licet1Sing arrangements, 124-125 life insurance company, 4 11 limit order, 425 limited liability, 104 limited partners, 101 limited partnership, 10 1 line autho rity, 178-179, 171lf line departments, 178 line of credit, 438, 443 liquidation plan, 32 liquidity, 294 load funds, 421 Lobbylug A ct, 13 lobbyist, 13 local area networks (LANs), 312 local communities, 66 local-content laws, 128-1 29 location planning, 266-267 lockout, 214 london stock exchange, 418 lo ng-term (capit.1J) expenditures, 43 7 long-term funds, 439-443 long-term goals, 157 long-term liabilities, 296 long-term loans, 439 long-term solvency ratios , 298-299 love money, 95 low-contact proce=s, 264 low-contact system, 264 low-income countries, I 16 low middle-income countries, 116 luck, 106

M M-1, 403-404 M-2, 404 magazines, 360 mail order, 385 make-to-order, 262 make-to-stock, 262 Malaysia, I 17 Malcolm Baldrige National Quality Award, 278 management see also nwugers areas of management, L51-152

518 Subject Index


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C.11mdian vs. American manage ment styles, 241 contingency planning, 162-163 controlling, 150, 150/ and corporate culmre, 163-164 c risis management, 163 defined, 147 effectiveness, 147 efficiency, 147 leading, 149 levels of, 150-151, 1 5Qf, 151/ management process, 147-150 organizing, 149 planning, 147-149 rights, and collective bargaining, 213 skills, 152-156 strategic managemem, 156-162 tactics, during collective ba:rgaining, 214 tmiot>-managemenr relations, 210 management accounting, 290 manage ment by objectives, 231 management development programs, 201 management infomtation systems (MISs), 316 manage ment skills combinations of, 15:1( concept11al skills, I 53 decision-making skills, 154-156 hum:a11 relations skills, 153 technical skills, 152 time management skills, '153-154 manage rial capitalism, 66 managerial competence, 106 managerial ethics, 62-64 managerial ( management) accounting, 290 managers see also management decision-making roles, 148 financial managers, 152, 435-436 first-line managers, I 51, 152 hwnatt resource Jn.'lllagers, 151 infomtation managers, 152 infomtation systems for, 316 information systems managers, 314 infonnational roles, 148 interpersonal roles, 148 marketing managers, 152, 331 middle managers, 151 operations managers, 152 production managers, 260 roles of, 148 specialized managers, 152 top managers, 151 types of, 150-152 as users of accotmting infonnation, 289 mandated protection pL1ns, 204 mandatory retirement, 208 manufacturing productivity, 274 manufacturing resource planning, 273

margin, 422, 425 margin 11-:tding, 425 market bear markets, 424 bull markets, 424 capital market, 412 defined,8 in economic tenus, 14 as exchange process, 14 input marke t, 8-9 output market, 8-9 over-the-counter (OTC) market, 4 18 securities markets, 415- 416 speed to market, 351 stock exchange.s, 417-418 market capitalization, 4 17 market demat1d, 105 market ecottom.ies in Cattada, 13-16 circular flow in, 15/ defined,7 demand and supply, 13-15, 15/ demand and supply curves, 15, 15/ demand and supply schedule, 14-15 genet-:tlly, S input and o utput markets, 8-9 priv:tte enterprise, 17-18 shortage, 16-1 7 surplus, 16-17 market inde.xes, 424 market order, 425 market penett-ation, 161 market price, 15 market research defined, 336 re.sea.r ch method, 336, 337 research process, 336 market segmentation, 333- 336 market share, 375 market value, 417 market:lble securltles, 295 marketing ambush rua:rketing, 366 buzz marke ting, 339 catalogue marketing, 385 cotlstuner behaviour, 337-339 constuner, 329 defined,329 of goods, 329 of ideas, 32 9 industtial marketing, 329 interactive marketing, 387 Internet marketing, 307 market research, 336-337 rmrket segmenllltlon, 333-336 matketing mix. See marketing mix multicultur:al marketing, 334- 335 reL1tionsh.ip marketing, 331 service marketing, 329 of services, 329

111rget marketing, 333-336 test marketing, 352 value, 329 video marketing, 387 word of mouth marketing, 339, 347-348 markel'ing concept, 329 m..1rketing era, 21 marketing managers, 152, 331 Jn.1tketing m.ix choosing, 331/ defined,33 I four Ps of marketing, 331 intentational marketing mix, 48- 49 place, 333 price, 332-333 product, 331-332 promotion, 333 and small business, 340- 341 marketing plan, 331 Maslow's hierarchy of lnunan needs model, 227-228,227/ mass collaboration, 233 mas.s-custom.ization, 309, 309f, 332 lll.1.sS production, 20 master production schedule, 270 HR supply and demand, 196 ru.1tching principle, 297 threats and opportunities, 160 material requirements pL1J111ing (MRP), 273-387 1n.1terials mattagement, 271 ru.articipative management and etnpowennellt, 231-233 rational motives, 339 reinforcement/behaviour modificatio n, 229-230 srraregies for enl1.1ncing motlv:uion, 229-237 team managetnent, 233-234 motivation theories classical t heory, 226 contempoi"Jty motiv11tion theory, 228-229 early behavioural theory, 227 and emotional intelligellce, 224 equity theory, 229 expectancy theory, 228-229, 229! Hawthorne effect, 227 hierarchy of hu01.~n needs model, 227-228, 227! human-resources model, 227 Theory X, 227 Theory Y, 227 two-factor theory, 228, 228f movable factory, 269 MRP II, 273 multicultur-.ll ma.r keting, 334-335 multinational fttms, 70, 116, 124 multiple orgatuzational en~ironmems, 37 multiple product lines, 350

mtmicipal tax rebates, 13 mutual funds, 421

N NAFfA. See North American Free Trade Agreement (NAFTA) mrrow span of control, 178 nascent enu-epreneuJ·s, 87 NASDAQ Composite Index, 424 National Association of Securities Dealers Automated Quotation (NASDAQ), 418, 424, 427 national brands, 354 national competitive advat1tage, 118-119 natio nal debt, 40 nat·ionaJizatlon, 9 narural monopoties, 18 narural resources, 6 narural workgroups, 234 needs, and motivation, 227-228, 227! negMive feedback, 202 neglect, I 06 negtigence,31 negotiable instrtllllents, 3 1-32 negotiator, 148 net eamings, 297 net income, 297 net profit, 297 networking, 201 networks, 311-313 new product deveJoj>menr product mortality rates, 351 risk of, 350 seven-step development process, 351-352,35if speed to market, 351 time frame of, 350- 351 new products, 378 new venmre defmed, 87-88 entrepreneurial process, 92! Jnotnpreueurs, 91-92 role in Canadian economy, 89-90 New York Stock Exchange (NYSE), 418,4 11¥ newspapers, 359 no-load funds, 421 non-productive facilities, 267 nondirect distribution, 380-381 no nstore retaiJing, 383-385 normal curve, 202 North America, 116 North American Free Trade Agreement (NAFTA), 127, 131 Northwest Territor ies, 89 not-fo r-profit organiz.,tions, 5

0 observation, 336-337 obstructionist stance, 75

Occupational Health rmd Safety Acl (Ontario), 208 odd-even pricing, 3 78 odd lots, 425 off-the-job training, 201 office managers, 151 oil spiJJ, 10 on-the-job training, 201 one-of-en·book credit, 437 open source automobile manufacturing, 259 opening cases see also business cases. Air Canada 's Challenging Environment, 35-36 Are More Cracks Appearing in the Glass Ceiling, 193-194 Buyers and Sellers Jockey for Position, 373-374 corporate cullllre, 145-147 fmat1cial crisis, 433-435 luJuJemon: A Clear l'ar value, 417 parent corpormion, 52 participative management and empowerment, 231-233 partnership, 101-102 J>atent, 356 pay-by-phone, 406 pay-for-knowledge plans, 204 pay for perfottnance, 204 pay surveys, 203 l>e:lk demand, 266 peak oil, 26-27 penetta tion pricing, 378 pension accouming, 287- 288 J>ensioll fund, 412 pension services, 406 pet-capita income, 116 perfect competition, 17 performance appt:tisal methods, 202, 202f perfonn:mce apt>rnisals, 201 - 202,202/ performance behaviotn-s, 223 perfonnance of tasks, I 77 perfonnance quality, 276 petfonnance rating scale, 202/ performance ratios, 299 perks. See benefits person-job fit, 225- 226 Personal Assistant TeUer (PAT), 406 t>ersonal influe nces, 337 Pet-sotral !tifo mwtlon Prot,>etlou and Blectrorlic Docr•ments Act (PIPEDA), 318 personal property, 31 t>ersotl:ll savings, 95 personal seUing, 363-364 personality, 224, 224{ phatming, 318 the Philippines, 117 pl1ishing, 318 physical distribution defined, 387 e-customers, 389

as marketing strategy, 389-390 order fulfillment, 389 transportation operations, 388-389 warehousing Ol>etntions, 388 physical examinatio11, 200 physiological needs, 228 picketing, 214 piece-tate incentive plan, 204 pipelines, 3 74 place. See distribution place utility, 259 planes, 388 planning capacity planning, 266 continge ncy plarming, 162- 163 human resotu-ce planning, I 95- 196 location planning, 266-267 management and, 147-149 operations planning, 265- 270 for quality, 276 plastic bags, 383 pledging accounts receivable, 438 point-of-purchase (POP) displays, 365 point-of-sale transactions, 407 poison pill, 51 political differences, 12 7-129 political-legal envitolllllent, 45 political-legal forces, 248 political stability, 45 poUution,68- 70 Ponzi Schemes, 430 portable offices, 307-310 Potter's five forces model, 47- 48, 47[ Portugal, 121 positive reinforcement, 230 possession utility, 260 post office protocol (POP), 311 post.purchase evaluatio11, 339 prefe rred stock, 4 I 7 , 4 41 premituns, 36 5 prepaid expenses, 295 president, 151 price caJI price, 41 7, 420 current prices, 40 defined, 332 equilibrium price, 15 global food prices, 16 high prices, 16 intenutionaJ prices, 339-340 market price, 15 and marketing mix, 331, 332-333 points, 378 purclusing power parity, 40 rate of price increases in C1nada, 41/ srtike price, 423 price fiXing, 71 price gouging, 63, 71 price lining, 378 price-setting tools, 375- 377 priceskllnnllng, 378 Subject Index 521


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pricing soo also price

break-even analysis, 376- 377, 377! broker, 385 in cigarette industry, 374 cost-oriellted pricing, 375-376 defmed, 374 disco1111t, 379 existing products, 377 fixed vs. dynamic pricing, 378 new products, 378 odd-even pricing, 378 penetration pricing, 378 price lining, 378 price-setting tools, 375-377 price skimming, 378 pricing objectives, 374-375 pricing strategies, 377- 378 pricing tactics, 378- 379 psyd>ological pricing, 3 78 small-business pricing, 341 unfair pri cing, 71 pricing objectives, 374-375 pricing strategies, 377-378 pricing tactics, 378-379 l>rilnary data, 336 primary securities markets, 41 5 prime rate of interest, 407 principa~protected notes, 421 Pri1lcip!es of Scientific Management (Taylor), 226 privacy, 73, 324 private accmmtants, 292- 293 private brands, 354 private corporation, 103 private emJ>Ioyment agencies, 196 private ente rprise, 17-18 private eqttity firm, 103 private investors, 95 J>rivate placements, 415 private property, 17 private secto r, 89 privalt! Wdl'tobUUSt!S, 388 privatization, 9 J>roactive stance, 75-76 problem/need recognition, 338 problem-solving teams, 233 process, 49 process deparnnentaliz.Hion, 175 l>rocess flow chart, 269, 270, 27Qf process layouts, 267 process variation, 277-278, 278f product branding, 353-355 classification of, 349-350 COnSlmlCI' products, 349 copyrights, 356 defined, 331 described, 348-350 existing products, 377 failed products, 351

feamres and benefits, 348-349 ideas, 351 identification of, 353-356 industrial products, 349- 350 innovative products, 94 inre mational products, 339 labelling, 356 and marketing mix, 331, 332 mass.customization, 332 mortality rates, 351 new product develoJ>me nt, 350-352,352/ new products, 3 78 one-of-a-kind products, 'lb7 packaging, 356 J>atent, 356 product life cycle (l'LC), 352-353, 35?/ product mix, 350 promotion. See pron1otion small-business products, 340-341 trade marks, 355 variations, 366 world product mandating, 125 product departmentalization, 175-176 product development, 161 product differentiation, 331 product layout, 'lb7 product liability, 31 product life cycle (PLC), 352- 353, 352! product line, 350 product line retailers, 383 pt·oduct mix, 350 product positioning, 335. 335! product technologies, 43- 45 product testing, 352 product-use variab les, 335 J>toduction goods production, 259 mass production, 20 meaning of, 259 services, inclusio n of, 259 and utility, 259-260, 262 value creation, 259-260 production capability, 265, 265t production era, 20-2 I production management. Soo operations management production managers, 260 production process control, 271 - 280 J>roductive facilities, 267 productivity company productivity, 274 defmed, 40 domestic productivity, 274 and economic growth, 40 global competitors, 274, 274! industry productivity, 274 bbour productivity, 273 manufacturing productivity, 274 measurement of, 273-274 productivity c hallenge, 273-274

productivity-quality connection, 273-274 service pt'Oductivity, 274 productivity-quality connection, 273-274 profit defined,5 gross profit, 297 maximization of, 374- 3 75 net profit, 297 and private entetJ>rise, 17 profit-and-loss statement, 296-297, 296! pi'Ofit centre, 174 pi'Ofit-sharing plans, 204 profitability ratios, 299 pl'ogressive revenue taxes, 1 2 project otg:utlzation, 180-18 1 project teams, 233 promissory notes, 437 promotion advenising p romotions, 358-363 defined,333 international promotion, 340, 366-367 and marketing mix, 331 , 333 personal selling promotions, 363-364 of products, 357-358 promotional mix, 358-358f promotional strategies, 357- 358 public relations, 365 J>ublicity, 365-366 pull strategy, 358 push strategy, 3 58 sales promotions, 364-365 of services, 357-358 smal~business promotio n, 341 pt·omotiona1 mix, 358-358! pt'Oillotional strategies, 357-358 promotions (staff), 196 pt·operty, 31 property law, 31 pt·ospectus, 426 pi'Otection plans, 204 protectionism, 128 protectionist tariffs, 127 prototype development, 352 pi'Ovincial labour legislation , 2 12 psychographic variables, 335 psychological contracts, 225, 225! psycholog.ical influences, 337 psychologic:al pricing, 378 public corporation, 103 public relations, 365 public warehouses, 388 publicity, 365-366 pull str:uegy, 358 purchase decision, 339 purcbase of existing business, 99 purchasing, 271 purchasing incentives, 365 purchasing power parity, 40

522 Subject Index


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pure R.w. 43 pure risk, 445 purpose, 157, 172 push strategy, 358 put option, 422

Q quality awards, 278 controUing for quality, 276 defined, 273 leading for q uality, 276 organizing for quality, 276 perfonnance quality, 276 plalllling for quality, 276 productivity-quality connection, 273-274 quality assurance tools, 276-280 quality challenge, 275-280 quality circle, 233 quality control, 273 q uality ownership, 276 quality planning, 269 quality reliability, 276 in service businesses, 284-285 servi.c e quality consideratio ns, 262 total q uality management (TQM), 275-276 quality assurance tools benchmatkiJ1g, 278 business process re-engineering, 279 competitive product analysts, 277 control charts, 278 customers, 278-279 ISO 9000:2000, 279 ISO 14000, 279 process variation, 277-278, 278/ quality/cost studies, 278 quality iJnprovement (QI) teatns, 278 sra tistical process control (SPC), 277 supply chain management (SCM), 280 supply chaiJts, 279-280, 280/ value-added analysis, 277 quality circle, 233 quality control, 273 quality control department, 276 quality/cost studies, 278 quality improvement (QI) teams, 278 quality ownership, 276 quality planning, 269 quality reli,.bility, 276 quat1tity discounts, 379 questionnaire, 337 quid pL"o quo harassment, 207 quotas, 127

R racial harassment, 223 railroads, 389

rational decision-making process, 154-156, 154/ ratio nal motives, 339 ratios

activity ratios, 299-300 current ratio, 298 debt-to-equity ratio, 299 earniltgs pe r share, 299 inventoty turnover ratio, 300 long-term solvency ratios, 298-299 performance ratios, 299 profitability rMios, 299 return on equity, 299 return on sales, 299 shareholder return ratios, 299 sho tt-tenn solvency ratios, 298 solvency racios, 298-299 raw materials inventoty, 437 re-engineeting, 279 teal GOP, 39 real growth rates, 39 real property, 31 recalls, 257-258 recession, 38, 67 tecn1iting, 196- 197 recycling, 70 rediscmult rate, 4 10 redrawing corporate boundaries, 49-52 reference checks, 200 referrals, 196 registered bonds, 420 regis~1r, 411 regressive revenue taxes, 12 regulations, 10 reinforcement, 229-230 related diversificatio n, 161 relationship marketing, 331 remote access, 307- 310 reorgatlizatiotl, 32 repayment plan, 32 repetitive strain it1juries (RSis), 208 replacement c harts, 195 resale price management, II research, market. See market research research and d eveloJ>me nt (R&D), 43 research method, 336. 337 reserve t·equirement, 407 resource allocator, 148 resources, 95-96 respo nsibility, 177 respo nsible business behaviour, 46-47 restrictive taxes, 12 retail distribution, 379 retailers soo also retailing bargain retailers, 383 convenience stores, 383 detined, 379 product line retailers, 383 types of retail outlets, 383

retailing soo also retailers cybermalls, 387 direct-response retailing, 384-385 e-catalogues, 385 electronic retailing, 385 electro nic storefro nts, 387 interactive marketing, 387 Internet-based stores, 385 nonstore retailing, 383-385 retail o utlets, 383 shopping agents, 385 syndicated selling, 385 video marketing, 387 retained earnings, 290, 440-441 retirement, 208 retrenc hment, 16 1 return on equity, 299 retunt on sales, 299 revenue recognition, 296 revenue tariff, 127 revenue raxes, 12 revenues, 296 revolving credit agreement, 438 rights of others, 64 risk coping with, 445-446 defined,445 pure risk, 4 45 speculative risks, 445 risk management, 445-446 risk J>ropensity, I 56 risk-retun1 reL~tionship, 442-443, 443{ rivalty, 48 rom1d lot, 425 royalties, 124 Russia, 117- 118

s sabbaticals, 205 sabo tage, 223 safe products, 7 1 safety of employees, 207-208,212 salary, 203 sales agents, 380 sales e ra, 21 sales finat1ce company, 411 sales forecast, 93 sales promotions, 364-365 S&P 500 Index, 424 S&P Composite Index, 424 S&P FiJ1ancial hldex, 4 17 S&PffSX index, 424 Sa•vane~Y-O:x:ley A ct, 305 scheduling, 270-271 scientific manageme:nt, 226 Scientific Mat1ageme nt Movement, 20 SCteelliJ1g, 93, 351 seasonal unemployment, 41

Subject Index 523


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Second Wol"ld War, 21, 130, 275 secondary data, 336 secondary securities m:u·kets, 416 secured bonds, 420 secured loan, 407, 438 securities

sao also iiwestments blue-sky laws, 426 bonds. See bonds buying and selling, 423-425 defined, 415 financ ing securities l>urchases, 425 insider trading, 426 margin trading, 42 5 regulation, 425-4 26 short sales, 425 stocks. Soo stocks Secttt"ities Act (Ontario), 426 securities nurkets, 415-416 securiry needs, 228 segmemation, 333-336 selection process, 197-200 selective distribution, 381, 381f self-actualization needs, 228 self-awareness, 224 self-employment, 86, 87 see also entrepreneurship; new venture; small business self-managed teams, 233 self-regulation, 224 selling expenses, 297 serial bond, 420 service marketing, 329 service operations, 259, 260-262 see also services service-producing processes, 263-264 service productiviry, 274 service quaJiry considerations, 262 service technologies, 43-45 services capacity plamting, 266 classification of, 349-350 convenience services, 349 customer contact, extent, 262 distributio n of, 379-380 layo ut plamting, 269, 269! location planning, 267 marketing of, 329 methods :improvements, 270, 270/ and production, 259 promotion. See promotion qualiry issues, 284-285 sclteduliug, 271 service operations, 259, 260-262 shopping services, 349 specialty services, 349 settlers, 19 seven-step development process, 351-352, 352/ sexual harassment, 207, 223

shareholder retun1 ratios, 299 shareholder rights, I 02 shopping :•gents, 385 shopping goods, 349 shopping services, 349 short sales, 425 sho rt.;;eiUng, 421 short-term funds, 437-439 short-term goals, 157 short-tenn (operating) expenditures,

297, 436-437 sho n -term solvency ratios, 298 shortage, 16-17,42 sick leave, 205 simple message transfer protocol (SMTP), 311 simple ranking method, 202 Singapore, 11 7 sinking-fund provision, 420 simational (contingency) approach to leadershil>, 238 skills inventories, 196 skiUs of managemellt. See management skills

slogans, 358 small business defined, 86, 87 distributio n, 341 failure, reasons for, 106, l 06t financial management, 443-445 green businesses, 90 and mMketing mix, 340-34 1 pricing, 34 1 products, 340- 341 promotion, 341 role in Canadian economy, 89 and soci11l respo nsibiJit·y, 77-78 starting up, 99-1 00 statistics, sources for, 87 success, reasons for, 105-106 to p small- and meditun.;;ized employers in Canada, 87t smart cards, 407 SMART goals, 158, 231 social audits, 76 social class, 338 social consciousness, 66-67 social differences, 126 social goals, 12 social influences, 337 social media, 48-49, ·197 soo also e-business social needs, 228 soc:ialne~otk:illg,


social responsibility. See corporate social respons ibility (CSR) social skill, 225 socialism, 8 socio-cultural environment, 45-47 soc:io-culmral forces, 248 soft, 269



sole proprietorship, I 01 solvency ratios, 298-299 South American Free Trade Area (SAFfA), 132 South Korea, 117 sovereign govemments, 45 Spain, 121 spam, 318- 319,320 span of control, 1 78 spear l>hishing, 320 specializatio n, 20, 173-175 speci.1lized lending and savings intemtediaries, 411-412 specialty goods, 349 specialry services, 349 specialty stot·es, 383 specific performance, 30 spectdative risks, 445 speed to market, 351 spendable money sul>l>ly, 403-404 spinoff, 5 ·1 spokesperson, 148 spyware, 318, 319-320 stability, 41-42, 45 staffauthoriry, 178/, 179 staffing the organization, 196-200 stakeholders, 66 standard of living, 38 standardization, 271 stalt-up, 99-100 statt-up costs, 93 statement of cash flows, 297-298 statistical process control (SPC), 277 statutory law, 29 stealing, 16 stealth advettising, 72-73 stock exchanges, 417-418 stock options, 422-423 stockbrokers, 412, 417 stockholders, 102 stockholders' equity, 417 stocks book value, 417 buying and selling, 424- 425 callable stock, 417 common stock, 102, 296, 417,440 defined, 104 market capitalization, 41 7 online tradi.n g, 418 preferred stock, 417,441 prospectus, 426 stock exchanges, 417-418 stock quotations, 423, 423[ stop order, 425 storage warehouses, 388 store of value, 403 stored-value cards, 407 strategic alliance, 52, 125 strategic goals, 158 strategic leadersh:ip, 241

524 Subject Index


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strategic management business goal settin g, 157- ISB defined, 157 formulation of strategy, 158- 160, 160[ levels of strategy, 160- 161 strategic plans, 149 strategy business-level (competitive) strategy, 160, 161 competitive strategy, 161 concentratio n strategy, '160-16 1 corporate-level strategy, 160. 16 1 cost leadership, 161 defined, 157 diffet·entiation, 161 distribution strategies, 381, 381[ diveL"sific:ttion, 161 as driver of operations, 264-265, 2641" focus strategy, 161 fomudation of, 158- 160, 160[ funcrio nal strategies, 160, 16 1 growth strategy, 16 1 hierarchy of strategy, 160[ integration strategy, 161 investment reduction, 16 1 levels of, 160-161 marketing mix, 331-333 motivation, enhancement of, 229-237 and organizational stn1cture, 172 physical distribution, 389-390 J>rici:ng strategies, 377-378 pro motional stmtegies, 357-358 pull strategy, 3S8 push strategy, 358 strategy fonnuL"'tion, 158-160, 160[ strict product liability, 31 strike, 2 14 strike price, 423 strikebreakers, 214 stn•cmral tmetnJ>Ioyment, 41-42 stn•cmred securities, 419 subctdt ure, 338 sul>silli:ll'y Iy chain management (SCM), 280 supply chains, 279-280, 280[ supply curve, 15, 15/ support facilities, 267 Supreme Court of Canada, 29, 46, 207 surplus, 16-17, 11 9 survey, 337 sustainable corporations, 77 SWOT analysis, 160, 248 symbolism, 340 syndicated selling, 385 synthetic process, 263

T tactical plans, 149 Taiwan, 117 tnkeovers, 51 tangible goods, 329 mrget marketing, 333- 336 mrget markets, 333 tariff, 127 task-oriented, 238 tasks assignment of, 176- 177 combining tasks, 234 perfonnance of, 177 mx authorities, 289 tax services, 291-292 taxes

double taxation, 104 govemmenr as taxation agent, 12 municipal tax rebates, 13 progressive revenue taxes, 12 regressive revenue taxes, 12 restrictive taxes, 12 revenue taxes, 12 team authority, 179 team building, 201 team incentives, 2o4 team management, 233-234 team o rganization, 183 teams L>cudits uf, 233 natural workgroups, 234 problem-6olving teams, 233 project teams, 233 quality improvement (QI) teams, 278 self-tnanaged teams, 233 transnational teams, 233 venture team, 97, 233 virtual teams, 233 technical skills, 152 technological environment, 43-45 technological forces, 248 technology defined,43 in Europe, 116 information technology See infomution teclmology ponable offices, 307-310 product technologies, 43-45

em. em

remote access, 307-310 shouji jiayouzhan, 329 teclmological environment, 43-45 transformation teclmologies, 263 technology transfer, 44-45 telecotnmuring, 235-236, 246-247 telem:trketing, 364, 385 television, 359-360 test marketing, 352 tests, 199-200 Textilo l tlbelling Act, 12 Thailand, 117 theft, 223 Theoty X, 227 Theoty Y, 227 threat of potential entrants, 48 thre:tts, 160 time-and-motion studies, 226 time deposits, 404 time management skiUs, 153- 154 time utility, 259 title, 31 Tobacco Act, 11 top managers, 151 Toronto Stock Exchange (TSX), 416, 4 18,426,427, 435 torts, 31 total quality management (TQM), 275-276 toxic wastes, 69- 70 trade acceptance, 437 trade associations, 13 trade credit, 96, 437, 443 trade deficit, 40 trade discotUlts, 3 79 trade dmft, 437 trade shows, 365 trade surplus, 40 trademarks, 355 training, 201 trait approach, 238 transaction processing system (TPS), 3 16 trans:tctionalleadersltit>, 239 Ll"dlJsfcr agclll, 411 transfer of property, 31 transformation system , 260[ transformation teclmologies, 263 transformational leadership, 239 transnational teams, 233 transport processes, 263 transportation, 271 transportation modes, 388- 389 transportation operations, 388-389 triple bottom line reporting, 77 Trojan horses, 3 18 rn•cks, 388 ttust companies, 96 tn1st company, 411 tn1st services, 406 tn1U1 in advertising, 71 tumover, 223 two-factor theory, 228, 228[ Subject Index 525


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u undercover advertising, 72-73 tlllderwriters, 412 W1employment, 41-42, 42! unethical behaviour, 61 unfuir pricing, 71 wlfuirness, 64 unicycle motorbike, 259 union hiring halls, 196 union-management relations, 210 unions. Soo labour unions unit of accotmt, 403 United States American dollar, 120-121 balance of trade, 40 bananas, 128 banking iJl, 406, 415 Corruption Perceptiot1s Index, 129 customer preferences and tastes, 45 debto r natlo n, 40 foreign buyouts, 125 GOP per capita, 39 global competitiveness ranking, 119 government bailouts, 9 as lligh·income counlly, 116 management styles, 241 protectionist approach, 129 R&D investment, 43 role in global economy, 116 Smvmws-.Oxloy Act, 305 World Trade Organization, fotmding member of, 130 Wllimited liability, 101, 102 unsecured I oan, 407, 438-439 unstorable services, 262 upper middle.income cotmtries, 116 users of accounting information, 289,290 utility norm, 64, 259

v vacarions, 205, 212 validation, 198 value adding value, 93 creation of, through production, 259-260 defined, 329

and marketing, 329 th.rough brand equity, 354 value chain, 279-280,280/ value.added analysis, 277 value chain, 279-280, 280/ value package, 349 values individual values, 62 organizational values, 65, 65/ variable costs, 376 variable pay, 204 venwre capital, 443 venture capital firms, 412 venture capitalists, 95 venture team, 97, 233 vertical integration, 161 venical mlltketing systems (VMSs), 382 venical merger, 51 vestibule training, 201 vice-president, I 51 video assessment, 200 video cases African Accmuuants, 324 Clash of the Co-workers, 252-253 The "Feel-Better" Bracelet, 397 flair B.1rtending, 251 Mompreneurs, 141 ShaU We Dance, 398 Tree Planters, 323 Whistleblowers at the RCMJ>, 140 video marketing, 387 video mining, 336 Vietnam, 117 violence in the workplace, 223 viral marketing, 48-49 virtual advenising, 362 virtua1goods, 14 virn,.lleadership, 241-242 virtual orgatliZation, 183-184, 181f virtual private netwot·ks (VPNs), 312 virmal storefronts, 387 virtual teams, 233 viruses, 318, 3 19 visible minorities, 208- 209 visio11, 157 voluntary arbitration, 214-215 VSAT satellite cornmtmicatiotlS, 311

w wage reopener clause, 213 wages, 203, 212 Walkerton, Ontario, 76 warehousing, 271, 388 warranty, 3 1 water carriers, 389 water pollution, 69 Tbe Wealtb of Natiot/S (Smith), 20 Weigbts a11d Measures A ct, 11 welfare systems, 8 wellness programs, 205 whistleblowers, 73-74, 141 wholesale clubs, 383 wholesale distribution, 380 wholesalers, 379, 382 W~Fi, 313 wide area networks (\VANs), 312 wide span of control, 178 wikis, 232 wine cormoisseurs, 7 wireless local area netwo rk (wireless LAN or WLAN), 313 wireless networks, 312, 312/ wireless wide area networks (WWANs), 312 women and leadership, 240 mompreneurs, 91-92 and new businesses, 89 word of mo uth marketing, 339, 347-348 worf-mouth (\VOM) advertising, 361 work-in-process inventory, 437 work schedules, modified, 234-236 work scheduling, 271 worker training, 272 workers' compensation, 204 workforce diversity, 208-209 workplace aggression and violence, 223 workshating, 237 World Bank, 16, 116, 415 wut1