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Part 2 Part 3
CREATING A BUSINESS FINANCING A BUSINESS
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6 Business Formation: Choosing 8Accounting: Decision Making

the Form That Fits 92 by the Numbers 128
6-1 Business Ownership Options: The Big Four 92 8-1 Accounting: Who Needs It-and Who Does It? 128
6-2 Advant ages and Disadvantages of Sole 8-2 Financial Accounting: Intended for Those on t he
Proprietorships 95 Outside Looking In 130
6-3 Part nerships: Two Heads (and Bankrolls) Can Be Better 8-3 Financial Statements: Read All About Us 132
ThanOne 96 8-4 Interpret ing Financial Statements:
6-4 Corporations: The Advantages and Disadvantages Digging Beneat h t he Surface 138
of Being an Artificial Person 98 8-5 Budgeting: Planning for Accountability 141
6-5 The Li mited Liability Company: The New Kid 8-6 Inside Intelligence: The Role of Managerial
on the Block 104
Accounting 143
6-6 Franchising: Proven Methods for a Price 106
7 Small Business and 9 Finance: Acquiring and Using

Funds to Maximize Value 148
Entrepreneurship: Economic 9-1 What Mot ivates Financial Decisions? 148
Rocket Fuel 112 9-2 Identifying Financial Needs: Evaluation
7-1 Launching a New Venture: What's in It for Me? 112 and Planning 151
7-2 The Entrepreneur: A Distinctive Profile 114 9-3 Finding Funds: What Are the Options? 1SS
7-3 Finding t he Money: Funding Options 9-4 Leverage and Capital Structure: How Much Debt Is
for Small Businesses 117 Too Much Debt? 159
7-4 Opportunities and Threats for Small Business: A Two- 9-5 Acquiring and Managing Current Assets 163
Sided Coin 119 9-6 Capital Budgeting: In It for the Long Haul 165
7-5 Launch Options: Reviewing the Pros and Cons 121
7-6 Small Business and the Economy: An Outsized
Impact 124
Contents V
Copyright 2019 Cengage Learning. AU Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02·200.202
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11-3 Marketing Strategy: Where Are You Going, and How
10 Financial Markets: Allocating Will You Get There? 195
Financial Resources 170 11-4 Customer Behavior: Decisions, Decisions,

Decisions! 201
10-1 The Role of Financial Markets and Their Key
Players 170 11-5 Marketing Research: So What Do They
Really Think? 202
10-2 Reg ulating Financial Markets to Protect Investors
and Improve Stability 173 11-6 Social Responsibility and Technology: A Major
Marketing Shift 205
10-3 Investing in Financial Secu rit ies: What Are the
Options? 176
10-4 Issuing and Trading Securities: The Primary
and Secondary Markets 180
12 Product and Promotion:
Creating and Communicating
10-5 Personal Investing 183
Value 208
10-6 Keeping Tabs on t he Market 187
12-1 Product: It's Probably More Than You Thought 208
12-2 Product Differentiation and Planning: A Meaningful
Difference 212
Part 4 12-3 Innovation and t he Product Life Cycle: Nuts, Bolts, and
a Spark of Brilliance 216
MARKETING A BUSINESS 12-4 Promotion: Infl uencing Consumer Decisions 220
12-5 A Meaningful Message: Finding t he Big Idea 221
12-6 The Promot ional Mix: Communicating t he
Big Idea 223
13 Distribution and Pricing: Right

Product, Right Person, Right
Place, Right Price 236
13-1 Distribution: Getting Your Product to Your
Customer 236
13-2 Wholesalers: Sorting Out t he Options 239
13-3 Retailers: The Consumer Connection 240
11 Marketing: Building Profitable 13-4 Physical Distribution: Planes, Trains, and Much,
Much More 243
Customer Connections 190 13-5 Pricing Objectives and Strategies: A High-Stakes
11 -1 Marketing: Getting Value by Giving Value 190 Game 245
11 -2 The Customer: Front and Center 194 13-6 Pricing in Practice: A Real-World Approach 247
VI Cont ents
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15-4 Human Resou rce Planning: Drawing
Part 5 the Map 274

15-5 Legal Issues: HR and the Long Arm
MANAGING A BUSINESS of t he Law 283
16 Managing Information and

Technology: Finding New
Ways to Learn and Link 286
'l! 16-1 Information Technology: Explosive Change 286
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• 16-2 Cloud Computing: The Sky's t he Limit! 292
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!" 16-4 Information Technology and the World
a
.;i of E-commerce 295
16-5 Challenges and Concerns Arising from
New Technologies 299
14 Management, Motivation, 17 Operations Management:

and Leadership: Bringing Putting It All Together 306
Business to Life 252 17-1 Operations Management: Producing Value
in a Changing Environment 306
14-1 Bringing Resou rces to Life 252
17-2 What Do Operations Managers Do? 310
14-2 Motivation: Lighting the Fire 255
17-3 Implications of a Service-Based Economy:
14-3 Planning: Figuring Out Where to Go and How
Responding to Different Challenges 316
to Get There 259
17-4 The Technology of Operations 317
14-4 Organizing: Fitt ing Together t he Puzzle Pieces 263
17-5 Focus on Quality 319
14-5 Leadership: Directing and Inspiring 267
17-6 The Move to Be Lean and Green: Cutting Cost
14-6 Controll ing: Making Sure It All Works 268
and Cutting Waste 323
15 Human Resource Personal Finance Appendix 328

Endnotes 341
Management: Building a
Top-Quality Workforce 270 Glossary 362
Index 379
15-1 Human Resource Management: Bringing Business
to Life 270
Tear-out cards
15-2 Human Resource Management Challenges: Major Online Appendices
Hurdles 271 Appendix 1 : Labor Unions and Collective
Bargaining
15-3 Human Resources Managers: Corporate Black
Sheep? 273 Appendix 2: Business Law
Contents VII
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With love and
appreciation
to Kathy,
the best friend imaginable!
- Maree Kelly
To Jenny,
the book is done, let's play!
- Chuck Williams
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LETTER TO STUDENTS
The idea for t his book-a whole new way of learning- part of t he package. You can access a rich variety of study
began wit h students like you across the country. We paid tools via computer or iPad-the choice is you rs.
attention to students who wanted to learn about business We did one other t hing we hope you'll like. We paid a
w ithout slogging through endless pages of dry text. We lis- lot of attent ion to students' concerns about the high price
tened to students who wanted to sit through class w ithout of college textbooks.We made it our mission to ensure t hat
craving a t riple espresso. We responded to st udents who our package not only meets you r needs but does so w ith-
wanted to use t heir favorite gadgets to prepare for tests. out bust ing your budget'
So we are confident that BUSN w ill meet your needs. This innovative, student-focused package was devel-
The short , lively text covers all t he key concepts w ithout oped by the authors-Maree Kelly and Chuck Williams-
the fluff. The examples are relevant and engaging, and t he and the experienced (engage Learning publishers. The
visual style makes the book fun to read. But the text is only (engage team cont ributed a deep understanding o f stu-
dents and professors across the nation, and the authors
brought years of teaching and business experience.
Maree Kelly,who earned her MBA from UCLA's Anderson
School of Management, spent the first 14 years of her ca-
reer in marketing, building brands for Neutrogena and
The Walt Disney Corporat ion. But her t rue love is teaching,
so in 2000 she accepted a full-time teaching posit ion at
Santa Monica College. Professor Kelly has received seven
Outstanding Instructor awards from t he International
Educat ion Center and has been named four t imes to
Who's Who Among American Teachers.
Chuck Williams' interests include employee recruit ment
and turnover, performance appraisal, and employee t rain-
ing and goal setting. Most recently, he was the Dean of
But ler University's College of Business. He has taught in ex-
ecut ive development programs at Oklahoma State Univer-
Maree Kelly sity, the University of Oklahoma, Texas Christian University,
and the University of t he Pacific. Dr. Williams was honored
byTCU's MJ. Neeley School of Business w ith the undergrad-
uate Outstanding Facu lty Teaching Award, was a recipient
ofTCU's Dean's Teaching Award, and was TCU's nominee for
t he U.S. Professor of the Year competit ion sponsored by the
Carnegie Foundat ion for t he Advancement ofTeaching. He
has written three other text books: Management, Effective
Management: A Multimedia Approach, and MGMT.
We would appreciate any comments or sugges-
t ions you want to offer about this package. You can reach
Chuck Williams at crwill ia@butler.edu, and Maree Kelly
at marcella.kelly@gmail.com. We w ish you a fun, posit ive,
productive term, and look forward to your feedback'
Chuck Williams
Letter to Students IX
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Business Now:
Change Is the Only Constant
LEARNING OBJECTIVES
After studying thischapter, you will be able to:
Define business and discuss the role of b usiness in the economy

Remember to visit
Explain the evolution of modem business
G, Discuss the role of nonprofit organizations in the economy PAGE17
for additional
· Outline the core factors of production and how they affect the economy
STUDYTOOLS
C, Describe today's business environment and discuss each key dimension
• Explain how current business ttends might affect your career choices
• BUSINESS NOW: MOVING AT BREAKNECK SPEED

Day by day, the business world simply spins faster. Industries rise- and
som etimes fall- in the course of a few short months. Technologies forge
instant connections across the globe. Powerful new trends surface and
submerge, sometimes within less than a year. In this fast -paced, fl uid
environment, change is the only constant. According to Ch arles Darwin,
it is not the strongest of the species that survive, nor the m ost intelligent,
but the one most responsive to ch ange. And so it is with business.
Successful firms lean forward and embrace the change. and consumers alike in today's dynamic business environ-
They seek the opportunit ies and avoid t he pitfalls. They ment. Digging deeper into cu rrent culture, several leading-
carefully evaluate risks. They completely understand t heir edge trendspotting experts have recently identified an
market, and t hey adhere to ethical practices.Their core goal: array of key trends likely to shape the world's econom ies
to generate long-term profits by delivering unsurpassed as we close out t he turbulent teenage years of the twenty-
value to t heir customers. first century. A few highlight s:
(1'1.'[I' · The relationship between Over t he past decade, • Instant Skill s: Remem ber how the rise of lns-
the price of a good or a service the explosive growth in so-
and the benefits that it offers its tagram made all of us into pseudo professiona l
cial media has played a piv- photographers? Well, Trendwatching.com pre-
customers.
otal new role for businesses d ict s t hat hundreds of m illions of status-h ungry
2 PART ONE: The Business Environment
"consum ers w ill care less about what t hey have or
buy and more about what they can do or create"-
GRETZKY.
seeking services t hat eliminate t ime and learning
barriers to t heir creation o f professional quality
output.
• Fun and Games: Research suggests t hat the aver-
of humor. For instance, Slack al lows users to create
age human attention span, cu rrently only slight ly
longer than that of a goldfish, is decreasing rapidly. custom emojis using colleagues' faces and d isplays
Not surprisingly, ca pturing and retaining the atten- error messages such as, "We've seen this problem
tion of customers, employees, and investors is more clear up wit h a restart of your browser, a solut ion
challenging t han ever. In spite of declining attent ion which we suggest to you now only wit h g reat regret
and self-loat hing.·
spans, creating a sense of fun is gaining momentum
as an effect ive tool for engaging audiences. It's fairly • Robolove: Everyone knows that robots can save
easy to understand why-wouldn't you rat her do t ime and money-and who doesn't like efficiency?
something fun than something boring? Swedish But do we like t he robots themselves? Many people
amusement park Liseberg recent ly released an app imagine a bleak robotic future w ith robocops out of
to accom pany its new Helix roller coaster. Attendees contro l and robo-workers putting human workers
standing in line for the attraction could use t he app to out o f work. That may well happen, but Trendwatch-
play a free Helix-themed game, and every 15 minutes, ing.com predicts that many of us w ill t horoughly
the player w ith the highest score got a pass to ski p enjoy our early contacts w ith robot s. For instance,
the line.This strategy was not only creative, but it also Dusseldorf Airport in Germany recently unveiled the
increased v isitors' funl Similarly, workplace messaging world's first robotic parking valet. Customers leave
app Slack became one of the fastest growing business t heir car, and a robot picks it up and positions the
applications in history due, in part, to its playful sense vehicle in one of 249 ded icated spaces. The system
CHAPTER 1: Bu siness Now: Change Is the Only Constant 3
connects to the airport's flight database, meaning • I will vote. Always.
that customers find their vehicle ready and waiting
• I will force myself to finally make a phone call.
for them upon their return. Hard to get more conve-
nient than that-and the robotic valet doesn't even • If my first-born is a boy, I promise not to name him
expect a tipl' Uber.
Joking aside, m illennials now represent both

• Virtual Experience Economy: \ the largest customer and the largest employee
Anyone who was nearly p lowed ' segment of the population, which means that
over in 2016 by someone with his or successful businesses must take them seriously.
her head down-totally engrossed As baby boomers continue to retire in record
in the sea rch for an elusive Pokemon
numbers, businesses will soon beg in to face a
(or maybe you were the one plowing severe leadership g ap. Training and develop-
people down)-knows j ust how im- ing m illennials to fill that gap will be a critical
mersive a virtual o r augmented rea lity
' success factor for many businesses in the very
experience can be. Trendspotting near future.
experts at Trendwatching.com bold ly
•Preparing for Generation Z: As the
project that "digital experiences will
last millennials move th rough college
quickly come to ca rry a status- and enter the workforce, Genera-
weight equal to 'real' experiences,
fJ t ion Z-comprised of people born
if not become more sought-after
between 1996 and 2011-is roll ing
and prized.' Take music concerts in right behind them. Generation Z,
for example. The holographic
also known as the Digital Native genera-
"performance· of rapper Tupac's
tion, outnumbers m illennia ls by one m illion
Shakur at the 2012 Coachella music people. In fact, more than a q uarter of Amer-
festival (15 years after the artist's death)
ica's population belongs to th is generation.
garnered more headlines than any other
'II Although it would be easy to characterize
concert that year. A holographic Michael
Generation Z as an exaggerated version of
Jackson made similar waves two years later
millennials, it wou ldn't do them justice-
at the 2014 Billboa rd Awards. China, an ea rly they are fundamentally different. Mil-
developer and adopter of virtual real ity lennials shaped the Internet, but digital
games and shopping programs, seems
poised to become a leading-edge p layer in
11111!_,, Kipargeter/Shutterstock.com natives can't remember a World Without
it. The defining event of generation Z
the virtual experience economy.2 was the Great Recession, which means that many
of them don't trust business. Wh ile their millennial
• Taki ng Millennials Seriously: The m illennial counterparts were glad to be 'wal king billboards"
generation-comprised of people born between for trendy brands such as Hollister, Abercrombie &
1980 and 1995-likely includes many of the stu-
Fitch, and Supreme, the most stylish d igital natives
dents reading this text. Millennials have been at are likely to sport vintage clothing from thrift stores.
the butt end of a lot of jokes about their outsized
Digital natives don't feel entitled to a great job when
sense of entitlement, large number of meaningless
they g raduate college; they think they'll be lucky
trophies, and'addiction'to their cell phones. The to get one. In the meantime, they are saving thei r
Los Angeles Times, for example, recently publ ished a
money, on ly spending when a business offers them
"Mil lennial Pledge"that it suggested all millennials
value. Digital natives use their considerable techni-
affi rm before they qualify for actua l adulthood. A ca l prowess to seek out the best possible values;
few excerpts:
no-frills, only-pay-for-what-you-use businesses are
• Just once, I will try eating without texting. highly appea ling to them. Similar to millennials,
digital natives tend to be extremely tolerant and
• I will not consider the cilantro on my taco to be a inclusive, w ith little understanding of or room in their
vegetable. lives for bigotry of any kind . They also tend to have
• Each yea r, I will pen at least one thank-you note very short attention spans (8 seconds on average),
using what's left of my cursive writing skills. in part because they juggle their lives among an
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OOPS! WHAT WfRf THfY THINKING1
I Not Every Dumb Move Is an Utter Disaster...
• In the wake of disastrous mistakes and outrageous

mismanagement across our economy, it might be
tough to remember that some mistakes are actually pretty
international airport. Fortunately, t here were no collisions-
the worst harm done was to Siri's reputation as a navigator.'
• Geography lessons needed: In 2016, Coca·Cola sent
amusing. Several examples might help remind you. a promotional tweet featuring an outdated map of Russia.
• Bad fabric, not fat thighs: In early 2013, lululemon Offended Russian patriots responded with pictures of
Athletica was forced to recall its popular (and expensive) yoga themselves pouring the soft drink into toilets with the
pants, because many women found them utterly see-t hrough. hashtag #BanCocaCola.•
Later in the year, t he founder of the firm was forced to resign • Thank you, Captain Obvious! A surprising number of
after blaming the problem on women with fat thighs who firms just can't seem to credit t heir customers with even
rubbed the fabric too sheer with multiple uses.' basic intelligence. Marks & Spencer's labeled one of their
• Apple angst: In a rare display of new product devel· Bread Puddings, PRODUCT WILL BE HOT AFTER HEATING.
opment weakness, Apple released its Maps program before On a Sears hairdryer, DO NOT USE WHILE SLEEPING. And
it was ready for the Big Time. Mostly harmless, the program on packaging for a Rowenta iron, DO NOT IRON CLOTHES
baffled millions of t rusting consumers. But in Fairbanks, ON BODY. While these warnings most likely have a legal
Alaska, it directed hapless users onto active runways of the backstory, it's hard for a reasonable consumer not to see
them as silly goofs.•
average of five d ifferent screens. In sum, millennials As the economy has finally emerged from the Great Re-
approached adulthood hoping to be d iscovered, cession, and unemployment and financial ru in are less o f a
while d ig ital natives approach adulthood planning t hreat, fewer people have been motivated to risk start ing
to work for success.7 new businesses.8 People who do risk their time, money,
and ot her resources to start and manage a business are
t -t a Business Basics: Some Key called entrepreneurs.
Interest ingly, as ent repreneurs create wealth for them-
Definitions selves, they produce a ripple effect that enriches everyone
Wh ile you can certainly recogn ize a business when you around them. For instance, if your new website becomes
see one, more formal definitions may help as you read t he next Facebook, who will benefit7 Clearly, you will. And
through t his book. A business is any organization or you'll probably spend at least some of that money enrich-
activity t hat provides goods and services in an effort to ing your local clubs, clothing stores, and car dealerships.
earn a Profit is the financial reward t hat comes from But ot hers w ill benefit, too,
starting and running a business. More specifically, profit incl uding your members, Any organization or
is the money that a business earns in sales (or revenue}, advert isers on your site and activity that provides goods and
minus expenses such as t he cost of goods and the cost t he staff who support them, services in an effort to earn a profit.
of sa laries. But clearly, not every business earns a profit contractors who build your The money that a business
all the t ime. When a business brings in less money than facilit ies, and the govern- earns in sales (or revenue), minus
it needs to cover expenses, it incurs a loss. If you launch ment t hat collects your expenses, such as the cost of goods
and the cost of salaries. Revenue -
a music label, for instance, you'll need to pay your artists, taxes. The impact of one
Expenses = Profit (or l oss).
lease a studio, and purchase equipment, among ot her ex- successful entrepreneur can
penses. If your label generates hits, you'll earn more than extend to t he far reaches of • When a business incurs
expenses that are greater than its
enough to cover all your expenses and make yourself t he economy. In fact, fast-
revenue.
rich. But a series of duds could leave you hold ing the bag. growing new firms generate
Just the possibility o f earning a profit provides a powerful about 10% of all new jobs •• People who
risk their time, money, and other
incentive for people of all backg rounds to launch their in any g iven year.9 Multiply resources to start and manage a
own enterprises. But unfortunately, t he rate of new busi- t he impact by t housands business.
ness start-ups has been decreasing over t he past few years. of entrepreneurs-each
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working in his or her own self-interest-and you can see
how the profit motive benefits v irtually everyone.
From a bigger-picture perspective, business drives up
the standard of living for people worldwide, contribut-
ing to a higher quality of life. Businesses not on ly provide
the products and services that people enjoy but also pro-
vide the jobs that people need. Beyond the obvious, busi-
ness contributes to society through innovation-think cars,
TVs, and tablet computers. Business also helps raise the stan-
dard of living through taxes, which the government spends
on projects that range from streetlights to environmental
cleanup. Socially responsible firms contribute even more
by actively advocating for the well-being of the society that
feeds their success.
Henry Ford's assembly line began operation

• THE HISTORY OF BUSINESS: on December 1, 1913. Initially developed for
the Model T, this new production system
PUTTING IT ALL IN CONTEXT allowed manufacturers of all kinds to
output products like never before.
You may be surprised to learn that-unlike today-
business hasn't always been focused on what the customer
wants. In fact. business in the United States has changed
rather dramatically over the past 200-300 years. Most busi- laws to reg ulate business and protect consumers and
ness historians divide the history of American business workers, creating more balance in the economy.
into five d istinct eras, which overlap d uring the periods of • The Production Era: In the early part of the 1900s,
transition: major businesses focused on further refining the
production process and creating greater efficien-
• The Industrial Revolution: Technologica l ad-
vances fueled a period of rapid industrialization in cies. Jobs became even more specia lized, increasing
America from the mid-1700s to the mid-1800s. As productivity and lowering costs and prices. In 1913,
Henry Ford introduced the assembly line, which
mass production took hold, huge factories replaced
skilled artisan workshops. The factories hired large quickly became standard across major manufactur-
numbers of semiskilled workers who specialized in a ing industries. With managers focused on efficiency,
lim ited number of tasks. The result was unprecedent- the customer was an afterthought. But when
ed production efficiency but also a loss of individual customers tightened their belts during the Great
ownership and personal pride in the production Depression and World War II, businesses took notice.
process. The"hard sell" emerged: aggressive persuasion de-
signed to separate consumers from their cash.
• The Entrepreneurship Era: Building on the foun-
dation of the Industrial Revolution, large-scale entre- • The Marketing Era: After World War II, the balance
preneurs emerged in the second half of the 1800s, of power shifted away from producers and toward
bui lding business empires. These industrial t itans cre- consumers, flooding the market with enticing choices.
ated enormous wealth, ra ising the overall standard of To differentiate themselves from their competitors, busi-
nesses began to develop brands, or distinctive identities,
liv ing across the country. But many also dominated
their markets, forcing out to help consumers understand the differences among
competitors, manipulat- various products. The marketing concept emerged: a
· •· • • The consumer focus that permeates successful companies
ing prices, exploiting
quality and quantity of goods and
workers, and decimating in every department, at every level. This approach co11-
services available to a population.
the environment. Toward tinues to influence business decisions today as global
the end of the 1800s, the competition heats up to unprecedented levels.
sense of well-being experienced
by either an individual or a group. government stepped into • The Relationship Era: Building on the marketing
the business realm, passing concept, today, leading-edge firms look beyond each
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The Connection Economy
Success today no longer requires building great things, although 2. Trust. Finding ways t o connect and create value only works
t here will always be big rewards for building the best new things when t he players share basic trust.
(see Apple, Tesla, and Virgin, among other success stories). 3. Permission. When you offer ideas to people who give you
According to industry leaders, the most successful firms of t he permission to do so, it's a resource. Without t hat permission,
present rely on connection- either connecting buyers and sellers it's an annoyance. What's new and significant is t hat t he
or connecting consumers and information. Uber, the largest permission must be earned, and not requested.
ride-sharing company, owns no vehicles but connects people to 4. The exchange ofideas. True value emerges when people
rides and drivers to customers. Airbnb, the largest provider of exchange ideas deliberately and with established purpose
accommodations, owns no real estate but connects people to (at a meet-up or conference, for instance).
lodging. Kickstarter and lndiegogo, both giants of crowdfunding,
Godin also emphases t he importance of generosity and art.
have no money to invest but may soon surpass traditional venture
No one wants to connect with a person who always takes but
capital firms by connecting investors to opportunities. According
never gives back. You must add value to all of your interactions
to entrepreneur and author Seth Godin, the connection economy
to make t he connection wort hwhile. Art is important, according
works best when the following four conditions are met:
to Godin, because forward-thinking people are looking for the
1. Coordination. Without coordination, connections can't ext raordinary. Traditional systems are inherently boring and
happen. In fact, the most significant business opportunities unremarkable. In the connection economy, people are seeking
may lie in areas that currently appear chaotic. t he remarkable- the t hings that are truly worthy of remark."
immediate t ransaction wit h a customer and aim to goods and services and contribute in significant ways to
build long-term relationships. Satisfied customers ou r region's economic stability and g rowth.' Nationwide,
can become advocates for a business, spreading t he nonprofits em ploy about one in ten workers, accounting
word with more speed and credibility than even the for mo re paid workers than the entire construction indus-
best promot ional campaign. And cult ivating cu rrent try and mo re than the finance, insurance, and real -estate
customers is more profitable t han constantly seeking sectors combined. And nonprofit m useums, schools, the-
new ones. One key tool is technology. Using t he Web aters, and orchestras have become economic magnet s
and ot her digital resources, businesses gat her detailed for many comm unities, drawing add itional investment. "
information about their customers and use t hese data
to serve them better, "bringing a level of customer
centricity that we've never seen before; according to • FACTORS OF PRODUCTION:
Graeme Noseworthy, market ing directo r for IBM.
THE BASIC BUILDING BLOCKS
Both businesses and nonprofits rely on factors of
• NONPROFITS AND THE

ECONOMY: THE BUSINESS
production-four fundamental resources-to achieve
their object ives. Some combinat ion of t hese factors is cru-
cial for an economic system to work and create wealth. As
OF DOING GOOD you read t hrough the factors,

keep in mind that they don't
Nonprofit o rganizations play a c ritical role in the economy, come free of charge. Human Business-like
resources, for instance, re- establishments that employ people
o ften working hand in hand with businesses to im prove and produce goods and services with
quire wages, while ent repre-
the quality of life in our society. Focusing on areas such as the fundamental goal of contributing
health, human services, education, art, rel ig ion, and cu l- neurs need a profit incentive. to the community rather than
ture, nonprofits are business-like establ ishments, but • Natura l Resources: generating financial gain.
their p rimary goals do not include profits. Chuck Bean, This factor includes all
executive d irecto r of t he Nonprofit Roundtable, explains: inputs that offer value fundamental elements-natural
"By definition, nonprofits are not in t he business of fi nan- in t heir natural state, resources, capital, human resources,
and entrepreneurship-that
cial gain. We're in t he business of doing good . However, such as land, fresh wa- businesses need to achieve their
nonprofit s are still businesses in every ot her sense- ter, w ind, and m ineral objectives.
they em ploy people, t hey take in revenue, they p rod uce deposits. Most natu ral
CHAPTER1: Business Now: Change Is the Only Constant 7
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• Entrepreneursh ip : Entrepreneurs are people
who take the risk o f launching and operati ng their
own businesses, largely in response to the profit
incent ive. They tend to see opportunities where
ot hers don't. and they use their own resources
to capitalize on t hat potentia l. Entrepreneu rial
enterprises can kick-start an economy, creati ng a
tidal wave of opportun ity by harnessing the other
factors o f production. But entrepreneu rs don't
t hrive in an environment that doesn't support
t hem. The key ingredient is econom ic freedom:
freedom of choice (whom to hire, for instance, or
what to produce), freedom from excess regu lation,
and freedom from too much taxat ion. Protection
from corruption and un fair com pet ition is anot her
entrepreneurial "must."
Many businesses work with nonprofits to Clearly, all o f these factors m ust be in place for an
boost their impact in the community. economy to thrive. But which factor is most important ?
One way to answer that question is to examine cur-
rent economies around t he world. Russia and China are
resources must be ext racted, purified, or harnessed; both rich in nat ural resources and human resources, and
people cannot actually create them. (Note that ag- both countries have a so lid level o f capital (growing in
ricu ltural products, which people do create through Ch ina, and deteriorating in Russia). Yet, neither country
planting and tend ing, are not a natural resource.) The is wealthy; bot h ran k relatively low in terms of gross
value of all natural resources tends to rise wit h high nationa l income per person. The missing ingredient
demand, low supply, or both. seems to be entrepreneu rsh ip, limited in Russia largely
• Capital: Th is factor incl udes machines, tools, build- t hrough corruption and in China through government
ings, information, and technology-t he synthetic interference and taxes. Contrast those examples w ith,
resou rces that a business needs to produce goods o r say, Hong Kong. The population is small, and the natural
services. Computers and telecommunicat ions capa- resources are severely limited, yet Hong Kong has con-
bility have become pivotal element s of capital across sistently ranked among t he richest regions in Asia. The
a surprising range o f industries, from financial reason: operating for many years under the British lega l
services to professiona l sports. You may be su rprised and economic system, the government actively encour-
to learn t hat in th is context, capital does not incl ude aged entrepreneursh ip, wh ich fueled the creation o f
money, but, clearly, businesses use money to acquire, wea lth. Recognizing the potential of entrepreneursh ip,
maintain, and upgrade their capital. Ch ina has recently done mo re to relax regulations and
support free enterprise. The result has been t remendous
• Human Resources: This factor encom passes the
physical, intellectual, and creative cont ributions g rowth, which may yet bring China into the ranks o f t he
o f everyone who works w ithin an economy. As wea lthier nations.'2
technology replaces a growing number o f manual
• THE BUSINESS ENVIRONMENT:

labor jobs, education and motivation have become
increasingly important to human resou rce develop-
ment. Given t he impor- THE CONTEXT FOR SUCCESS
tance o f knowledge to
The workforce effect iveness, No business operates in a vacuum. Outside factors play
setting in which business operates. some business experts, a vital role in determining whether each individual busi-
The five key components are such as management ness succeeds o r fails. Likewise, the broader business
economic environment, competitive
guru Peter Drucker, break environment can make the critical difference in
environment. technological
environment. social environment, out knowledge as it s own whet her an overall economy thrives or d isintegrates. The
and global environment. category, separate from five key dimensions of t he business environment are
human resources. t he economic environment, the competitive environment,
the technolog ical environment. t he social environment.
and the global environment, as shown in Exhib it 1.1. "A banker is a fellow who lends
you his umbrella when the sun
1-sa The Economic Environment is shining, but wants it back the
In September 2008, t he U.S. economy plunged into minute it begins to rain."
the worst fiscal crisis since the Great Depression. Huge,
-MARK TWAIN.
venerable financial inst itut ions faced col lapse, spurring AMERICAN AUTHOR
unprecedented bailouts by the federal government
and the Federal Reserve. By the end of the year, t he
stock market had lost more t han a t hird of its value, and
on renewable energy-to position the U.S. economy for
11 .1 million Americans were out of work. Housing prices
stability and growth in the decades to come. (The price,
fell precipitously, and foreclosure rates reached record
of course, was more national debt. which w ill ultimately
levels. As fear swept through the banking industry, neither
counterbalance some of t he benefit s.) Although the U.S.
businesses nor individuals could borrow money to meet
economic recovery cont inued through 2015, t he ent ire
their needs. Economic turmoil in the United States spread
world economy began to stagger in early 2016 as eco-
quickly around the world, fueling a global economic crisis.
nomic instability in China caused frightening ripples
The U.S. economy cont inued to stagger through 2010
around t he globe.
and 2011, w ith unemployment remaining stubbornly
The government also takes act ive steps on an on-
high, although signs of recovery began to emerge in late
going basis to reduce t he risks o f starting and running a
2012, and certa inly in 2013. The Federal Reserve-the U.S.
business. The result: free enterprise and fair competition
cent ral banking system-took unprecedented, proac-
flourish. Despite the economic crisis, research suggests
tive steps to encourage an economic t urnaround. And
t hat most budding ent repreneurs still p lan to launch t heir
President Barack Obama spearheaded passage of a mas-
firms in the next three years. One government policy that
sive economic st imulus package, designed not only to
supports business is t he relatively low federal tax rate, both
create jobs but also to build infrastructure-wit h a focus
for individuals and businesses. A number of states-from
Alabama to Nevada-make their local economies even
more appealing by provid ing special tax deals to att ract
new firms. The federal government also runs ent ire agen-
Exhibit 1.1
cies that support business, such as t he Small Business
The Business Environment Administrat ion. Ot her branches o f t he government, such
as t he Federal Trade Commission, actively promote fair
compet it ive pract ices, which help give every enterprise a
chance to succeed.
Anot her key element o f the U.S. economic environ-
ment is legislation that support s enforceable contracts.
For instance, if you contract a baker to supply your health
food company w ith 10,000 pounds of raw ka le ch ips at
$1.00 per pound, t hat firm must comply or face legal con-
sequences. The firm can't wa it unt il a day before delivery
and jack up t he price to $10.00 per pound because you
wou ld almost certainly respond w ith a successful lawsuit.
Many U.S. businesspeople take enforceable contracts for
granted, but in a number o f developing countries-which
offer some o f today's largest business opportunities-
contracts are o ften not enforceable (at least not in day-
to-day pract ice).
Corruption also affects the economic environment.
Each dimension of the business environment affects both individual A low level of corruption and bribery dramatica lly re-
businesses and the economy in general. duces the risks of running a business by ensuring t hat
everyone plays by the same set o f ru les-rules t hat are
clearly visible to every player. Fortunately, U.S. laws keep
domestic corruption mostly-but not completely-at
bay. Other ethical lapses, such as shady accounting, can
also increase the cost o f doing business for everyone
involved. But in t he wake of corpora te ethical meltdowns
such as Enron, the federal government has passed
tough-minded new regulations to increase corporate
Apple Facebook + 48%
accountabi lity. If the new legislation effectively curbs
illegal and unethical practices, every business will have a Google Amazon + 33%
fair chance at success. Coca-Cola Lego + 25%
Upcoming chapters on economics and ethics will ad-
Microsoft Nissan +22%
d ress t hese economic challenges and their significance in
more depth. But bottom line, we have reason for cautious Toyota Adobe + 21%
(some would say very cautious) optimism. The American
IBM Starbucks + 20%
economy has a proven track record of flexibility and resil-
ience, which will surely help us navigate this crisis and un- Samsung Zara + 19%
cover new opportunities. Amazon Mercedes-Benz +18%
Meocecles-Benz Porsche + 18%

t-sb The Competitive Environment
GE Hermes +1 7%
As global competition intensifies yet further, leading-
edge compan ies have focused on customer sat isfaction Sourat: Best Gtobal Brands 2016, htertrand. http://interbrand.001Tl,/best·brands)best"'91ci>al-brands/2016
/ranking!, accessed January 23, 2017.
like never before. The goal: to develop long-term, mu-
tually beneficial relationships with customers. Getting
lnterbrand highlights brands t hat use imagination and
cu rrent customers to buy more of your product is a lot
innovation to deliver value to their customers. Exhibit 1.2
less expensive than convincing potent ial customers to
shows the winners and the up-and-comers in the race
try your product for the first time. And if you t ransform
to capture the hearts, minds, and dollars of consumers
your current customers into loyal advocates-vocal
around the world.
promoters of your product or service-t hey'll get those
new customers for you more effectively than any ad- Leading Edge versus Bleeding Edge Speed-to-
vertising o r discount p rogram. Companies such as Ama- market-the rate at which a firm t ransforms concepts into
zon, Coca-Cola, and Northwestern Mutual life insurance actual products-can be another key source of competi-
lead their industries in customer satisfaction, which t ive advantage. And the pace of change just keeps getting
translates into higher p rofits even when t he competi- faster. In this tumultuous setting, companies that stay ahead
tion is tough. 13 of the pack often enjoy a distinct advantage. But keep in
Customer satisfaction comes in large part from deliv- mind t hat there's a difference between leading edge and
ering unsurpassed value. The best measure of value is t he bleeding edge. Bleeding-edge firms launch products that
size of t he gap between product benefits and price. A prod- fail because t hey're too far ahead of the market. During
uct has value when its benefits to the customer are equal t he late 1990s, for example, in the heart of the dot.com
to or greater than the price that t he customer pays. Keep in boom, Webvan, a grocery delivery service, launched to
mind that the cheapest product doesn't necessarily repre- huge fanfare. But the firm went bankrupt just a few years
sent the best value. If a 99-cent toy from Big Lot s breaks in later in 2001, partly because customers weren't yet ready to
a day, customers may be willing to pay several dollars more dump t raditional grocery stores in favor of cyber-shopping.
for a similar toy from somewhere else. But if that 99-cent Leading-edge firms, on the ot her hand, offer products just
toy lasts all year, customers w ill be delighted by the value as the market becomes ready to embrace them.14
and will likely encourage their friends and family to shop at Apple provides an excellent example of leading edge.
Big Lots.The key to value is q uality, and virtually all success- You may be surprised to learn that Apple-which controls
ful firms offer top-quality about 70% 1s of the digital music player market-did not
products relative to their offer the first MP3 player. Instead, it surveyed the existing
••, • The rate at
which a new product moves from d irect competitors. market to help develop a new product, the iPod, which
conception to commercialization. A recent ranking was far superior in terms of design and ease-of-use. But
study by consulting firm Apple didn't stop with one successful MP3 player. Racing
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role in both employee sat-
isfaction and st rong stock
performance."
Finding and hold-
ing the best talent w ill
likely become a crucial
competit ive issue in the
next decade as the baby
boom generation begins
to retire. The 500 largest
U.S. companies anticipate
losing about half of their
senior managers over
the next five to six years.
Since January 1, 2011, ap-
proximately 10,000 baby
boomers began to tu rn 65
(the traditional retirement
age) every day, and the
Pew Research Center an-
ticipates that t his trend
will continue for 19 years.
Workforce Magazine named American Express as its top company Replacing t he skills and
for HR management in 2016. Google, Accenture, USAA, and AT&T experience t hese workers
rounded out the rest of the top five. bring to t heir jobs may
be tough: baby boomers
include about 77 million
to stay ahead, t hey soon int roduced t he colorfu l, more af- people, while t he generat ion that follows includes on ly
fordable iPod mini. And before sales reached t heir peak, 46 million. Firms that cult ivate human resources now w ill
they launched the iPod Nano, which essent ially pulled t he find themselves better able to compete as t he market for
rug from under t he blockbuster iPod m ini just a few short top talent tightens.18 However, job market cont raction may
months before the holiday selling season. Why? If t hey not be an issue, because a growing number of baby boom-
hadn't done it, someone else may well have done it instead. ers opt to either post pone ret irement or cont inue working
And Apple is almost maniacally focused on maintaining its part-time during retirement, in the face of inadequate
compet itive lead.'6 financial resources.
1-sc The Workforce Advantage 1-sd The Technological Environment

Employees can contribute anot her key d imension to a firm's The broad definition of business technology includes
competitive edge. Recent research suggests t hat invest ing any tools t hat businesses can use to become more effi-
in worker satisfaction yields tangible, bottom-line resu lts. cient and effective. But more specifical ly, in today's world,
The researchers evaluated the stock price of Fortune maga- business technology usually refers to computers, telecom-
zine's annual list of the ·100 Best Companies to Work for in municat ions, and other digital tools. Over the past few
America· to the S&P 500, which reflects the overall market. decades, the impact of d ig ital technology on business
From 2009 to 2014, cumulat ive stock market returns for the has been utterly transfor-
"100 Best' were up + 205%, compared to + 121% for the mative. New industries
S&P 500. On an annualized basis, this translates to a return of have emerged, wh ile oth- • • • • Any
about + 20.4% per year for t he"l 00 Best;and about+ 14.1% ers have disappeared. And tools-especially computers,
telecommunications, and other
per year for the S&P 500 over the same time period. While some fields-such as t ravel,
digital products-that businesses
the crit ical d ifference in performance most likely stemmed banking, and music-have can use to become more efficient
from employee satisfaction, other factors-such as excellent changed dramatically. Even and effective.
product and superb top management-likely also played a in categories w ith relatively
The Uber Syndrome
No doubt about it- senior executives make the most money in are the global economic environment and geopolitical tensions.
business. They also have the most to worry about, however. In a The global economy is more integrated today than ever before,
2015 study of senior executives, one participant described her and a crisis within any major country can quickly spread around
firm's biggest worry as "the 'Uber Syndrome' - where a competitor the world. We've seen t his time and time again in recent years,
with a completely different business model enters your industry from the Grecian debt crisis of 2009 to the Chinese stock market
and flattens you:' In today's tumultuous business world, this plunge of early 2016. Dennis Nally, global chairman of PwC
concern is completely understandable. Analyzing the research, Consultancy, explains why geopolitical tension is a threat to
Fortune magazine editor Geoff Colvin noticed that this year, for the global economy:"[lf] you've got hot spots anywhere in
the first time, most business leaders expected new competitors the world, it creates instability . .. business leaders hate
to be outsiders. Business leaders know they must disrupt- or be instability:'The latest PwC survey of CEOs shows that among
disrupted. The solution to this impending threat, according to American CEOs in particular, there is widespread recognition
the small cohort of highly successful firms that the research dubs that a strong corporate purpose is vital in t he digital world.
"torchbearers;• seems to be to focus more on customers and less In addition, CEOs are focused on building stronger trust with
on competitors. When a disruptive player makes its move, loyal employees and customers alike. So if your life goal is to reach
customers are less likely to defect and destroy your business. the top rung at a major corporation, don't expect to leave your
worries behind. It would seem that t he higher you go, the more
According to a separate survey of CEOs released in 2016, the
pressing the worries."
two largest concerns among chief executives around the world
unchanged products, companies have leveraged technol- networks with suppliers and distributors to create a more
ogy to streaml ine production and create new efficiencies. seamless flow of goods and services.20
Examples include new processes such as computerized Alternative selling strategies thrive on the Internet,
billing, d igital an imation, and robotic manufacturing. For giving rise to a more individualized buying experience. If
fast-moving firms, the technologica l environment repre- you've browsed seller reviews on eBay or received shop-
sents a rich source of competitive advantage, but it clearly ping recommendations from Amazon, you'll have a sense
can be a major threat for companies that are slow to adopt of how personal web marketing can feel. Online technology
or to integrate new approaches. also allows leading-edge firms to offer customized products
The creation of the World Wide Web has trans- at prices that are comparable to standardized products. On
formed not only business but also people's lives. Anyone, the Burton website, for instance, customers can "custom
anywhere, anytime can use the Web to send and receive build" professiona l quality"Custom x· snowboards while sit-
images and data (as long as access is available}. One result ting at home in their pajamas. Nike offers a similar service for
is the rise of e-commerce or online sa les, which allow NikelD shoes, clothing, and gear.
businesses to tap into a worldwide community of potential As technology continues to evolve at breakneck
customers. In the wake of speed, the scope of change-both in everyday life and
the g lobal economic crisis, business operations-is almost unimaginable. In this envi-
m[l!i!m:·~· The service e-commerce has slowed ronment, compan ies that welcome change and manage it
that allows computer user.; to easily from the breakneck 20%+ well will clearly be the winners.
access and share information on the
Internet in the form of text. graphics, g rowth rates of the past five
video, apps, and animation. years, but even so, analysts 1-se The Social Environment
predict that solid growth
, · Business The social environment embodies the values, attitudes, cus-
transactions conducted online, will continue. Business-to-
toms, and beliefs shared by groups of people. It also covers
typically via the Internet business selling comprises demographics, or the measurable characteristics of a
the vast majority of total
•• The population. Demographic factors include popu lation size and
measurable characteristics of a e-commerce sales (and an
density and specific traits such as age, gender, race, educa-
population. Demographic factors even larger share of the
tion, and income. Clearly, given all these influences, the social
indude population size and density, profits}. A growing num-
as well as specific traits such as age, environment changes dramatically from country to country.
ber of businesses have also
gender, and race. And a nation as diverse as the United States features a num-
connected their d ig ital ber of different social environments. Rather than cover the
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Do You Do It?
More than 1,000 t imes a minute, someone in America bites into a Jack in the
Box taco- one of more than a million Jack in the Box tacos sold every day.
With such numbers, you might think that Jack unearth ed the secret to
t he perfect-tasting taco . . . but you'd be wro ng. Jack's taco has been
variously described by its fans as:
• "a wet envelope of cat food"
• "vile a nd amazing"
• "disgusting a nd delectable"
• "repulsive and yet irresistible"
So why does the Jack in the Box taco do so well? Food writer Sophie Egan offers three
possible reasons. First, it's cheap. At two for $.99 it's a real deal. Second, it's fried.
As much as we like the idea of fru its and vegetables- fried stuff tastes good! Finally, it's a
metaphorical flip of th e bird to the "food police," who many believe are attempting to exert
too much control over ou r rights to eat whatever we please."
full spectrum, this section focuses on the broad social trends So what does this mean for business? Growing eth·
that have the strongest impact on American business. Under· nic populations offer robust profit potential for firms that
standing the various dimensions of the social environment is pu rsue t hem . For instance, a number o f major brands
crucial since successful businesses must offer goods and ser· such as Coca-Cola, Genera l Mills, Ford, Nestle, Pu ri na,
vices that respond to it. and Walmart have invested heavily in the Hispanic mar·
ket over the past five years. Recognizing the potential of
Diversity While t he American population has al· t he Hispan ic market, Japanese automakers have begun
ways included an array of different cultu res, the United actively targeti ng Latino custom ers. Because o f these ef·
States has become more ethnically diverse in recent forts, Hispanic customers are reportedly 15% more likely
years. Caucasians continue to represent the largest chunk t han any other g roup to buy a Japanese-made car.Toyota,
of the population at 63%, but according to t he direc·
tor of t he U.S. Census Bureau, "The next half century
marks a turning point in continuing t rends-the U.S. will be·
come a plurality nat ion, where the non-Hispanic white pop· Exhibit 1.3
ulation remains the largest single group, but no g roup is in
the majority~ This will probably happen in about 2043. The
U.S. Population Estimates
Hispanic and Asian populat ions will probably cont inue to 80
• 2014
grow faster t han any other et hnic groups. By 2060, nearly one 70
c: • 2060
in three U.S. residents will be Hispanic, up from about one in 0 60
:; 50
six today. This w ill happen even though the overwhelming :,
c. 40
wave of immigration from Mexico to the United States has
stalled and even begun to reverse in the past few years; nev·
!0
30
"#- 20
ertheless, among Mexican-born people worldwide, one in
10 2.0%4.9%
ten currently lives in the United States.22 Exhibit 1.3 demon·
0
strates the shifting populat ion breakdown. Whit e Black Hispanic Asian Two or
But t he national statistics are somewhat misleading, more races
Population Group
since ethnic groups tend to cluster together. African Ameri·
cans, for example, currently comp rise about 37% of t he Swte: Projecbol\S of the Sim and Coltl»$lbOn of the U.S. Populabon: 2014 to 2060, U.S.Census Bureau.
March 2015, https://wWW,.CSl\$1JS.90Y/oontm\/dam/Coosus/l1brary/publicati:lns/20l 5/doolo /p25--1143
Mississippi population, Asians comprise about 39% of t he .p:lf, axes:sed May 9, 2016.
Hawaii population, and Hispanics comprise about 47% of

the New Mexico populat ion.2l
CHAPTER 1: Business Now: Change Is the Only Constant 13
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in particular, has been the top-sell ing brand among Lati- number of people in China over t he age of 60 w ill dou-
nos for more t han ten years thanks to its h ighly targeted ble, leading to a nation where t he retired will outnumber
marketing. Targeti ng an et hnic market can also yield t he entire population o f Western Europe. There are cur-
remarkable results for products that cross over into main- rently six workers to every retiree, but China's one-ch ild
stream culture. Music mogul and entrepreneur Russell policy suggest s that the number of people providing for
Simmons, for example, initial ly targeted his music and t he old w ill rapidly collapse 27
cloth ing to the African American market. but his success The rapidly aging population brings opportunities
quickly spilled over to mainstream culture, help ing him and t hreats for business. Companies in fields t hat cater
build a hip-hop empire.2• to the elderly-such as healthcare, pharmaceut icals,
Growing diversity also affects t he workforce. A di- travel, recreation, and financial management-will clearly
verse staff-one t hat reflects an increasingly diverse boom. But creative companies in ot her fields w ill capi-
marketplace-can yield a powerful competitive ad- ta lize on the trend as wel l by reimagining their current
vantage in terms of both innovation and ability to prod uct s to serve older cl ients. Possibilities incl ude books
reach a broad customer base. From global behemoths, and movies-maybe even video games-with mature
such as Coca-Co la and Verizon, to local corner stores, characters; low-i mpact fit ness progra ms such as water
companies have taken pro active steps to hire and nur- aerobics; and cell phones and PDAs w ith more readable
ture people from a broad range o f backg rounds. And screens. Again, the potential payoff of age diversity is
that doesn't just reflect racial or ethnic roots. True diver- clear: companies w ith older employees are more likely to
sity also incl udes differences in gender, age, religion, and find innovative ways to reach the aging consumer market.
nationality, among other areas. Leading -edge firms have But the larger numbers of retired people also pose sig-
also taken proactive steps to tra in t heir entire workforce nificant threats to overall business success. With a smaller
to manage diversity for top performance.2 s labor pool, companies will need to compete even harder
Effectively managing diversity should on ly become for top talent, driving up recruitment and payroll costs.
easier as t ime goes by. Multiple studies demonst rate that As state and federa l governments stretch to serve the ag-
young American adults are the most tolerant age group, ing population, taxes may increase, putting an additional
and they are moving in a more tolerant direction than ear- burden on business. And as mid-career workers spend
lier generations regarding racial differences, immigrants, more on elder care, they may find themselves w ith less to
and homosexuality. As this generation gathers influence spend on other goods and services, shri nking the size o f
and experience in t he workforce, they are likely to lever- t he consumer market.
age diversity in their organ izat ions to hone their edge in a
fiercely competitive marketplace.26 Rising Worker Expectations Workers of al l ages
continue to seek flexibility from their employers. More-
Aging Population As life spans increase and birth- over, fol lowing massive corporate layoffs in the early
rates decrease, t he American population is rapidly ag- 2000s, employees are much less apt to be loyal to t heir
ing. The U.S. Census Bureau projects that the nation's firms. A study released in 2013 showed that on average,
population age 65 and older w ill more than double employees in Fortune 500 fi rms have a median tenure o f
between 2005 and 2060. By 2060, older Americans w ill on ly 3.68 years. As young people today enter the work-
represent j ust over one in five residents, up from one in force, t hey bring higher expectations for their employers
seven today. Also, t he number of working-age Ameri- in terms of salary, job responsibility, and flexibility-and
cans w ill sh rink from 63% to 57% less willingness to pay dues by
of the population, dramatically working extra-long hours or doing a
increasing t he number o f people In Asia, the average high volume o f "grunt work." Smart
who are depending on each work- firms are responding to the change
ing American. And the United
person's living in worker expectations by forging a
States isn't alone in t his trend. The standards are new part nership wit h t heir employ-
population is aging across the currently set to rise ees. The goal is a greater level o f
developed world, from Western mutual respect through open com-
by 10,000% in one
Europe to Japan. China faces the munication, information shari ng,
same issue, magnified by its huge lifetime! and t raining. And t he not-so-hid-
population. Demographers esti- -NEWSWEEK den agenda, o f course, is stronger
mate that in the next 20 years the long-term performance.28
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“But surely not here,” murmured Frau von Eckthum
thought her capable Frau von Eckthum refused to spend a night in the
donkey field; and Mrs. Menzies-Legh, who was absorbed in snap-shotting
the ever-swelling crowd of children and loafers who were surrounding us,
suddenly stamped her foot and said she would not either.
“The horses can’t go another yard,” remonstrated Menzies-Legh.
“I won’t sleep with the donkeys,” said his wife, taking another snap.
Her sister said nothing, but held her handkerchief as before.
Then Jellaby, descrying a hedge with willows beyond it at the far-away
end of the field, and no doubt conscious of a parliamentary practice in
persuasion, said he would get permission to go in there for the night, and
disappeared. Lord Sigismund expressed doubts as to his success, for the
man, he said, was apparently own brother to the female at the farm, or at any
rate of the closest spiritual affinity; but Jellaby did come back after a while,
during which the piano-organ’s waltzes had gone on accentuating the blank
dreariness of the spot, and said it was all right.
Later on I discovered that what he called all right was paying exactly
twice as much per caravan for the superior exclusiveness of the willow field
as what was demanded for the donkey field. Well, he did not have to pay,
being Menzies-Legh’s guest, so no doubt he did think it all right; but I call it
monstrous that I should be asked to pay that which would have secured me a
perfectly dry bedroom with no grass in it in a first-rate Berlin hotel for the
use for a few hours of a gnat-haunted, nettle-infested, low-lying, swampy
meadow.
The monstrosity struck me more afterward when I looked back. That
evening I was too tired to be struck, and would, I truly believe, have paid
five shillings just for being allowed to sink down into a sitting position, it
mattered not where, and remain in it; but there was still much, I feared to do
and to suffer before I could so sink down—for instance, there was the gate
leading into the donkey field to be got through, the whole population
watching, and the pleasant prospect before me of having to reimburse any
damage done to a caravan that could only, under the luckiest circumstances,
just fit in. Then there was Edelgard to be brought to reason, and suppose she
refused to be brought? That is, quickly; for I had no fears as to her ultimate
bringing.
Well, the gate came first, and as it would require my concentrated
attention I put the other away from me till I should be more at leisure. Old
James, assisted by Menzies-Legh, got the Ailsa safely through, and away she
heaved, while the onlookers cheered, over the mole heaps toward the
willows on the horizon. Then Menzies-Legh, calling Jellaby, came to help
me pull the Elsa through, Lord Sigismund waiting with the third horse, who
had been his special charge throughout the day. It seemed all very well to
help me, but any scratches to the varnish caused by the two gentlemen in
their zeal would be put in my bill, not in theirs, and under my breath I called
down a well-known Pomeranian curse of immense body and scope on all
those fools who had helped in the making of the narrow British gates.
As I feared, there was too much of that zèle that somebody (I think he
was French) advised somebody else (I expect he must have been English)
not to have, and amid a hubbub of whoas—which is the island equivalent for
our so much more lucid brrr—shouts from the onlookers, and a scream or
two from Edelgard who could not listen unmoved to the crashings of our
crockery, Menzies-Legh and Jellaby between them drew the brute so much
to one side that it was only owing to my violent efforts that a terrible
accident was averted. If they had had their way the whole thing would have
charged into the right-hand gate post—with what a crashing and a parting
from its wheels may be imagined—but thanks to me it was saved, although
the left-hand gate post did scrape a considerable portion of varnish off the
Elsa’s left (so to speak) flank.
“I say,” said the Socialist when it was all over, brushing his bit of hair
aside, “you shouldn’t have pulled that rein like that.”
The barefaced audacity of putting the blame on to me left me speechless.
“No,” said Menzies-Legh, “you shouldn’t have pulled anything.”
He too! Again I was left speechless—left, indeed, altogether, for they
immediately dropped behind to help (save the mark) Lord Sigismund bring
the Ilsa through.
So the Elsa in her turn heaved away, guided anxiously by me over the
mole heaps, every mole heap being greeted by our pantry as we passed over
it with a thunderous clapping together of its contents, as though the very
cups, being English, were clapping their hands, or rather handles, in an
ecstasy of spiteful pleasure at getting broken and on to my bill.
Little do you who only know cups in their public capacity, filled with
liquids and standing quietly in rows, realize what they can do once they are
let loose in a caravan. Sometimes I have thought—but no doubt fancifully—
that so-called inanimate objects are not as inanimate as one might think, but
are possessed of a character like other people, only one of an unadulterated
pettiness and perversity rarely found in the human. I believe most people
who had been in my place that evening last August guiding the Elsa across
all the irregularities that lay between us and the willow-field in the distance,
and had listened to what the cups were doing, would have been sure of it. As
for me, I can only say that every time I touch a cup or other piece of
crockery it seems to upset it, and frequently has such an effect on it that it
breaks; and it is useless for Edelgard to tell me to be careful, and to hint (as
she does when she is out of spirits) that I am clumsy, because I am careful;
and as for being clumsy, everybody knows that I have the straightest eye and
am the best shot in our regiment. But it is not only cups. If, while I am
dressing (or undressing) I throw any portion of my clothes or other article I
may be using on to a table or a chair, however carefully I aim it invariably
either falls at once, or after a brief hesitation slips off on to the floor from
which place, in its very helplessness, it seems to jeer at me. And the more
important it is I should not be delayed the more certainly is this conduct
indulged in. Fanciful? Perhaps. But let me remind you of what the English
poet Shakespeare says through the mouth of Hamlet into the ears of Horatio,
and express the wish that you too could have listened to the really exultant
clapping of the cups in our pantry as I crossed the mole heaps.
Edelgard, feeling guilty, remained behind, so was not there as she
otherwise certainly would have been making anxious sums, according to her
custom, in what these noises were going to cost us. A man who has been
persuaded to take a holiday because it is cheap may be pardoned for being
preoccupied when he finds it is likely to be dear. Among other things I
thought some very sharp ones about the owner of the field, who permitted
his ground, in defiance I am sure (though not being an agriculturist I cannot
give chapter and verse for my belief) of all laws of health and
wholesomeness, to be so much ravaged by moles. If he had done his duty my
cups would not have been smashed. The heaps of soil thrown up by these
animals were so frequent that during the entire crossing at least one of the
Elsa’s wheels was constantly on the top of a heap, and sometimes two of her
wheels simultaneously on the top of two.
It is a pity people do not know what other people think of them.
Unfortunately it is rude to tell them, but if only means could be devised—
perhaps by some Marconi of the mind—for letting them know without
telling them, how nice and modest they would all become. That farmer was
probably eating his supper in his snug parlour in bestial complacency and
ignorance at the very moment that I was labouring across his field pouring
on him, if he had only known it, a series of as scalding criticisms as ever
made a man, if he were aware of them, shrivel and turn over a new leaf.
I found Mrs. Menzies-Legh at the farther gate, holding it open. Old James
had already got his horse out, and when he saw me approaching came and
laid hold of the bridle of mine and led him through. He then drew him up
parallel with the Ailsa, the doors of both caravans being toward the river,
and proceeded with the skill and expedition natural in an old person who had
done nothing else all his life to unharness my horse and turn him loose.
Mrs. Menzies-Legh lit a cigarette and handed me her case. She then
dropped down on to the long and very damp-looking grass and motioned to
me to sit beside her; so we sat together, I much too weary either to refuse or
to converse, while the muddy river slid sullenly along within a yard of us
between fringes of willows, and myriads of gnats gyrated in the slanting
sunbeams.
“Tired?” said she, after a silence that no doubt surprised her by its length.
“Too tired,” said I, very shortly.
“Not really?” said she, turning her head to look at me, and affecting much
surprise about the eyebrows.
This goaded me. The woman was inhuman. For beneath the affected
surprise of the eyebrows I saw well enough the laughter in the eyes, and it
has always been held since the introduction of Christianity that to laugh at
physical incapacitation is a thing beyond all others barbarous.
I told her so. I tossed away the barely begun cigarette she had given me,
not choosing to go on smoking a cigarette of hers, and told her so with as
much Prussian thoroughness as is consistent with being at the same time a
perfect gentleman. No woman (except of course my wife) shall ever be able
to say I have not behaved to her as a gentleman should; and my hearers will
be more than ever convinced of the inexplicable toughness of Mrs. Menzies-
Legh’s nature, of the surprising impossibility of producing the least effect
upon her, when I tell them that at the end of quite a long speech on my part,
not, I believe ineloquent, and yet as plainspoken as the speech of a man can
be within the framework which should always surround him, the carved and
gilt and—it must be added—expensive framework of gentlemanliness, she
merely looked at me again and said:
“Dear Baron, why is it that men, when they have walked a little farther
than they want to, or have gone hungry a little longer than they like to, are
always so dreadfully cross?”
The lumbering into the field of the Ilsa with the rest of the party made an
immediate reply impossible.
“Hullo,” said Jellaby, on seeing us apparently at rest in the grass.
“Enjoying yourselves?”
I fancy this must be a socialistic formula, for short as the period of my
acquaintance with him had been he had already used it to me three times.
Perhaps it is the way in which his sect reminds those outside it of the
existence of its barren and joyless notions of other people’s obligations. A
Socialist, as far as I can make out, is a person who may never sit down. If he
does, the bleak object he calls the Community immediately becomes vocal,
because it considers that by sitting down he is cheating it of what he would
be producing by his labour if he did not. Once I (quite good naturedly)
observed to Jellaby that in a socialistic world the chair-making industry
would be the first to go to the wall (or the dogs—I cannot quite recollect
which I said it would go to) for want of suitable sitters, and he angrily
retorted—but this occurred later in the tour, and no doubt I shall refer to it in
its proper place.
Mrs. Menzies-Legh got up at once on his asking if we were enjoying
ourselves, as though her conscience reproached her, and went over to the
larder of her caravan and busily began pulling out pots; and I too seeing that
it was expected of me prepared to rise (for English society is conducted on
such artificial lines that immediately a woman begins to do anything a man
must at least pretend to do something too) but found that my short stay on
the grass had stiffened my over-tired limbs to such an extent that I could not.
The two nondescripts, who were passing, lingered to look.
“Can I help you?” said the one they called Jumps, as I made a second
ineffectual effort, advancing and holding out a knuckly hand. “Will you take
my arm?” said the other one, Jane, crooking a bony elbow.
“Thank you, thank you, dear children,” I said, with bland heartiness one
assumes—for no known reason—toward the offspring of strangers; and
obliged to avail myself of their assistance (for want of practice makes it at all
times difficult for me to get up from a flat surface, and my stiffness on this
occasion turned the difficult into the impossible), I somehow was pulled on
to my feet.
“Thank you, thank you,” I said again, adding jestingly, “I expect I am too
old to sit on the ground.” ^
“Yes,” said Jane.
This was so unexpected that I could not repress a slight sensation of
annoyance, which found its expression in sarcasm.
“I am extremely obliged to you young ladies,” I said, sweeping off my
Panama, “for extending your charitable support and assistance to such a poor
old gentleman.”
The two nondescripts, who were passing, lingered to look

“Oh,” said Jumps earnestly, too thick-skinned to feel sarcasm, “I’m used
to it. I have to help Papa about. He’s very old too.”
“Yet surely,” said I, tingeing my sarcasm with playfulness (but they were
too thick-skinned even for playfulness), “surely not so old as I?”
“About the same,” said Jumps, considering me gravely.
“And how old,” said I, inquiring of Jane, for Jumps annoyed me too
much, “may your friend’s excellent parent be?”
“Oh, about sixty, or seventy, or eighty,” said she, indifferently.
CHAPTER VIII
“T HE children of England——” I remarked, when they had gone their

way, their arms linked together, to Lord Sigismund who was hurrying
past to the river with a bucket—but he interrupted me by shouting
over his shoulder:
“Will you stay and light the fire, or come with us and forage for food?”
Light the fire? Why, what are women for? Even Hermann, my servant,
would rebel if he instead of Clothilde had to light fires. But, on the other
hand, forage? Go back across that immense field and walk from shop to shop
on feet that had for some time past been unable to walk at all? And then
return weighed down with the results?
“Do you understand fires, Baron?” said Mrs. Menzies-Legh, appearing
suddenly behind me.
“As much, I suppose, as intelligence unaided by experience does,” said I
unwillingly.
“Oh, but of course you do,” said she, putting a box of matches—one of
those enormous English boxes that never failed to arouse my amused
contempt, for they did not light a single fire or candle more than their handy
little continental brethren—into my right hand, and the red handkerchiefful
of sticks bought that morning into my left, “of course you do. You must have
got quite used to them in the wars.”
“What wars?” I asked sharply. “You surely do not imagine that I——”
“Oh, were you too young for Sedan and all that?” she asked, as she
crossed over the very long and very green grass toward a distant ditch and I
found that I was expected to cross with her.
“I was so young,” I said, more nettled than my hearers will perhaps
understand, but then I was tired out and no longer able to bear much, “so
young that I had not even reached the stage of being born.”
“Not really?” said she.
“Yes,” said I. “I was still spending my birthdays among the angels.”
This, of course, was not strictly true, but one likes to take off a few years
in the presence of a woman who has left her Gotha Almanach at home, and it
was, I felt, a picturesque notion—I mean about the birthdays and the angels.
“Not really?” said she again.
And what, I thought, as we walked on together, is all this talk about
young and not young? If a man is not young in the forties when will he be? I
have never concealed my age, which is about five or six and forty, with
perhaps a year or two added on, but as I take little notice of birthdays it is
just as likely the year or two ought to be added off, and the forties are
universally acknowledged by all persons who are in them to be the very
flower and prime of life, or rather the beginning of the very flower and
prime, the beginning of the final unfolding of the last crumple in the last
petal.
I should have thought this state of things was visible enough in me, plain
enough to any ordinary onlooker. I have neither a gray hair nor a wrinkle.
My moustache is as uninterruptedly blond as ever. My face is perfectly
smooth. And when my hat is on there is no difference whatever between me
and a person of thirty. Of course I am not a narrow man, weedy in the way in
which Jellaby is weedy, and unable as he is unable to fill out my clothes; but
it is laughable that just breadth should have made those two fledglings place
me in the same category as an exceedingly venerable and obviously crippled
old gentleman.
I expect the truth is that in England children are ill-trained and educated,
and their perceptions are allowed to remain rudimentary. It must be so, for so
few of them wear spectacles. Clearly education is not carried on with
anything like our systematic rigor, for except on Lord Sigismund I had up to
then nowhere seen these artificial aids to eyesight, and in Germany at least
two-thirds of our young people, as a result of their application, wear either
spectacles or pince-nez. They may well be proud of them. They are the
visible proof of a youth spent entirely at its books, the hoisted standard of an
ordered and studious life.
“The children of England——” I began vigorously to Mrs. Menzies-
Legh, desirous of expressing a few of my objections to them to a lady who
could not be supposed to mind, she being one of my own countrywomen—
but she too interrupted me.
“This is the most sheltered place,” she said, pointing to the dry ditch.
“You’ll find more sticks in that little wood. You will want heaps more.”
And she left me.
Well, I had never made a fire in my life. I stood there for a moment in
great hesitation as to how to begin. They should not say I was unwilling,
those ant-like groups over by the caravans so feverishly hurrying hither and
thither, but to do a thing one must begin it, and as there are no doubt several
ways of lighting a fire, even as there are several ways of doing anything else
in life, I stood uncertain while I asked myself which of these several ways
(all of them, I must concede, unknown to me) I ought to choose.
The ditch had a hedge on its farther side, and through a gap in it I saw the
wood, cleared in places and overgrown between the remaining stumps by
bracken and brambles, wherein I was, as Mrs. Menzies-Legh said, to find
more sticks. The first thing to be done, then, was to find the sticks, for the
handkerchief contained the merest handful; and this was a hard task among
brambles at the end of a dinnerless day, and likely, besides, to prove ruinous
to my stockings.
The groups at the caravans were peeling the potatoes and other vegetables
we had bought at the farm near Grip’s Common that morning, and were
doing it with an expedition that showed how hunger was triumphing over
fatigue. Jellaby hurried to and fro to a small spring among the bracken
fetching water. Menzies-Legh and Lord Sigismund had disappeared in the
distance that led to the shops. Old James was feeding the horses. I could see
the two fledglings sitting on the grass with bowed heads and flushed cheeks
absorbed in the shredding of cabbages. Mrs. Menzies-Legh had begun, with
immense energy, to peel potatoes. Her gentle sister—I deplored it—was
engaged on an onion. Nowhere, look as I might (for I needed her assistance)
could I see my wife.
Then Mrs. Menzies-Legh, raising her eyes from her potatoes, saw me
standing motionless and called out that the vegetables would soon be ready
for the fire, but she feared if I were not quick the fire would not soon be
ready for the vegetables; and thus urged, and contrary to my first intention, I
hastily emptied the sticks out of the handkerchief into the ditch and began to
endeavour to light them.
But they would not light. Match after match flared an instant, then went
out. It was a windy evening, and I saw no reason for supposing that any
match would stay alight long enough to get even one stick to catch fire. I
went down on my knees and interposed my person between the sticks and
the wind, but though the matches then burned to the end (where were my
fingers) the sticks took no more notice than if they had been of iron. Losing
patience I said something aloud and not, I am afraid, quite complimentary,
about wives who neglect their duties and kick in shortened skirts over the
traces of matrimony; and Edelgard’s voice immediately responded from the
other side of the hedge. “But lieber Otto,” it said, “is it then my fault that
you have forgotten the paper?”
I straightened myself and looked at her. She had already been on the
search for sticks, for as she advanced to the gap and stood in it I saw she had
an apronful of them. I must say I was surprised at her courage in confronting
me thus alone, when she was aware I must be gravely displeased with her
and could only be waiting for an opportunity to tell her so. She, however,
with the cunning common to wives, called me lieber Otto as though nothing
had happened, did not allude to my overheard exclamation and sought to
soften me with sticks.
I looked at her therefore very coldly. “No,” I said, “I had not forgotten the
paper.”
And this was true, because to forget paper (or indeed anything else) you
must first of all have thought of it, and I had not.
“Perhaps,” I went on, my coldness descending as I spoke below zero,
which is the point in our well-arranged thermometers (either Celsius or
Réaumur, but none of their foolish Fahrenheits) where freezing begins,
“perhaps, since you are so clever, you will have the goodness to light the fire
yourself. Any one,” I continued with emphasis, “can criticize. We will now,
if you please, change places, and you shall bring your unquestioned gifts to
bear on this matter, while I assume the role suited to lesser capacity, and
merely criticize.”
This of course, was bitter; but was it not a justified bitterness?
Unfortunately I shall have to suppress the passage I suppose at the reading
aloud, so shall never hear the verdict of my friends; but even without that
verdict (and I well know what it would be, for they all have wives) even
without it I can honestly call my bitterness justified. Besides, it was very
well put.
She listened in silence, and then just said, “Oh, Otto,” and came down at
once into the ditch, and
“But, lieber Otto, is it then my fault that you have forgotten the paper?”
bending over the sticks began to arrange them quickly on some stones she
picked up.
I did not like to sit down and smoke, which is what I would have done at
home (supposing such a situation as the Ottringels lighting a fire out-of-
doors in Storchwerder were conceivable), because Mrs. Menzies-Legh
would probably have immediately left off peeling her potatoes to exclaim,
and Jellaby would, I dare say, have put down his buckets and come over to
inquire if I were enjoying myself. Not that I care ten pfennings for their
opinions, and I also passionately disapprove of the whole English attitude
toward women; but I am a fair-minded man, and believe in going as far as is
reasonable with the well-known maxim of behaving in Rome as the Romans
behave.
I therefore just stood with my back to the caravans and watched Edelgard.
In less time than I take to write it she had piled up the sticks, stuffed a bit of
newspaper she drew from her apron underneath them, lit them by means (as
I noted) of a single match, and behold the fire, crackling and blazing and
leaping upward or outward as the wind drove it.
No proof, if anything further in that way were needed, could be more
convincing as to the position women are intended by nature to fill. Their
instincts are all of the fire-lighting order, the order that serves and tends;
while to man, the noble dreamer, is reserved the place in life where there is
room, dignity, and uninterruption. Else how can he dream? And without his
dreams there would be no subsequent crystallization of dreams; and all that
we see of good and great and wealth-bringing was once some undisturbed
man’s dream.
But this is philosophy; and you, my friends, who breathe the very air
handed down to you by our Hegels and our Kants, who are born into it and
absorb it whether you want to or not through each one of your infancy’s
pores, you do not need to hear the Ottringel echo of your own familiar
thoughts. We in Storchwerder speak seldom on these subjects for we take
them for granted; and I will not in this place describe too minutely all that
passed through my mind as I watched, in that grassy solitude, at the hour
when the sun in setting lights up everything with extra splendour, my wife
piling sticks on the fire.
Indeed, what did pass through it was of a mixed nature. It seemed so
strange to be there; so strange that that meadow, in all its dampness, its high
hedge round three sides of it, its row of willows brooding over the sulky
river, its wood on the one hand, its barren expanse of mole-ridden field on
the other, and for all view another meadow of exact similarity behind
another row of exactly similar willows across the Medway, it seemed so
strange that all this had been lying there silent and empty for heaven knows
how many years, the exact spot on which Edelgard and I were standing
waiting, as it were, for its prey throughout the entire period of our married
life in Storchwerder and of my other married life previous to that, while we,
all unconscious, went through the series of actions and thoughts that had at
length landed us on it. Strange fruition of years. Stranger the elaborate
leading up to it. Strangest the inability of man to escape such a destiny.
Regarded as the fruition of years it was certainly paltry, it was certainly a
disproportionate destiny. I had been led from Pomerania, a most remote
place if measured by its distance from the Medway, in order to stand at
evening with damp feet on this exact spot. A believer, you will cry, in
predestination? Perhaps. Anyhow, filled with these reflections (and others of
the same character) and watching my wife doing in silence that for which
she is fitted and intended, my feeling toward her became softer; I began to
excuse; to relent; to forgive. Indeed I have tried to do my duty. I am not hard,
unless she forces me to be. I feel that no one can guide and help a wife
except a husband. And I am older than she is; and am I not experienced in
wives, who have had two, and one of them for the enormous (sometimes it
used to seem endless) period of twenty years?
I said nothing to her at the moment of a softer nature, being well aware of
the advantage of allowing time, before proceeding to forgiveness, for the
firmer attitude to sink in; and Jellaby bringing the iron stew-pot Mrs.
Menzies-Legh had bought that morning—or rather dragging it, for he is, as I
have said, a weedy creature—across to us, spilling much of the water it
contained on the way, I was obliged to help him get it on to the fire, fetching
at his direction stones to support it and then considerably scorching my
hands in the efforts to settle the thing safely on the stones.
“Please don’t bother, Baroness,” said Jellaby to Edelgard when she began
to replenish the fire with more sticks. “We’ll do that. You’ll get the smoke in
your eyes.”
But would we not get the smoke in our eyes too? And would not eyes
unused to kitchen work smart far more than eyes that did the kind of thing at
home every day? For I suppose the fires in the kitchen of Storchwerder
smoke sometimes, and Edelgard must have been perfectly inured to it.
“Oh,” said Edelgard, in the pleasant little voice she manages to have
when speaking to persons who are not her husband, “it is no bother. I do not
mind the smoke.”
“Why, what are we here for?” said Jellaby. And he took the sticks she was
still holding from her hands.
Again the thought crossed my mind that Jellaby must be attracted by
Edelgard; indeed, all three gentlemen. This is an example of the sort of
attention that had been lavished on her ever since we started. Inconceivable
as it seemed, there it was; and the most inconceivable part of it was that it
was boldly done in the very presence of her husband. I, however, knowing
that one should never trust a foreigner, determined to bring round the talk, as
I had decided the day before, to the number of Edelgard’s birthdays that very
evening at supper.
But when supper, after an hour and a half’s waiting, came, I was too
much exhausted to care. We all were very silent. Our remaining strength had
gone out of us like a flickering candle in a wind when we became aware of
the really endless time the potatoes take to boil. Everything had gone into the
pot together. Mrs. Menzies-Legh had declared that was the shortest, and
indeed the only way, for the oil-stoves in the caravans and their small
saucepans had sufficiently proved their inadequacy the previous night.
Henceforth, said Mrs. Menzies-Legh, our hope was to be in the stew-pot;
and as she said it she threw in the potatoes, the cabbages, the onion sliced by
her tender sister, a piece of butter, a handful of salt, and the bacon her
husband and Lord Sigismund had brought back with them from the village.
It all went in together; but it did not all come out together, for we discovered
after savoury fragrances had teased our nostrils for some time that the
cabbage and the bacon were cooked, while the potatoes, in response to the
proddings of divers anxious forks, remained obstinately hard.
We held a short council, gathered round the stew-pot, as to the best
course to pursue. If we left the bacon and the cabbage in the pot they would
be boiled certainly to a pulp, and perhaps—awful thought—altogether away,
before the potatoes were ready. On the other hand, to relinquish the potatoes,
the chief feature of our supper, would be impossible. We therefore, after
much anxious argument, decided to take out that which was already cooked,
put it carefully on plates, and at the last moment return it to the pot to be
warmed up again.
This was done, and we sat round on the grass to wait. Now was the
moment, now that we were all assembled silent in a circle, to direct the
conversation into the birthday channel, but I found myself so much
enfeebled and the rest so unresponsive that after a faltering beginning, which
had no effect except to draw a few languid gazes upon me, I was obliged
perforce to put it off. Indeed, our thoughts were wholly concentrated on
food; and looking back it is almost incredible to me that that meagre supper
should have roused so eager an interest.
We all sat without speaking, listening to the bubbling of the pot. Now and
then one of the young men thrust more sticks beneath it. The sun had set
long since, and the wind had dropped. The meadow seemed to grow much
damper, and while our faces were being scorched by the fire our backs were
becoming steadily more chilly. The ladies drew their wraps about them. The
gentlemen did that for their comfort which they would not do for politeness,
and put on their coats. I whose coat had never left me, fetched my
mackintosh and hung it over my shoulders, careful to keep it as much as
possible out of reach of the fire-glow in case it should begin to melt.
Long before, the ladies had spread the tables and cut piles of bread and
butter, and one of them—I expect it was Frau von Eckthum—had concocted
an uncooked pudding out of some cakes they alluded to as sponge, with
some cream and raspberry jam and brandy, which, together with the bacon
and excepting the brandy, were the result of the foraging expedition.
Toward these tables our glances often wandered. We were but human, and
presently, overcome, our bodies wandered thither too.
We ate the bread and butter.
Then we ate the bacon and cabbage, agreeing that it was a pity to let it get
any cooler.
Then we ate the pudding they spoke of—for after this they began to be
able to speak—as a trifle.
And then—and it is as strange to relate as it is difficult to believe—we
returned to the stew-pot and ate every one of the now ready and steaming hot
potatoes; and never, I can safely say, was there anything so excellent.
Later on, entering our caravan much softened by these various
experiences and by a cup of extremely good coffee made by Edelgard, but
feeling justified in withdrawing, now that darkness had set in, from the
confusions of the washing up, I found my wife searching in the depths of the
yellow box for dishcloths.
I stood in the narrow gangway lighting a cigar, and when I had done
lighting it I realized that I was close to her and alone. One is never at any
time far from anything in these vehicles, but on this occasion the nearness
combined with the privacy suggested that the moment had arrived for the
words I had decided she must hear—kind words, not hard as I had at first
intended, but needful.
I put out my arm, therefore, and proposed to draw her toward me as a
preliminary to peace.
She would not, however, come.
Greatly surprised—for resentment had not till then been one of her
failings—I opened my mouth to speak, but she, before I could do so, said,
“Do you mind not smoking inside the caravan?”
Still more surprised, and indeed amazed (for this was petty) but
determined not to be shaken out of my kindness, I gently began, “Dear wife
——” and was going on when she interrupted me.
“Dear husband,” she said, actually imitating me, “I know what you are
going to say. I always know what you are going to say. I know all the things
you ever can or ever do say.”
She paused a moment, and then added in a firm voice, looking me
straight in the eyes, “By heart.”
And before I could in any way recover my presence of mind she was
through the curtain and down the ladder and had vanished with the
dishcloths in the darkness.
CHAPTER IX
T HIS was rebellion.

But unconsciousness supervened before I had had time to consider
how best to meet it, the unconsciousness of the profound and prolonged
sleep which is the portion of caravaners. I fell into it almost immediately
after her departure, dropping into my berth, a mere worn-out collection of
aching and presently oblivious bones, and remaining in that condition till she
had left the Elsa next morning.
Therefore I had little time for reflection on the new side of her nature the
English atmosphere was bringing out, nor did I all that day find either the
leisure or the privacy necessary for it. I felt, indeed, as I walked by my horse
along roads broad and roads narrow, roads straight and roads winding, roads
flat and convenient and roads hilly and tiresome, my eyes fixed principally
on the ground, for if I looked up there were only hedges and in front of me
only the broad back of the Ailsa blocking up any view there might be, I felt a
numb sensation stealing over me, a kind of dull patience, such as I have
observed (for I see most things) to be the leading characteristic of a team of
oxen, a tendency becoming more marked with every mile toward the merely
bovine.
The weather that day was disagreeable. There was a high wind and a
leaden sky and the dust blew hard and gritty. When, on rising, I peeped out
between the window curtains, it all looked very cold and wretched, the
Medway—a most surly river—muddier than ever, the leaves of the willow
trees wildly fluttering and showing their gray undersides. It seemed difficult
to believe that one was really there, really about to go out into that gloom to
breakfast instead of into a normal dining-room with a stove and a newspaper.
But, on emerging, I found that though it looked so cold it was not intolerably
so, and no rain in the night had, by drenching the long grass, added to our
agonies.
They were all at breakfast beneath the willows, holding on their hats with
one hand and endeavouring to eat with the other, and they all seemed very
cheerful. Edelgard, who had taken the coffee under her management, was
going round replenishing the cups, and was actually laughing when I came
out at something some one had just said. Remembering how we parted this
struck me as at least strange.
I made a point of at once asking for porridge, but luckily old James had
not brought the milk in time, so there was none. Spared, I ate corned beef
and jam, but my feet were still sore from the previous day’s march, and I
was unable to enjoy it very much. The tablecloth flapped in my face, and my
mackintosh blew almost into the river when I let it go for an instant in order
to grasp the milk jug, and I must say I could not quite understand why they
should all be so happy. I trust I am as willing to be amused as any man, but
what is there amusing in breakfasting in a draughty meadow with everything
flapping and fluttering, and the coffee cold before it reaches one’s mouth?
Yet they were happy. Even Menzies-Legh, a gray-haired, badly-preserved
man, older a good deal, I should say, than I am, was joking and then
laughing at his jokes with the fledglings, and Lord Sigismund and Jellaby
were describing almost with exultation how brisk they had felt after a bath
they had taken at five in the morning in the Medway.
What a place to be in at five in the morning. I shivered only to hear of it.
Well, that which makes one man brisk is the undoing of another, and a bath
in that cold, unfriendly stream would undoubtedly have undone me. I could
only conclude that, pasty and loosely put together as they outwardly were,
they must be of a very great secret leatheriness.
This surprised me. Not that Jellaby should be leathery, for if he were not
neither would he be a Socialist; but that the son of so noble a house as the
house of Hereford should have anything but the thinnest, most sensitive of
skins, really was astonishing. No doubt, however, Lord Sigismund
combined, like the racehorse of purest breed, a skin thin as a woman’s with a
mettle and spirit nothing could daunt. Nothing was daunting him that
morning, that was very clear, for he sat at the end of the table shedding such
contented beams through his spectacles on the company and on the food that
it was as if, unconsciously true to his future calling, he was saying a
continual grace.
I think they must all have been up very early, for except the cups and
plates actually in use everything was already stowed away. Even the tent and
its furniture was neatly rolled up preparatory to being distributed among the
three caravans. Such activity, after the previous day, was surprising; and still
more so was the circumstance that I had heard nothing of the attendant
inevitable bustle.

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6 Business Formation: Choosing 8Accounting: Decision Making

7 Small Business and 9 Finance: Acquiring and Using

Financial Resources 170 11-4 Customer Behavior: Decisions, Decisions,

13 Distribution and Pricing: Right

Part 5 the Map 274

16 Managing Information and

14 Management, Motivation, 17 Operations Management:

15 Human Resource Personal Finance Appendix 328

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• BUSINESS NOW: MOVING AT BREAKNECK SPEED

2 PART ONE: The Business Environment

CHAPTER 1: Bu siness Now: Change Is the Only Constant 3

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4 PART ONE: The Business Environment

• In the wake of disastrous mistakes and outrageous

CHAPTER 1: Bu siness Now: Change Is the Only Constant 5

Henry Ford's assembly line began operation

6 PART ONE: The Business Environment

• NONPROFITS AND THE

OF DOING GOOD you read t hrough the factors,

CHAPTER1: Business Now: Change Is the Only Constant 7

• THE BUSINESS ENVIRONMENT:

8 PART ONE: The Business Environment

CHAPTER 1: Bu siness Now: Change Is the Only Constant 9

Meocecles-Benz Porsche + 18%

10 PART ONE: The Business Environment

1-sc The Workforce Advantage 1-sd The Technological Environment

CHAPTER 1: Bu siness Now: Change Is the Only Constant 11

12 PART ONE: The Business Environment

Hawaii population, and Hispanics comprise about 47% of

CHAPTER 1: Business Now: Change Is the Only Constant 13

14 PART ONE: The Business Environment

The two nondescripts, who were passing, lingered to look

“T HE children of England——” I remarked, when they had gone their

T HIS was rebellion.

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