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contents
PREFACE XVIII 2 Economics: Evolving Systems 28
PROLOGUE XXVIII Business and Economies Working Together 32
Microeconomics and Macroeconomics 32 Factors of
SCORING GUIDELINES XLVIII Production: The Building Blocks of Business 33 Economics as
a Circular Flow 34
Part 1 The Business Environment 1 Global Economic Systems 34
Market Economy 35
Introduction 2 CREATING THE FUTURE OF BUSINESS: Patrick Lor, iStockphoto 36
The Command Economy 36 Socialism 37 Mixed Economic
1 Politics: Governments’ Roles 8 Systems 37
The World of Business 12 Market Structures 38
Government—More than One Level 13 Perfect Competition 38 Monopolistic Competition 39
Federal Government—Overseeing the Well-Being of Oligopoly 39 Pure Monopoly 40
Canada 13 Provincial/Territorial Governments—Protecting SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Toronto-
Rights 13 Municipal Governments—Delivering the Dominion Bank 41
Services 14 Serving the Public’s Interest—The Audit 14
Microeconomics: Businesses, Industries, and
The Governments’ Other Roles 14 Consumers 41
Governments as Tax Agents 14 Governments The Nature of Demand 42 The Nature of Supply 42
as Regulators 15 Governments as Providers of How Demand and Supply Interact to Determine Prices 43
Essential Services 15 Governments as Providers Changes in Demand 43 Changes in Supply 45
of Incentives 15 Governments as a Customer and
Competitor 16 Macroeconomics: The Big Picture 45
Striving for Economic Growth 46
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: What Does
EXPANDING AROUND THE GLOBE: Your Tablet—Your Laptop:
It Mean? 16
Citizen of the World 47
EXPANDING AROUND THE GLOBE: Magna International Inc.— Keeping People on the Job 47
An International Success Story 17 Measuring Unemployment 48 Types of Unemployment 48
Keeping Prices Steady 48
Protecting Businesses and Consumers 17
Types of Inflation 48 How Inflation Is Measured 49
Patents, Copyrights, and Trademarks 17 Bankruptcy The Impact of Inflation 50
and Insolvency Act 18 Deregulation of Industries 18
Tort Law 18 Achieving Macroeconomic Goals 50
Monetary Policy 50 Fiscal Policy 51
CREATING THE FUTURE OF BUSINESS: Young Entrepreneurs 19 Crowding out Private Investment 51
Consumer Protection 19 Warranties 20 Product-Liability Economic Crises of 2008 and 2011 51
Law 20 Competition Act 20 Steady Growth 52 Full Employment 52
Taxation of Business 21 Steady Prices 52
Income Taxes 21 Other Types of Taxes 21 The Future of Economics 52
The Future of Politics and Governments’ Roles 22
MAKING ETHICAL CHOICES: Purchasing Power 52
Clean Technology Projects 22 Canada—Looking for Skilled
Waning Confidence in the Markets 53
Labour 22 More Transparency 22
Europe 53 United States 53 Global Economic Recovery 53
Great Ideas to Use Now 22 Meeting Competitive Challenges 53 Entrepreneurship
Government—Is It Your Career Choice? 22 Spreads Worldwide 54
MAKING ETHICAL CHOICES: The Alberta Oil Sands 23 Great Ideas to Use Now 55
SUMMARY OF LEARNING OUTCOMES 23 SUMMARY OF LEARNING OUTCOMES 56

KEY TERMS 24 KEY TERMS 57
EXPERIENTIAL EXERCISES 25 EXPERIENTIAL EXERCISES 58
REVIEW QUESTIONS 25 REVIEW QUESTIONS 58
CREATIVE THINKING CASE 26 CREATIVE THINKING CASE 59
vi NEL
Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
3 Social: Society, Corporate Responsibility, and Transforming Businesses Through Information 96
Making Ethical Decisions 60 Information Technology 96 Data and Information
Systems 97
Social Trends—Our Changing Society 64
EXPANDING AROUND THE GLOBE: Electronic Hubs Integrate
Different Lifestyles, Different Choices 64 Women in the
Global Commerce 98
Workforce 65 Demographic Trends 66
The Connected Ones of Generation Z 67 Management Information Systems 99
The Digital Kids of Generation Y 67 Generation X Reaches Transaction-Processing Systems 99 Decisions, Decisions:
Middle Age 68 Prime Time for Baby Boomers Management Support Systems 100 Decision Support
and Beyond 68 Not Over the Hill Yet 69 Systems 100 Executive Information Systems 101
Diversity Matters—Canada’s Strength 69 The Impact of CREATING THE FUTURE OF BUSINESS: Matt Inglot, Tilted Pixel 102
Immigration 70 Expert Systems 102 Office Automation Systems 102
Managing a Socially Responsible Business 70 Linking Up: Technology behind the Information 103
Understanding Social Responsibility 71 Corporate Connecting Near and Far with Networks 104 An Inside Job:
Responsibility to Stakeholders 72 Intranets 105
CREATING THE FUTURE OF BUSINESS: Greg Overholt, Students
MAKING ETHICAL CHOICES: Ethics Activity 106
Offering Support 72
Responsibility to Employees 73 Responsibility to SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Nokia 106
Customers 73 Responsibility to Investors 73 Enterprise Portals Open the Door to Productivity 107
Responsibility to Suppliers 73 Responsibility to No More Tangles: Wireless Technologies 107 Private
Governments 73 Responsibility to Society 74 Lines: Virtual Private Networks 108 Software on Demand:
Application Service Providers 109
EXPANDING AROUND THE GLOBE: Clean Water, No Profit 74
Technology Management and Planning 110
Corporate Governance 75
Optimize IT! 110 Managing Knowledge Resources 111
Ethics—It’s a Personal Choice 75 Technology Planning 112
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Protecting Computers and Securing Information 113
The Global 100 76 Data Security Issues 113 Preventing Problems with
Utilitarianism—Seeking the Best for the Majority 76 Governance 115 Keep IT Confidential: Privacy Concerns 117
Individual Rights 77 Justice—The Question of The Future of Information Technology 117
Fairness 77 Stages of Ethical Development 77 Computers
Cyber–Sleuthing: A New Style of Crime Busting 117 The
and Ethics 78 Recognizing Unethical Business Activities 78
Distributed Workforce 118 Grid Computing Offers Powerful
How Organizations Influence Ethical Conduct 80 Solutions 118
Leading by Example 80 Offering Ethics Training Great Ideas to Use Now 119
Programs 80 Establishing a Formal Code of Ethics 80
Preparation Pays Off 120 Protect Your Good Name 120
The Future of Society, Corporate Responsibility,
and Ethics 81 SUMMARY OF LEARNING OUTCOMES 120
Experienced Workers in High Demand 81 The Growth of KEY TERMS 122
Social Responsibility—Just Keeps on Growing 81
Corporate Transparency 81 More Protection for EXPERIENTIAL EXERCISES 122
Whistleblowers 81 Changes in Corporate
Philanthropy 82 A New Social Contract Trend between REVIEW QUESTIONS 123
Employer and Employee 82
CREATIVE THINKING CASE 124
Occupy Movement—Financial and Social Inequities 82
Global Ethics and Social Responsibility 83
5 International: The Global Marketplace 126
MAKING ETHICAL CHOICES: Too Delicious to Resist 83
Canada Goes Global 130
Great Ideas to Use Now 84 The Importance of Global Business to Canada 131
Resolving Ethical Problems in Business 84 “Front Page of the The Impact of Multinational Corporations 131
Newspaper” Test 84 The Multinational Advantage 131 The Multinational
Challenges 132
SUMMARY OF LEARNING OUTCOMES 84 Measuring Trade Between Nations 132
KEY TERMS 85 Exports and Imports 132 Balance of Trade 133 Balance of
Payments 133
EXPERIENTIAL EXERCISES 86 The Impact of the 2008 and 2011 Economic Crises on
Canada 134 The Changing Value of Currencies 135
REVIEW QUESTIONS 87
Why Nations Trade 135
MAKING ETHICAL CHOICES: What Are Acceptable International
4 Technology: Managing Information Business Practices? 135
Absolute Advantage 136 Comparative Advantage 136
for Business Success 90 The Fear of Trade and Globalization 136 Benefits of
Is There Business Value in Information? 94 Globalization 137
The Value of E-Commerce 95 International Economic Communities 137
NEL CONTENTS vii

North American Free Trade Agreement (NAFTA) 137 What Is a Small Business? 168
Mercosur 137 The European Union 138 ASEAN 139 Small Business, Large Impact 169
Participating in the Global Marketplace 139 Why Stay Small? 169
Exporting 140 Licensing and Franchising 140 Contract
Manufacturing 140 Joint Ventures 141 Foreign Direct MAKING ETHICAL CHOICES: Minding Your Business 170
Investment 141 Managing a Small Business—Coping with the Challenges 170
Using Outside Consultants 171 Hiring and Retaining
CREATING THE FUTURE OF BUSINESS: Chris and Martin Employees 171 Going Global with Exporting 171
Herrington, Herrington Teddy Bears 141
Countertrade 142
Ready, Set, Start Your Own Business 172
Getting Started 172
Fostering Global Trade 142 Finding the Idea 172 Choosing a Form of Business
Antidumping Laws 143 The World Trade Organization 143 Organization 173 Developing the Business Plan 173
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Coca-Cola 144 Financing the Business 174 An Alternative—Buying a Small
The World Bank and International Monetary Fund 144 Business 175 Risky Business 176
Threats in the Global Marketplace 145 There’s Help Out There 177
Political Considerations 145 Cultural Differences 146 The Business Development Bank of Canada 177
The Economic Environment 146 Natural Barriers 147 Canada Business Network 177 Financial Institutions 178
Tariff Barriers 148 The Future of Entrepreneurship and Small-Business
Arguments for and against Tariffs 148 Ownership 178
EXPANDING AROUND THE GLOBE: Dell’s Success in China Tells Changing Demographics Create Entrepreneurial Diversity 178
Tale of a Maturing Market 148 The Growth of “Web-Driven Entrepreneurs” 179 Economic
Non-Tariff Barriers 149 Times—Motivation to Go It Alone? 179
Import Quotas 149 Embargoes 149 Customs
Great Ideas to Use Now 180
Regulations 149 Exchange Controls 149
Taking the First Steps 180 Working at a Small Business 180
The Future of the Global Marketplace 150
Canada—Increasing Its Prominence in the World 150 SUMMARY OF LEARNING OUTCOMES 181
Canada—Seeking New Markets 150 The Emergence of BRIC
Economic Power 150 KEY TERMS 182
Great Ideas to Use Now 151 EXPERIENTIAL EXERCISES 182
Continue Your Education 151 Study the Role of a Global
Manager 151 REVIEW QUESTIONS 184
SUMMARY OF LEARNING OUTCOMES 152 CREATIVE THINKING CASE 185
KEY TERMS 153 YOUR CAREER AS AN ENTREPRENEUR 186
EXPERIENTIAL EXERCISES 154 7 Analyzing the Business 188
REVIEW QUESTIONS 154 The Critical Success Factors 192
Achieving Success 193 Stakeholder Analysis 195
CREATIVE THINKING CASE 155 CREATING THE FUTURE OF BUSINESS: Ray Cao and Aditya Shah,
Loose Button 196
SWOT—A Basic Framework for Analyzing the Business 196
Part 2 Building a Business 157 Where Have We Been 196 Where Are We Now—
The SWOT 197
6 Entrepreneurship and Small Business 158 Identify the Company’s Internal Strengths and Weaknesses 197
Entrepreneurship Today 162 Analyze the External Environment 197
Entrepreneur or Small-Business Owner? 163 Analyzing the Strategy 198
CREATING THE FUTURE OF BUSINESS: Paul Maxwell, Maxwell’s Determine Competencies and Competitive Advantages 200
Music House 163 Analyze the Corporate-Level Strategy 200 Analyze the
Types of Entrepreneurs 164 Business-Level Strategy 201
Classic Entrepreneurs 164 Multipreneurs 164 MAKING ETHICAL CHOICES: Is It Ethical?—What’s Your
Intrapreneurs 164 Position 202
Why Become an Entrepreneur? 164 Analyze the Structure and Control Systems 203 Make
EXPANDING AROUND THE GLOBE: Lululemon Athletica Recommendations 203
Inc. 165 Financial Analysis 203
Characteristics of Successful Entrepreneurs 166 Financial Statements 203 Ratio Analysis 204
The Entrepreneurial Personality 166 Managerial Ability and SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Analytical
Technical Knowledge 167 Models 204
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Patagonia, Cost/Benefit Analysis 205
Inc. 167 The Future of Analyzing Business 205
Small Business: Driving Canada’s Growth 168 The Customers 205 The Environment 205 Society 205
viii CONTENTS NEL
EXPANDING AROUND THE GLOBE 206 CREATING THE FUTURE OF BUSINESS: Lauren Friese,
Great Ideas to Use Now 207 Talentegg.ca 250
Organizing 253
SUMMARY OF LEARNING OUTCOMES 207
Leading, Guiding, and Motivating Others 254
KEY TERMS 208 Leadership Styles 254 Employee Empowerment 256
EXPERIENTIAL EXERCISES 208 SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Statoil 256
REVIEW QUESTIONS 209 EXPANDING AROUND THE GLOBE: Leadership in Foreign
Subsidiaries 257
CREATIVE THINKING CASE 210 Corporate Culture 258
8 Forms of Business Ownership 212 Controlling 258

Going It Alone: Sole Proprietorships 216 MAKING ETHICAL CHOICES: Waiting and Waiting and
Advantages of Sole Proprietorships 216 Disadvantages of Waiting 259
Sole Proprietorships 217 Managerial Roles 260
Partnerships: Sharing the Load 217 Managerial Decision Making 260
Advantages of Partnerships 218 Disadvantages of Managerial Skills 262
Partnerships 219 Technical Skills 262 Human Relations Skills 262
Corporations: Limiting Your Liability 219 Conceptual Skills 262 Global Management Skills 262
Public versus Private Corporations 220 Going Public 221 The Future of Management and Leadership 264
The Incorporation Process 221 The Corporate Structure 222 Crisis Management 264 Managers and Information
Advantages of Corporations 224 Disadvantages of Technology 264 Managing in Diverse Cultural
Corporations 224 The One-Person Corporation 224 Environments 264
MAKING ETHICAL CHOICES: The Board Game 225 Great Ideas To Use Now 265
A Special Type of Corporation: The Crown Corporation 226 Effective Time Management 266 Stress Management 266
Specialized Forms of Business Organization 226
Cooperatives 226 Joint Ventures 227 Direct Selling 228 SUMMARY OF LEARNING OUTCOMES 267
Mergers and Acquisitions—Making It Bigger and Better 228 KEY TERMS 268
Types of Mergers and Acquisitions 229 Merger and
Acquisition Motives 229 EXPERIENTIAL EXERCISES 268
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Timberland 230
REVIEW QUESTIONS 269
Franchising: A Popular Trend 230
CREATING THE FUTURE OF BUSINESS: Ryan Smolkin, Smoke’s CREATIVE THINKING CASE 270
Poutinerie 231 10 Designing Organizational Structures 272
Advantages of Franchises 231 Disadvantages of
Franchises 232 Franchise Growth 232 The Next Big Thing Building Organizational Structures 276
in Franchising 233 International Franchising 233 Division of Labour 277 Departmentalization 277
EXPANDING AROUND THE GLOBE: Setting Up (Sandwich) Shop CREATING THE FUTURE OF BUSINESS: Dave Wilkin, Redwood
in China 234 Strategic 278
The Future of Business Ownership 234 Organization Chart 279
Joining Forces 234 “Baby Boomers” Rewrite the Rules of Managerial Hierarchy 280
Retirement 234 Franchise Innovations 235 Span of Control 281
Great Ideas to Use Now 235 Degree of Centralization 283
Is Franchising in Your Future? 236
Organizational Design Considerations 283
SUMMARY OF LEARNING OUTCOMES 237 Mechanistic versus Organic Structures 283
KEY TERMS 239 SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Johnson &
EXPERIENTIAL EXERCISES 239 Johnson 284
Factors Influencing the Choice between Mechanistic versus
REVIEW QUESTIONS 240 Organic Structures 285
CREATIVE THINKING CASE 241 Traditional and Contemporary Structures 286

Line-and-Staff Organization 286 Matrix Structure 287
Committee Structure 288
Part 3 Business Management 243 Teams 289
Understanding Group Behaviour 289 Work Groups versus
9 Management and Leadership in Today’s Work Teams 290 Types of Teams 291
Organizations 244
MAKING ETHICAL CHOICES: Team Spirit—Oh, Really? 291
The Role of Management and Leadership 248
EXPANDING AROUND THE GLOBE: Harnessing Talent to
Planning 249 Harness the Wind 292
NEL CONTENTS ix
Building High-Performance Teams 293 Achieving High Performance through Human Resource
The Informal Organization 293 Management 336
Functions of the Informal Organization 294 Informal HR Planning and Job Analysis and Design 337 HR Planning
Communication Channels 294 and Forecasting 338
The Future of Organizational Structures 295 Employee Recruitment 339
Re-engineering Organizational Structure 295 Internal Labour Market 339 External Labour Market 340
The Virtual Corporation 295 Virtual Teams 296 Electronic Job Boards 341
Outsourcing 296 Structuring for Global Mergers 296 Employee Selection 341
Great Ideas to Use Now 297 Employee Training and Development 343
On-the-Job Training 344 Off-the-Job Training 344
EXPANDING AROUND THE GLOBE: Employees on the
KEY TERMS 300 (International) Move 345
Performance Planning and Evaluation 345
EXPERIENTIAL EXERCISES 300
CREATING THE FUTURE OF BUSINESS: Jeff Nugent, Contingent
REVIEW QUESTIONS 301 Workforce Solutions Inc. 347
CREATIVE THINKING CASE 302 Employee Compensation and Benefits 347
Types of Compensation 348
11 Motivating Employees 304
MAKING ETHICAL CHOICES: Keeping Secrets 349
Early Theories of Motivation 309
Understanding Labour Relations in a Unionized
Frederick Taylor’s Scientific Management 309 Environment 349
The Hawthorne Studies 309 Modern Labour Movement 350 Negotiating Collective
Agreements 351
Maslow’s Hierarchy of Needs 311 Union Security 351 Management Rights 352
Alderfer’s ERG Theory 312 Wages and Benefits 352 Job Security and Seniority 352
McGregor’s Theories X and Y 313 Grievance and Arbitration 353
Tactics for Pressuring a Contract Settlement 354
Theory Z 314
Laws Affecting Human Resource Management 354
Herzberg’s Motivator-Hygiene Theory 315
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Adidas 356
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Pepsico 316
The Future of Human Resource Management 357
Contemporary Views on Motivation 317
Aging Population 357 Employee Diversity and Competitive
Expectancy Theory 317 Equity Theory 318 Goal-Setting
Advantage 357 Outsourcing HR and Technology 357
Theory 318
Organizational Culture and Hiring for Fit 358
CREATING THE FUTURE OF BUSINESS: Marci Andrews,
Healthpod Baby 319
Planning Your Career 358 Human Resources Decision
From Motivation Theory to Application 319 Making 358
Reinforcing Behaviour (Contingencies of Reinforcement) 319
EXPANDING AROUND THE GLOBE: Motivation Is Culture
Bound 320 KEY TERMS 360
Motivational Job Design 321 Work-Scheduling Options 322
Recognition, Empowerment, and Economic Incentives 322
MAKING ETHICAL CHOICES: Volunteerism—or Self Benefit 323
The Future of Motivation 324 CREATIVE THINKING CASE 363
Education and Training 324 Employee Ownership 324 13 Marketing: The Customer Focus 366
Work–Life Benefits 324 Nurturing Knowledge Workers 324
The Marketing Concept 370
Customer Value 371 Customer Satisfaction 371 Building
SUMMARY OF LEARNING OUTCOMES 326 Relationships 372
Creating a Marketing Strategy 373
KEY TERMS 327
Understanding the External Environment 373 Defining the
EXPERIENTIAL EXERCISES 328 Target Market 373 Creating a Competitive Advantage 374
Cost Competitive Advantage 375 Differential Competitive
REVIEW QUESTIONS 329 Advantage 375
CREATIVE THINKING CASE 330 SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Kraft Foods
Inc. 376
Niche Competitive Advantage 376
Part 4 Functional Areas of Business 331 Developing a Marketing Mix 377
Product Strategy 377 Pricing Strategy 377 Distribution
12 Managing Human Resources and Labour Strategy 377 Promotion Strategy 378 Not-for-Profit
Relations 332 Marketing 378
x CONTENTS NEL
Buyer Behaviour 378 CREATING THE FUTURE OF BUSINESS: Chris Jones, Entrix
Influences on Consumer Decision Making 380 Sports 416
Culture 380 Social Factors 380 Individual Influences on Alternative Channel Arrangements 417
Consumer Buying Decisions 381 Psychological Influences on Multiple Channels 418 Non-Traditional
Consumer Buying Decisions 382 Channels 418 Strategic Channel Alliances 418
Types of Buying Decisions 383 The Functions of Distribution Channels 419
Consumer Purchase Decision Making 383 Business-to- Channels Reduce the Number of Transactions 419 Channels
Business Purchase Decision-Making 384 Characteristics of Ease the Flow of Goods 419 Channels Perform Needed
the Business-to-Business Market 384 Functions 420
Market Segmentation 384 EXPANDING AROUND THE GLOBE: The Easy Way 421
Demographic Segmentation 385 Geographic Segmentation 386 The Intensity of Market Coverage 422
Psychographic Segmentation 386 Promotion—Selling Our Products 422
CREATING THE FUTURE OF BUSINESS: Michael Johnson, The Promotional Mix 423 Factors That Affect
SCIsupply Inc. 386 the Promotional Mix 424 The Nature of the
Benefit Segmentation 387 Volume Segmentation 387 Product 424 Market Characteristics 424 Available
Funds 425 Push and Pull Strategies 425
Using Marketing Research to Serve Existing Customers
and Find New Customers 387 Supply Chain Management: Increasing Efficiency and
Define the Marketing Opportunity or Issue 388 Choose a
Customer Satisfaction 425
Research Method 388 Collect the Data 389 Analyze the
MAKING ETHICAL CHOICES: Sugar-Coating the Truth 426
Data 389 Make Recommendations to Management 390
Managing the Logistical Components of the Supply Chain 427
The Future of Marketing 390 Sourcing and Procurement 427 Production Scheduling 428
Social-Media and Mobile Marketing 390 Green and Social Choosing a Warehouse Location and Type 428 Inventory
Marketing 390 Loyalty Cards 390 Control 428 Setting Up a Materials-Handling System 428
Making Transportation Decisions 429
EXPANDING AROUND THE GLOBE: Challenges of Conducting
Global Marketing Research 391 The Future of Marketing Strategies 430
Not Just Traditional Products: Increased Variety of Mobile
Devices 430 Marketing Dollars Going Social 430 Bargains,
Participate in Marketing Research Surveys 391 Bargains: Using Technology to Save 430 Supply Chain
MAKING ETHICAL CHOICES: Hitting the Long Shot 392 Management: Increasing Its Importance 430
Understanding Cognitive Dissonance 392 Great Ideas to Use Now 431
A Buyer’s Guide 431
SUMMARY OF LEARNING OUTCOMES 392 Browsing/Searching 431 Bidding 431
KEY TERMS 393 A Seller’s Guide 432
Listing 432 Closing the Deal 432
KEY TERMS 434
14 Creating Marketing Strategies 398 REVIEW QUESTIONS 437
Products—The Company’s Offerings 402
Brands—It’s Not Just the Name 402 Classifying Consumer
Products 402 15 Achieving World-Class Operations
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: L’Oréal 404 Management 440
Classifying Business Products 405
Production and Operations Management—
The Product Life Cycle 406 An Overview 444
Stages of the Life Cycle 406 The Product Life Cycle as a Gearing Up: Production Planning 446
Management Tool 407
The Production Process: How Do We Make It? 447
Pricing Products Right 407
One for All: Mass Production 447 Just for You:
Pricing Objectives 408 Customizing Goods 447
Profit Maximization 408 Achieving a Target Return on Converting Inputs to Outputs 448
Investment 409 Value Pricing 410 Production Timing 448
Product Pricing Strategies 410
Price Skimming 410 Penetration Pricing 411 Leader Location, Location, Location: Where Do We
Pricing 411 Bundling 411 Odd-Even Pricing 412 Make It? 449
Prestige Pricing 412 Availability of Production Inputs 450
How Managers Set Prices 412 Marketing Factors 450
Break-Even Analysis 412 Markup Pricing 414
MAKING ETHICAL CHOICES: Sweating It Out at New Era Cap 450
The Nature and Functions of Distribution 414 Manufacturing Environment 451 Local Incentives 451
Marketing Intermediaries in the Distribution Channel 416 International Location Considerations 451
NEL CONTENTS xi
Designing the Facility 451 The Balance Sheet (Statement of Financial Position) 485
Process Layout: All Welders Stand Here 451 Product Layout: Assets 486 Liabilities 487 Owners’ Equity 488
Moving Down the Line 453 Fixed-Position Layout: Staying
CREATING THE FUTURE OF BUSINESS: Alyssa Richard,
Put 453 Cellular Manufacturing: A Start-to-Finish Focus 453
RateHub.ca 489
Pulling It Together: Resource Planning 453
The Income Statement 489
Make or Buy? 453 Inventory Management: Not Just
Parts 454 Computerized Resource Planning 454 Revenues 489 Expenses 490 Net Profit or Loss 491
Keeping the Goods Flowing: The Supply Chain 455 The Statement of Cash Flows 492
Strategies for Supply Chain Management 456
Analyzing Financial Statements 492
Talk to Us: Improving Supplier Communications 456
Liquidity Ratios 493 Profitability Ratios 495
EXPANDING AROUND THE GLOBE: Sophisticated Supply-Chain Activity Ratios 495 Debt Ratios 495
Strategies Keep Products on the Move 457
The Future of Accounting 496
Production and Operations Control 458 Accountants Expand Their Role 496
Routing: Where to Next? 458 Scheduling: When Do We Do
It? 458 MAKING ETHICAL CHOICES: Grocery Companies Shelve
Tracking Progress with Gantt Charts 459 The Big Picture: Revenues and Can Auditors 496
CPM and PERT 459 SUSTAINABLE BUSINESS, SUSTAINABLE WORLD:
Looking for a Better Way: Improving Production and Ernst & Young 497
Operations 461 Valuing Knowledge Assets 497 Green and Social
Putting Quality First 461 Accounting 498
Worldwide Excellence: International Quality Great Ideas to Use Now 498
Standards 462
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: The Hudson’s SUMMARY OF LEARNING OUTCOMES 498
Bay Company 462
Lean Manufacturing—Streamlining Production 463 KEY TERMS 500
Transforming the Factory Floor with Technology 464 EXPERIENTIAL EXERCISES 500
Computer-Aided Design and Manufacturing Systems 464
Robotics 464 Adaptable Factories: Flexible Manufacturing REVIEW QUESTIONS 503
Systems 465 Quick Change with Computer-Integrated
Manufacturing 465 CREATIVE THINKING CASE 504
Technology and Automation at Your Service 465
CREATING THE FUTURE OF BUSINESS: Mike Morrice, Sustainable 17 Understanding Money and the Canadian Financial
Waterloo Region 466 System 506
The Future of Production and Operations Show Me the Money 510
Management 466 Characteristics of Money 510 Functions of Money 510
Asset Management 467 Modular Production 467 The Canadian Money Supply 511
Designing Products for Production Efficiency 467
The Bank of Canada 512
Great Ideas to Use Now 468 Carrying Out Monetary Policy 513
SUMMARY OF LEARNING OUTCOMES 469 The Canadian Financial System 513

Depository Financial Institutions 514
KEY TERMS 470 Chartered Banks 514 Trust Companies 515 Credit
Unions and Caisses Populaires 515
EXPERIENTIAL EXERCISES 471 Non-Depository Financial Institutions 515
Insurance Companies 515 Pension Funds 515 Brokerage
REVIEW QUESTIONS 472 Companies 515 Finance Companies 516
CREATIVE THINKING CASE 473 Insuring Bank Deposits 516
16 Accounting for Financial Success 474 International Banking 516

SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Sun Life
Accounting: More than Numbers 478
Financial 517
Who Uses Financial Reports? 478
EXPANDING AROUND THE GLOBE: Breaching Banking Barriers
EXPANDING AROUND THE GLOBE: Moving Toward One World in China 518
of Numbers 481 Investor’s Choice: Shares and Bonds 518
The Accounting Profession 481 Sharing the Wealth—and the Risks 518
The Accounting Designations 481 Common Shares 518
Basic Accounting Procedures 482 CREATING THE FUTURE OF BUSINESS: Matt Schnarr, AWAKE
The Accounting Cycle 483 The Accounting Equation 483 Corporation 519
The T-Account 484 The Trial Balance 485 Computers in Preferred Shares 520
Accounting 485 Cashing in with Bonds 520
xii CONTENTS NEL
Corporate Bonds 521 Government Securities 521 Secured Short-Term Loans 550
Bond Ratings 521 Raising Long-Term Financing 550
Playing the Market with Other Types of Securities 522 Debt versus Equity Financing 551
Mutual Funds 522 Exchange-Traded Funds 524 Futures Long-Term Debt Financing 551
Contracts 524 Options 524
Equity Financing 552
Securities Markets 524
Selling New Issues of Common Shares 552
The Role of Investment Bankers and Stockbrokers 525
Online Investing 525 Types of Markets 526 Buying SUSTAINABLE BUSINESS, SUSTAINABLE WORLD: Encana
and Selling at Securities Exchanges 526 The Primary Corporation 553
Canadian Stock Exchanges 527 Other Exchanges Important Dividends and Retained Earnings 553 Preferred Shares 554
to Canadian Businesses 527 Global Trading and Foreign Venture Capital 554
Exchanges 527 Dealer Markets 527
NASDAQ 528 The Over-the-Counter Market 528 MAKING ETHICAL CHOICES: The Friends and Family
Market Conditions: Bull Market or Bear Market? 528 IPO Plan 555
The Future of the Financial Industry 528 Managing Risk and Insurance 555
Changing the Way We Bank 528 Risk Management 556
Types of Risk 556 Strategies to Manage Risk 556
MAKING ETHICAL CHOICES: Trials and Manipulations 529
Increased Financial Responsibilities 529 Insurance Concepts 556
Insurable Risks 557 Premium Costs 558 Insurance
Great Ideas to Use Now 529 Providers 558
The Time Is Now 529 Public Insurance 558 Private Insurance Companies 559
Types of Insurance 559
SUMMARY OF LEARNING OUTCOMES 530 Property and Liability Insurance 559 Special Types of
KEY TERMS 532 Business Liability Insurance 560
The Future of Financial Management 561
EXPERIENTIAL EXERCISES 532 The CFO’s Role Continues to Expand 561 Weighing the
Risks 562
18 Finance: Maximizing the Value 536
KEY TERMS 565
The Role of Finance and the Financial Manager 541
The Financial Manager’s Responsibilities and Activities 542 EXPERIENTIAL EXERCISES 566
Financial Planning: Looking Ahead 543
Forecasting the Future 543 Budgets 544 REVIEW QUESTIONS 568
CREATING THE FUTURE OF BUSINESS: Patti Dibski, Gibson Fine CREATIVE THINKING CASE 569
Art 544
How Organizations Use Funds 546
Short-Term Expenses 546 Appendix A Basic Understanding of
Cash Management: Assuring Liquidity 546
Our Legal Environment 572
EXPANDING AROUND THE GLOBE: Follow the Money 547
Managing Accounts Receivable 547 Inventory 548 GLOSSARY 581
Long-Term Expenditures 548
Obtaining Short-Term Financing 548 ENDNOTES 601
Unsecured Short-Term Loans 549 COMPANY INDEX 609
Trade Credit: Accounts Payable 549 Bank Loans 549
Commercial Paper 550 SUBJECT INDEX 613
NEL CONTENTS xiii

an integrative
approach to business
INTEGRATED LEARNING SYSTEM
The Integrated Learning System helps students learn quickly by driving home key
chapter concepts and providing a framework for studying. It links all of the instructor
and student materials to each chapter’s learning outcomes.
Learning outcomes are listed at the beginning of each chapter, and then major
headings within the chapter are identified by the relevant chapter learning outcome.
Each section of the chapter ends with Concept Checks that can be used to self-test
understanding of the material.
The Summary of Learning Outcomes at the end of the chapter provides easy
review of the chapter’s content.
izations do compete for people’s scarce volunteer time and donations.
GOVERNMENT—MORE THAN ONE LEVEL LO2

Canada is a diverse country with a large land mass and a very small population
(approximately 34.5 million). There are three levels of government in Canada: fed-
eral, provincial/territorial, and municipal. Each has different responsibilities and
regulations that affect business and society. Some of those responsibilities are listed
below.
Federal Government—Overseeing
LEARNING OUTCOMES the Well-Being of Canada
The federal government has the authority for money and banking, trade regulation,
external relations, defence, criminal law, employment insurance, copyrights, and
1 Describe the world of business. 4 Explain some of the Canadian laws that transportation, just to name a few responsibilities. Through the use of the fiscal policy
(taxation and spending—discussed in Chapter 2) and the Bank of Canada (monetary
protect businesses and consumers. policy—discussed in Chapter 2) Canada’s financial system is regulated and wealth is col-
2 Understand the responsibilities of the lected, transferred, and spent to provide Canadians with one of the highest standards
three levels of government in Canada. 5 List the most common taxes paid by of living in the world. Although the Bank of Canada is not a government department
(it is actually a Crown corporation) and operates with considerable independence, we
businesses.
3 List some of the roles governments
introduce it here because of its impact on our economy (see Chapter 2).
Although the majority of Canada’s workforce is regulated by the provincial/
play in Canada and how they affect 6 List some of the trends that are reshaping territorial legislation, approximately 10 percent of Canada’s workforce is regulated
by the federal government’s Canada Labour Code. The Code regulates employment
business. the political environment. standards in industries such as banking, marine shipping, ferry and port service, air
transportation, railway, and road transportation.
Provincial/Territorial Governments—
Protecting Rights Concept Check
Some of the responsibilities of the provinces/territories are the administra-
tion of labour laws (other than that mentioned above), education, health Define business and differentiate between goods
and services.
and welfare, protection of property and civil rights, natural resources, and
the environment. One of the most significant provincial/territorial juris- What is standard of living and how is it measured?
dictions is labour law. This includes minimum working standards such as What are revenues and costs?
minimum wages, vacations, statutory holidays, overtime, etc.
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Summary of Learning Outcomes
Explain what Economics is the study of how individuals, businesses, and governments use scarce
LO1 economics is and resources to produce and distribute goods and services. The two major areas in economics
how the three sectors are macroeconomics, the study of the economy as a whole, and microeconomics, the
of the economy are
study of households and businesses. The individual, business, and government sectors
linked.
of the economy are linked by a series of two-way flows. The government provides
public goods and services for the other two sectors and receives income in the form of
taxes. Changes in one flow affect the other sectors.
Understand the An economic system is the combination of policies, laws, and choices made by a
LO2 primary features of nation’s government to establish the systems that determine what goods and services
the world’s economic are produced and how they are allocated. The main economic systems in the world
systems.
today include market economies (capitalism), command (planned) economies,
socialism, and mixed economies.
Explain the four types Market structure is the number of suppliers in a market. Perfect competition is
LO3 of market structure. characterized by a large number of buyers and sellers, very similar products, good
market information for both buyers and sellers, and ease of entry into and exit from
the market. In monopolistic competition, many companies sell close substitutes in a
market that is fairly easy to enter. In an oligopoly, a few companies produce most or all
of the industry’s output. An oligopoly is also difficult to enter, and what one company
does will influence others. In a pure monopoly, there is a single seller in a market.
Discuss the basic Demand is the quantity of a good or service that people will buy at a given price.
LO4 microeconomic Supply is the quantity of a good or service that companies will make available at a
concepts of demand given price. When the price increases, the quantity demanded falls but the quantity
and supply, and how supplied rises. A price decrease leads to increased demand but a lower supply. At the
they establish prices.
point where the quantity demanded equals the quantity supplied, demand and supply
are in balance. This equilibrium point is achieved by market adjustments of quantity
and price.
Show how economic A nation’s economy is growing when the level of business activity, as measured by
LO5 growth, full gross domestic product, is rising. GDP is the total value of all goods and services
employment, and produced in a year. The goal of full employment is to have a job for all who can and
price stability indicate
want to work. How well a nation is meeting its employment goals is measured by
a nation’s economic
the unemployment rate. There are four types of unemployment: frictional, structural,
health.
cyclical, and seasonal.
With price stability, the overall prices of goods and services are not moving either
up or down very much. Inflation is the general upward movement of prices. When
prices rise, purchasing power falls. The rate of inflation is measured by changes in the
consumer price index (CPI) and the producer price index (PPI). There are two main
causes of inflation. If the demand for goods and services exceeds the supply, prices will
i Thi i ll d d d ll i fl i Wi h h i fl i hi h d i
xiiv
xiv NEL
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THE INTEGRATIVE MODEL OF BUSINESS
The Integrative Perspective in The Future of Business helps students understand the impor-
tant connections of business and prepares them for the intricacies of working in an ever
more interconnected world. The Introduction to the text sets up this perspective, and
it is reinforced before each chapter in the Making the Connection feature. Making the
Connection introduces each chapter; this section shows how the chapter concepts relate
to the “Integrative Model,” helping students connect the chapter concepts to the external
and internal business environments.
PART 1 illustrates the relationship of each chapter to the Political, Economic, Social,
Technological, and International (PESTI) model.
PART 2 shows the impact of different forms of business on the PESTI model and the
functional areas of the business.
PART 3 connects strategic decisions of management, structure, and motivation to the

business’s goals in the external environment.
PART 4 shows the impact of the external environment on each business unit through
the PESTI model and how those business units both influence and are influenced by
other functional areas.
chapter 1 chapter 6
Making the Making the

Connection Connection
Politics: Governments’ Roles Entrepreneurship and Small Business
In this chapter, you’ll learn about the role of government in sufficiently. The Big Three—General Motors, Ford, and Now that we have looked at the different factors that make but to still take care of their families and their health. This is
business. But first, you might be wondering, “Where does Chrysler—were already in trouble as oil prices skyrocketed up the external environment of business—the context in a critical lesson for entrepreneurs: the integrative nature of
all this fit into our understanding of a successful business?” leading into the economic crisis, because a large part of which it operates—we can start to examine businesses them- business extends beyond their businesses to their personal
Take a peek back at the model introduced in Framework their market was gas-guzzling SUVs and pickup trucks. This selves. We will start at the beginning of a business—with the lives as well. Since it creeps into life outside of work, the
for Business Success. The most obvious relationship between position put them in even more serious financial trouble people whose ideas create businesses. In this chapter, you interconnections need to be viewed on a much broader level.
this chapter and the model of a successful business is in when credit tightened up, and had General Motors and will be learning about entrepreneurship and small business. You can’t get more integrative than that! But you’d also have
the external environment. The PESTI model of the external Chrysler running to governments for bail-out money. Many What motivates people to start businesses, and what factors to look long and hard to find a job more rewarding than to
environment is an acronym for the political, economic, groups in society felt that the automakers put themselves shape the business’s success? see your own dreams come alive.
social, technological, and international environments that into that position by not sufficiently responding to the Individuals with a desire to start a business, whether This chapter is full of examples of trends in the external
interact with business. environment by building fuel-efficient cars in the first place. they are people who simply want to start a small business environment affecting entrepreneurs and small-business
The political environment is thus a part of our PESTI This is an example of how the integrative nature of business of their own or entrepreneurs with a grander vision, need owners—trends that provide the motivation and the ideas
model of the external environment. In this chapter, we can cause a large number of complex spinoff effects. to see the big picture. Every business is affected by its to fuel these businesses. Start by looking at why people
l i All h i lf h h i b i F l i h i
chapter 9 chapter 12
Making the Making the

Connection Connection
Management and Leadership in Today’s Organizations
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Managing Human Resources and Labour Relations
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In this section of the text, we will take a look at the internal is therefore unlikely that a decision like this one would ever
In this chapter, you will be introduced to management and promotion. This is called control—results are measured and environment of a business or, more simply, the functional be made by The Bay. Even if there were opportunities in the
the first function of a manager in the act of managing a compared against objectives, and changes are made to keep areas of a business. These areas are what most people think market for ATVs, it would not match with the strengths of
business—planning. Management is what managers do to everything on track or under control. of when they think of a business or a career in business— the company. Financial resources would therefore not be
ensure that the organization achieves the critical success But remember that managers don’t perform this human resources, marketing, operations, and accounting and released for this type of project to begin with.
factors. As we state later in the chapter, “management is the highly integrative process in a vacuum. They make plans finance. In this chapter, we’ll take a look at our first functional
process of guiding the development, maintenance, and allo- contingent on the opportunities and threats they see in Before we take a look inside each of the functional areas area. The old adage “last but not least” certainly applies here.
cation of resources to attain organizational goals.” That is the external environment in relation to the strengths and in detail, in separate chapters, one very important message As we discussed earlier, gaining the commitment of employees
why the process of management encircles our model of a weaknesses the business has internally. What is done to must be communicated clearly at the outset. Even though is the most critical factor, because all of the other four
successful business. It is the process whereby all of the activ- implement the plan, with respect to organizational structure, each of these areas is discussed separately in different critical success factors are achieved through the people in
ities of a business toward achieving the factors critical to its motivational tactics, and control mechanisms, also depends chapters of introductory textbooks, and later in separate the company. Without a strong human resource area and the
success are implemented. It ties everything together and, on the internal and external environments. For example, a courses in business schools, they cannot act separately strong commitment of the employees toward organizational
when done properly, ensures that activities are integrated. company might choose an open, flexible structure with less if the business is to be successful. They are all part of the goals, the company simply cannot be successful in any
All of the activities within the process of management— bureaucracy to encourage employees to be more creative, i t t db i d l th t h b th t l th f f ti l ll
NEL
NEL CHAPTER
CHA
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APTE
PTER 3 Soc
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s Soc
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isions
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siness
ess xv
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CHAPTER Four Thematic Boxes
FEATURES THAT EXPANDING AROUND THE GLOBE This boxed feature demonstrates
how globalization is important in today’s marketplace and its impact on real
CONNECT companies.
MAKING ETHICAL CHOICES The ethical activities in these boxes present

Opening Vignettes real-world ethical challenges to stimulate discussion about ethical issues faced
Opening Vignettes teach key princi- by organizations.
ples through real-life examples.
GOVERNMENT GRANTS—STUDENT JOBS

Instead of finding a summer job in 2011, Melanie Mirza of
Brantford, Ontario, started a business called Adirondeck Art. Expanding Around the Globe
Her attention-getting Adirondack chairs are hand-painted
with unique designs, some commissioned at client request.
This business was made possible with a grant from the
Making Ethical Choices
M
“Summer Company” program of the Ontario government. MAGNA INTERNATIONAL INC.—AN INTER
Melanie received $1500 to start her company; a second
SUCCESS STORY
$1500 was available to student firms that stayed in business
all summer.
THE ALBERTA OIL SANDS
Not everyone is aware of the many government Magna International is the world’s most diversified Charter” is built on the premise that
programs created to reduce economic difficulties such as automobile supplier in the world. Today, it has 275 share the responsibility to ensure the s Over the next 20 to 25 years, it is estimated that capital
O That’s the good n
student unemployment and graduate debt. manufacturing operations in 26 countries on five continents and Some of the principles in the “ iinvestment in the oil sands of Alberta will amount to sands as being “dirty
Some not-for-profits are eligible for federal grants that
employs more than 100,000 people. security, fair treatment, a safe and he a
approximately $218 billion according to the Canadian land, and water. The
pay 100 percent of the cost of employing a student, including
wages and all mandatory employment-related expenses
Its founder, Frank Stronach, started a tool and die company (a wages and benefits, communication a E
Energy Research Institute. For every dollar that is develop better, more
such as Employment Insurance and Canada Pension Plan. company which makes tools used in the manufacturing business) and profit participation. iinvested, it creates approximately $8 dollars of eco- Also, independent,
This program may be supported by donations encouraged called Multimatic Investments Limited, and eventually expanded to Today Magna is developing green n
nomic activity. In the 2009–2010 budget year, the based Climate Chan
through income tax credits. the production of automobile parts. In 1969, Multimatic merged with efficiencies, and lightweight products w A
Alberta government was paid $1.9 billion in royalties (CCEMC) have a ma
Public sector employers and businesses with fewer than Magna Electronics Corporation becoming Magna International Inc. and convenience. Since its beginnings
51 employees may also access federal grants that pay up to b
by the companies working the oil sands. This money develop new “clean”
The company is proud of its “Fair Enterprise” philosophy that presence today, Magna is just one exam
50 percent of the cost of employing a student. Larger firms was used to help fund many public programs and services (e.g., them. For example, in
builds ownership and inspires pride in its employees. The company
cannot access these programs. The government recognizes infrastructure, health, and education). The expected royalties are Energy, along with its
COURTESY OF MELANIE MIRZA
small business as the creator of most new jobs and, for that believes that its continued success is dependent on the skills, SOURCE: Adapted from “Employee’s Charter,” Ma
knowledge, and commitment of its employees. The “Employees’ magna.com/for-employees/employee’s-charter>.
estimated at approximately $184 billion over the next 20 to 25 years. greener technology.
reason, many government programs support small businesses.
Employers can also access other grant programs to Alberta is not the only financial beneficiary of the oil sands. It is
help support student positions. For example, infrastructure estimated that, over the next 20 to 25 years, the oil sands will gen- ETHICAL DILEMMA:
grants may provide the facilities, and program grants may erate more than $307 billion in tax revenue across Canada with downsides of the oil s
fund equipment and services that the students use to do
approximately 61 percent ($187 billion) going to the federal gov-
their jobs.
Frequently, government also provides matching grants
that are paid in proportion to donations received from
According to the Canadian Federation of Students, the
average student graduates after four years with $27,000 in debt,
PROTECTING BUSINESSES LO4 ernment. Key industries such as manufacturing (e.g., machinery and
metal fabrication) primarily situated in Ontario benefit. In Atlantic
SOURCES: Government of A
oilsands.alberta.ca/economic
private citizens.
Government interventions in the economy serve more
with interest ranging from 5 to 9 percent. Since many students
need grants and loans to pay for tuition and living costs, being AND CONSUMERS Canada, contracts worth approximately $50 million have been signed Emissions Management Corp
about/fast-facts, February 14
gainfully employed each summer serves to reduce that need. to steel manufacturers to supply their products to the oil sands. Also, funding for clean technology
than one purpose. Creating employment is just one objective.
Perhaps in 2012, Melanie will hire a student to help her … many of the skilled labourers come from various regions and con-
Another purpose is to support other government priorities, The legal environment is meant to not only protect citizens in everyday life, but also to http://www.marketwire.com/
and access a Canada Summer Jobs grant to fund half the cost.1
such as increasing diversity in the workplace or supporting provide protection to owners and consumers alike. Below is a brief discussion of some tribute to their local communities back home. for-clean-technology-research
the work of not-for-profits by funding summer jobs.
Student job creation is supported both directly and of these protections.
indirectly. Indirect support includes setting up student THINKING CRITICALLY
employment centres or making exceptions in visa regulations
to permit international students to work on-campus.
As you read this chapter consider the following questions: Patents, Copyrights, and Trademarks
Directly, federal, provincial/territorial, and municipal
governments also hire students. Seasonal needs such as parks
1. How does government influence business operations?
2. How can governments help businesses?
Canadian law protects authors, inventors, and creators of other intellectual property The Canadian government promotes itself as delivering programs and service
that are focused on improving the quality of life for all Canadians. You might want t
HOT
and recreation or environmental research lend themselves by giving them the rights to their creative works. Patents, copyrights, and registration
well to summer jobs. And sometimes, students are fortunate 3. What impact do governments’ agendas have on
of trademarks are legal protection for key business assets. work in one of our High Commissions or embassies around the world. Working wit
h fi d ki h i h f d h i li i h l b i ?
09637_01_Ch01.indd 11 20/12/12 5:11 PM
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD These boxes highlight the growing importance of sustainability in
today’s business practices.
CREATING THE FUTURE OF BUSINESS This new boxed feature profiles young Canadian entrepreneurs who have been
successful in their business ventures.
their functions. Some businesses (e.g., road construction companies) rely on gov-
ernments for most, if not all, of their revenues. Businesses that want to sell their
products to the governments usually must register their business with them. The
governments are also a competitor, for example, competing with the private sector
for employees—maybe you’ll work for government when you graduate, let’s say, as a
commercial attaché! 09637_01_Ch01.indd 17 20/12/12 5:12 PM
Creating the Future of Business

YOUNG organization run by 100 volunteers at 35 universities and colleges
across Canada. Its aim is to “foster a spirit of entrepreneurship
Sustainable Business, Sustainable World ENTREPRENEURS among high school and university students” with a view that
“entrepreneurship embodies something bigger than just starting a
So you think you want to start your own business. That is exciting! You
09637_01_Ch01.indd 23 20/12/12 5:12 PM
business—a mindset towards life that can help achieve any dream.”
truly are the “future of business” as you will be the ones running the
WHAT DOES IT MEAN? businesses that shape tomorrow.
Sounds pretty great to us. How about you? If you want to get started
on your journey, check out their program called Impact Apprentice
Start by thinking about what it means to be an entrepreneur.
The term “sustainable development” The business environment of the 21st century is ecologically Competition, inspired by Donald Trump’s The Apprentice at http://
was coined in 1972 at the United Nations uncertain, socially complex, financially unpredictable and ethically There is a great video—www.youtube.com/watch?v=lZKhZmvJuZY—
apprentice.impact,org.
Conference on Human Development. It was challenging. From a business ethics point of view, sustainable put together for New York Entrepreneur Week that describes in very
As quoted in Career Options Magazine, Canada’s National Youth
popularized through Our Common Future (1987), development provides an opportunity to achieve the greatest good real, concrete terms what it means to be an entrepreneur. If that
Entrepreneur Social Attitude and Innovation Study, conducted in
the report of the UN World Commission on Environment and or least harm to the Earth’s human and non-human inhabitants.8 describes you, then read on …
January 2008, showed that “close to 50 percent of youth between the
Development, also known as the Brundtland Commission. One feature Does business have a moral obligation to see that its practices are So what does it mean to be a “young entrepreneur”? Is it really
ages of 16 and 24 would like to start their own business.” If you are
of the Brundtland Commission was its challenge that business be part socially just and ecologically sustainable? Markets operate within possible to start a business at your age? Absolutely. Just look at Mark
one of the 50 percent, there are lots of resources and networks available
of the solution rather than part of the problem. Since then, sustainable certain constraints. While business is free to pursue profits, there Zuckerberg of Facebook, Chad Hurley of YouTube, or Blake Ross
for you to get started, from the Impact Entrepreneurship Group
development has been commonly understood as “development that is a moral minimum within which business operates and companies and David Hyatt of Mozilla, all of whom are on The 50 Richest Young
meets the needs of the present without compromising the ability have the responsibility to operate within these limits. Traditional (www.impact.org), to Youth Canada (www.youthcanada.ca), ACE (www
Entrepreneurs Under 30 list. Or check out Blake Mycoskie’s story of
of future generations to meet their needs.” Thus, linking social models of social responsibility include legal and moral constraints; .acecanada.ca), and Young Social Entrepreneurs of Canada (www
how he created TOMS shoes in the book Start Something That Matters.
and environmental variables within economic agendas is a hallmark the sustainable development approach also includes ecological .ysec.org). Good luck. Remember, you are the “future of business.”
Inc. Magazine puts together a list of the Top 30 Under 30 young
of sustainable development. Sustainable development provides constraints.9
entrepreneurs every year. There are lots of lists and lots of examples.
a framework to describe the bigger picture within which human Corporate responsibility can be seen to encompass a set of tools Thinking Critically
These particular examples may seem like anomalies to you. We have,
activities occur, the intention of which is to preserve or enhance for achieving goals and assessing the performance of individuals and 1. If youth did not start businesses, what would the “future of
the systems—ecological, socioeconomic and cultural—upon which organizations within the larger context of the sustainable development
however, profiled a number of very real, accessible examples for you;
many of whom have graduated from your own schools. Read their business” look like?
humans and other species depend.4 This bigger picture frames the business environment. This might include ecological, social, financial,
stories, contact them, and ask your questions. They all had a dream, a 2. Do you think that youth today have a different perspective
business environment for the 21st century. governance and cross-cultural performance. Corporate leaders in the
Humans have an increasing impact on the planet. Along with 21st century innovate strategic capabilities, achieving competitive vision, and went for it. And they will all inspire you. You can do it too. than those who started businesses 20 or 30 years ago? Will the
various forms of pollution and toxic waste, climate change and loss of advantage through sustained, responsible performance in these areas. You will see that a number of the young entrepreneurs we have “future of business” look different because of it?
habitat, we are responsible for the greatest rate of species extinction profiled for you have also won awards. One such award is the FUEL 3. What different perspectives and priorities do the youth of today
since the demise of the dinosaurs in the Mesozoic era 65 million Awards for Canada’s best young entrepreneurs. These awards were bring to new businesses?
years ago.5 As a single species, humans have already exceeded the Thinking Critically launched recently, in 2011, to “promote entrepreneurship in Canada SOURCES: Entrepreneur Week website, http://www.entrepreneurweek.net; http://www.
ecological capacity of the biosphere.6 The wealthiest 20 percent of 1. What do you think is the responsibility of companies to protect by identifying forward-thinking role models for youth and illustrating retireat21.com/top-youngentrepreneurs; Blake Mycoskie, “How I Did It: The TOMS Story,”
the world’s human population uses some 80 percent of the resources. our environment? the many benefits of venturing out on one’s own.” The awards are Entrepreneur.com, September 20, 2011, http://www.entrepreneur.com/article/220350;
The wealthiest 25 percent of the world gets 75 percent of the income, 2. What responsibilities do consumers have to ensure that the sponsored by Rogers, KPMG, TD Bank, Filemobile, Profit Magazine, “30 Under 30,” Inc.com, http://www.inc.com/30under30/2011/index.html; Fuel Awards:
even after adjustment for the parity of purchasing power.7 Thus, products and services they are purchasing and using contribute Celebrating the Best Young Entrepreneurs in Canada, http://www.fuelawards.ca; Vinod
and Impact Entrepreneurship Group. Rajasekaran and Despina Sourias, “Entrepreneurship: The Path of Change Makers,”
along with addressing our collective and individual impacts on the to sustainability?
The Impact Entrepreneurship Group was started as a one-day Career Options Magazine online, http://www.careeroptionsmagazine.com/1394/
biosphere—which has led, amongst other things, to the dwindling of
natural resources—sustainable development must also address issues
event at University of Waterloo in 2004 and has grown into a national entrepreneurship-the-path-of-change-makers.
SOURCE: David Lertzman, Ph.D. The University of Calgary, September 2011. Used with
of equity in sharing those resources. permission.
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HOT
HOT
Concept in Action
Hot Links Interesting companies, business leaders, and ideas are featured
The Hot Links feature appears in the margin to in our “Concept in Action” photo essays. Many of these con-
provide an opportunity to connect to relevant clude with a critical thinking question to spark further discus-
websites that expand on chapter information. sion and study about a business topic.
bankruptcy Concept in Action

The legal procedure by which PPP Canada is a Crown corporation
created to improve the delivery of
individuals or businesses that cannot public infrastructure to Canadians. The
meet their financial obligations are private sector assumes a major share of
the responsibility in the public–private
relieved of some, if not all, of their debt. partnerships (P3). One example is the
$11 million the Government of Canada
contributed towards a new biosolids
L
management facility in Sudbury,
HOT inks Ontario.
For more information on corporate

bankruptcy, see the website that helps
people and businesses get a fresh
financial start at
www.bankruptcycanada.com
Key Terms
Business terms are carefully defined and conveniently located in the text margins beside the section where the term is first
09637_01_Ch01.indd 15 20/12/12 5:12 PM
introduced. A complete glossary of all key terms is included at the end of the text.
s, and registration
END-OF-CHAPTER SKILL-BUILDING e, use, and sell an

t meet its require-
hine, or formula is
patent
A form of protection (limited monopoly)
established by the government for
ACTIVITIES, EXERCISES, AND RESOURCES

inventors; it gives an inventor the
to produce drugs exclusive right to manufacture, use, and
perty (i.e., they do sell an invention for 20 years.
usive right, shown copyright

A form of protection established by the
Experiential Exercises
that is given to a
government for creators of works of art,
sell her or his cre-
music, literature, or other intellectual
t include printed property; it gives the creator the
This feature allows students to practise and apply the chapter concepts and to expand aphs, and movies. exclusive right to use, produce, and sell
the creation during the lifetime of the
he creator plus 50
on the chapter topics. These exercises can be used as assessments or assignments and to onsidered intellec-
creator and extends these rights to the
creator’s estate for 50 years thereafter.
add a real-world application. manufacturer uses trademark

ogo (symbol) is an The legally exclusive design, name,
or other distinctive mark that a
Review Questions inds of customers.

well known that it
manufacturer uses to identify its goods
in the marketplace.
Review questions confirm students’ learning and understanding of chapter topics. often used to refer
Creative Thinking Cases

These chapter-ending cases encourage the exploration and analysis of business strategies.
09637_01_Ch01.indd 17 20/12/12 5:12 PM

CREATIVE THINKING CASE
Experiential Exercises Review Questions Inside Intel: It’s about Copying—Exactly
Intel Corporation has more than 82,000 employees worldwide, but innovation depends
1. Find out what’s happening in Canadian business at www.canadianbusi on people like Trish Roughgarden, an Air Force veteran whose job is to copy slavishly.
1. What is a business? Ms. Roughgarden is known inside Intel as a “seed,” an unofficial title for technicians
2. Check out the latest on the world’s ranking of highest quality of l who transfer manufacturing know-how from one Intel chip factory to another. Her
countries at www.mapsofworld.com/world-top-ten/world-top-ten-q 2. Products consist of goods and services. List some of the differen job: to help ensure that Intel’s latest plant works just like identical plants around the
world. If there is a problem at one plant, production may be slowed but not stopped—
life-map.html. and services. other plants pick up the slack. So when an earthquake interrupts a plant in China, a
plant in Oregon may increase production.
3. Search for any not-for-profit organization. See what challenges the 3. What impact do our governments have on our standard of liv It is all part of a major Intel strategy known as “Copy Exactly,” which discourages
experimentation at individual factories. Instead, engineers and technicians painstak-
funding, volunteerism, etc. life? ingly clone proven Intel manufacturing techniques from one plant to the next—down
to the colour of workers’ gloves and wall paint, or other features that would seem to
4. Check out what is new in the federal government at www.gc.ca. have no bearing on efficiency. New plants fall into two basic categories: model plants
4. Explain the relationship between revenues, costs, and profits. that will be copied and those that are copies.
5. Search your provincial/territorial government’s website to see the latest The strategy emerged after a production disaster in the 1980s, when maddening
5. What are the responsibilities of the three levels of government variations between factories hurt productivity and product quality. Japanese competi-
6. Search how your local government impacts business activities through tors nearly drove Intel out of business. Today, Copy Exactly shapes Intel’s response to
7. What is new at the Office of the Auditor General of Canada? See www 6. What roles do the governments play in our economy? the latest economic downturn, helping accelerate the relentless pace of technology
improvements known as Moore’s Law, after former Intel chairman Gordon Moore.
Moore predicted that the number of transistors that could be placed on a computer
gc.ca. 7. Explain our legal system in terms of public and private law. chip (of the same size) would double every two years.
Although it prohibits willy-nilly changes, the Copy Exactly methodology encour-
8. Learn more about our legal system at www.blakes.com/DBIC/guide/ht 8. What laws govern business operations? ages Intel workers to come up with ideas to boost productivity or make chip features
system.html. smaller. But the ideas must pass a committee called the Process Change Control Board,
9. What are the conditions of a valid contract? which requires workers to come up with tests to prove the value of their suggestions.
9. How are our courts organized, both federally and provincially/territo The idea of Copy Exactly comes into the planning of new plants such as the $5 bil-
lion facility expected to open in 2013. Located in Chandler, Arizona, near several other
www.justice.gc.ca/eng/dept-min/pub/ccs-ajc/. 10. What remedies are available for the breach of a contract? Intel facilities, this plant will employ 1,000 and Intel executives project that it will be
the most advanced high-volume semiconductor manufacturing facility anywhere in
10. What patents, copyrights, and trademarks are expiring? Search the Inter 11. What are the most common taxes paid by businesses and the world. This project received significant tax incentives from the state of Arizona,
but the government sees the value of the high-paying jobs coming to or staying in the
out! governments? state. The innovations for the Chandler plant are evolutions of the ongoing improve-
ments at other plants and, as the new processes are developed, seeds will take them out
11. Check out Health Canada to see the latest advisories, warnings, and
12. What trends are occurring in politics and governments today? to the other Intel plants and continue the “Copy Exactly!” process.
products at www.hc-sc.gc.ca/cps-spc/advisories-avis/index-eng.php. Thinking Critically
1. Explain the link between quality and “Copy Exactly.”
2 How important is technology to a global competitor like Intel? What about
NEL
NEL CHAPTER
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PTER 3 Soc
PTER Social
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isions
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xv ii
09637_01_Ch01.indd 26 20/12/12 5:12 PM

preface
YOUR FUTURE IS OUR BUSINESS
The Future of Business, Fourth Edition, provides a personal road map for understanding
and navigating the future of business. The fourth edition builds on the success of the
first three editions with thorough coverage of business principles and leading-edge
practices adopted by business innovators, all illustrated with relevant and interesting
business examples. The Future of Business, Fourth Edition, takes an integrative approach
to business, highlighting how functional areas work together and how innovation
fuels new forms of collaboration. The text is written in a friendly and conversational
style and helps prepare students of all interests and abilities for future achievements
with the information, skills, and techniques they need to get to work and jump on the
fast-track to success.
THE INTEGRATIVE PERSPECTIVE: MAJOR

BUSINESS TOPICS UP CLOSE
Business and business units do not work in isolation; they work within the external
and internal environments. Our approach has been to discuss the various topics with
a focus on the integrative nature of business. The Integrative Perspective in The Future
of Business helps students understand these connections and prepares them for the
intricacies of working in an ever-interconnected world. The introduction to the text
sets up this perspective, and it is reinforced before each chapter in the Making the
Connection feature.
Making the Connection

Making the Connection introduces each chapter. This section shows how the
chapter concepts relate to “The Integrative Model” to help students connect the
chapter concepts to the external and internal business environments.
Part 1: Illustrates the relationship of each chapter to the Political, Economic,

Social, Technological, and International (PESTI) model.
Part 2: Shows the impact of different forms of business on the PESTI model and
the functional areas of the business.
Part 3: Connects strategic decisions of management, structure, and motivation
to the business’s goals in the external environment.
Part 4: Shows the impact of the external environment on each business unit
through the PESTI model and how those business units both influence and are
influenced by other functional areas.
The Making the Connection feature helps students contextualize the chapter con-
tent within the framework of business as a whole, and allows them to begin to see the
bigger picture.
xviii NEL
WHAT’S NEW IN THE FOURTH EDITION
Today’s most important business topics and trends are thoroughly covered in the
fourth edition—this means more insight into the key economic and business develop-
ments that shape the future. Topics at the forefront of business, covered in this edition,
include
• integration of business practices;

• globalization and global management skills;
• sustainable business;
• changing Canadian demographics;
• corporate ethical standards;
• managing multinational cultures in the workplace;
• virtual teams and corporations;
• nurturing knowledge workers; and
• entrepreneurship.
Through extensive reviews, we discovered that instructors teaching the Introduc-

tion to Business course place considerable importance on the topics of ethics, the role
of technology in business, e-commerce, entrepreneurship and small business manage-
ment, global business opportunities, and careers. Therefore, we gave these topics spe-
cial emphasis.
The Future of Business is supported by real-world examples to introduce today’s stu-
dents to tomorrow’s business careers. Highlights of new content to the fourth edition
include the following:
Reorganization
In response to reviewers’ suggestions, the following organizational changes were
incorporated:
• more discussion of sustainability and entrepreneurship;

• an UPDATED chapter on International Business to expand our PEST model to the
new PESTI model;
• a NEW chapter that offers advice on “Analyzing the Business”;
• new and updated chapter-opening vignettes and closing creative-thinking cases;
and
• a reorganization of the chapters to make the flow easier for students.
New Features
Two new boxed features have been added or expanded.
CREATING THE FUTURE OF BUSINESS This new boxed feature profiles young
Canadian entrepreneurs who have been successful in their business ventures.
SUSTAINABLE BUSINESS, SUSTAINABLE WORLD To supplement the “Making

Ethical Choices” boxes, we have included “Sustainable Business, Sustainable World”
boxes in all chapters. These boxes highlight the growing importance of sustainability
in today’s business practices.
New Canadian Examples

Some of the many Canadian examples profiled in this edition include Lululemon Athletica’s
move to global markets; SMART Technologies’ interactive SMART Board’s appearance in
classrooms, meeting rooms, and training centres around the country; ProSkate’s small
NEL PREFACE xix

business built on clear values; Oasis Bags’ management and leadership; Contact North’s
organizational structure; and Encana Corporation’s sustainability practices.
Prologue
An updated prologue, “A Quick Guide to Your Future Success in Business,” offers prac-
tical and inspiring advice for developing test-taking, interpersonal, time management,
and planning skills. The prologue also features suggestions for finding the right career
and succeeding in that first professional job. Not only will students find up-to-date
guidelines for finding a job using the Internet, they can also gain insights into their
own readiness for the job market. Fun Self-Tests explore the following topics:
• Can You Persuade Others?

• Can You Play the Political Game?
• How Well Do You Manage Your Time?
• Are You Good at Managing Money?
• Do You Have Good Study Habits?
• How Assertive Are You?
• Are You a Good Listener?
GREAT FEATURES RETAINED FROM

THE PREVIOUS EDITIONS
Chapter Organization
Organization matters! Each chapter of The Future of Business, Fourth Edition, has been
organized into a unique three-part structure that links principles, trends, and ideas:
PRINCIPLES OF BUSINESS Gives students a comprehensive overview of current

business practices, and teaches key principles through real-world examples from the
largest global corporate giants to the smallest family startups.
TRENDS IN BUSINESS Explores the fundamental factors and emerging trends that
are reshaping today’s business world and altering tomorrow’s competitive environment.
This preview of the future gives students a keen advantage when entering the workplace.
GREAT IDEAS TO USE NOW Brings chapter topics to life with relevant and inter-
esting tips for making the most of a professional career or becoming a smart consumer.
Students develop skills that are applicable immediately.
Structure of Content
INTRODUCTION In the Introduction, students learn the basic terms that are asso-
ciated with organizations and business. They are given the foundation of what a busi-
ness is, how risk can affect the business, revenues, expenses and profits, etc. Here, too,
the students are first introduced to the “Integrated Model of a Successful Business.”
SUSTAINABILITY BOXES In each chapter is a “Sustainable Business, Sustainable

World” feature. This feature was first introduced in select chapters of the third edition
and proved to be very popular with both the students and the reviewers.
MAKING ETHICAL CHOICES BOXES These ethical activities boxes present

real-world ethical challenges to stimulate discussion of ethical issues faced by
organizations.
xx PREFACE NEL
CONCEPT IN ACTION In each chapter you will find interesting companies and
business leaders profiled in our “Concept in Action” photo essays. The photos and
accompanying essays are fun, contemporary, insightful, and a super learning tool for
the visual learner. Many of these conclude with a critical thinking question to spark
further discussion and study about a business topic.
HOT LINKS Hot Links give the student an opportunity to connect to various web-
sites to expand on the information presented in the chapter. Instructors may also
choose to send students to the website links to fulfill assignments.
ORGANIZATION
In Part One of The Future of Business, Fourth Edition, students learn how the PESTI (political,
economic, social, technology, international) model works and its impact on any business.
In these first four chapters, to either introduce or refresh the students’ awareness of cer-
tain elementary—but critical—components, the book discusses “Politics: Governments’
Roles” (Chapter 1), “Economics: Evolving Systems” (Chapter 2), “Social: Society, Corporate
Responsibility, and Making Ethical Decisions” (Chapter 3), “Technology: Managing
Information for Business Success” (Chapter 4), and “International: The Global Marketplace”
(Chapter 5).
Part Two introduces the concepts of Canadian business by discussing
“Entrepreneurship and Small Business” (Chapter 6), “Analyzing the Business”
(Chapter 7), and “Forms of Business Ownership” (Chapter 8).
Business Management (Part Three) examines “Management and Leadership in
Today’s Organizations” (Chapter 9), “Designing Organizational Structures” (Chapter 10),
and “Motivating Employees” (Chapter 11).
The final section, Part Four, gives the students a basic understanding of the func-
tional areas of business. The seven chapters cover “Managing Human Resources and
Labour Relations,” “Marketing: The Customer Focus,” “Creating Marketing Strategies,”
“Achieving World-Class Operations Management,” “Accounting for Financial Success,”
“Understanding Money and the Canadian Financial System,” and “Finance: Maximizing
the Value.”
SUPPLEMENTS FOR SUCCESS

Reliable and Easy-to-Use Instructor Ancillaries
Business success is stimulated by access to and mastery of vital resources. The same is
true for the classroom. Whether teaching an online course or simply enhancing your
course with Web resources, The Future of Business, Fourth Edition, offers a vast, comple-
mentary system of teaching and learning resources.
The Nelson Education Teaching Advantage (NETA) program delivers
research-based instructor resources that promote student engagement and higher-
order thinking to enable the success of Canadian students and educators.
Instructors today face many challenges. Resources are limited, time is scarce, and
a new kind of student has emerged: one who is juggling school with work, has gaps in
his or her basic knowledge, and is immersed in technology in a way that has led to a
completely new style of learning. In response, Nelson Education has gathered a group
of dedicated instructors to advise us on the creation of richer and more flexible ancil-
laries that respond to the needs of today’s teaching environments.
The members of our editorial advisory board have experience across a variety of
disciplines and are recognized for their commitment to teaching. They include
Norman Althouse, Haskayne School of Business, University of Calgary

Brenda Chant-Smith, Department of Psychology, Trent University
NEL PREFACE xxi

Scott Follows, Manning School of Business Administration, Acadia University
Jon Houseman, Department of Biology, University of Ottawa
Glen Loppnow, Department of Chemistry, University of Alberta
Tanya Noel, Department of Biology, York University
Gary Poole, Senior Scholar, Centre for Health Education Scholarship, and Associate
Director, School of Population and Public Health, University of British Columbia
Dan Pratt, Department of Educational Studies, University of British Columbia
Mercedes Rowinsky-Geurts, Department of Languages and Literatures, Wilfrid
Laurier University
David DiBattista, Department of Psychology, Brock University
Roger Fisher, Ph.D.
In consultation with the editorial advisory board, Nelson Education has com-
pletely rethought the structure, approaches, and formats of our key textbook ancillaries.
We’ve also increased our investment in editorial support for our ancillary authors. The
result is the Nelson Education Teaching Advantage and its key components: NETA
Engagement, NETA Assessment, and NETA Presentation. Each component includes one or
more ancillaries prepared according to our best practices, and a document explaining
the theory behind the practices.
NETA Engagement presents materials that help instructors deliver engaging con-
tent and activities to their classes. Instead of Instructor’s Manuals that regurgitate
chapter outlines and key terms from the text, NETA Enriched Instructor’s Manuals
(EIMs) provide genuine assistance to teachers. The EIMs answer questions like What
should students learn?, Why should students care?, and What are some common student
misconceptions and stumbling blocks? EIMs not only identify the topics that cause stu-
dents the most difficulty, but also describe techniques and resources to help students
master these concepts. Dr. Roger Fisher’s Instructor’s Guide to Classroom Engagement
(IGCE) accompanies every Enriched Instructor’s Manual. (Information about the NETA
Enriched Instructor’s Manual prepared for The Future of Business is included in the
description of the IRCD below.)
NETA Assessment relates to testing materials. Under NETA Assessment, Nelson’s
authors create multiple-choice questions that reflect research-based best practices
for constructing effective questions and testing not just recall but also higher-order
thinking. Our guidelines were developed by David DiBattista, a 3M National Teaching
Fellow whose recent research as a professor of psychology at Brock University has
focused on multiple-choice testing. All Test Bank authors receive training at work-
shops conducted by Prof. DiBattista, as do the copyeditors assigned to each Test Bank.
A copy of Multiple Choice Tests: Getting Beyond Remembering, Prof. DiBattista’s guide to
writing effective tests, is included with every Nelson Test Bank/Computerized Test Bank
package. (Information about the NETA Test Bank prepared for The Future of Business is
included in the description of the IRCD below.)
NETA Presentation has been developed to help instructors make the best use of
PowerPoint® in their classrooms. With a clean and uncluttered design developed
by Maureen Stone of StoneSoup Consulting, NETA Presentation features slides with
improved readability, more multimedia and graphic materials, activities to use
in class, and tips for instructors on the Notes page. A copy of NETA Guidelines for
Classroom Presentations by Maureen Stone is included with each set of PowerPoint
slides. (Information about the NETA PowerPoint prepared for The Future of Business is
included in the description of the IRCD below.)
IRCD Key instructor ancillaries are provided on the Instructor’s Resource CD (ISBN 978-
0-17-661728-8), giving instructors the ultimate tool for customizing lectures and
presentations. (Downloadable Web versions are also available at www.nelson.com/
futureofbusiness4e.) The IRCD includes the following:
xxii PREFACE NEL
NETA Engagement. The Enriched Instructor’s Manual was written by Norm
Althouse, University of Calgary. It is organized according to the textbook chapters,
and addresses key educational concerns such as typical stumbling blocks students face
and how to address them. Other features include classroom activity and discussion
suggestions, lesson plans, and additional exercises.
NETA Assessment. The Test Bank was revised by Mike Wade, Seneca College. It
includes over 1300 multiple-choice questions written according to NETA guidelines
for effective construction and development of higher-order questions. Also included
are approximately 465 True/False and 260 short-answer questions. Test Bank files are
provided in Word format for easy editing and in PDF format for convenient printing,
whatever your system.
The Computerized Test Bank by ExamView® includes all the questions from
the Test Bank. The easy-to-use ExamView software is compatible with Microsoft
Windows and Mac OS. Create tests by selecting questions from the question bank,
modifying these questions as desired, and adding new questions you write yourself.
You can administer quizzes online and export tests to WebCT, Blackboard, and other
formats.
NETA Presentation. Microsoft PowerPoint lecture slides for every chapter have been
created by Norm Althouse, University of Calgary. There is an average of 30 slides per chap-
ter, many featuring key figures, tables, and photographs from The Future of Business. NETA
principles of clear design and engaging content have been incorporated throughout.
Image Library. This resource consists of digital copies of figures, short tables, and
photographs used in the book. Instructors may use these jpegs to create their own
PowerPoint presentations.
DayOne. Day One—Prof InClass is a PowerPoint presentation that you can cus-
tomize to orient your students to the class and their text at the beginning of the course.
ADDITIONAL RESOURCES
TurningPoint®. Another valuable resource for instructors is TurningPoint class-
room response software customized for The Future of Business. Now you can author,
deliver, show, access, and grade, all in PowerPoint … with no toggling back and forth
between screens! JoinIn on Turning Point is the only classroom response software tool
that gives you true PowerPoint integration. With JoinIn, you are no longer tied to your
computer. You can walk about your classroom as you lecture, showing slides and col-
lecting and displaying responses with ease. There is simply no easier or more effective
way to turn your lecture hall into a personal, fully interactive experience for your stu-
dents. If you can use PowerPoint, you can use JoinIn on TurningPoint! (Contact your
Nelson publishing representative for details.)
DVD to accompany The Future of Business, Fourth Edition, and DVD Guide
(ISBN 978-0-17-662886-4). Designed to enrich and support chapter concepts, each of
the 23 video segments presents real business issues faced by a variety of service and
manufacturing organizations. The video cases, which have been written by textbook
author Christopher Hartt, challenge students to study business issues and develop
solutions to business problems. The instructor’s DVD guide, included in the instruc-
tor’s manual, suggests answers to the critical thinking questions that accompany each
video segment.
CourseMate. CourseMate brings course concepts to life with interactive learning
and exam preparation tools that integrate with the printed textbook. Students activate
their knowledge through quizzes, games, and flashcards, among many other tools.
CourseMate provides immediate feedback that enables students to connect results
to the work they have just produced, increasing their learning efficiency. It encour-
ages contact between students and faculty: You can choose to monitor your students’
level of engagement with CourseMate, correlating their efforts to their outcomes. You
can even use CourseMate’s quizzes to practise “Just in Time” teaching by tracking
results in the Engagement Tracker and customizing your lesson plans to address their
learning needs.
NEL PREFACE xxiii

Another random document with
no related content on Scribd:
European revolutions and wars, surround the State department, and
infest unsuspecting politicians with illegible testimonials in unknown
tongues.
August 5th.—The roads from the station are crowded with troops,
coming from the North as fast as the railway can carry them. It is
evident, as the war fever spreads, that such politicians as Mr.
Crittenden, who resist the extreme violence of the Republican party,
will be stricken down. The Confiscation Bill, for the emancipation of
slaves and the absorption of property belonging to rebels, has,
indeed, been boldly resisted in the House of Representatives; but it
passed with some trifling amendments. The journals are still busy
with the affair of Bull Run, and each seems anxious to eclipse the
other in the absurdity of its statements. A Philadelphia journal, for
instance, states to-day that the real cause of the disaster was not a
desire to retreat, but a mania to advance. In its own words, “the only
drawback was the impetuous feeling to go a-head and fight.”
Because one officer is accused of drunkenness a great movement is
on foot to prevent the army getting any drink at all.
General M‘Clellan invited the newspaper correspondents in
Washington to meet him to-day, and with their assent drew up a
treaty of peace and amity, which is a curiosity in its way. In the first
place, the editors are to abstain from printing anything which can
give aid or comfort to the enemy, and their correspondents are to
observe equal caution; in return for which complaisance,
Government is to be asked to give the press opportunities for
obtaining and transmitting intelligence suitable for publication,
particularly touching engagements with the enemy. The Confederate
privateer Sumter has forced the blockade at New Orleans, and has
already been heard of destroying a number of Union vessels.
August 6th.—Prince Napoleon, anxious to visit the battle-field at
Bull Run, has, to Mr. Seward’s discomfiture, applied for passes, and
arrangements are being made to escort him as far as the
Confederate lines. This is a recognition of the Confederates, as a
belligerent power, which is by no means agreeable to the authorities.
I drove down to the Senate, where the proceedings were very
uninteresting, although Congress was on the eve of adjournment,
and returning visited Mr. Seward, Mr. Bates, Mr. Cameron, Mr. Blair,
and left cards for Mr. Brekinridge. The old woman who opened the
door at the house where the latter lodged said, “Massa Brekinridge
pack up all his boxes; I s’pose he not cum back here again.”
August 7th.—In the evening I went to Mr. Seward’s, who gave a
reception in honour of Prince Napoleon. The Minister’s rooms were
crowded and intensely hot. Lord Lyons and most of the diplomatic
circle were present. The Prince wore his Order of the Bath, and bore
the onslaughts of politicians, male and female, with much good
humour. The contrast between the uniforms of the officers of the
United States army and navy and those of the French in the Prince’s
suit, by no means redounded to the credit of the military tailoring of
the Americans. The Prince, to whom I was presented by Mr. Seward,
asked me particularly about the roads from Alexandria to Fairfax
Court-house, and from there to Centreville and Manassas. I told him
I had not got quite as far as the latter place, at which he laughed. He
inquired with much interest about General Beauregard, whether he
spoke good French, if he seemed a man of capacity, or was the
creation of an accident and of circumstances. He has been to Mount
Vernon, and is struck with the air of neglect around the place. Two of
his horses dropped dead from the heat on the journey, and the
Prince, who was perspiring profusely in the crowded room, asked me
whether the climate was not as bad as midsummer in India. His
manner was perfectly easy, but he gave no encouragement to bores,
nor did he court popularity by unusual affability, and he moved off
long before the guests were tired of looking at him. On returning to
my rooms a German gentleman named Bing—who went out with the
Federal army from Washington, was taken prisoner at Bull’s Run,
and carried to Richmond—came to visit me, but his account of what
he saw in the dark and mysterious South was not lucid or interesting.
August 8th.—I had arranged to go with Mr. Olmsted and Mr.
Ritchie to visit the hospitals, but the heat was so intolerable, we
abandoned the idea till the afternoon, when we drove across the
long bridge and proceeded to Alexandria. The town, which is now
fully occupied by military, and is abandoned by the respectable
inhabitants, has an air, owing to the absence of women and children,
which tells the tale of a hostile occupation. In a large building, which
had once been a school, the wounded of Bull Run were lying, not
uncomfortably packed, nor unskilfully cared for, and the
arrangements were, taken altogether, creditable to the skill and
humanity of the surgeons. Close at hand was the church in which
George Washington was wont in latter days to pray, when he drove
over from Mount Vernon—further on, Marshal House, where
Ellsworth was shot by the Virginian landlord, and was so speedily
avenged. A strange strain of thought was suggested, by the rapid
grouping of incongruous ideas, arising out of the proximity of these
scenes. As one of my friends said, “I wonder what Washington would
do if he were here now—and how he would act if he were
summoned from that church to Marshall House or to this hospital?”
The man who uttered these words was not either of my companions,
but wore the shoulder-straps of a Union officer. “Stranger still,” said I,
“would it be to speculate on the thoughts and actions of Napoleon in
this crisis, if he were to wake up and see a Prince of his blood
escorted by Federal soldiers to the spot where the troops of the
Southern States had inflicted on them a signal defeat, in a land
where the nephew who now sits on the throne of France has been
an exile.” It is not quite certain that many Americans understand who
Prince Napoleon is, for one of the troopers belonging to the escort
which took him out from Alexandria declared positively he had ridden
with the Emperor. The excursion is swallowed, but not well-digested.
In Washington the only news to-night is, that a small privateer from
Charleston, mistaking the St. Lawrence for a merchant vessel, fired
into her and was at once sent to Mr. Davy Jones by a rattling
broadside. Congress having adjourned, there is but little to render
Washington less uninteresting than it must be in its normal state.
The truculent and overbearing spirit which arises from the
uncontroverted action of democratic majorities develops itself in the
North, where they have taken to burning newspaper offices and
destroying all the property belonging to the proprietors and editors.
These actions are a strange commentary on Mr. Seward’s
declaration “that no volunteers are to be refused because they do
not speak English, inasmuch as the contest for the Union is a battle
of the free men of the world for the institutions of self-government.”
August 11th.—On the old Indian principle, I rode out this morning
very early, and was rewarded by a breath of cold, fresh air, and by
the sight, of some very disorderly regiments just turning out to
parade in the camps; but I was not particularly gratified by being
mistaken for Prince Napoleon by some Irish recruits, who shouted
out, “Bonaparte for ever,” and gradually subsided into requests for
“something to drink your Royal Highness’s health with.” As I returned
I saw on the steps of General Mansfield’s quarters, a tall, soldierly-
looking young man, whose breast was covered with Crimean ribbons
and medals, and I recognised him as one who had called upon me a
few days before, renewing our slight acquaintance before
Sebastopol, where his courage was conspicuous, to ask me for
information respecting the mode of obtaining a commission in the
Federal army.
Towards mid-day an ebony sheet of clouds swept over the city. I
went out, regardless of the threatening storm, to avail myself of the
coolness to make a few visits; but soon a violent wind arose bearing
clouds like those of an Indian dust-storm down the streets. The black
sheet overhead became agitated like the sea, and tossed about grey
clouds, which careered against each other and burst into lightning;
then suddenly, without other warning, down came the rain—a perfect
tornado; sheets of water flooding the streets in a moment, turning the
bed into water-courses and the channels into deep rivers. I waded
up the centre of Pennsylvania Avenue, past the President’s house, in
a current which would have made a respectable trout stream; and on
getting opposite my own door, made a rush for the porch, but
forgetting the deep channel at the side, stepped into a rivulet which
was literally above my hips, and I was carried off my legs, till I
succeeded in catching the kerbstone, and escaped into the hall as if
I had just swum across the Potomac.
On returning from my ride next morning, I took up the Baltimore
paper, and saw a paragraph announcing the death of an English
officer at the station; it was the poor fellow whom I saw sitting at
General Mansfield’s steps yesterday. The consul was absent on a
short tour rendered necessary by the failure of his health consequent
on the discharge of his duties. Finding the Legation were anxious to
see due care taken of the poor fellow’s remains, I left for Baltimore at
a quarter to three o’clock, and proceeded to inquire into the
circumstances connected with his death. He had been struck down
at the station by some cerebral attack, brought on by the heat and
excitement; had been carried to the police station and placed upon a
bench, from which he had fallen with his head downwards, and was
found in that position, with life quite extinct, by a casual visitor. My
astonishment may be conceived when I learned that not only had the
Coroner’s inquest sat and returned its verdict, but that the man had
absolutely been buried the same morning, and so my mission was
over, and I could only report what had occurred to Washington. Little
value indeed has human life in this new world, to which the old gives
vital power so lavishly, that it is regarded as almost worthless. I have
seen more “fuss” made over an old woman killed by a cab in London
than there is over half a dozen deaths with suspicion of murder
attached in New Orleans or New York.
I remained in Baltimore a few days, and had an opportunity of
knowing the feelings of some of the leading men in the place. It may
be described in one word—intense hatred of New England and black
republicans, which has been increased to mania by the stringent
measures of the military dictator of the American Warsaw, the
searches of private houses, domiciliary visits, arbitrary arrests, the
suppression of adverse journals, the overthrow of the corporate body
—all the acts, in fact, which constitute the machinery and the
grievances of a tyranny. When I spoke of the brutal indifference of
the police to the poor officer previously mentioned, the Baltimoreans
told me the constables appointed by the Federal general were
scoundrels who led the Plug Uglies in former days—the worst
characters in a city not sweet or savoury in repute—but that the old
police were men of very different description. The Maryland Club,
where I had spent some pleasant hours, was now like a secret
tribunal or the haunt of conspirators. The police entered it a few days
ago, searched every room, took up the flooring, and even turned up
the coals in the kitchen and the wine in the cellar. Such indignities
fired the blood of the members, who are, with one exception,
opposed to the attempt to coerce the South by the sword. Not one of
them but could tell of some outrage perpetrated on himself or on
some members of his family by the police and Federal authority.
Many a delator amici was suspected but not convicted. Men sat
moodily reading the papers with knitted brows, or whispering in
corners, taking each other apart, and glancing suspiciously at their
fellows.
There is a peculiar stamp about the Baltimore men which
distinguishes them from most Americans—a style of dress,
frankness of manner, and a general appearance assimilating them
closely to the upper classes of Englishmen. They are fond of sport
and travel, exclusive and high-spirited, and the iron rule of the
Yankee is the more intolerable because they dare not resent it, and
are unable to shake it off.
I returned to Washington on 15th August. Nothing changed;
skirmishes along the front; M‘Clellan reviewing. The loss of General
Lyon, who was killed in an action with the Confederates under Ben
McCullough, at Wilson’s Creek, Springfield, Missouri, in which the
Unionists were with difficulty extricated by General Sigel from a very
dangerous position, after the death of their leader, is severely felt. He
was one of the very few officers who combined military skill and
personal bravery with political sagacity and moral firmness. The
President has issued his proclamation for a day of fast and prayer,
which, say the Baltimoreans, is a sign that the Yankees are in a bad
way, as they would never think of praying or fasting if their cause
was prospering. The stories which have been so sedulously spread,
and which never will be quite discredited, of the barbarity and cruelty
of the Confederates to all the wounded, ought to be set at rest by the
printed statement of the eleven Union surgeons just released, who
have come back from Richmond, where they were sent after their
capture on the field of Bull Run, with the most distinct testimony that
the Confederates treated their prisoners with humanity. Who are the
miscreants who tried to make the evil feeling, quite strong enough as
it is, perfectly fiendish, by asserting the rebels burned the wounded
in hospitals, and bayoneted them as they lay helpless on the field?
The pecuniary difficulties of the Government have been alleviated
by the bankers of New York, Philadelphia, and Boston, who have
agreed to lend them fifty millions of dollars, on condition that they
receive the Treasury notes which Mr. Chase is about to issue. As we
read the papers and hear the news, it is difficult to believe that the
foundations of society are not melting away in the heat of this
conflict. Thus, a Federal judge, named Garrison, who has issued his
writ of habeas corpus for certain prisoners in Fort Lafayette, being
quietly snuffed out by the commandant, Colonel Burke, desires to
lead an army against the fort and have a little civil war of his own in
New York. He applies to the commander of the county militia, who
informs Garrison he can’t get into the fort as there was no artillery
strong enough to breach the walls, and that it would require 10,000
men to invest it, whereas only 1400 militiamen were available. What
a farceur Judge Garrison must be! In addition to the gutting and
burning of newspaper offices, and the exercitation of the editors on
rails, the republican grand juries have taken to indicting the
democratic journals, and Fremont’s provost marshal in St. Louis has,
proprio motu, suppressed those which he considers disaffected. A
mutiny which broke out in the Scotch Regiment 79th N. Y. has been
followed by another in the 2nd Maine Regiment, and a display of
cannon and of cavalry was required to induce them to allow the
ringleaders to be arrested. The President was greatly alarmed, but
M‘Clellan acted with some vigour, and the refractory volunteers are
to be sent off to a pleasant station called the “Dry Tortugas” to work
on the fortifications.
Mr. Seward, with whom I dined and spent the evening on 16th
August, has been much reassured and comforted by the
demonstrations of readiness on the part of the people to continue the
contest, and of confidence in the cause among the moneyed men of
the great cities. “All we want is time to develop our strength. We
have been blamed for not making greater use of our navy and
extending it at once. It was our first duty to provide for the safety of
our capital. Besides, a man will generally pay little attention to
agencies he does not understand. None of us knew anything about a
navy. I doubt if the President ever saw anything more formidable
than a river steamboat, and I don’t think Mr. Welles, the Secretary of
the Navy, knew the stem from the stern of a ship. Of the whole
Cabinet, I am the only member who ever was fairly at sea or crossed
the Atlantic. Some of us never even saw it. No wonder we did not
understand the necessity for creating a navy at once. Soon,
however, our Government will be able to dispose of a respectable
marine, and when our army is ready to move, co-operating with the
fleet, the days of the rebellion are numbered.”
“When will that be, Mr. Secretary?”
“Soon; very soon, I hope. We can, however, bear delays. The
rebels will be ruined by it.”
CHAPTER XVII.
Return to Baltimore—Colonel Carroll—A Priest’s view of the Abolition of

Slavery—Slavery in Maryland—Harper’s Ferry—John Brown—Back by
train to Washington—Further accounts of Bull Run—American Vanity—
My own unpopularity for speaking the truth—Killing a “Nigger” no murder
—Navy Department.
On the 17th August I returned to Baltimore on my way to

Drohoregan Manor, the seat of Colonel Carroll, in Maryland, where I
had been invited to spend a few days by his son-in-law, an English
gentleman of my acquaintance. Leaving Baltimore at 5.40 p.m., in
company with Mr. Tucker Carroll, I proceeded by train to Ellicott’s
Mills, a station fourteen miles on the Ohio and Baltimore railroad,
from which our host’s residence is distant more than an hour’s drive.
The country through which the line passes is picturesque and
undulating, with hills and valleys and brawling streams, spreading in
woodland and glade, ravine, and high uplands on either side,
haunted by cotton factories, poisoning air and water; but it has been
a formidable district for the engineers to get through, and the line
abounds in those triumphs of engineering which are generally the
ruin of shareholders.
All these lines are now in the hands of the military. At the
Washington terminus there is a guard placed to see that no
unauthorised person or unwilling volunteer is going north; the line is
watched by patrols and sentries; troops are encamped along its
course. The factory chimneys are smokeless; half the pleasant villas
which cover the hills or dot the openings in the forest have a
deserted look and closed windows. And so these great works, the
Carrolton viaduct, the Thomas viaduct, and the high embankments
and great cuttings in the ravine by the river side, over which the line
passes, have almost a depressing effect, as if the people for whose
use they were intended had all become extinct. At Ellicott’s Mills,
which is a considerable manufacturing town, more soldiers and
Union flags. The people are Unionists, but the neighbouring gentry
and country people are Seceshers.
This is the case wherever there is a manufacturing population in
Maryland, because the workmen are generally foreigners, or have
come from the Northern States, and feel little sympathy with States
rights’ doctrines, and the tendencies of the landed gentry to a
Conservative action on the slave question. There was no good-will in
the eyes of the mechanicals as they stared at our vehicle; for the
political bias of Colonel Carroll was well known, as well as the
general sentiments of his family. It was dark when we reached the
manor, which is approached by an avenue of fine trees. The house is
old-fashioned, and has received additions from time to time. But for
the black faces of the domestics, one might easily fancy he was in
some old country house in Ireland. The family have adhered to their
ancient faith. The founder of the Carrolls in Maryland came over with
the Catholic colonists led by Lord Baltimore, or by his brother,
Leonard Calvert, and the colonel possesses some interesting deeds
of grant and conveyance of the vast estates, which have been
diminished by large sales year after year, but still spread over a
considerable part of several counties in the State.
Colonel Carroll is an immediate descendant of one of the leaders
in the revolution of 1776, and he pointed out to me the room in which
Carroll, of Carrolton, and George Washington, were wont to meet
when they were concocting their splendid treason. One of his
connections married the late Marquis Wellesley, and the colonel
takes pleasure in setting forth how the daughter of the Irish recusant,
who fled from his native country all but an outlaw, sat on the throne
of the Queen of Ireland, or, in other words, held court in Dublin
Castle as wife of the Viceroy. Drohoregan is supposed to mean “Hall
of the Kings,” and is called after an old place belonging, some time
or other, to the family, the early history of which, as set forth in the
Celtic authorities and Irish antiquarian works, possesses great
attractions for the kindly, genial old man—kindly and genial to all but
the Abolitionists and black republicans; nor is he indifferent to the
reputation of the State in the Revolutionary War, where the
“Maryland line” seems to have differed from many of the contingents
of the other States in not running away so often at critical moments
in the serious actions. Colonel Carroll has sound arguments to prove
the sovereign independence and right of every State in the Union,
derived from family teaching and the lessons of those who founded
the Constitution itself.
On the day after my arrival the rain fell in torrents. The weather is
as uncertain as that of our own isle. The torrid heats at Washington,
the other day, were succeeded by bitter cold days; now there is a
dense mist, chilly and cheerless, seeming as a sort of strainer for the
even down pour that falls through it continuously. The family after
breakfast slipped round to the little chapel which forms the extremity
of one wing of the house. The coloured people on the estate were
already trooping across the lawn and up the avenue from the slave
quarters, decently dressed for the most part, having due allowance
for the extraordinary choice of colours in their gowns, bonnets, and
ribbons, and for the unhappy imitations, on the part of the men, of
the attire of their masters. They walked demurely and quietly past
the house, and presently the priest, dressed like a French curé,
trotted up, and service began. The negro houses were of a much
better and more substantial character than those one sees in the
south, though not remarkable for cleanliness and good order. Truth
to say, they were palaces compared to the huts of Irish labourers,
such as might be found, perhaps, on the estates of the colonel’s
kinsmen at home. The negroes are far more independent than they
are in the south. They are less civil, less obliging, and, although they
do not come cringing to shake hands as the field hands on a
Louisianian plantation, less servile. They inhabit a small village of
brick and wood houses, across the road at the end of the avenue,
and in sight of the house. The usual swarms of little children, poultry,
pigs, enlivened by goats, embarrassed the steps of the visitor, and
the old people, or those who were not finely dressed enough for
mass, peered out at the strangers from the glassless windows.
When chapel was over, the boys and girls came up for catechism,
and passed in review before the ladies of the house, with whom they
were on very good terms. The priest joined us in the verandah when
his labours were over, and talked with intelligence of the terrible war
which has burst over the land. He has just returned from a tour in the
Northern States, and it is his belief the native Americans there will
not enlist, but that they will get foreigners to fight their battles. He
admitted that slavery was in itself an evil, nay, more, that it was not
profitable in Maryland. But what are the landed proprietors to do?
The slaves have been bequeathed to them as property by their
fathers, with certain obligations to be respected, and duties to be
fulfilled. It is impossible to free them, because, at the moment of
emancipation, nothing short of the confiscation of all the labour and
property of the whites would be required to maintain the negroes,
who would certainly refuse to work unless they had their masters’
land as their own. Where is white labour to be found? Its introduction
must be the work of years, and meantime many thousands of slaves,
who have a right to protection, would canker the land.
In Maryland they do not breed slaves for the purpose of selling
them as they do in Virginia, and yet Colonel Carroll and other
gentlemen who regarded the slaves they inherited almost as
members of their families, have been stigmatised by abolition orators
as slave-breeders and slave-dealers. It was these insults which
stung the gentlemen of Maryland and of the other Slave States to the
quick, and made them resolve never to yield to the domination of a
party which had never ceased to wage war against their institutions
and their reputation and honour.
A little knot of friends and relations joined Colonel Carroll at dinner.
There are few families in this part of Maryland which have not
representatives in the other army across the Potomac; and if
Beauregard could but make his appearance, the women alone would
give him welcome such as no conqueror ever received in liberated
city.
Next day the rain fell incessantly. The mail was brought in by a
little negro boy on horseback, and I was warned by my letters that an
immediate advance of M‘Clellan’s troops was probable. This is an
old story. “Battle expected to-morrow” has been a heading in the
papers for the last fortnight. In the afternoon I was driven over a part
of the estate in a close carriage, through the windows of which,
however, I caught glimpses of a beautiful country, wooded gloriously,
and soft, sylvan, and well-cultivated as the best parts of Hampshire
and Gloucestershire, the rolling lands of which latter county, indeed,
it much resembled in its large fields, heavy with crops of tobacco and
corn. The weather was too unfavourable to admit of a close
inspection of the fields; but I visited one or two tobacco houses,
where the fragrant Maryland was lying in masses on the ground, or
hanging from the rafters, or filled the heavy hogsheads with
compressed smoke.
Next day I took the train, at Ellicott’s Mills, and went to Harper’s
Ferry. There is no one spot, in the history of this extraordinary war,
which can be well more conspicuous. Had it nothing more to
recommend it than the scenery, it might well command a visit from
the tourist; but as the scene of old John Brown’s raid upon the
Federal arsenal, of that first passage of arms between the
abolitionists and the slave conservatives, which has developed this
great contest; above all, as the spot where important military
demonstrations have been made on both sides, and will necessarily
occur hereafter, this place, which probably derives its name from
some wretched old boatman, will be renowned for ever in the annals
of the civil war of 1861. The Patapsco, by the bank of which the rail
is carried for some miles, has all the character of a mountain torrent,
rushing through gorges or carving out its way at the base of granite
hills, or boldly cutting a path for itself through the softer slate.
Bridges, viaducts, remarkable archways, and great spans of timber
trestle work leaping from hill to hill, enable the rail to creep onwards
and upwards by the mountain side to the Potomac at Point of Rocks,
whence it winds its way over undulating ground, by stations with
eccentric names to the river’s bank once more. We were carried on
to the station next to Harper’s Ferry on a ledge of the precipitous
mountain range which almost overhangs the stream. But few
civilians were in the train. The greater number of passengers
consisted of soldiers and sutlers, proceeding to their encampments
along the river. A strict watch was kept over the passengers, whose
passes were examined by officers at the various stations. At one
place an officer who really looked like a soldier entered the train, and
on seeing my pass told me in broken English that he had served in
the Crimea, and was acquainted with me and many of my friends.
The gentleman who accompanied me observed, “I do not know
whether he was in the Crimea or not, but I do know that till very lately
your friend the Major was a dancing master in New York.” A person
of a very different type made his offers of service, Colonel Gordon of
the 2nd Massachusetts Regiment, who caused the train to run on as
far as Harper’s Ferry, in order to give me a sight of the place,
although in consequence of the evil habit of firing on the carriages in
which the Confederates across the river have been indulging, the
locomotive generally halts at some distance below the bend of the
river.
Harper’s Ferry lies in a gorge formed by a rush of the Potomac
through the mountain ridges, which it cuts at right angles to its
course at its junction with the river Shenandoah. So trenchant and
abrupt is the division that little land is on the divided ridge to build
upon. The precipitous hills on both sides are covered with forest,
which has been cleared in patches here and there on the Maryland
shore, to permit of the erection of batteries. On the Virginian side
there lies a mass of blackened and ruined buildings, from which a
street lined with good houses stretches up the hill. Just above the
junction of the Shenandoah with the Potomac, an elevated bridge or
viaduct 300 yards long leaps from hill side to hill side. The arches
had been broken—the rails which ran along the top torn up, and
there is now a deep gulf fixed between the shores of Maryland and
Virginia. The rail to Winchester from this point has been destroyed,
and the line along the Potomac has also been ruined.
But for the batteries which cover the shoal water at the junction of
the two rivers below the bridge, there would be no difficulty in
crossing to the Maryland shore, and from that side the whole of the
ground around Harper’s Ferry is completely commanded. The gorge
is almost as deep as the pass of Killiecranckie, which it resembles in
most respects except in breadth and the size of the river between,
and if ever a railroad finds its way to Blair Athol, the passengers will
find something to look at very like the scenery on the route to
Harper’s Ferry. The vigilance required to guard the pass of the river
above and below this point is incessant, but the Federals possess
the advantage on their side of a deep canal parallel to the railway
and running above the level of the river, which would be a more
formidable obstacle than the Potomac to infantry or guns. There is
reason to believe that the Secessionists in Maryland cross
backwards and forwards whenever they please, and the Virginians
coming down at their leisure to the opposite shore, inflict serious
annoyance on the Federal troops by constant rifle practice.
Looking up and down the river the scenery is picturesque, though
it is by no means entitled to the extraordinary praises which
American tourists lavish upon it. Probably old John Brown cared little
for the wild magic of streamlet or rill, or for the blended charm of vale
and woodland. When he made his attack on the arsenal now in
ruins, he probably thought a valley was as high as a hill, and that
there was no necessity for water running downwards—assuredly he
saw as little of the actual heights and depths around him when he
ran across the Potomac to revolutionize Virginia. He has left behind
him millions either as clear-sighted or as blind as himself. In New
England parlours a statuette of John Brown may be found as a
pendant to the likeness of our Saviour. In Virginia his name is the
synonym of all that is base, bloody, and cruel.
Harper’s Ferry at present, for all practical purposes, may be
considered as Confederate property. The few Union inhabitants
remain in their houses, but many of the Government workmen and
most of the inhabitants have gone off South. For strategical
purposes its possession would be most important to a force desiring
to operate on Maryland from Virginia. The Blue Ridge range running
up to the Shenandoah divides the country so as to permit a force
debouching from Harper’s Ferry to advance down the valley of the
Shenandoah on the right, or to move to the left between the Blue
Ridge and the Katoctin mountains towards the Manassas railway at
its discretion. After a false alarm that some Secesh cavalry were
coming down to renew the skirmishing of the day before, I returned,
and travelling to Relay House just saved the train to Washington,
where I arrived after sunset. A large number of Federal troops are
employed along these lines, which they occupy as if they were in a
hostile country. An imperfectly formed regiment broken up into these
detachments and placed in isolated posts, under ignorant officers,
may be regarded as almost worthless for military operations. Hence
the constant night alarms—the mistakes—the skirmishes and
instances of misbehaviour which arise along these extended lines.
On the journey from Harper’s Ferry, the concentration of masses
of troops along the road, and the march of heavy artillery trains,
caused me to think a renewal of the offensive movement against
Richmond was immediate, but at Washington I heard that all
M‘Clellan wanted or hoped for at present, was to make Maryland
safe and to gain time for the formation of his army. The Confederates
appear to be moving towards their left, and M‘Clellan is very uneasy
lest they should make a vigorous attack before he is prepared to
receive them.
In the evening the New York papers came in with the extracts from
the London papers containing my account of the battle of Bull’s Run.
Utterly forgetting their own versions of the engagement, the New
York editors now find it convenient to divert attention from the bitter
truth that was in them, to the letter of the foreign newspaper
correspondent, who, because he is a British subject, will prove not
only useful as a conductor to carry off the popular wrath from the
American journalists themselves, but as a means by induction of
charging the vials afresh against the British people, inasmuch as
they have not condoled with the North on the defeat of armies which
they were assured would, if successful, be immediately led to effect
the disruption of the British empire. At the outset I had foreseen this
would be the case, and deliberately accepted the issue; but when I
found the Northern journals far exceeding in severity anything I could
have said, and indulging in general invective against whole classes
of American soldiery, officers, and statesmen, I was foolish enough
to expect a little justice, not to say a word of the smallest generosity.
August 21st.—The echoes of Bull Run are coming back with a
vengeance. This day a month ago the miserable fragments of a
beaten, washed out, demoralised army, were flooding in disorder
and dismay the streets of the capital from which they had issued
forth to repel the tide of invasion. This day month and all the editors
and journalists in the States, weeping, wailing, and gnashing their
teeth, infused extra gall into their ink, and poured out invective,
abuse, and obloquy on their defeated general and their broken
hosts. The President and his ministers, stunned by the tremendous
calamity, sat listening in fear and trembling for the sound of the
enemy’s cannon. The veteran soldier, on whom the boasted hopes
of the nation rested, heart-sick and beaten down, had neither
counsel to give nor action to offer. At any moment the Confederate
columns might be expected in Pennsylvania Avenue to receive the
welcome of their friends and the submission of their helpless and
disheartened enemies.
All this is forgotten—and much more, which need not now be
repeated. Saved from a great peril, even the bitterness of death, they
forget the danger that has passed, deny that they uttered cries of
distress and appeals for help, and swagger in all the insolence of
recovered strength. Not only that, but they turn and rend those
whose writing has been dug up after thirty days, and comes back as
a rebuke to their pride.
Conscious that they have insulted and irritated their own army, that
they have earned the bitter hostility of men in power, and have for
once inflicted a wound on the vanity to which they have given such
offensive dimensions, if not life itself, they now seek to run a drag
scent between the public nose and their own unpopularity, and to
create such an amount of indignation and to cast so much odium
upon one who has had greater facilities to know, and is more willing
to tell the truth, than any of their organs, that he will be unable
henceforth to perform his duties in a country where unpopularity
means simply a political and moral atrophy or death. In the
telegraphic summary some days ago a few phrases were picked out
of my letters, which were but very faint paraphrases of some of the
sentences which might be culled from Northern newspapers, but the
storm has been gathering ever since, and I am no doubt to
experience the truth of De Tocqueville’s remark, “that a stranger who
injures American vanity, no matter how justly, may make up his mind
to be a martyr.”
August 22nd.—
“The little dogs and all,
Tray, Blanche, and Sweetheart,
See they bark at me.”
The North have recovered their wind, and their pipers are blowing
with might and main. The time given them to breathe after Bull Run
has certainly been accompanied with a greater development of lung
and power of blowing than could have been expected. The volunteer
army which dispersed and returned home to receive the Io Pæans of
the North, has been replaced by better and more numerous levies,
which have the strong finger and thumb of General M‘Clellan on their
windpipe, and find it is not quite so easy as it was to do as they
pleased. The North, besides, has received supplies of money, and is
using its great resources, by land and sea, to some purpose, and as
they wax fat they kick.
A general officer said to me, “Of course you will never remain,
when once all the press are down upon you. I would not take a
million dollars and be in your place.” “But is what I’ve written untrue?”
“God bless you! do you know in this country if you can get enough of
people to start a lie about any man, he would be ruined, if the
Evangelists came forward to swear the story was false. There are
thousands of people who this moment believe that M‘Dowell, who
never tasted anything stronger than a water melon in all his life, was
helplessly drunk at Bull’s Run. Mind what I say; they’ll run you into a
mud hole as sure as you live.” I was not much impressed with the
danger of my position further than that I knew there would be a
certain amount of risk from the rowdyism and vanity of what even the
Americans admit to be the lower orders, for which I had been
prepared from the moment I had despatched my letter; but I confess
I was not by any means disposed to think that the leaders of public
opinion would seek the small gratification of revenge, and the petty
popularity of pandering to the passions of the mob, by creating a
popular cry against me. I am not aware that any foreigner ever
visited the United States who was injudicious enough to write one
single word derogatory to their claims to be the first of created
beings, who was not assailed with the most viperous malignity and
rancour. The man who says he has detected a single spot on the
face of their sun should prepare his winding sheet.
The New York Times, I find, states “that the terrible epistle has
been read with quite as much avidity as an average President’s
message. We scarcely exaggerate the fact when we say, the first
and foremost thought on the minds of a very large portion of our
people after the repulse at Bull’s Run was, what will Russell say?”
and then they repeat some of the absurd sayings attributed to me,
who declared openly from the very first that I had not seen the battle
at all, to the effect “that I had never seen such fighting in all my life,
and that nothing at Alma or Inkerman was equal to it.” An analysis of
the letter follows, in which it is admitted that “with perfect candour I
purported to give an account of what I saw, and not of the action
which I did not see,” and the writer, who is, if I mistake not, the Hon.
Mr. Raymond, of the New York Times, like myself a witness of the
facts I describe, quotes a passage in which I say, “There was no
flight of troops, no retreat of an army, no reason for all this
precipitation,” and then declares “that my letter gives a very spirited
and perfectly just description of the panic which impelled and
accompanied the troops from Centreville to Washington. He does
not, for he cannot, in the least exaggerate its horrible disorder, or the
disgraceful behaviour of the incompetent officers by whom it was
aided, instead of being checked. He saw nothing whatever of the
fighting, and therefore says nothing whatever of its quality. He gives
a clear, fair, perfectly just and accurate, as it is a spirited and graphic
account of the extraordinary scenes which passed under his
observation. Discreditable as those scenes were to our army, we
have nothing in connection with them whereof to accuse the
reporter; he has done justice alike to himself, his subject, and the
country.”
Ne nobis blandiar, I may add, that at least I desired to do so, and I
can prove from Northern papers that if their accounts were true, I
certainly much “extenuated and nought set down in malice”—
nevertheless, Philip drunk is very different from Philip sober,
frightened, and running away, and the man who attempts to justify
his version to the inebriated polycephalous monarch is sure to meet
such treatment as inebriated despots generally award to their
censors.
August 23rd.—The torrent is swollen to-day by anonymous letters
threatening me with bowie knife and revolver, or simply abusive,
frantic with hate, and full of obscure warnings. Some bear the
Washington post-mark, others came from New York, the greater
number—for I have had nine—are from Philadelphia. Perhaps they
may come from the members of that “gallant” 4th Pennsylvania
Regiment.
August 24th.—My servant came in this morning, to announce a
trifling accident—he was exercising my horse, and at the corner of
one of those charming street crossings, the animal fell and broke its
leg. A “vet” was sent for. I was sure that such a portent had never
been born in those Daunian woods. A man about twenty-seven or
twenty-eight stone weight, middle-aged and active, with a fine
professional feeling for distressed horseflesh; and I was right in my
conjectures that he was a Briton, though the vet had become
Americanised, and was full of enthusiasm about “our war for the
Union,” which was yielding him a fine harvest. He complained there
were a good many bad characters about Washington. The matter is
proved beyond doubt by what we see, hear, and read. To-day there
is an account in the papers of a brute shooting a negro boy dead,
because he asked him for a chew of tobacco. Will he be hanged?
Not the smallest chance of it. The idea of hanging a white man for
killing a nigger! It is more preposterous here than it is in India, where
our authorities have actually executed whites for the murder of
natives.
Before dinner I walked down to the Washington navy yard. Captain
Dahlgren was sorely perplexed with an intoxicated Senator, whose
name it is not necessary to mention, and who seemed to think he
paid me a great compliment by expressing his repeated desire “to
have a good look at” me. “I guess you’re quite notorious now. You’ll
excuse me because I’ve dined, now—and so you are the Mr. &c.,
&c., &c.” The Senator informed me that he was “none of your d——d
blackfaced republicans. He didn’t care a d—— about niggers—his
business was to do good to his fellow white men, to hold our glorious
Union together, and let the niggers take care of themselves.”

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(eBook PDF) The Future of Business

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SUMMARY OF LEARNING OUTCOMES 23 SUMMARY OF LEARNING OUTCOMES 56

NEL CONTENTS vii

viii CONTENTS NEL

8 Forms of Business Ownership 212 Controlling 258

CREATIVE THINKING CASE 241 Traditional and Contemporary Structures 286

SUMMARY OF LEARNING OUTCOMES 469 The Canadian Financial System 513

16 Accounting for Financial Success 474 International Banking 516

xii CONTENTS NEL

NEL CONTENTS xiii

izations do compete for people’s scarce volunteer time and donations.

GOVERNMENT—MORE THAN ONE LEVEL LO2

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PART 3 connects strategic decisions of management, structure, and motivation to the

Making the Making the

Making the Making the

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MAKING ETHICAL CHOICES The ethical activities in these boxes present

GOVERNMENT GRANTS—STUDENT JOBS

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Creating the Future of Business

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bankruptcy Concept in Action

HOT inks Ontario.

For more information on corporate

END-OF-CHAPTER SKILL-BUILDING e, use, and sell an

ACTIVITIES, EXERCISES, AND RESOURCES

usive right, shown copyright

add a real-world application. manufacturer uses trademark

Review Questions inds of customers.

Creative Thinking Cases

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THE INTEGRATIVE PERSPECTIVE: MAJOR

Making the Connection

Part 1: Illustrates the relationship of each chapter to the Political, Economic,

• integration of business practices;

Through extensive reviews, we discovered that instructors teaching the Introduc-

• more discussion of sustainability and entrepreneurship;

SUSTAINABLE BUSINESS, SUSTAINABLE WORLD To supplement the “Making

New Canadian Examples

NEL PREFACE xix

• Can You Persuade Others?

GREAT FEATURES RETAINED FROM

PRINCIPLES OF BUSINESS Gives students a comprehensive overview of current

SUSTAINABILITY BOXES In each chapter is a “Sustainable Business, Sustainable

MAKING ETHICAL CHOICES BOXES These ethical activities boxes present

SUPPLEMENTS FOR SUCCESS

Norman Althouse, Haskayne School of Business, University of Calgary