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How Business Works

Book Description

How Business Works defines and explains the key concepts behind business, finance, and company management. With the right knowledge, business doesn't have to be difficult. Do you know the difference between profit margin, gross profit, and net profit? What is cash flow or a limited company? Using clear language and eye-catching graphics, DK's How Business Works answers hundreds of questions and is an invaluable reference for anyone wanting to learn about business.

Table of Contents

  1. Contents
    1. Introduction 8
    2. HOW COMPANIES WORK 10
      1. Business ownership 12 (1/3)
      2. Business ownership 12 (2/3)
      3. Business ownership 12 (3/3)
        1. Sole proprietorships and partnerships 14
        2. Corporations 16
        3. Private and public companies 18
        4. Multinationals 20
        5. Franchises 22
        6. Not-for-profit 24
      4. Start-ups 26 (1/3)
      5. Start-ups 26 (2/3)
      6. Start-ups 26 (3/3)
        1. Start-ups from concept to launch 28
        2. Types of start-up 30
        3. Business plans 32
        4. Raising money 34
        5. Business accelerators and incubators 38
      7. Buying and selling business 40 (1/2)
      8. Buying and selling business 40 (2/2)
        1. Mergers and acquisitions 42
        2. Divestitures 44
        3. Vertical vs. horizontal integration 46
        4. Management buy-ins and buy-outs 48
      9. Who’s who 50 (1/4)
      10. Who’s who 50 (2/4)
      11. Who’s who 50 (3/4)
      12. Who’s who 50 (4/4)
        1. Board of directors 52
        2. Company hierarchy 56
        3. Stakeholders 60
        4. Business cultures 64
      13. Corporate structure 66 (1/3)
      14. Corporate structure 66 (2/3)
      15. Corporate structure 66 (3/3)
        1. Functional structure 68
        2. Divisional structure 70
        3. Matrix structure 72
        4. Network structure 74
        5. Team-based structure 76
      16. Human resources 78 (1/4)
      17. Human resources 78 (2/4)
      18. Human resources 78 (3/4)
      19. Human resources 78 (4/4)
        1. The human resources cycle 80
        2. Recruitment and selection 82
        3. Evaluating staff 84
        4. Motivation and rewards 86
        5. Leadership strategy and styles 88
        6. Leadership for team building 90
        7. Employee relations and communications 92
        8. Project management 94
        9. Negotiating strategy 96
    3. HOW FinanCe WORKs 98
      1. Financial reporting 100 (1/2)
      2. Financial reporting 100 (2/2)
        1. The accounting cycle 102
        2. Financial statements 104
      3. Financial accounting 110 (1/4)
      4. Financial accounting 110 (2/4)
      5. Financial accounting 110 (3/4)
      6. Financial accounting 110 (4/4)
        1. International accounting standards 112
        2. Profit-and-loss statement 114
        3. Balance sheet 116
        4. Cash-flow statement 120
        5. Environmental accounting 122
        6. Depreciation 124
        7. Amortization and depletion 128
      7. Management accounting 130 (1/3)
      8. Management accounting 130 (2/3)
      9. Management accounting 130 (3/3)
        1. Cash flow 132
        2. Budgets 136
        3. Assets and inventory 138
        4. Costs 140
        5. Product costing and pricing 142
      10. Measuring performance 144 (1/2)
      11. Measuring performance 144 (2/2)
        1. Key performance indicators (KPIs) 146
        2. Financial ratios 148
        3. Forecasting 150
        4. Tracking fraud 152
      12. Raising financing 154 (1/5)
      13. Raising financing 154 (2/5)
      14. Raising financing 154 (3/5)
      15. Raising financing 154 (4/5)
      16. Raising financing 154 (5/5)
        1. Internal financing 156
        2. External financing 158
        3. Going public 160
        4. Shares and dividends 164
        5. The capital market 170
        6. Gearing ratio and financial risk 174
    4. HOW SALES AND MARKETING WORKS 176
      1. Marketing mix 178 (1/4)
      2. Marketing mix 178 (2/4)
      3. Marketing mix 178 (3/4)
      4. Marketing mix 178 (4/4)
        1. Product 180
        2. Product positioning 182
        3. Product life cycle 184
        4. Price 186
        5. Place 188
        6. Promotion 190
        7. Market research 192
        8. Market segmentation 194
      5. Marketing approaches 196 (1/3)
      6. Marketing approaches 196 (2/3)
      7. Marketing approaches 196 (3/3)
        1. Niche vs. mass marketing 198
        2. Traditional marketing 200
        3. Digital marketing 202
        4. Engagement marketing 204
        5. Sensory marketing 206
        6. Relationship marketing 208
      8. Outbound marketing 210 (1/2)
      9. Outbound marketing 210 (2/2)
        1. Traditional offline advertising 212
        2. Online advertising 214
        3. Direct mail 216
        4. Telemarketing 218
      10. Inbound marketing 220 (1/3)
      11. Inbound marketing 220 (2/3)
      12. Inbound marketing 220 (3/3)
        1. Outbound vs. inbound marketing 222
        2. Blogging 224
        3. Social media marketing 228
        4. Search engine optimization (SEO) 230
      13. Business development 232 (1/3)
      14. Business development 232 (2/3)
      15. Business development 232 (3/3)
        1. Branding and rebranding 234
        2. Lead generation 236
        3. Lead conversion 238
        4. Customer retention 240
        5. Return on marketing investment (ROMI) 242
        6. Intellectual capital 244
      16. Information management 246 (1/5)
      17. Information management 246 (2/5)
      18. Information management 246 (3/5)
      19. Information management 246 (4/5)
      20. Information management 246 (5/5)
        1. Business intelligence 248
        2. Business analytics 250
        3. Marketing and IT 252
        4. Collecting consumer data 254
        5. Data warehousing 256
        6. Customer profiling 258
        7. Big data 262
        8. Customer relationship management (CRM) 264
        9. Compliance 266
    5. HOW OPERATIONS AND PRODUCTION WORK 268
      1. Manufacturing and production 270 (1/3)
      2. Manufacturing and production 270 (2/3)
      3. Manufacturing and production 270 (3/3)
        1. Job production 272
        2. Batch production 274
        3. Flow production 276
        4. Mass customization 278
        5. Continuous production 280
        6. Hybrid processes 282
      4. Management 284 (1/4)
      5. Management 284 (2/4)
      6. Management 284 (3/4)
      7. Management 284 (4/4)
        1. Economies and diseconomies of scale 286
        2. Lean production 288
        3. Just-in-time 290
        4. Total quality management 292
        5. Time-based management 294
        6. Agile production 296
        7. Kaizen 298
      8. Product 300 (1/3)
      9. Product 300 (2/3)
      10. Product 300 (3/3)
        1. New product development 302
        2. Innovation and invention 304
        3. Design 306
        4. Quality management 308
        5. Product-process matrix 310
      11. Control 312 (1/2)
      12. Control 312 (2/2)
        1. Managing capacity 314
        2. Inventory 316
        3. Quality control 318
        4. Six Sigma 320
      13. Supply chain 322 (1/3)
      14. Supply chain 322 (2/3)
      15. Supply chain 322 (3/3)
        1. Value chain 324
        2. Outsourcing 326
        3. Offshoring 328
        4. Reverse supply chain 330
        5. Benchmarking 332
        6. Corporate social responsibility 334
    6. Resources 336 (1/2)
    7. Resources 336 (2/2)
    8. Index 344 (1/2)
    9. Index 344 (2/2)
    10. Acknowledgments 351