348 349
how business works
Index
design 306–07
environmental responsibility 122
evolution 300 –11
extension 46
franchise 22
levels 180–81
life cycle 184–85
positioning 182–83
product-process matrix 310 –11
promotion 190–91
samples 201
professional corporation (PC) 16
profit, corporate failure signs 151
profit-and-loss statement 114 –15
profit margin 143
profit maximization 60
profitability ratios 148
profits, retained 157, 168
project accounting 101
project management 94–95
professional (PMP) 73
time-based management 294–95
tools 94, 295
promotion of product 190–91
property management 17
prospective costs 141
psychological pricing 187
public companies 18–19
public issue shares 165
public limited company (plc) 16
public relations 191
push/pull strategy 189, 220, 222
PwC 18, 145
Q
quality control 318–19
quality management 308–09
total quality management 292–93
quality product positioning 182
questionable costs 141
r
radio marketing 201, 210, 213
raising money see funding
raw data 251
raw materials costs 140
raw materials inventory 139
Recency Bias theory 156
recession, employment turnover 82
recruitment and selection 82–83
red flags indicating fraud 152
referral markets 209
relationship marketing 208–09
remuneration 107
reporting line, altering 67
reporting structure 18, 19, 69
research and development costs 115
residual value 124
retail space optimization 221
retailers, selling through 188–89
retained earnings 150
retained profits 157
return on equity (ROE) ratio 148
return on marketing investment
(ROMI) 242–43
revenue recognition principle 113
reverse merger 45
reverse supply chain 330–31
rewards and motivation 86–87
rights issue shares 165
Ritz-Carlton hotel group 279
robot.txt 231
ROI (return on investment) 242
Rolex 18
RSS (rich site summary) 226
s
salaries and wages 115, 132, 152
sales
and fraud 152, 153
KPIs 146
pipeline 238
pitch 239
promotion 191, 205
revenue 132
tracking 249
sales tax 106
salvage/scrap/residual value 124
search algorithm 231
search engine optimization (SEO)
230–31
Sears 330
secondary market 171
secondary stock offering 19
securities and capital markets 170–73
Securities Exchange Co 153
selling and buying businesses 40–41
selling price 143
sensory marketing 206–07
sensory testing 207
service costing 143
service jobs 272
share capital, raising 165
share split 166–67
share of voice (advertising) 213
shareholders 60–63
divestitures 45
and financial statements 108
funds 117
liability 16, 17
and management 18, 19
shares and dividends
corporate failure signs 151
dividends 168–69
share capital, raising 165
share flotation 160–63
share value 62, 71, 120, 121, 159
share value, establishing 166–67
types 164– 65
short-term financing 156–59
shortage management 135
silo mentality 68, 69
single-member company (SMC) 17
Six Sigma control 320–21
skimming pricing 186
slice and dice data 248
small cap listed company 163
small and medium-sized enterprises
(SMEs) 38
social economic scale 261
social enterprise 25
social graph 229
social lead targeting 211
social media marketing 228–29
and benchmarking 327
big data 262
and branding 234
see also blogging
social media monitoring 229
sole proprietors 14–15
solvency ratios 149
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spam use regulation 266–67
span of control 58
special offers regulation 266–67
spinoffs 44, 45
splog 225
spreadsheets 249
staff evaluation 84–85
performance–management cycle 64
staff position 58
stakeholders 60–63
and corporate social responsibility
(CSR) 335
and financial statements 108–09
and share value 62
Standard Oil 15
star schema data 248
Starbucks 72, 208, 335
start-up pivot 28
start-ups 26–39
concept development 28–29
funding 34–37
incubators see business accelerators
and incubators
types 30–31
statistics 109, 251
“sticky” customers 204
stock exchange listing 160–61, 162
stock exchanges, world’s top 162
stock-keeping unit (SKU) 317
straight-line method of depreciation
124–25
strategic capital 244
structural capital 245
subsidiary company 105
Subway 23
success metrics (marketing) 242
sunk costs 141
super angels 35
supplier markets 208
suppliers’ payments 133
supply chain 322–35
surplus management 135
sustainability, KPIs 147
sustainable investment 106
swap ratio 43
sweepstakes and contests
regulation 266–67
SWOT analysis 33
synergy 47
T
tangible/fixed assets 117–19, 124,
125, 133, 138–39, 153
task culture 65
tax accounting 114–15, 120
tax payments 106, 109, 115, 119, 120,
133, 169
team-based structure 76–77
team-building leadership 90–91
technology, mass customization
278–79
telemarketing 218–19
regulation 266–67
terabyte 263
TERM (technology-enabled
relationship management) 264
term loan 34, 158
ticker symbols 19
time-based management 294–95
TOFU (top of funnel marketing) 220
total quality management 292–93
quality management 308–09
Toyota 288–89, 290, 298, 308
tracking stock 45
trade event marketing 200, 205, 210
traditional marketing 200–02
traditional offline advertising
212–13
transaction marketing 209
transnational corporation 21
transparent customization 279
trending product claims 302
trial balance 103
tunneling 152
turnover 114–15
TV marketing 200, 210, 213
TVR (television rating point) 213
U
undertrading 151
underwriters 162
unquoted/unlisted company 19
useful/economic life 124
USP (unique selling point) 33
utility company, debt affordability 120
V
valuation of company 18, 19
value 186
Value Added Tax (VAT) 106
value chain 324–25
value product positioning 182
value-stream mapping 288
vanity metrics 253
venture capitalists (VCs) 35, 37
vidcasting 226–27
Virgin 15
virtual business incubator 39
Visa 161
W
wages and salaries 107, 132
Walt Disney 292–93
warehousing 331
warrant 172
waste elimination 288–89
Watson Wyatt index 245
Wessex Water 107, 109, 114–15,
117–19, 122–23
wholesalers, selling through 188–89
who’s who 50–65
Wikispeed 287
windfalls 133
WIP (work in progress) 317
WOM (word-of-mouth) marketing 204
working capital/total assets 150
WorldCom 153
Wyndham Hotel Group 23
X
Xerox 70, 71
Z
Z-score models, forecasting with 150
Zappos 77
zero-based budget 137
Zeta analysis 151
IndeX
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350 351
Dorling Kindersley would like to
thank Douglas Bell and Debra Wolter
for editorial assistance; Margaret
McCormack for the index; and
Nicola Gary, Vaibhav Rastogi, and
Riti Sodhi for design assistance.
Credits
DK would like to thank Wessex Water for
their kind permission to reproduce sections
of their 2013 annual report and accounts on
pp.100–123; the Radio Advertising Bureau
for permission to reproduce the graph on
p.212; and Upstream/YouGov for permission
to reproduce the graph on p.214.
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Acknowledgments
HOW BUSINESS WORKS
Acknowledgments
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