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Understanding
Business:
THE CORE
Understanding
Business:
THE CORE

William G. Nickels
University of Maryland

James M. McHugh
St. Louis Community College at Forest Park

Susan M. McHugh
Applied Learning Systems
UNDERSTANDING BUSINESS: THE CORE

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed
in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or
retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or
transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 0 RMN/RMN 1 0 9 8 7 6

ISBN 978-1-259-86929-7
MHID 1-259-86929-6

Senior Vice President, Products & Markets: Kurt L. Strand

Vice President, General Manager, Products & Markets: Michael Ryan
Vice President, Content Design & Delivery: Kimberly Meriwether David
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Director, Product Development: Meghan Campbell
Marketing Manager: Michael Gedatus
Lead Product Developer: Kelly Delso
Digital Product Analyst: Kerry Shanahan
Director, Content Design & Delivery: Terri Schiesl
Program Manager: Mary Conzachi
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Cover Image: © Maureen McCutcheon
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All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Control Number: 2016932020

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the
authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the ­information presented at these sites.

mheducation.com/highered
 dedication
To our families—Marsha, Joel, Carrie, Claire, Casey,
Dan, Molly, Michael, Patrick, and Quinn. Thank you
for making everything worth doing and giving us the
support to do it well!

and
To the team that made this edition possible, especially
the instructors and students who gave us such valuable
guidance as we developed the text and package.

v
ABOUT THE AUTHORS

Bill Nickels is emeritus professor of business at the University of ­Maryland, Col-

lege Park. He has over 30 years’ experience teaching ­graduate and undergraduate busi-
ness courses, including introduction to business, marketing, and promotion. He has won
the Outstanding Teacher on ­Campus Award four times and was nominated for the award
many other times. He received his M.B.A. degree from Western Reserve University and
his Ph.D. from The Ohio State University. He has written a marketing communications text
and two ­marketing ­principles texts in addition to many articles in business publications. He
has taught many seminars to businesspeople on subjects such as power communications,
marketing, non-business marketing, and stress and life management. His son, Joel, is a
­professor of English at the University of Miami (Florida).

Jim McHugh holds an M.B.A. degree from Lindenwood University and has had broad
experience in education, business, and government. As chairman of the B ­ usiness and
Economics Department of St. Louis Community College–Forest Park, Jim ­coordinated
and directed the development of the business curriculum. In addition to ­teaching sev-
eral sections of Introduction to Business each semester for nearly 30 years, Jim taught in
the marketing and management areas at both the undergraduate and graduate levels. Jim
enjoys conducting business seminars and consulting with small and large businesses. He
is actively involved in the public service sector and served as chief of staff to the St. Louis
County Executive.

Susan McHugh is a learning specialist with extensive training and experience in

adult learning and curriculum development. She holds an M.Ed. degree from the Uni-
versity of Missouri and completed her course work for a Ph.D. in education administra-
tion with a specialty in adult learning theory. As a professional curriculum developer,
she has directed numerous curriculum projects and educator training programs. She
has worked in the public and private sectors as a consultant in training and employee
development. While Jim and Susan treasure their participation in writing projects,
their greatest accomplishment is their collaboration on their three children. Casey is
carrying on the family’s teaching tradition as an adjunct professor at Washington Uni-
versity. Molly and Michael are carrying on the family writing tradition by contributing
to the development of several supplementary materials for this text.

vi
 Understanding Business:

WALKTHROUGH
The Core
What Is Understanding Business: The Core?
We listened. You have asked us for a Nickels/McHugh/McHugh program that
was briefer, high in quality, and affordably priced.
We delivered. Understanding Business: The Core provides a flexible and understanding
proven-effective experience that enhances your teaching, improves student
performance, and is accessible to all. Its 18-chapter format provides a briefer Business
content coverage—all in a value-priced package.

High-Quality Authors
Authors who actually teach the course are unique in this market. Bill ­Nickels’ the
core
experience as an Introduction to Business instructor at a 4-year university
teaches sections of more than 300 students; Jim McHugh is a community
Nickels McHugH McHugH
college Introduction to Business instructor; Susan McHugh is an educational
consultant. No one can deny the unique perspective this “perfect author
team” has.

Briefer
Many instructors have asked us to develop a condensed version of the #1 best-selling
Intro Biz program (since 1995), Understanding Business. We delivered. Understanding
Business: The Core provides a briefer, 18-chapter presentation of the core concepts. We
condensed the presentation of the marketing concepts to two chapters by focusing on the
essential concepts and tightened their explanations. Four bonus chapters are provided and
can be accessed via Connect/SmartBook.

Value-Priced
Understanding Business: The Core has been priced to effectively meet students where they
are. For more information on pricing, please contact your Learning Technology Represen-
tative. To find your Learning Technology Representative, visit bit.ly/findmyltr

We Listen to Our Customers

We look to the experts—full-time faculty members, adjunct instructors, and of course,
students—to drive the decisions we make about the text itself and the ancillary package.
Through a series of focus groups, symposia, as well as full-book, single-chapter m
­ anuscript
reviews of the text and ancillaries we have heard the stories of more than 450 professors.
Their insights and experiences are evident on every page and in every supplement.

vii
 Current
Things change quickly in the business environment and it’s critical your students get the
most up-to-date and accurate information as they begin to navigate their business majors
and careers. The authors write a monthly newsletter sent to all users—the perfect way to
keep your course up-to-date.

Service
Authors are extremely responsive to customers. The McGraw-Hill Education Introduction
to Business Team will work with you to provide a customized print and online solution
to meet your needs. The McGraw-Hill Education Team is here to support you in every
aspect, from course administration to implementation.

Quality of Our Supplements Package

The supplements package for Understanding Business: The Core is a derivative of Under-
standing Business, which is truly the platinum standard—it’s what all competitors now
try to emulate. The format of the supplements package is always geared to the part-time
instructor or the instructor with little time to prep for this course. We want to help you with
the resources you need to easily start teaching from this text.

Tight Integration of Text, Resources, and Technology

The elements of the book and supplements are all tightly integrated, especially in the
Instructor’s Manual. Here you will find every element of the supplements package and text
organized into a lecture outline so you can easily see what other resources you may want to
pull into your lecture and course. All of these resources are organized by the same learning
objectives in every chapter.

Digital Faculty Consultants

Digital Faculty Consultants are instructors at colleges and universities across the United States
who have successfully integrated our digital products into their courses and would like to share
their experience and advice with colleagues. Digital Faculty Consultants host small-group ses-
sions online, help provide training for instructors, and share stories, tips, and best practices to
support successful implementation of digital products in your courses.

If you would like to speak with a Digital Faculty Consultant, please contact
michael.gedatus@mheducation.com

viii
Improves Student
Performance
Proven Results

+13%
LearnSmart Advantage® More than 2 million students have
answered more than 1.3 billion questions in LearnSmart®
since 2009, making it the most widely used and intelligent
adaptive study tool available on the market today. LearnSmart

pass rate
is proven to strengthen memory recall, keep students in class,
and boost grades—students using LearnSmart are 13% more
likely to pass their classes and 35% less likely to drop out. Go
to bit.ly/introductiontobusiness to learn more about the results
instructors have been able to achieve with Connect® Business.

SmartBook® within Connect Business

SmartBook makes study time as productive and efficient as possible.
It identifies and closes knowledge gaps through a continually adapting
reading experience. This ensures every minute spent with SmartBook
is returned to the student as the most value-added minute possible. The Confirming Pages

result? More confidence, better grades, and greater success.

Go to bit.ly/MHSmartBook to learn more.
72 PART 1 Business Trends: Cultivating a Business in Diverse, Global Environments

FIGURE 3.5 THE

Insight Enabled
COMPANY COUNTRY WEBSITE
LARGEST
MULTINATIONAL 1. Royal Dutch Shell Netherlands shell.com
CORPORATIONS IN THE 2. Wal-Mart Stores United States walmart.com
WORLD
3. ExxonMobil United States exxonmobil.com
®
Connect Insight is Connect Business’ one-of-a-kind visual analytics dashboard—­a5.vailableChina National Petroleum China
4. Sinopec Group Sinopecgroup.com
cnpc.com.cn
China

for instructors and students—that provides at-a-glance information regarding student 6. BP per-
7. State Grid
Britain
China
bp.com
sgcc.com.cn
formance, which is immediately actionable. By presenting assignment, ­assessment, 8. Toyota and
Motor Japan toyota.co.jp
9. Japan Post Holdings Japan japanpost.jp
topical performance results together with a time metric that is easily visible for10. Chevron
aggre- United States chevron.com

gate or individual results, Connect Insight gives the user the ability to take a just-in-time Source: Fortune, July 25, 2013.

approach to teaching and learning, which was never before available.

Go to bit.ly/connectinsight to learn more about Connect Insight.
management. Multinational corporations are typically extremely large corporations
like Nestlé, but not all large global businesses are multinationals. For example, a cor-
poration could export everything it produces, deriving 100 percent of its sales and
profits globally, and still not be a multinational corporation. Only firms that have man-
ufacturing capacity or some other physical presence in different nations can truly be

Interactive Applications within Connect Business

called multinational. Figure 3.5 lists the 10 largest multinational corporations in
the world.
sovereign wealth funds A growing form of foreign direct investment is the use of sovereign wealth funds
(SWFs) (SWFs), investment funds controlled by governments holding investment stakes in for-
Investment funds controlled by eign companies. SWFs from the United Arab Emirates, Singapore, and China have pur-
Available for each chapter, Interactive Applications allow students to practice real business governments holding
investment stakes in foreign
companies.
chased interests in many U.S. companies. Norway, with a population of 5 million
people, is the world’s richest SWF with assets of approximately $830 billion.31 The size
situations, stimulate critical thinking, and reinforce key concepts. Students receive immedi- of SWFs ($6 trillion globally) and government ownership make some fear they might
be used for achieving geopolitical objectives, gaining control of strategic natural
ate feedback and can track progress in their own report. Detailed results let instructors see at resources, or obtaining sensitive technologies. Thus far this has not been a problem. In
fact during the Great Recession, SWFs injected billions of dollars into struggling U.S.
a glance how each student performs and track the progress of every student in their course. companies.32 Many economists argue that foreign investment through SWFs is a vote of
confidence in the U.S. economy and a way to create thousands of U.S. jobs.
Go to bit.ly/interactiveapplications to learn more. Entering global business requires selecting an entry strategy that best fits your
business goals. The different strategies we’ve discussed reflect different levels of own-
ership, financial commitment, and risk. However, this is just the beginning. You should
also be aware of market forces that affect a business’s ability to thrive in global markets.

Test Prep Questions After the Test Prep, we’ll discuss them.

to help retain
Featured throughout, Test Prep helps students under- Use LearnSmart ned. Access
what you have lear nect course
stand and retain material discussed. These questions your instructor's Con
mart, or go to
to check out LearnSe.com for help.
stop students at important points to assess what they’ve learnsmartadvantag
learned before they continue reading and help them prep
test prep
• What are the advantages to a firm of using licensing as a method of
entry in global markets? What are the disadvantages?
• What services are usually provided by an export-trading company?
• What is the key difference between a joint venture and a strategic
alliance?

for quizzes and exams.

• What makes a company a multinational corporation?

ix
nic69296_ch03_060-091 72 02/04/16 05:21 PM
 Enhances Your Teaching—
Exciting Video Program
Video Cases within Connect Business
We know videos are an important part of the course, which is why a video is featured for
each chapter-ending case. Ch. 1 includes an EXCLUSIVE interview with a Hollywood
star, Tom Lennon (Reno 911!), and shows how Hollywood works as a multifaceted busi-
ness environment; Ch. 3 with Electra Bikes; Ch. 5 with Sonic; Ch. 8 with Whole Foods;
Ch. 11 with Teach for America; Ch. 14 with FedEx & SXSW; and more!

Video Program within Connect

Business
iSee It! videos within Connect Business—What is the accounting cycle?
What are line vs. staff employees? Topics such as these are confusing to students
for the first time. What if students were able to understand concepts like these in
a fun, and animated way? iSee It! video clips are the solution. As an assignment
within Connect, students can understand concepts, and instructors have access to
even more videos!
Go to bit.ly/iSeeit to view a sample clip.

Interactive Presentations within Connect Business—This study tool engages stu-

dents in multimedia presentations for each learning goal. Students can listen to an audio or
text narration and are prompted to quiz themselves on key concepts reinforcing knowledge,
making this a great prep tool for students.
Go to bit.ly/interactivepresentations to learn more.

Manager’s Hot Seat within Connect Business—Students assume the role of a

manager as they immerse themselves in video-based vignettes that are totally unscripted,
and see how real managers in realistic situations deal with difficult employees with com-
plex problems. Students learn from the managers’ mistakes and define their approach and
course of action for the situation, and defend it.

x
Enhances Your Teaching—
Comprehensive & Current
Coverage
Current Concepts
This first edition reflects the latest business practices and other developments a­ ffecting
businesses such as Trans-Pacific partnership, U.S. economic status post–financial c­ risis and
recession, Affordable Care Act, mobile/social/on-demand marketing, fracking, ­robotics,
Generation Z, mobile/social/on-demand marketing, and more!

Getting to Know Business Professionals

Every chapter opens with the profile of a business professional whose career illustrates an
important point covered in the chapter. While not all are of famous professionals, many of
them work for a variety of businesses from small businesses and nonprofit organizations to
large corporations. These profiles provide a transition between chapters and a good intro-
duction to the text material.

“Name That Company”

Available for every chapter, ask questions to pique students’ interest about a company, and
encourage them to read as they scavenger hunt to determine the company name within the
chapter.

“Using Social Media in Business”

Available for every chapter, ask students to consider the impact of social media on the way
they communicate and the way companies conduct business as a result.

Facebook Fan Page

A lot of changes take place in the business world on a daily basis, which is why the authors
have created a Facebook page for their customers to stay connected with their readers from
around the world, and update them with relevant current events, study tips for students, and
more. To join the community, go to bit.ly/introbizfacebook.

xi
 Enhances Your Teaching—
Integrated Resources &
Support
From the News to the Classroom
This Web site contains a variety of tools to freshen your classes with videos; abstracts of
recent articles with accompanying critical-thinking questions to spark class discussion;
and a PowerPoint file that integrates elements in an easy-to-use package. If you’re a current
user, we are sending you From the News to the Classroom via e-mail. If you are not receiv-
ing our message, please contact nickels@mheducation.com.

Developing Workplace Skills

A rich set of skill-building activities are offered at the end of every chapter, allowing
instructors to work with their students on critical workplace skills. Every exercise is
tagged to the skill: working in teams, analytical thinking, communication, and technology.

Instructor’s Manual, Test Bank, & PowerPoint

Presentations
The authors have carefully reviewed all resources provided in the Instructor’s Manual to
ensure cohesion. It includes everything an instructor needs to prepare a lecture, includ-
ing lecture outlines, discussion questions, and teaching notes. More than 900 PowerPoint
slides offer material from the text, as well as expanded coverage to supplement discussion.
Slides have been designed to be accessible to all, and in addition to lecture notes, now
include image tagging. Test Bank and EZ Test Online: The Test Bank and Computerized
Test Bank offer over 9,000 multiple-choice, true/false, short answer, essay, and applica-
tion questions. All questions are tagged to learning objectives, Bloom’s Taxonomy, and
accreditation standards supporting your reporting needs.

xii
Accessible to All
Enhanced Accessibility for Students with Disabilities
Our reviewers expressed the need for a learning program inclusive to all students, regard-
less of learning style or disability, and we listened. This first edition meets this need by
offering a brand-new textbook interior design, with deliberate color choices accessible to
all; alternate descriptions viewable in screen readers for images used within the e-book;
closed-captioned video resources; plus Connect questions in a keyboard-navigable format;
instructor and student PowerPoints that contain new colors and fonts accessible to all.

Quality Matters Program Seal of Approval

Connect Business fully meets the standards set by Quality Matters
­Program, an independent organization that reviews and certifies the
quality of online courses and online components. In fact, Connect
­Business earned a perfect score of 100 possible points. This achieve-
ment solidifies the effectiveness, ease-of-use, and customization of
Connect ­Business, whether it’s implemented in a traditional, hybrid, or
fully online course. To learn more about Quality Matters Program go to
bit.ly/qmatters.

Mobile Anywhere/Anytime
Students and instructors can now enjoy convenient, anywhere/anytime access to Connect
with a new mobile interface that’s been designed for optimal use of tablet functional-
ity. More than just a new way to access Connect, users can complete assignments, check
­progress, and study and read material with full use of SmartBook and Connect Insight—
Connect’s new at-a-glance visual analytics dashboard.

xiii
 Resources
Assignable Connect Content
SmartBook
Interactive Presentations
Interactive Applications
—Case Analysis
—Click and Drag
—Comprehension Cases
—Decision Generator
—iSee It! Video Cases
—Language Toolkits
—Timeline/Sequencing
—Video Cases
—Student PowerPoints

Instructor Resources
Instructor’s Manual
From the News to the Classroom Activities
PowerPoint Presentations
Sample Syllabi
Stock Market Game
Test Bank
Video Transcripts
Videos

xiv
TEACHING OPTIONS AND SOLUTIONS
Blackboard Partnership
McGraw-Hill Education and Blackboard have teamed up to simplify your life. Now
you and your students can access Connect and Create right from within your Black-
board course—all with one single sign-on. The grade books are seamless, so when a
student completes an integrated Connect assignment, the grade for that assignment
automatically (and instantly) feeds your Blackboard grade center. Learn more at
www.domorenow.com.

Create
Instructors can now tailor their teaching resources to match the way they teach! With
McGraw-Hill Create, www.mcgrawhillcreate.com, instructors can easily rearrange
chapters, combine material from other content sources, and quickly
­
upload and integrate their own content, like course syllabi or teaching
notes. Find the right content in Create by searching through thousands of
leading McGraw-Hill textbooks. Arrange the material to fit your teach-
ing style. Order a Create book and receive a complimentary print review copy in three to
five business days or a complimentary electronic review copy via e-mail within one hour.
Go to www.mcgrawhillcreate.com today and register.

Tegrity Campus
Tegrity makes class time available 24/7 by automatically capturing every lecture in a
searchable format for students to review when they study and complete assignments.
With a simple one-click start-and-stop process, you capture all computer screens and
corresponding audio. Students can replay any part of any class with easy-to-use
browser-based viewing on a PC or Mac. Educators know that the more students
can see, hear, and experience class resources, the better they learn. In fact, studies
prove it. With patented Tegrity “search anything” technology, students instantly
recall key class moments for replay online or on iPods and mobile devices. Instruc-
tors can help turn all their students’ study time into learning moments immediately sup-
ported by their lecture. To learn more about Tegrity, watch a two-minute Flash demo at
http://tegritycampus.mhhe.com.

McGraw-Hill Campus
McGraw-Hill Campus is a new one-stop teaching and learning experience available to users
of any learning management system. This institutional service allows faculty and students
to enjoy single sign-on (SSO) access to all McGraw-Hill Higher Education
materials, including the award-winning McGraw-Hill Connect platform, from
directly within the institution’s website. With McGraw-Hill Campus, faculty
receive instant access to teaching materials (e.g., eTextbooks, test banks, Power
Point slides, animations, learning objects, etc.), allowing them to browse, search, and use
any instructor ancillary content in our vast library at no additional cost to instructor or
students.

xv
 COURSE DESIGN AND DELIVERY
In addition, students enjoy SSO access to a variety of free content (e.g., quizzes, flash
cards, narrated presentations, etc.) and subscription-based products (e.g., McGraw-Hill
Connect). With McGraw-Hill Campus enabled, faculty and students will never need
to create another account to access McGraw-Hill products and services. Learn more at
www.mhcampus.com.

Assurance of Learning Ready

Many educational institutions today focus on the notion of assurance of learning, an
important element of some accreditation standards. Understanding Business: The Core
is designed specifically to support instructors’ assurance of learning initiatives with a
simple yet powerful solution. Each test bank question for Understanding Business: The
Core maps to a specific chapter learning objective listed in the text. Instructors can use
our test bank software, EZ Test and EZ Test Online, to easily query for learning objec-
tives that directly relate to the learning outcomes for their course. Instructors can then use
the reporting features of EZ Test to aggregate student results in similar fashion, making
the collection and presentation of assurance of learning data simple and easy.

AACSB Tagging
McGraw-Hill Education is a proud corporate member of AACSB International. Under-
standing the importance and value of AACSB accreditation, Understanding Business:
The Core recognizes the curricula guidelines detailed in the AACSB standards for busi-
ness accreditation by connecting selected questions in the text and the test bank to the
six general knowledge and skill guidelines in the AACSB standards. The statements con-
tained in Understanding Business: The Core are provided only as a guide for the users of
this textbook. The AACSB leaves content coverage and assessment within the purview of
individual schools, the mission of the school, and the faculty. While the Understanding
Business: The Core teaching package makes no claim of any specific AACSB qualification
or evaluation, we have within Understanding Business: The Core labeled selected ques-
tions according to the six general knowledge and skills areas.

McGraw-Hill Customer Experience Group Contact Information

At McGraw-Hill Education, we understand that getting the most from new technology can
be challenging. That’s why our services don’t stop after you purchase our products. You
can e-mail our Product Specialists 24 hours a day to get product training online. Or you
can search our knowledge bank of Frequently Asked Questions on our support website. For
Customer Support, call 800-331-5094 or visit www.mhhe.com/support. One of our Tech-
nical Support Analysts will be able to assist you in a timely fashion.

xvi
 ACKNOWLEDGMENTS
Our Executive Brand Manager, Anke Weekes, led the talented team at McGraw-Hill Edu-
cation. We appreciate her dedication to the success of the project and her responsiveness
to the demands of the market. Kelly Delso served as our lead product developer and kept
everyone on task and on schedule. Molly and Michael McHugh contributed the new boxes
and profiles. Srdjan Savanovic created the new fresh, open interior design and extraor-
dinary cover. Carrie Burger and Jen Blankenship carried out the extensive research for
photos that was necessary to effectively reflect the concepts presented in the text. Project
manager, Christine Vaughan, did a splendid job of keeping the production of the text on
schedule. Danielle Clement expertly supervised Connect production.
Many dedicated educators made extraordinary contributions to the quality and util-
ity of this text and package. For this edition, Molly McHugh did an exceptional job in
preparing the Test Bank and creating the quizzes for Connect. Molly also did a superb job
of creating the PowerPoint slides and a useful and current Instructor’s Resource Manual.
We also recognize the efforts of those who contributed to the creation of Connect mate-
rials, and to our LearnSmart “team” at Monroe Community College: Judy Bulin, John
Striebich, and Donna Haeger, who tirelessly worked to review and perfect LearnSmart
content. Thank you to Chris Cole, Dayna Brown, Dan Mack, and the crew of Cole Creative
Productions for the fabulous new videos they produced. Thank you to the Digital Faculty
Consultants who have helped train and support so many instructors in the Introduction to
Business course, as well as assist them in successfully implementing Connect into their
courses: Chris Finnin, Drexel University; Todd Korol, Monroe Community College; John
Striebich, Monroe Community College; and Marie Lapidus, Oakton Community College.
Our outstanding marketing manager, Michael Gedatus, was up to the challenge of
once again guiding the text to market leadership. With the assistance of the market’s fin-
est sales professionals, he led the text to record highs. We appreciate his commitment and
the renowned product knowledge, service, and dedication of the McGraw-Hill Education
sales reps. We want to thank the many instructors who contributed to the development of
Understanding Business: The Core.

REVIEWERS
We would like to thank the following instructors for sharing their opinions with us in an
effort to improve this and previous editions:

Nikolas Adamou, Borough of Roanne Angiello, Bergen Frank Barber, Cuyahoga

­Manhattan Community College
Cathy Adamson, Southern Union
State Community College
Ashraf Almurdaah, Los Angeles
City College
Gary Amundson, Montana State
University–Billings
Kenneth Anderson, Borough of
Manhattan Community College
Kenneth Anderson, Mott
­Community College
Lydia Anderson, Fresno City
College
Narita Anderson, University of
Central Oklahoma
­Community College
Chi Anyansi-Archibong, North
Carolina A&T University
Maria Aria, Camden County
College
Michael Atchison, University of
Virginia–Charlottesville
Michael Aubry, Cuyamaca College
Andrea Bailey, Moraine Valley
Community College
Sandra Bailey, Ivy Tech Commu-
nity College of Indiana
Scott Bailey, Troy University
Wayne Ballantine, Prairie View
A&M University
­Community College
Ruby Barker, Tarleton State
University
Rosalia (Lia) Barone, Norwalk
Community College
Barbara Barrett, St. Louis
­Community College–Meramec
Barry Barrett, University of
Wisconsin–Milwaukee
Richard Bartlett, Columbus State
Community College
Lorraine Bassette, Prince George’s
Community College
Robb Bay, College of Southern
Nevada–West Charle

xvii
xviii ACKNOWLEDGMENTS
Jim Beard, University of
Arkansas–Fort Smith
Amy Beattie, Champlain College
Charles Beavin, Miami Dade
­College North
Charles Beem, Bucks County
Community College
Cathleen Behan, Northern Virginia
Community College
Lori Bennett, Moorpark College
Robert Bennett, Delaware County
Community College
Ellen Benowitz, Mercer Commu-
nity College
Michael Bento, Owens Community
College
George H. Bernard, Seminole
State College of Florida
Patricia Bernson, County College
of Morris
Marilyn Besich, Montana State
University–Great Falls
William Bettencourt, Edmonds
Community College
Robert Blanchard, Salem State
College
Mary Jo Boehms, Jackson State
Community College
James Borden, Villanova
University
Michael Bravo, Bentley College
Dennis Brode, Sinclair Community
College
Kathy Broneck, Pima Community
College
Harvey Bronstein, Oakland Com-
munity College–Farmington
Hills
Deborah Brown, North Carolina
State University–Raleigh
Nancy A. Brown, Lakeland
­Community College
Timothy R. Broxholm, Green River
­Community College
Aaron A. Buchko, Bradley
University
Jerri Buiting, Baker College–Flint
Laura Bulas, Central Community
College–Hastings
Judy Bulin, Monroe Community
College
Barry Bunn, Valencia Community
College–West Campus
Bill Burton, Indiana Wesleyan
University
Paul Callahan, Cincinnati State
Technical and Community
College
William Candley, Lemoyne Owen
College
Nancy Carr, Community College of
Philadelphia
Ron Cereola, James Madison
University
Bonnie Chavez, Santa Barbara
City College
Susan Cisco, Oakton Community
College
Margaret (Meg) Clark, Cincinnati
State Technical and Community
College
Savannah Clay, Central Piedmont
Community College
David Clifton, Ivy Tech Community
College of Indiana
C. Cloud, Phoenix College
Paul Coakley, Community College
of Baltimore County
Doug Cobbs, JS Reynolds Com-
munity College
Diana Joy Colarusso, Daytona
State College
Brooks Colin, University of New
Orleans
Debbie Collins, Anne Arundel
Community College
Patrick Conroy, Delgado
­Community College
Andrew Cook, Limestone College
Bob Cox, Salt Lake Community
College
Susan Cremins, Westchester Com-
munity College
Julie Cross, Chippewa Valley Tech
College
Geoffrey Crosslin, Kalamazoo
­Valley Community College
Douglas Crowe, Bradley University
Dana D’Angelo, Drexel University
James Darling, Central New
­Mexico Community College
John David, Stark State College of
Technology
Peter Dawson, Collin County
­Community College
Joseph Defilippe, Suffolk County
Community College–Brentwood
Tim DeGroot, Midwestern State
University
Len Denault, Bentley College
Frances Depaul, Westmoreland
County Community College
Donna Devault, Fayetteville Tech
Community College
Sharon Dexter, Southeast
­Community College–Beatrice
John Dilyard, St. Francis College
Barbara Dinardo, Owens
­Community College
George Dollar, St. Petersburg
College
Glenn Doolittle, Santa Ana
College
Ron Dougherty, Ivy Tech
­Community College of Indiana
Michael Drafke, College of
DuPage
Rosario (Bud) Drago, Villanova
University
Joseph Dutka, Ivy Tech
­Community College of Indiana
Karen Eboch, Bowling Green State
University
Brenda Eichelberger, Portland
State University
Kelvin Elston, Nashville State Tech
Community College
Robert Ettl, Stony Brook University
Nancy Evans, Heartland
­Community College
Mary Ewanechko, Monroe
­Community College

Michael Ewens, Ventura College
Hyacinth Ezeka, Coppin State
University
Bob Farris, Mt. San Antonio
College
Karen Faulkner, Long Beach City
College
Gil Feiertag, Columbus State
­Community College
Joseph Flack, Washtenaw
­Community College
Lucinda Fleming, Orange County
Community College
Jackie Flom, University of Toledo
Andrea Foster, John Tyler
­Community College
Michael Foster, Bentley College
Leatrice Freer, Pitt Community
College
Alan Friedenthal, Kingsborough
Community College
MaryBeth Furst, Howard
­Community College
Charles Gaiser, Brunswick
­Community College
Wayne Gawlik, Joliet Junior
College
Ashley Geisewite, Southwest
­Tennessee Community College
Katie Ghahramani, Johnson
County Community College
Debora Gilliard, Metropolitan State
College–Denver
Ross Gittell, University of New
Hampshire
James Glover, Community College
of Baltimore County–Essex
Constance Golden, Lakeland
Community College
Doug Greiner, University of
Toledo–Scott Park
Toby Grodner, Union County
College
John Guess, Delgado Community
College
Lisa E. Hadley, Southwest
­Tennessee Community College
ACKNOWLEDGMENTS
Clark Hallpike, Elgin Community
College
Geri Harper, Western Illinois
University
Frank Hatstat, Bellevue
­Community College
Spedden Hause, University of
Maryland–University College
Karen Hawkins, Miami-Dade
College–Kendall
Travis Hayes, Chattanooga State
Technical Community College
Jack Heinsius, Modesto Junior
College
Charlane Held, Onondaga
­Community College
Nancy Hernandez, Howard
College
James Hess, Ivy Tech Community
College of Indiana
Steve Hester, Southwest
­Tennessee Community
­College–Macon Campus
William Hill, Mississippi State
University
Nathan Himelstein, Essex County
College
Paula Hladik, Waubonsee
­Community College
David Ho, Metropolitan
­Community College
Douglas Hobbs, Sussex County
Community College
Maryanne Holcomb, Antelope
­Valley College
Mary Carole Hollingsworth,
­Georgia Perimeter College
Russell Holmes, Des Moines Area
Community College
Scott Homan, Purdue
University–West Lafayette
Stacy Horner, Southwestern
­Michigan College
Dennis Hudson, University of
Tulsa
Jo Ann Hunter, Community
­College Allegheny County in
Pittsburgh
xix
Kimberly Hurns, Washtenaw
­Community College
Victor Isbell, University of
Nevada–Las Vegas
Deloris James, University of
­Maryland–University College
Pam Janson, Stark State College
of Technology
William Jedlicka, Harper College
Carol Johnson, University of Denver
Gwendolyn Jones, University of
Akron
Kenneth Jones, Ivy Tech Commu-
nity College of Indiana
Marilyn Jones, Friends University
Michael Jones, Delgado Commu-
nity College
Dmitriy Kalyagin, Chabot College
Jack Kant, San Juan College
Janice Karlen, La Guardia
­Community College
Jimmy Kelsey, Seattle Central
Community College
Robert Kemp, University of
Virginia–Charlottesville
David Kendall, Fashion Institute of
Technology
Kristine Kinard, Shelton State
Community College
Sandra King, Minnesota State
University–Mankato
Todd Korol, Monroe Community
College
John Kurnik, Saint Petersburg
College
Jeff LaVake, University of
Wisconsin–Oshkosh
Robert Lewis, Davenport
University
Stacey Lhuillier, Kansas State
University
Byron Lilly, DeAnza College
Beverly Loach, Central Piedmont
Community College
Boone Londrigan, Mott ­Community
College
Joshua Long, Indiana Tech
xx ACKNOWLEDGMENTS
Ladonna Love, Fashion Institute of
Technology
Ivan Lowe, York Technical College
Yvonne Lucas, Southwestern
College
Robert Lupton, Central
­Washington University
Megan Luttenton, Grand Valley
State University
Elaine Madden, Anne Arundel
Community College
Lawrence Maes, Davenport
University
Niki Maglaris, Northwestern
College
James Maniki, Northwestern College
Paula Mannd, Atlantic Cape
­Community College
James W. Marco, Wake Technical
Community College
Martin Markowitz, College of
Charleston
Theresa Mastrianni, Kingsborough
Community College
Fred Mayerson, Kingsborough
Community College
Stacy McCaskill, Rock Valley
College
Vershun L. McClain, Jackson State
University
Gina McConoughey, Illinois
­Central College
Patricia McDaniel, Central
­Piedmont Community College
Pam McElligott, St. Louis Commu-
nity College–Meramec
Tom McFarland, Mt. San Antonio
College
Bill McPherson, Indiana University
of Pennsylvania
Michelle Meyer, Joliet Junior
College
Catherine Milburn, University of
Colorado–Denver
Ginger Moore, York Technical
College
Sandy Moore, Ivy Tech Community
College of Indiana
Jennifer Morton, Ivy Tech
­Community College of Indiana
Peter Moutsatson, Central
­Michigan University
Rachna Nagi-Condos, American
River College
Darrell Neron, Pierce College
Mihia Nica, University of Central
Oklahoma
Charles Nichols, Sullivan
University
Frank Novakowski, Davenport
University
Mark Nygren, Brigham Young
University–Idaho
Paul Okello, Tarrant County
College
David Oliver, Edison Community
College
Faviana Olivier, Bentley College
John Olivo, Bloomsburg University
of Pennsylvania
Teresa O’Neill, International
­Institute of the Americas
Cathy Onion, Western Illinois
University
Susan Ontko, Schoolcraft College
Glenda Orosco, Oklahoma
State University Institute of
Technology
Christopher O’Suanah, J. S.
­Reynolds Community College
Daniel Pacheco, Kansas City
­Kansas Community College
Esther Page-Wood, Western
­Michigan University
Lauren Paisley, Genesee
­Community College
John Pappalardo, Keene State
College
Ron Pardee, Riverside Community
College
Jack Partlow, Northern Virginia
Community College
Dyan Pease, Sacramento City
College
Jeff Pepper, Chippewa Valley Tech
College
Sheila Petcavage, Cuyahoga
­Community College
Western–Parma
Roy Pipitone, Erie Community
College
Lana Powell, Valencia Community
College–West Campus
Dan Powroznik, Chesapeake
College
Litsa Press, College of Lake
County
Sally Proffitt, Tarrant County
College–Northeast
Vincent Quan, Fashion Institute of
Technology
Michael Quinn, James Madison
University
Anthony Racka, Oakland Commu-
nity College
Larry Ramos, Miami-Dade Commu-
nity College
Greg Rapp, Portland Community
College–Sylvania
Robert Reese, Illinois Valley Com-
munity College
David Reiman, Monroe County
Community College
Gloria Rembert, Mitchell Commu-
nity College
Levi Richard, Citrus College
Clinton Richards, University of
Nevada–Las Vegas
Patricia Richards, Westchester
Community College
Susan Roach, Georgia Southern
University
Sandra Robertson, Thomas
­Nelson Community College
David Robinson, University of
California–Berkeley
Catherine Roche, Rockland
­Community College

Tim Rogers, Ozark Technical
College
Sam Rohr, University of
­Northwestern Ohio
Pamela Rouse, Butler University
Carol Rowey, Community College
of Rhode Island
Jeri Rubin, University of
Alaska–Anchorage
Storm Russo, Valencia Community
College
Mark Ryan, Hawkeye Community
College
Richard Sarkisian, Camden County
College
Andy Saucedo, Dona Ana
­Community College–Las Cruces
James Scott, Central Michigan
University
Janet Seggern, Lehigh Carbon
Community College
Sashi Sekhar, Purdue
University–Calumet-Hammond
Pat Setlik, Harper College
Swannee Sexton, University of
Tennessee–Knoxville
Phyllis Shafer, Brookdale Commu-
nity College
Richard Shortridge, Glendale
Community College
Rieann Spence-Gale, Nova
­Community College
This edition continues to be the market’s gold standard due to the involvement of these committed instructors and stu-
dents. We thank them all for their help, support, and friendship.
Bill Nickels
ACKNOWLEDGMENTS
Clifford Stalter, Chattanooga State
Technical Community College
Kurt Stanberry, University of
Houston–Downtown
Desiree Stephens, Norwalk Com-
munity College
Louise Stephens, Volunteer State
Community College
Martin St. John, Westmoreland
County Community College
John Striebich, Monroe Commu-
nity College
David Stringer, DeAnza College
Ron Surmacz, Duquesne
University
William Syvertsen, Fresno City
College
Scott Taylor, Moberly Area Com-
munity College
Marguerite Teubner, Nassau
­Community College
Rod Thirion, Pikes Peak
­Community College
Jim Thomas, Indiana University
Northwest
Deborah Thompson, Bentley
College
Evelyn Thrasher, University of
Massachusetts–Dartmouth
Jon Tomlinson, University of
Northwestern Ohio
Bob Trewartha, Minnesota School
of Business
Jim McHugh
xxi
Bob Urell, Irvine Valley College
Dan Vetter, Central Michigan
University
Andrea Vidrine, Baton Rouge
Community College
Daniel Viveiros, Johnson & Wales
University
William J. Wardrope, University of
Central Oklahoma
Joann Warren, Community College
of Rhode Island–Warwick
David Washington, North Carolina
State University
R. Patrick Wehner, Everest
University
Sally Wells, Columbia College
Mildred Wilson, Georgia Southern
University
Karen Wisniewski, County College
of Morris
Greg Witkowski, Northwestern
College
Colette Wolfson, Ivy Tech
­Community College of Indiana
Deborah Yancey, Virginia Western
Community College
Mark Zarycki, Hillsborough
­Community College
Lisa Zingaro, Oakton Community
College
Mark Zorn, Butler County
­Community College
Susan McHugh
BRIEF CONTENTS

PART 1
Business Trends: Cultivating a Business in Diverse, Global
Environments 2
1 Taking Risks and Making Profits within the Dynamic Business Environment 2
2 Understanding Economics and How It Affects Business 28
3 Doing Business in Global Markets 60
4 Demanding Ethical and Socially Responsible Behavior 92

PART 2
Business Ownership: Starting a Small Business 118
5 How to Form a Business 118
6 Entrepreneurship and Starting a Small Business 150

PART 3
Business Management: Empowering Employees to Satisfy
Customers 184
7 Management and Leadership 184
8 Structuring Organizations for Today’s Challenges 210
9 Production and Operations Management 240

PART 4
Management of Human Resources: Motivating Employees to Produce
Quality Goods and Services 268
10 Motivating Employees 268
11 Human Resource Management: Finding and Keeping the Best Employees 298
12 Dealing with Union and Employee–Management Issues 332

PART 5
Marketing: Developing and Implementing Customer-Oriented
Marketing Plans 360
13 Marketing: Helping Buyers Buy 360
14 Managing the Marketing Mix: Product, Price, Place, and Promotion 388

PART 6
Managing Financial Resources 428
15 Understanding Accounting and Financial Information 428
16 Financial Management 458
17 Using Securities Markets for Financing and Investing Opportunities 486
18 Money, Financial Institutions, and the Federal Reserve 520

Bonus Chapters (Available in Connect® and SmartBook®)

Bonus Chapter A: Working within the Legal Environment A
Bonus Chapter B: Using Technology to Manage Information B
Bonus Chapter C: Managing Risk C
Bonus Chapter D: Managing Personal Finances D

Epilogue E

xxii
 PART 1 CHAPTER 2
Understanding Economics and How It Affects
Business Trends: Cultivating a Business in Business 28
Diverse, Global Environments 2

CONTENTS
Getting to Know: Matt Flannery, Co-Founder and
CEO of Kiva.org 29
CHAPTER 1 How Economic Conditions Affect
Taking Risks and Making Profits within the Businesses 30
Dynamic Business Environment 2 What Is Economics? 30
The Secret to Creating a Wealthy
Getting to Know: Sammy Hagar, Entrepreneur and Economy 32
Rock Star 3
Adam Smith and the Creation of Wealth 32
Entrepreneurship and Wealth Building 4
How Businesses Benefit the Community 33
Revenues, Profits, and Losses 4
Making Ethical Decisions: How Corruption Harms
Matching Risk with Profit 5 the Economy 34
Standard of Living and Quality of Life 5 Understanding Free-Market Capitalism 34
Responding to the Various Business The Foundations of Capitalism 35
Stakeholders 6
How Free Markets Work 36
Using Business Principles in Nonprofit
How Prices Are Determined 37
Organizations 7
The Economic Concept of Supply 37
Entrepreneurship versus Working for Others 8
The Economic Concept of Demand 37
Opportunities for Entrepreneurs 8
The Equilibrium Point, or Market Price 37
Spotlight on Small Business: How a Food
Truck Helped Rebuild a Storm-Struck Competition within Free Markets 38
Community 9 Spotlight on Small Business: Bugs Bug Orange
The Importance of Entrepreneurs to the Creation of Farmers and Drive Prices Up 39
Wealth 9 Benefits and Limitations of Free Markets 40
The Business Environment 11 Understanding Socialism 41
The Economic and Legal Environment 11 The Benefits of Socialism 41
Making Ethical Decisions: Ethics Begins with The Negative Consequences of Socialism 41
You 14 Understanding Communism 42
The Technological Environment 14 The Trend toward Mixed Economies 42
Reaching Beyond Our Borders: Reaching Beyond Our Borders: Economic
Connecting Companies with Global Expansion in Africa 44
Freelancers 15 Understanding the U.S. Economic System 44
The Competitive Environment 16 Key Economic Indicators 44
The Social Environment 17 Productivity in the United States 48
The Global Environment 18 Productivity in the Service Sector 48
Adapting to Change: Gourmet Airport Eateries The Business Cycle 49
Take Flight 19 Stabilizing the Economy through Fiscal
The Evolution of U.S. Business 20 Policy 49
Progress in the Agricultural and Manufacturing Fiscal Policy in Action during an Economic
Industries 20 Crisis 51
Progress in Service Industries 20 Using Monetary Policy to Keep the Economy
Your Future in Business 22 Growing 51
Summary 22 Summary 52
Key Terms 24 Key Terms 54
Critical Thinking 24 Critical Thinking 54
Developing Workplace Skills 25 Developing Workplace Skills 55
Taking It to the Net 25 Taking It to the Net 56
Video Case: Thomas Lennon 26 Video Case: Opportunity International 56
Notes 27 Notes 57
Photo Credits 27 Photo Credits 58

xxiii
xxiv CONTENTS

CHAPTER 3 Ethics Is More Than Legality 94

Doing Business in Global Markets 60
Getting to Know: Leila Janah, Founder and CEO
of Samasource 61
The Dynamic Global Market 62
Why Trade with Other Nations? 63
The Theories of Comparative and Absolute
Advantage 64
Getting Involved in Global Trade 64
Importing Goods and Services 65
Exporting Goods and Services 65
Measuring Global Trade 66
Strategies for Reaching Global Markets 67
Licensing 68
Exporting 68
Franchising 69
Contract Manufacturing 69
Reaching Beyond Our Borders: McDonald’s: Over
100 Cultures Served 70
International Joint Ventures and Strategic Alliances 70
Foreign Direct Investment 71
Forces Affecting Trading in Global Markets 73
Sociocultural Forces 73
Spotlight on Small Business: From Setting Picks to
Picking Grapes 74
Economic and Financial Forces 74
Legal and Regulatory Forces 76
Physical and Environmental Forces 77
Trade Protectionism 77
The World Trade Organization 79
Common Markets 79
The North American and Central American Free
Trade Agreements 80
The Future of Global Trade 81
The Challenge of Offshore Outsourcing
Globalization and Your Future 84
Making Ethical Decisions: Making Your Operation
Your Vacation 85
Summary 85
Key Terms 87
Critical Thinking 87
Developing Workplace Skills 87
Taking It to the Net 88
Video Case: Electra Bicycle Company 88
Notes 89
Photo Credits 91
CHAPTER 4
Demanding Ethical and Socially Responsible
Behavior 92
Getting to Know: Patty Stonesifer, CEO of
Martha’s Table 93
Making Ethical Decisions: Bernie Madoff’s Ponzi
Scheme 95
Ethical Standards Are Fundamental 96
Ethics Begins with Each of Us 96
Spotlight on Small Business: Turning Ex-Convicts
into Entrepreneurs 97
Managing Businesses Ethically and
Responsibly 98
Setting Corporate Ethical Standards 100
Corporate Social Responsibility 102
Responsibility to Customers 104
Responsibility to Investors 105
Responsibility to Employees 106
Responsibility to Society and the Environment 107
Social Auditing 108
Seeking Sustainability: Sustainability’s in the Bag 109
International Ethics and Social Responsibility 110
Reaching Beyond Our Borders: Going by a
Different Standard 112
Summary 113
Key Terms 114
Critical Thinking 115
Developing Workplace Skills 115
Taking It to the Net 115
Video Case: Warby Parker/VisionSpring 116
Notes 117
Photo Credits 117
PART 2
Business Ownership: Starting a Small
Business 118
83
CHAPTER 5
How to Form a Business 118
Getting to Know: Anne Beiler, Founder of Auntie
Anne’s 119
Basic Forms of Business Ownership 120
Sole Proprietorships 121
Advantages of Sole Proprietorships 121
Disadvantages of Sole Proprietorships 121
Partnerships 123
Advantages of Partnerships 124
Disadvantages of Partnerships 125
Making Ethical Decisions: Good Business, Bad
Karma? 127
Corporations 127
Advantages of Corporations 127
Disadvantages of Corporations 129
Seeking Sustainability: B Corporations Let
Sustainability Set Sail 130
 CONTENTS xxv

Individuals Can Incorporate 131 Importance of Small Businesses 163

S Corporations 132 Small-Business Success and Failure 163
Limited Liability Companies 132 Learning about Small-Business Operations 165
Corporate Expansion: Mergers and Learn from Others 165
Acquisitions 135 Get Some Experience 165
Franchises 136 Making Ethical Decisions: Should You Stay or
Advantages of Franchises 137 Should You Go? 166
Spotlight on Small Business: The Building Blocks Take Over a Successful Firm 166
of Franchising 139 Managing a Small Business 167
Disadvantages of Franchises 139 Begin with Planning 167
Diversity in Franchising 140 Getting Money to Fund a Small Business 168
Home-Based Franchises 141 Adapting to Change: States Test New
E-Commerce in Franchising 141 Crowdinvesting Rules 171
Using Technology in Franchising 141 The Small Business Administration (SBA) 171
Adapting to Change: Giving Entrepreneurs Options Knowing Your Customers 172
with Digital Franchising 142 Managing Employees 173
Franchising in Global Markets 142 Keeping Records 173
Cooperatives 143 Reaching Beyond Our Borders: Beyond Knowing
Which Form of Ownership Is for You? 144 What Your Customers Need 174
Summary 144 Looking for Help 174
Key Terms 146 Going Global: Small-Business Prospects 176
Critical Thinking 147 Summary 177
Developing Workplace Skills 147 Key Terms 179
Taking It to the Net 148 Critical Thinking 179
Video Case: Sonic 148 Developing Workplace Skills 179
Notes 149 Taking It to the Net 180
Photo Credits 149 Video Case: Launching a Business: Pillow
Pets 180
Notes 181
CHAPTER 6 Photo Credits 182

Entrepreneurship and Starting a Small

Business 150
Getting to Know: Prudencio Unanue, Founder of
Goya Foods 151
The Age of the Entrepreneur 152
The Job-Creating Power of Entrepreneurs in the
United States 152
Spotlight on Small Business: Earning while
Learning 153
Why People Take the Entrepreneurial
Challenge 153
What Does It Take to Be an Entrepreneur? 154
Turning Your Passions and Problems into
Opportunities 155
Entrepreneurial Teams 157
Micropreneurs and Home-Based Businesses 157
Web-Based Businesses 159
Entrepreneurship within Firms 160
Encouraging Entrepreneurship: What Government
Can Do 161
Getting Started in Small Business 162
Small versus Big Business 162
PART 3
Business Management: Empowering
Employees to Satisfy Customers 184
CHAPTER 7
Management and Leadership 184
Getting to Know: Sheryl Sandberg, COO of
Facebook 185
Managers’ Roles Are Evolving 186
The Four Functions of Management 187
Planning and Decision Making 189
Decision Making: Finding the Best Alternative 192
Organizing: Creating a Unified System 193
Tasks and Skills at Different Levels of
Management 194
Reaching Beyond Our Borders: Back to School for
Top Managers 195
Staffing: Getting and Keeping the Right People 195
xxvi CONTENTS

Leading: Providing Continuous Vision and Adapting to Change 229

Values 196 Adapting to Change: When Open Communication
Making Ethical Decisions: What Do You Tell the Should Not Be So Open 230
Team? 197 Restructuring for Empowerment 230
Leadership Styles 197 Creating a Change-Oriented Organizational
Empowering Workers 198 Culture 231
Managing Knowledge 199 Managing the Informal Organization 232
Adapting to Change: Using Social Media during Summary 233
the Worst of Times 200 Key Terms 235
Controlling: Making Sure It Works 201 Critical Thinking 235
A Key Criterion for Measurement: Customer
Developing Workplace Skills 236
Satisfaction 202
Summary 203 Taking It to the Net 237
Key Terms 205 Video Case: Whole Foods 237
Critical Thinking 205 Notes 238
Developing Workplace Skills 205 Photo Credits 238
Taking It to the Net 206
Video Case: Zappos’s Team Approach 207 CHAPTER 9
Notes 207 Production and Operations
Photo Credits 208 Management 240
CHAPTER 8 Getting to Know: Shahid Khan, CEO of
Flex-N-Gate 241
Structuring Organizations for Today’s Manufacturing and Services in Perspective 242
Challenges 210 Seeking Sustainability: Your Own Farm in a
Box 243
Getting to Know: Jenna Lyons, President and
Creative Director for J. Crew 211 Reaching Beyond Our Borders: Nobody Does It
Everyone’s Reorganizing 212 Better 244
Building an Organization from the Bottom Up 212 Manufacturers and Service Organizations Become
More Competitive 244
Making Ethical Decisions: Would You Sacrifice
Safety for Profits? 213 From Production to Operations
Management 245
The Changing Organization 214
Operations Management in the Service Sector 246
The Development of Organization Design 214
Production Processes 247
Turning Principles into Organization Design 216
The Need to Improve Production Techniques and Cut
Decisions to Make in Structuring Costs 248
Organizations 218
Computer-Aided Design and Manufacturing 248
Choosing Centralized or Decentralized
Authority 218 Flexible Manufacturing 249
Choosing the Appropriate Span of Control 219 Lean Manufacturing 249
Choosing between Tall and Flat Organization Mass Customization 250
Structures 219 Robotics 250
Weighing the Advantages and Disadvantages of Spotlight on Small Business: Make Your Own Kind
Departmentalization 220 of Music 251
Organizational Models 222 Using Sensing, Measurement, and Process Control 251
Line Organizations 223 Operations Management Planning 252
Line-and-Staff Organizations 223 Facility Location 252
Matrix-Style Organizations 223 Facility Location for Manufacturers 253
Cross-Functional Self-Managed Teams 225 Making Ethical Decisions: Do We Stay or Do We
Going Beyond Organizational Boundaries 226 Go? 254
Managing the Interactions among Firms 226 Taking Operations Management to the Internet 254
Transparency and Virtual Organizations 227 Facility Location in the Future 254
Spotlight on Small Business: Cutting Back while Facility Layout 254
Cutting Costs 228 Materials Requirement Planning 255
Benchmarking and Core Competencies 228 Purchasing 257
 CONTENTS xxvii

Just-in-Time Inventory Control 257 Personalizing Motivation 286

Quality Control 257 Spotlight on Small Business: Going Up against the
The Baldrige Awards 258 Heavyweights 287
ISO 9000 and ISO 14000 Standards 258 Motivating Employees across the Globe 287
Control Procedures: PERT and Gantt Charts 259 Reaching Beyond Our Borders: Beyond Just
Preparing for the Future 261 Knowing Cross-Cultural Differences 288
Summary 262 Motivating Employees across Generations 288
Key Terms 264 Summary 291
Critical Thinking 264 Key Terms 293
Developing Workplace Skills 265 Critical Thinking 294
Taking It to the Net 265 Developing Workplace Skills 294
Video Case: Keeping Your Eye on the Ball 266 Taking It to the Net 294
Notes 267 Video Case: Appletree Answers 295
Photo Credits 267 Notes 296
Photo Credits 296

PART 4 CHAPTER 11
Management of Human Resources: Human Resource Management: Finding and
Motivating Employees to Produce Quality Keeping the Best Employees 298
Goods and Services 268 Getting to Know: Tony Hsieh, CEO of
Zappos 299
Working with People Is Just the Beginning 300
CHAPTER 10 Developing the Ultimate Resource 300
Motivating Employees 268 The Human Resource Challenge 301
Laws Affecting Human Resource
Getting to Know: David Novak, Executive Management 302
Chairman of Yum! Brands 269 Laws Protecting Employees with Disabilities and
The Value of Motivation 270 Older Employees 304
Frederick Taylor: The Father of Scientific Effects of Legislation 305
Management 271 Determining a Firm’s Human Resource
Elton Mayo and the Hawthorne Studies 272 Needs 305
Motivation and Maslow’s Hierarchy Recruiting Employees from a Diverse
of Needs 273 Population 307
Herzberg’s Motivating Factors 274 Spotlight on Small Business: Competing for the
McGregor’s Theory X and Theory Y 276 Cream of the Crop 309
Theory X 276 Selecting Employees Who Will Be Productive 309
Theory Y 277 Adapting to Change: Keeping the Right Face on
Ouchi’s Theory Z 278 Facebook 311
Goal-Setting Theory and Management by Hiring Contingent Workers 311
Objectives 280 Training and Developing Employees for Optimum
Meeting Employee Expectations: Expectancy Performance 312
Theory 280 Making Ethical Decisions: Intern or Indentured
Reinforcing Employee Performance: Reinforcement Servant? 313
Theory 281 Management Development 314
Treating Employees Fairly: Equity Theory 282 Networking 315
Putting Theory into Action 282 Diversity in Management Development 316
Motivation through Job Enrichment 283 Appraising Employee Performance to Get
Motivating through Open Communication 283 Optimum Results 316
Applying Open Communication in Self-Managed Compensating Employees: Attracting and Keeping
Teams 284 the Best 318
Adapting to Change: When Is Social Media Too Pay Systems 318
Social? 285 Compensating Teams 319
Recognizing a Job Well Done 285 Fringe Benefits 320
xxviii CONTENTS

Reaching Beyond Our Borders: Cultural Challenges Child Care 351

without Conflict 321 Elder Care 352
Scheduling Employees to Meet Organizational and Drug Testing 353
Employee Needs 322
Violence in the Workplace 353
Flextime Plans 322 Summary 354
Home-Based Work 323
Key Terms 356
Job-Sharing Plans 323
Critical Thinking 356
Moving Employees Up, Over, and Out 324
Developing Workplace Skills 356
Promoting and Reassigning Employees 325
Terminating Employees 325 Taking It to the Net 357
Retiring Employees 326 Video Case: United We Stand 357
Losing Valued Employees 326 Notes 358
Summary 326 Photo Credits 359
Key Terms 328
Critical Thinking 329
Developing Workplace Skills 329
PART 5
Taking It to the Net 329 Marketing: Developing and Implementing
Video Case: Teach for America 330 Customer-Oriented Marketing Plans 360
Notes 331
Photo Credits 331 CHAPTER 13
Marketing: Helping Buyers Buy 360
Getting to Know: Daymond John, Founder of
CHAPTER 12 FUBU 361
Dealing with Union and Employee— What Is Marketing? 362
Management Issues 332 The Evolution of Marketing 363
Getting to Know: DeMaurice Smith, Executive Seeking Sustainability: Making Sustainability Just
Director of the NFL Players Association 333 Peachy 365
Employee–Management Issues 334 Nonprofit Organizations and Marketing 366
Labor Unions Yesterday and Today 335 The Marketing Mix 366
The History of Organized Labor 335 Applying the Marketing Process 367
Public Sector Union Membership 336 Designing a Product to Meet Consumer Needs 368
Spotlight on Small Business: The Factory Blaze Setting an Appropriate Price 369
That Fired Up a Movement 337 Getting the Product to the Right Place 369
Labor Legislation and Collective Bargaining 337 Developing an Effective Promotional Strategy 369
Union Organizing Campaigns 338 Providing Marketers with Information 370
Objectives of Organized Labor over Time 340 The Marketing Research Process 370
Resolving Labor–Management Disagreements 342 The Marketing Environment 372
Mediation and Arbitration 343 Global Factors 373
Tactics Used in Labor–Management Technological Factors 373
Conflicts 343 Sociocultural Factors 373
Union Tactics 343 Reaching Beyond Our Borders: Two Is Better than
Management Tactics 344 One 374
Making Ethical Decisions: To Cross or Not to Competitive Factors 374
Cross? 345 Economic Factors 374
The Future of Unions and Labor–Management Two Different Markets: Consumer and Business-to-
Relations 345 Business (B2B) 375
Controversial Employee–Management Issues 347 The Consumer Market 375
Executive Compensation 347 Segmenting the Consumer Market 376
Adapting to Change: College Athletes: What Are Reaching Smaller Market Segments 377
They Worth? 348 Building Marketing Relationships 378
Pay Equity 349 The Consumer Decision-Making
Sexual Harassment 350 Process 378
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 CHAPTER VI
PURSUED BY AN ALLIGATOR

Bomba was hurled headlong into the green depths of the river. This
in itself would not have bothered him. He could swim like a fish and
was almost as much at home in the water as on land.
But a thrill of terror passed through him as he realized that not far
away was a group of monsters that could swim faster than he could,
and whose terrible jaws, once clamped on him, could bite him in half.
His mind worked with lightning swiftness. He must remain under
water as long as possible. His instinct for direction told him where
the land lay.
So instead of permitting himself to shoot up to the surface, he
remained under and struck out toward the shore.
For more than a minute he shot ahead at a rapid pace. And only
when it seemed as though his lungs would burst did he at last rise to
the surface.
He shook the water from his eyes and looked behind him. He could
see at least half a dozen caymen tearing at the body of the tapir and
others swimming about greedy for their share.
His only hope lay in the possibility that the brutes would be so busy
fighting each other for a portion of the spoils that they would not
notice him at the distance that he had already attained.
But his chase for the tapir had carried him far out into the stream and
the shore seemed still a terrible distance away.
He summoned up all his resolution and struck out for land, keeping
himself as low in the water as possible and moving with scarcely a
ripple.
For a time it looked as though his hope might be realized. Twice he
looked behind him, and each time the brutes still seemed to be
fighting about the body of the tapir.
But the third time he looked back he saw something that filled him
with consternation.
A huge alligator had detached itself from the group and was making
toward him at full speed. He could see the long, scaly body, the fiery,
red eyes and the hideous jaws with their rows of glistening teeth.
Bomba turned and swam for his life.
As the lad swam he measured the distance to the shore. He knew
that the alligator was coming at a faster pace than his own, but he
hoped that the start he had gained might yet enable him to reach the
shore before those terrible jaws should close on him.
It was a close calculation, but he decided that he had a chance. He
put redoubled power into his strokes and swam as he had never
swum before.
But his heart sank as he noted how steep the bank was at the
nearest point. Had the shore been shelving, he might have been
able to find a footing when the water grew shallower and rush up on
land before the cayman could reach him.
But the bank was three or four feet high and ran straight up and
down. He would have to reach up, grasp the edge and pull himself
up. And he realized only too well that before he could do this the
alligator might have caught him.
In his heart Bomba felt that he was doomed.
But his indomitable spirit refused to give up. He called to his aid all
his reserves of force and swam on. As a last resort he had his knife.
He could stab with it, perhaps hold off for a moment the vicious
rushes of his foe. But as against a knife, of course the alligator would
conquer in the end.
One last glance Bomba cast behind. The cayman had made up
much of the distance between them and was now fearfully close. A
minute more perhaps and then——
Bomba cast one farewell look at the sky and felt for his knife.
But as he looked upward, something brushed across his face. It was
the branch of a tree that hung far out over the water.
A ray of hope cut through the blackness of the boy’s despair. With
the quickness of a cat, he grasped the branch and swung himself up
on it out of the water. Even as he did so, he heard beneath him the
snap of the alligator’s jaws.
But those awful jaws missed the boy by a hair’s breadth. The speed
at which the brute was going carried it several yards farther before it
could turn. And by that time, spurred on by dreadful necessity,
Bomba had climbed farther up on the heavy bough and was out of
reach.
The rage of the baffled man-eater was fearful to witness. It churned
the water into foam and emitted frightful bellowings as it leaped half
out of the water, trying to reach the prey of which it had been
cheated. It gnashed its teeth and its red eyes gleamed with fury.
For a full half hour Bomba lay extended on the branch, feeling with
unspeakable relief and delight the strength come back into his
muscles and vitality creep into his exhausted frame.
The alligator still kept up its watch, and Bomba wondered why. Did it
not know that its quarry had escaped? Then he realized that the
brute was not so stupid after all.
For the alligator is a land as well as a water animal, and though its
prey had baffled it for a while, it knew that the boy, soon or late,
would have to descend the tree. And when Bomba should slide
down the trunk to the ground, his enemy meant to clamber up the
bank and be waiting at the foot of the tree to receive him.
Luckily Bomba’s bow was still slung over his shoulder and his arrows
were at his belt. His immersion had been so sudden that he had not
had time to discard them. They had hindered him in his swimming,
but now he blessed the fact that they were with him.
His position was a difficult one to shoot from, for he would have to
use both hands for his bow and depend on his sense of equilibrium
to keep him secure on the branch. If he should lose his balance, he
would topple into the water, and he shuddered to think what would
happen after that.
He solved his problem in part by wrapping both legs closely around
the bough. Then he fitted an arrow to his string and took careful aim.
He knew that about the only vulnerable part of the alligator was the
eye. An arrow striking anywhere else would simply rebound from the
tough hide without inflicting any material damage.
It was some time before Bomba could get a good view of his target.
The cayman kept swimming about with its head half submerged in
the turbid water.
But at last the alligator lifted its head and glared at the boy. At the
same instant Bomba shot.
The arrow went straight to its mark, pierced the creature’s eye and
penetrated to the brain.
There was an awful bellow and a tremendous thrashing about for a
few moments. Then the alligator slowly sank below the surface of the
river.
Bomba waited for some time, but the body did not reappear. The
arrow had done its work well.
Once fully convinced of this, the boy made his way to the trunk of the
tree and slid down it to the ground.
It was good to feel the earth again beneath his feet. His heart
swelled with gratitude. True, he had been cheated. The alligators
had robbed him of his tapir. But they had not robbed him of his life,
and compared with that fact everything else seemed insignificant.
The sun was near its setting now, and his hunting would have to be
deferred to the next day. Soon the four-footed hunters of the jungle
would themselves be abroad, and it behooved Bomba to make
himself safe for the night.
Ordinarily he would have collected brush and made a fire, trusting to
the flames to keep wild beasts at bay. But now, owing to the possible
presence of the dreaded headhunters in the jungle, he dared do
nothing that would betray his presence to the marauders. He had not
detected any signs of them so far, but a sort of sixth sense told him
that they had not yet returned to their homes above the Giant
Cataract.
He gathered some jaboty eggs which he ate raw, and which, with
some cured meat he had brought with him from the cabin of Pipina,
made a simple but satisfying meal.
Then he cast about for some place in which he could pass the night.
He found it in the center of a dense thorn thicket, into which he
penetrated slowly and with great care, pushing the thorny stalks
aside so that they would not wound his flesh. Once in the center, he
beat down enough of the brush to serve him as a bed, and covered it
with bunches of soft moss that he had gathered near the river’s
edge.
Here he was safe. Even if his scent betrayed him, no wild beast was
likely to venture through the thorns. And if, perchance, some
prowling brute, more daring or hungry than the rest, should try it, the
noise made would awaken the boy at once and he could trust to his
weapons for the rest.
As he lay there, waiting for sleep to come, his thoughts were
tinctured somewhat with bitterness. Why should his life be in
constant peril? Why should he be doomed to be hunted by beast and
reptile?
It was not as though he were a native of the jungle. Then he might
have accepted his lot as the decree of fate and borne whatever
came to him with stolidity, if not with resignation.
But his real place was not there. He was white. He was heir to all the
instincts, traditions and ambitions of his race. He belonged
elsewhere. Then why was he here? Why were his aspirations and
longings doomed to be thwarted? What had he done to deserve
such a fate?
His thoughts turned to Frank Parkhurst. What a difference there was
between their lots! No doubt by this time Frank had reached one of
the cities he had talked about and whose wonders had so deeply
stirred the jungle boy. To-night Frank would be sleeping safely in a
soft bed. He would have abundance of good food. He would be
laughing and talking with others of his kind. And his mother, the
woman with the golden hair, would print a good-night kiss upon his
lips.
But Bomba had no mother near him to kiss him good-night. He had
no friends to talk to, to clap on the shoulder in jovial fashion, as Gillis
had done to Dorn. Monkeys and parrots were his only intimates,
except poor demented Casson and the squaw, Pipina.
As to laughter—when had Bomba last laughed? He could not
remember.
In this melancholy mood he at last fell asleep.
But his depression vanished when he awoke the next morning. His
sleep had been undisturbed. Weariness had departed. The current
of his blood ran swiftly through his young veins. The skies were
azure. It was good to be alive.
And his optimism was increased by the good fortune that for the next
two days attended his hunting. Tapirs, deer, agouti and other game
fell before his arrows, until he had accumulated enough to supply the
cabin for weeks to come.
A good deal of his time was consumed in skinning the animals. He
could not carry them home bodily, as he had no means of
conveyance except his sturdy shoulders. So he cut off the choicest
parts, wrapped them in great leaves tied with bush cord, and on the
third day after he had left the cabin set out on his return.
All this time he had kept a sharp lookout for the headhunters. But
during the whole of the hunting trip he had come across no signs of
them.
He would have felt easier in his mind, however, if he had
occasionally met some of the friendly natives that ordinarily dwelt in
that region. They, too, were conspicuous by their absence. If the
headhunters had really gone, why had not the natives returned to
their usual haunts?
The answer was not far to seek. Those dreaded invaders were
probably still lurking somewhere in the district, and if Bomba had not
crossed their trail, it was simply a bit of good fortune.
A sense of impending calamity grew upon him as he neared his
destination. The burden on his shoulders was heavy, but it was
matched by the burden on his heart.
He tried to throw off his depression, assuring himself that it was due
to weariness. Soon he would reach the cabin, be once again with
Casson and Pipina, and all would be well. So he communed with
himself, though not with much conviction.
The journey back to Pipina’s hut was made in rapid time, the jungle
boy being spurred on by his anxiety.
He turned the bend of the stream from which he could see the hut,
and an exclamation of relief escaped him as he saw that it was still
standing. He had half-feared that he would find it burned or
demolished.
But it was there, and everything about it seemed placid and serene.
No puma this time ranged before the door. It seemed an abode of
peace.
“Bomba was a fool,” he told himself, as he hurried forward.
He gave the loud halloo with which he was accustomed to announce
his coming. Usually this brought either Casson or Pipina to the door
at once.
This time his call evoked no answer. No figure appeared at the
doorway, nor could he hear any stirring within.
He called again, this time in louder tones. But again there came no
answer.
His uneasiness returning at this unusual circumstance, he hastily ran
up to the hut.
The door stood open and a hurried glance into the outer room
showed that it was empty.
He rushed in and examined the farther room. No one was there.
“Casson!” he called in a frenzy of anxiety. “Casson! Pipina! Where
are you?”
His only answer was the echo of his voice.
Casson was gone! Pipina was gone!
 CHAPTER VII
CARRIED INTO CAPTIVITY

For a moment Bomba stood stupefied with dread. Then he ran out
into the open.
He beat the bushes about the hut. He dashed down to the edge of
the ygapo, his quick eye scanning the expanse for some sign of the
passing of Casson and Pipina.
Nothing anywhere. No footprints, no trampling of the bushes, no clue
to guide him in a search for the missing ones.
To all appearances no one had trodden that deserted spot since
Bomba had returned from his journey to the Moving Mountain.
Yet Casson was gone. Pipina was gone.
Bomba retraced his steps to the hut, his mind in a ferment of
bewilderment and grief.
Indians! Only Indians could traverse the jungle with the silence and
stealth of ghosts, leaving no trace behind.
“Nascanora!” The word hissed between the boy’s clenched teeth.
“This is your work! If you have killed Casson, Bomba will not rest
until he has found your heart with an arrow, a bullet, or a knife!”
The boy reëntered the empty hut with a sharp pain stabbing at his
heart. He would search the cabin more minutely now for some sign,
some clue, to the whereabouts of the absent ones. And if he could
not find it there, he would call into play all his skill in woodcraft to find
and follow their trail. For trail there must be somewhere. They could
not have vanished into thin air.
Inch by inch, he scrutinized the walls, the floor, even every crevice of
the crude and meagre furniture, thinking he might find some
message from Casson. It was almost a forlorn hope, but it was all
that he had at the moment.
He had nearly abandoned even this hope, however, when he
discovered a faint scrawl on the wall in the darkest corner of the hut.
He bent closer, and his brows drew together in a scowl as he tried to
decipher the writing.
Then suddenly a hoarse cry of rage escaped him. His eyes blazed in
the shadowy hut like those of an angry puma.
For this was what he read:
“Nascanora is taking away Casson, Pipina, Hondura to
camp near Giant Cataract. Come. Help.”
So the headhunters had achieved their end at last! They had
captured the helpless old man whom their superstition had led them
to regard as a Man of Evil, a magician whose spells had brought
blight on their crops and sickness to their people. Poor old Casson,
whose one desire was to help rather than hurt!
They would torture him. They would make him a sacrifice to their
gods. And when flesh and blood could no longer stand their
torments, they would kill him and place his head on the wigwam of
their chief.
Bomba’s rage was terrific, and it would have fared ill with the savage
chief if at that moment he had come within reach of the boy’s knife.
The boy read the scrawl again. So they had taken Hondura too, the
friendly chief of the Araos tribe, the father of the pretty little girl,
Pirah, who had once saved Bomba’s life!
Why had Nascanora made Hondura captive with Casson and the
squaw? Was it because Hondura and his tribe had been on friendly
terms with Bomba and the old naturalist? Or did Nascanora think
that the Araos tribe was becoming too powerful, and had he hoped
by depriving them of their chief to render his people helpless and
throw confusion and panic into their hearts?
But that problem could be left till later for solution. The pressing thing
was to plan for the rescue of the captives before they were so far
away that their recovery would be impossible.
When his first fury had exhausted itself, Bomba left the writing on the
wall and sat down on the threshold of the hut, the better to think out
a course of action.
“Near the Giant Cataract” said that rude scrawl penciled by poor
Casson, when the attention of his captors was momentarily diverted.
Bomba had no clear idea as to how far away that was or what
direction would have to be followed to reach it. But from what he had
gathered from the natives from time to time, the place was at a great
distance, and he knew that a long and arduous journey lay before
him.
That is, if he had to go that far in order to catch up with the raiding
party. There was nothing in the hut on which he could base any
judgment as to the time the capture had taken place.
It might have occurred the very day that he had left on his hunting
trip. In that case, they would have had a three days’ start of him. Or
again it might have happened yesterday. In that event, his task of
overtaking them would be that much easier.
No matter how much they wanted to hurry, no large party could
proceed very fast, encumbered as they were with prisoners and
probably laden with spoils. Bomba could cover as much ground in
one day as they could in two or possibly in three. So he had little
doubt of his ability to overtake them before they could get very far.
What he would do if he should come up with them, he did not pause
to consider. No plan formed now would be of any service. He must
be guided by circumstances as they developed. But he had enough
confidence in his own quick wit to believe that he would be able to
shape such circumstances to meet his ends.
But time pressed, and he could spend no more time in reflection. He
rose to his feet and secured some cured meat from Pipina’s stores to
feed him on the way. He would have no time to spend in hunting
food when there were human enemies requiring his attention.
He tested his bow, put a new string on it, and replenished his store of
arrows. His revolver and machete were already at his belt. He took
one more look about the cabin to make sure he had overlooked
nothing and plunged into the jungle.
Like a hound when trying to pick up a trail, he described a long
circle, scanning the ground narrowly for every sign that might
indicate the direction in which the party had gone.
For a long time his search was unsuccessful. At last his eyes
brightened, for they rested on a little strip of cloth fluttering on a thorn
bush. He examined it carefully and recognized it as a strip torn from
a loose dress such as the Indian women wear. Probably it was torn
from Pipina’s garment.
This was something, but not enough. He must find a second strip, if
possible, and the line formed by the two would give him the direction
in which the party were traveling.
Before long his eager search was rewarded. Now he could shape his
course, and he hurried forward with redoubled speed.
The bits of cloth also told the jungle boy another story. The fact that
they had been torn off at all showed that the savages had been
hurrying their captives along at great speed, and so roughly that they
took no care to avoid the thorn bushes that tore the clothes and
probably the skin.
Bomba’s heart burned within him as he pictured poor, weak Casson
driven along, perhaps flogged to make him hasten. How long could
he endure such treatment in his feeble condition? Perhaps even now
he had succumbed to the hardships of the journey! Bomba gritted his
teeth and his eyes flamed with fury.
He had not gone far when his jungle instinct warned him of danger in
the immediate vicinity. Motions as vague as shadows, faint rustlings
that could not have been detected by an untrained ear, told him that
something or someone was trailing him, keeping step with him,
moving as swiftly and silently as he. From being the hunter, he had
become the hunted.
When Bomba paused the slight rustlings stopped. When he moved
on they were resumed.
Still he continued on his way. Whether his pursuer were beast or
human he could not tell. But the jungle lad knew that, whether beast
or human, the surest way to provoke attack was to betray a
knowledge of his danger.
To keep on would be at least to delay attack and perhaps derange
the plans of his pursuer. But when the attack at last came—if it
should come—he would be ready.
Suddenly he became conscious that he was encircled. The faint
sound, which had been behind him, was echoed now on the right
and the left and in the front. His enemies, whoever they were, were
closing in upon him.
There was nothing that his eyes could tell him. Not a leaf stirred nor
was there any movement in the brush. There was only that ghostly
rustling that to Bomba’s sensitive ears was as plainly perceptible as
the rumbling of distant thunder.
Then something shaped itself, vague and dim behind a thicket. Like
a beast at bay, Bomba crouched, pulled his bow from his shoulder
and plucked an arrow from his pouch.
Before he could fit the arrow to the string a hideous chorus of shouts
rent the air, and like magic the jungle was filled with men, men with
the ferocious faces of demons, who rushed upon him, shouting and
brandishing their sharp, murderous knives above their heads.
Bomba had no time to turn and flee. He dropped his bow, whipped
out his machete and backed toward a tree, only to feel himself
seized from behind and borne helpless to the ground.
A score of natives bent above him, their faces menacing, their knives
pointed at his throat.
“Hondura?” grunted one of them. “Where is he?”
A light dawned upon Bomba. These were braves of the Araos tribe
seeking their leader. They blamed him, Bomba, for the
disappearance of their chief—Bomba, who at that very moment was
on his way to rescue that chief from captivity.
“Let me up and I will tell you,” he said, refusing to quail before the
fierce eyes directed upon him.
They hesitated, evidently suspicious of some trick. But finally the
leader, a strapping native named Lodo, whom Bomba remembered
having seen on his recent visit to their village, ordered that a close
ring be formed about the lad. Then he ordered him to stand up.
Bomba did so, and Lodo advanced toward him, knife in hand, his
gaze lowering.
“Where is Hondura, our chief?” he demanded. “You hide him.”
“The bad chief, Nascanora, take good chief, Hondura, prisoner,”
Bomba replied, his brown eyes holding the little, shifting ones of
Lodo with great earnestness. “He take, too, my friend Casson and
Pipina, the squaw. Come with me to the hut, and I will show you the
writing on the wall.”
It was plain that the Indians considered this a subterfuge or a trap,
and there was considerable parleying before Lodo finally announced
that they would take him to the hut.
“But you fool us, Bomba,” threatened Lodo with a suggestive twist of
his knife, “and I cut out your heart—so!”
 CHAPTER VIII
THE MAN WITH THE SPLIT NOSE

Bomba raged within himself at this enforced delay in his journey. But
resistance against such odds would be nothing less than suicide.
And apprehension was in his heart as he moved along with his
captors. He was by no means sure that he would be able to prove to
the natives that he spoke the truth concerning their chief.
After all, the only proof he had was that writing on the wall, and if
they thought that he was trying to deceive them they might regard
the writing as part of his plan. There was no likelihood that any of
them would be able to decipher it for themselves.
So it was with no great confidence as to the ultimate outcome that he
made his way back to the cabin, surrounded by the lowering bucks
of the Araos tribe and feeling the suspicious gaze of Lodo boring into
his back.
They traveled swiftly, as the way was familiar, and it was not long
before they reached the deserted hut. Bomba led them into it and
pointed out the faint scrawl on the wall.
Lodo could make nothing of it, and looked from the writing back to
Bomba with a fierce scowl and a tightened grasp upon his knife.
“You read,” he said, and the cruel point of the knife pricked Bomba’s
bare shoulder and brought a tiny trickle of blood. “No fool Lodo.”
Bomba read the words twice under Lodo’s direction, and still the
giant was unconvinced. The other bucks patterned their conduct on
his and crowded around Bomba, muttering and growling like beasts
of the jungle about to close in on a helpless prey.
“You lie!” The point of Lodo’s knife pricked again at Bomba’s
shoulder, deeper this time, and a red stream followed it.
Still Bomba did not flinch, giving the sullen Indian look for look
without a sign of fear.
“You lie!” again shouted Lodo, working himself into a frenzy of fury.
“Braves see Hondura near the hut of Casson, the white medicine
man. Hondura not come back to his people. Bomba hide Hondura.
Bomba must die!”
His knife was upraised in menace. A shudder of anguish passed
through Bomba, but he said no word. A dozen hands reached out to
seize him, a dozen knives were pointed at his throat——
“Wait!” A guttural voice came from the doorway of the hut, and Grico,
he of the one eye and the split nose, forced his way through the ring
of angry Indians. “Let me see writing on the wall. I tell you if Bomba
lie.”
Grico was a native of tremendous physical strength. He had for a
while lived in one of the towns on the coast, and as a boy had been
taken under the care of an English missionary school. Here he had
been taught the rudiments of education. But the call of his jungle
blood had proved too strong to be resisted, and he had run away
and thrown in his lot with the Araos tribe.
There, when he reached manhood, he became known as the
swiftest runner and the greatest hunter of them all. He had lost one
eye and acquired his split nose in a battle with jaguars, in which he
had shown almost superhuman strength and courage.
He had become therefore a person of great influence in the tribe, not
only because of his prowess as a hunter but also because of his
knowledge of the world outside and his education, which gave him
great superiority over his ignorant and simple-minded mates. And he
was cunning enough to make this count for all that it was worth and
considerably more, considering that, after all, he had gained only the
merest smattering of learning.
Bomba knew something of the history of Grico, and hope sprang in
him anew as the giant caboclo made his way through the sullen
group and peered at that faint scrawl upon the wall. Slowly he read
the words aloud:
 “Nascanora is taking away Casson, Pipina, Hondura to
camp near Giant Cataract. Come. Help.”
Then he turned to the Indians, his one eye gleaming at them in a
contemptuous manner.
“Bomba speaks truth,” he said. “Those are the words he said, and
that is the writing on the wall. Take the point of your knife away,
Lodo. The boy is right. Chief Hondura has been taken away by the
wicked Nascanora. We will capture Nascanora and tie him to a tree
and pile the brushwood up about his knees and with flint and stone
make red flames that will lick at his flesh and bones. Ayah! Ayah!”
The cry of vengeance, indescribably weird and savage, was taken
up by the Indians and filled the jungle with a long wailing shriek that
chilled the blood of Bomba as he thought of what might have
happened to him had it not been for Grico’s timely appearance.
Once their enmity was turned from him, the Indians became as
friendly and pleasant as they had been savage a few moments
before.
One of them found a bit of native cloth in the hut and bound it about
the wound in Bomba’s shoulder. Then they squatted outside the hut
to hold a council and decide upon plans for the rescue of their chief.
While the Indians talked in their guttural language, sometimes sitting
for many minutes of silence between their laconic sentences, Bomba
fretted and fumed, eager to be once more on the trail of the
headhunters.
However, he could not risk offending Lodo and his braves, who might
prove valuable helpers in his quest, by going off too abruptly. So he
waited, answering as best he could the questions that Lodo and
Grico put to him from time to time.
He told them of the previous visits of the headhunters to Casson’s
cabin, how he had beaten off their attacks, how he had wounded
Nascanora himself, how he had captured Ruspak, their medicine
man, and how in the jungle he had overcome the braves of Tocarora.
“I think there are two bands of headhunters,” he said, when asked for
his opinion. “Nascanora is at the head of one, and Tocarora, his half-
brother, leads the other. They will join each other somewhere in the
jungle. Then Nascanora will be strong enough to fight the Araos if
they come looking for their chief.”
“But they did not think of Grico!” said he of the split nose, his one eye
gleaming balefully. “Grico will get other braves who will fight with the
Araos to get back Hondura. Hondura has been good to Grico. Grico
will show that he is grateful.”
Bomba knew that this was no idle boast. Grico’s courage was so well
established that he would have no trouble in rallying many bucks of
other tribes under his leadership. If he could do this, the Araos and
their auxiliaries would prove formidable enemies, even to the
redoubtable headhunters.
But Bomba knew that this would take time and be the subject of
innumerable powwows before the avengers would get fairly started.
And with the knowledge he had of Casson’s danger he was in no
mood for delay. He must go on. They could follow later.
He knew the risks he ran in going alone. He would be only one
against the hordes of Nascanora. But his wit had served him so often
where mere force would have failed that he was willing and eager to
trust to it again.
So when a favorable opportunity presented, he broached his plan to
his new-found allies.
“Bomba will go first and try to find the trail while Lodo and Grico are
getting their braves together,” he said. “If Bomba finds them near by,
he will come back and tell you, so that you may come and fight them.
If he finds they are far off, he will leave a trail of his own so that you
may move fast through the jungle. Does Bomba speak well?”
Lodo and Grico consulted.
“Bomba speaks well—” Lodo was beginning when there was a
sudden commotion in the surrounding jungle. A moment later a
strange company broke into the clearing.
Bomba saw that they were squaws of the Araos tribe. The faces of
the women, usually so stolid, wore the ghastly gray of terror. They
had come from afar and swiftly, for their flesh was torn by thorns and
spiked vines and their breath came in gasps.
One of them, who was the squaw of Lodo and seemed to be the
leader of the women, came over to her husband and stood before
him, striving to regain breath enough to speak.
“What is it, woman?” cried Lodo. “What has happened?”
“The maloca,” she got out at last. “Bucks come. They burn our
houses. They carry off the women. They take the children. All gone.”
 CHAPTER IX
THE SAVAGE RAIDERS

The news fell with stunning effect upon the assembled bucks already
wrought up to a high pitch of fury because of the capture of their
chief. There was a hubbub of exclamations of grief and rage.
“Pirah gone, too,” declared the woman, with a sweeping gesture of
her hands.
“Pirah!” This was Bomba’s voice, harsh and unlike his own, as he
pushed through the group of scowling Indians. “You say Pirah taken
too? Who were the bucks?”
“No know.” The squaw shook her head. She had recovered her
breath now, and, with the other women, was regaining her habitual
stolid look. “They come—many come.” She extended her ten fingers,
closing and opening her hands several times to indicate an indefinite
number. “Take women. Take children. We run away. Hide in bushes
till they go. Then we come here.”
Her story roused the Indians even more than the loss of their chief.
That their native village, or maloca, should have been invaded, their
women and children carried off, was a crime that by their code
merited only one punishment, and that torture and death.
The powwow broke up at once and the braves hurried away to their
maloca, taking their women with them.
Bomba accompanied them for some distance, and then took leave of
them, promising to pick up the trail at once and coöperate with them
in every way possible in the rescue of their chief and kidnapped
families, as well as of Casson and Pipina.
Then he left them to return with heavy and angry hearts to their
despoiled maloca while he again sought out the path he had been