Guided tour
Preface
About the authors
Publisher's acknowledgements
Part A Business and economics
Chapter 1 The business environment and business economics
1.1 The business environment
1.2 The structure of industry
1.3 The determinants of business performance
Box 1.1 The biotechnology industry
Summary
Review questions
Chapter 2 Economics and the world of business
2.1 What do economists study?
2.2 Business economics: the macroeconomic environment
2.3 Business economics: microeconomic choices
Box 2.1 Looking at macroeconomic data
Box 2.2 The opportunity costs of studying economics
Summary
Review questions
Appendix: Some techniques of economic analysis
Summary of appendix
Review questions to appendix
Chapter 3 Business organisations
3.1 The nature of firms
3.2 The firm as a legal entity
3.3 The internal organisation of the firm
Box 3.1 Managers and performance
Box 3.2 The changing nature of business
Summary
Review questions
Part end additional case studies and relevant websites
Part B Business and markets
Chapter 4 The working of competitive markets
4.1 Business in a competitive market
4.2 Demand
4.3 Supply
4.4 Price and output determination
Box 4.1 UK house prices
Box 4.2 Stock market prices
Summary
Review questions
Chapter 5 Business in a market environment
5.1 Price elasticity of demand
5.2 The importance of price elasticity of demand to business
5.3 Other elasticities
5.4 The time dimension of market adjustment
5.5 Dealing with uncertainty
Box 5.1 The measurement of elasticity
Box 5.2 Adjusting to oil price shocks
Box 5.3 Don't shoot the speculator
Summary
Review questions
Part end additional case studies and relevant websites
Part C Background to demand
Chapter 6 Demand and the consumer
6.1 Marginal utility theory
6.2 Demand under conditions of risk and uncertainty
6.3 The characteristics approach to analysing consumer demand
Box 6.1 The marginal utility revolution: Jevons, Menger, Walras
Box 6.2 Rogue traders
Summary
Review questions
Chapter 7 Demand and the firm
7.1 Estimating demand functions
7.2 Forecasting demand
Box 7.1 The demand for lamb
Summary
Review questions
Chapter 8 Products, marketing and advertising
8.1 Product differentiation
8.2 Marketing the product
8.3 Advertising
Box 8.1 The battle of the brands
Box 8.2 Advertising and the long run
Summary
Review questions
Part end additional case studies and relevant websites
Part D Background to supply
Chapter 9 Costs of production
9.1 The meaning of costs
9.2 Production in the short run
9.3 Costs in the short run
9.4 Production in the long run
9.5 Costs in the long run
Box 9.1 The fallacy of using historic costs
Box 9.2 Short-run cost curves in practice
Box 9.3 UK competitiveness: moving to the next stage
Box 9.4 Minimum efficient scale
Summary
Review questions
Chapter 10 Revenue and profit
10.1 Revenue
10.2 Profit maximisation
Box 10.1 Selling ice cream when I was a student
Summary
Review questions
Part end additional case studies and relevant websites
Part E Supply: short-run profit maximisation
Chapter 11 Profit maximisation under perfect competition and monopoly
11.1 Alternative market structures
11.2 Perfect competition
11.3 Monopoly
11.4 Potential competition or potential monopoly? The theory of contestable markets
Box 11.1 Concentration ratios
Box 11.2 E-commerce
Box 11.3 Windows cleaning
Box 11.4 'It could be you'
Summary
Review questions
Chapter 12 Profit maximisation under imperfect competition
12.1 Monopolistic competition
12.2 Oligopoly
12.3 Game theory
Box 12.1 Eating out in Britain
Box 12.2 Reining in big business
Box 12.3 The prisoners' dilemma
Summary
Review questions
Part end additional case studies and relevant websites
Part F Supply: alternative strategies
Chapter 13 An introduction to business strategy
13.1 What is strategy?
13.2 Strategic analysis
13.3 Strategic choice
13.4 Business strategy in a global economy
13.5 Strategy: evaluation and implementation
Box 13.1 Business strategy the Samsung way
Box 13.2 Hybrid strategy
Summary
Review questions
Chapter 14 Alternative theories of the firm
14.1 Problems with traditional theory
14.2 Alternative maximising theories
14.3 Multiple aims
Box 14.1 In search of long-run profits
Box 14.2 Stakeholder power
Summary
Review questions
Chapter 15 Growth strategy
15.1 Growth and profitability
15.2 Constraints on growth
15.3 Alternative growth strategies
15.4 Internal growth
15.5 External growth through merger
15.6 External growth through strategic alliance
15.7 Explaining external firm growth: a transactions costs approach
Box 15.1 Global merger activity
Box 15.2 How many firms does it take to make an iPod?
Box 15.3 The day the world stopped
Summary
Review questions
Chapter 16 The small-firm sector
16.1 Defining the small-firm sector
16.2 The survival, growth and failure of small businesses
16.3 Government assistance and the small firm
Box 16.1 Capturing global entrepreneurial spirit
Box 16.2 Hotel Chocolat
Summary
Review questions
Chapter 17 Pricing strategy
17.1 Pricing and market structure
17.2 Alternative pricing strategies
17.3 Price discrimination
17.4 Multiple product pricing
17.5 Transfer pricing
17.6 Pricing and the product life cycle
Box 17.1 Easy pricing
Box 17.2 How do European companies set prices?
Summary
Review questions
Part end additional case studies and relevant websites
Part G The firm in the factor market
Chapter 18 Labour markets, wages and industrial relations
18.1 The UK labour market
18.2 Market-determined wage rates and employment
18.3 Firms with power in the labour market
18.4 The role of trade unions
18.5 The efficiency wage hypothesis
18.6 Low pay and discrimination
18.7 The flexible firm and the market for labour
Box 18.1 'Telecommuters'
Box 18.2 The UK national minimum wage
Box 18.3 The Internet and labour mobility
Summary
Review questions
Chapter 19 Investment and the employment of capital
19.1 The pricing of capital and capital services
19.2 The demand for and supply of capital services
19.3 Investment appraisal
19.4 Financing investment
19.5 The stock market
Box 19.1 Investing in roads
Box 19.2 Financing innovation
Summary
Review questions
Part end additional case studies and relevant websites
Part H The relationship between government and business
Chapter 20 Reasons for government intervention in the market
20.1 Markets and the role of government
20.2 Types of market failure
20.3 Government intervention in the market
20.4 The case for less government intervention
20.5 Firms and social responsibility
Box 20.1 Can the market provide adequate protection for the environment?
Box 20.2 Deadweight loss from taxes on goods and services
Box 20.3 The Body Shop
Summary
Review questions
Chapter 21 Government and the firm
21.1 Competition policy
21.2 Policies towards research and development (R&D)
21.3 Policies towards training
Box 21.1 The umpires strike back
Box 21.2 The R&D Scoreboard
Box 21.3 The UK needs to 'raise its game'
Summary
Review questions
Chapter 22 Government and the market
22.1 Environmental policy
22.2 Transport policy
22.3 Privatisation and regulation
Box 22.1 A Stern rebuke about climate change inaction
Box 22.2 Road pricing in Singapore
Box 22.3 The right track to reform?
Summary
Review questions
Part end additional case studies and relevant websites
Part I Business in the international environment
Chapter 23 Globalisation and multinational business
23.1 Globalisation: setting the scene
23.2 What is a multinational corporation?
23.3 Trends in multinational investment
23.4 Why do businesses go multinational?
23.5 The advantages of MNC investment for the host state
23.6 The disadvantages of MNC investment for the host state
23.7 Multinational corporations and developing economies
Box 23.1 The transnationality index
Box 23.2 Location. Location. Location.
Box 23.3 Grocers go global
Summary
Review questions
Chapter 24 International trade
24.1 Trading patterns
24.2 The advantages of trade
24.3 Arguments for restricting trade
24.4 The world trading system and the WTO
Box 24.1 Strategic trade theory
Box 24.2 Taken to the cleaners
Box 24.3 The Doha development agenda
Summary
Review questions
Chapter 25 Trading blocs
25.1 Preferential trading
25.2 Preferential trading in practice
Box 25.1 Beyond bananas
Box 25.2 The Internal Market Scoreboard
Summary
Review questions
Part end additional case studies and relevant websites
Part J The macroeconomic environment
Chapter 26 The macroeconomic environment of business
26.1 Macroeconomic objectives
26.2 Economic growth
26.3 Unemployment
26.4 Inflation
26.5 The business cycle and macroeconomic objectives
26.6 The circular flow of income
Box 26.1 Output gaps
Box 26.2 Unemployment rates
Box 26.3 Coping with a low-inflation environment
Summary
Review questions
Appendix: Measuring national income and output
Summary to appendix
Review questions to appendix
Chapter 27 The balance of payments and exchange rates
27.1 The balance of payments account
27.2 The exchange rate
27.3 Exchange rates and the balance of payments
27.4 Fixed versus floating exchange rates
Box 27.1 Dealing in foreign exchange
Box 27.2 The importance of international financial movements
Box 27.3 The euro/dollar seesaw
Summary
Review questions
Chapter 28 Banking, money and interest rates
28.1 The meaning and functions of money
28.2 The financial system
28.3 The supply of money
28.4 The demand for money
28.5 Equilibrium
Box 28.1 Financial intermediation
Box 28.2 Banks' balance sheets
Box 28.3 Residential mortgages and securitisation
Box 28.4 Tackling the credit crunch
Summary
Review questions
Chapter 29 Business activity, employment and inflation
29.1 The determination of business activity
29.2 The relationship between money and GDP
29.3 Unemployment and inflation
29.4 Inflation targeting and unemployment
29.5 Business cycles
Box 29.1 Mind the gap
Box 29.2 Has there been an accelerator effect over the past 60 years?
Summary
Review questions
Part end additional case studies and relevant websites
Part K Macroeconomic policy
Chapter 30 Demand-side policy
30.1 Fiscal policy
30.2 Monetary policy
30.3 Attitudes towards demand management
Box 30.1 From golden to temporary rules
Box 30.2 The daily operation of monetary policy
Box 30.3 Monetary policy in the eurozone
Box 30.4 Quantitative easing
Summary
Review questions
Chapter 31 Supply-side policy
31.1 Supply-side problems
31.2 Market-orientated supply-side policies
31.3 Interventionist supply-side policies
31.4 Regional policy
Box 31.1 Getting intensive with capital
Box 31.2 Productivity and economic growth
Box 31.3 A new approach to industrial policy
Summary
Review questions
Chapter 32 International economic policy
32.1 Global interdependence
32.2 International harmonisation of economic policies
32.3 European economic and monetary union
32.4 Alternative policies for achieving currency stability
Box 32.1 Doctor, the world has caught a cold!
Box 32.2 Optimal currency areas
Box 32.3 The Tobin tax
Summary
Review questions
Part end additional case studies and relevant websites
Web appendix
Key ideas
Glossary
Index
