This text covers the key elements of economic theory, relating them to the overall success or failure of businesses. It explores contemporary business activity in firms trying to organize land, labour, capital and materials in the pursuit of competitive advantage. This edition has been extensively rewritten and includes new material on business performance, management practice, the labour market environment and the European Union. Theory and practice are linked with over 30 integrated mini-case studies of organizations from around the world. Core management issues are reinforced by chapter overviews, key concepts, case studies, exercises and discussion questions, summaries and further reading sections.