How Business Works

354 Pages·2015·40.48 MB·English

by  Alexandra Black

A GRAPHIC GUIDE TO BUSINESS SUCCESS

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A GRAPHIC GUIDE TO
BUSINESS SUCCESS
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Contents
Senior editor Georgina Palffy
Project art editor Saffron Stocker Introduction 8
Editors Anna Fischel, Alison Sturgeon,
Suhel Ahmed, Hannah Bowen,
Joanna Edwards, Alex Beeden
Designers Natalie Clay, Stephen Bere, HOW COMPANIES WORK 10
Phil Gamble, Vanessa
Hamilton, Jemma Westing
US senior editor Margaret Parrish
US editor Christine Heilman
Managing editors Stephanie Farrow, Gareth Jones
Business ownership 12
Senior managing Lee Griffiths
Sole proprietorships and partnerships 14
art editor
Publisher Liz Wheeler Corporations 16
Deputy art director Karen Self Private and public companies 18
Publishing director Jonathan Metcalf Multinationals 20
Art director Phil Ormerod Franchises 22
Senior jacket designer Mark Cavanagh Not-for-profit 24
Jacket assistant Claire Gell
Jacket design manager Sophia MTT Start-ups 26
Pre-production producers Ben Marcus, Nikoleta Parasaki Start-ups from concept to launch 28
Producer Christine Ni Types of start-up 30
First American edition 2015 Business plans 32
Published in the United States by Raising money 34
DK Publishing, 345 Hudson Street
New York, New York 10014 Business accelerators and incubators 38
A Penguin Random House Company
15 16 17 18 19 10 9 8 7 6 5 4 3 2 1 Buying and selling business 40
001—196402—Mar/2015 Mergers and acquisitions 42
Copyright © 2015
Divestitures 44
Dorling Kindersley Limited
All rights reserved. Vertical vs. horizontal integration 46
Without limiting the rights under copyright reserved above, Management buy-ins and buy-outs 48
no part of this publication may be reproduced, stored in or introduced
into a retrieval system, or transmitted, in any form, or by any means
(electronic, mechanical, photocopying, recording, or otherwise), without Who’s who 50
the prior written permission of both the copyright owner and the above
Board of directors 52
publisher of this book.
Company hierarchy 56
Published in Great Britain by Dorling Kindersley Limited
Stakeholders 60
A catalog record for this book is
available from the Library of Congress. Business cultures 64
ISBN: 978-1-4654-2979-7
DK books are available at special discounts when purchased in
bulk for sales promotions, premiums, fund-raising, or educational use.
For details, contact: DK Publishing Special Markets, 345 Hudson Street,
New York, New York 10014 or [email protected].
Printed in China
A WORLD OF IDEAS:
SEE ALL THERE IS TO KNOW
www.dk.com
HOW FINANCE WORKS 98
Financial reporting 100
The accounting cycle 102
Financial statements 104
Financial accounting 110
International accounting standards 112
Corporate structure 66 Profit-and-loss statement 114
Functional structure 68 Balance sheet 116
Divisional structure 70 Cash-flow statement 120
Matrix structure 72 Environmental accounting 122
Network structure 74 Depreciation 124
Team-based structure 76 Amortization and depletion 128
Human resources 78 Management accounting 130
The human resources cycle 80 Cash flow 132
Recruitment and selection 82 Budgets 136
Evaluating staff 84 Assets and inventory 138
Motivation and rewards 86 Costs 140
Leadership strategy and styles 88 Product costing and pricing 142
Leadership for team building 90
Employee relations and Measuring performance 144
communications 92 Key performance indicators (KPIs) 146
Project management 94 Financial ratios 148
Negotiating strategy 96 Forecasting 150
Tracking fraud 152
Raising financing 154
Internal financing 156
External financing 158
Going public 160
Shares and dividends 164
The capital market 170
Gearing ratio and financial risk 174
HOW SALES AND
MARKETING WORKS 176
Marketing mix 178 Inbound marketing 220
Product 180 Outbound vs. inbound marketing 222
Product positioning 182 Blogging 224
Product life cycle 184 Social media marketing 228
Price 186 Search engine optimization (SEO) 230
Place 188
Promotion 190 Business development 232
Market research 192 Branding and rebranding 234
Market segmentation 194 Lead generation 236
Lead conversion 238
Marketing approaches 196 Customer retention 240
Niche vs. mass marketing 198 Return on marketing
Traditional marketing 200 investment (ROMI) 242
Digital marketing 202 Intellectual capital 244
Engagement marketing 204
Sensory marketing 206 Information management 246
Relationship marketing 208 Business intelligence 248
Business analytics 250
Outbound marketing 210 Marketing and IT 252
Traditional offline advertising 212 Collecting consumer data 254
Online advertising 214 Data warehousing 256
Direct mail 216 Customer profiling 258
Telemarketing 218 Big data 262
Customer relationship
management (CRM) 264
Compliance 266
HOW OPERATIONS
Resources 336
AND PRODUCTION WORK 268 Index 344
Acknowledgments 351
Manufacturing and production 270
Job production 272
Batch production 274
Flow production 276
Mass customization 278
Continuous production 280
Hybrid processes 282
Management 284
Contributors
Economies and diseconomies of scale 286
Lean production 288
Just-in-time 290 Dr. Julian Sims (consultant editor) entered academia
Total quality management 292 after a successful career in industry in the US and UK. He
is a lecturer in the Department of Management at Birkbeck,
Time-based management 294
University of London, UK; a Chartered Accountant (CPA Aus);
Agile production 296 and a Chartered Information Technology Practitioner (CITP).
Kaizen 298 His work is widely published in academic journals.
Philippa Anderson is a business writer and communications
Product 300
consultant, who has advised multinationals including 3M,
New product development 302 Anglo American, and Coca-Cola. She collaborated with
Innovation and invention 304 Lord Browne, former CEO of BP, on his memoir, Beyond
Design 306 Business, and was a contributor to DK´s The Business Book.
Quality management 308
Alexandra Black studied business communications before
Product-process matrix 310 writing for financial newspaper group Nikkei Inc. in Japan.
While in Tokyo, she was an editor at the Risk Analysis division
Control 312 of investment bank JP Morgan. Now based in Cambridge,
UK, she covers subjects as varied as business, technology,
Managing capacity 314
and fashion. She was a contributor to DK’s The Business Book.
Inventory 316
Quality control 318 Joe Stanley-Smith is a reporter at the International Tax
Six Sigma 320 Review in London, UK, where he specializes in indirect tax
and tax disputes. He graduated in journalism with a business
specialty from Kingston University, UK, and has previously
Supply chain 322
worked in social media and local news.
Value chain 324
Outsourcing 326 Paul McDougall (US/Canada writer) is Deputy Technology
Editor for the International Business Times. He has written
Offshoring 328
for Scientific American, InformationWeek, SHAPE magazine,
Reverse supply chain 330 and others. A native of Toronto, Canada, he currently resides
Benchmarking 332 in New York City.
Corporate social responsibility 334
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