Preface |
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xix | |
Acknowledgments |
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xxii | |
Author Biographies |
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xxv | |
About This Book |
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xxvii | |
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PART I The Context of Management |
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Chapter 1 Toward Modern Management |
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3 | (18) |
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Objectives and Learning Outcomes |
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3 | (1) |
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First Things First: What Is Management? |
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3 | (3) |
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Early Forms of Management |
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6 | (1) |
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Management Innovation Following Technological Innovation |
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7 | (2) |
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First Steps toward Modern Mass-Production |
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9 | (2) |
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Supporting Managerial Innovation |
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11 | (2) |
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The Growth of Lean into a Practical Management Philosophy |
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13 | (1) |
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Current Trends in Management |
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14 | (2) |
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16 | (1) |
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17 | (2) |
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References and further reading |
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19 | (2) |
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Chapter 2 The Private Enterprise |
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21 | (24) |
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Objectives and Learning Outcomes |
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21 | (1) |
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The Private Enterprise as the Functional Unit of Management |
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21 | (2) |
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The Business as a Framework for Different Flows of Money |
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23 | (2) |
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The Business as a Set of Activities |
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25 | (3) |
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The Business as a Legal Form |
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28 | (3) |
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29 | (1) |
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30 | (1) |
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30 | (1) |
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31 | (1) |
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The Business as an Organization of People |
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31 | (3) |
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The Objectives of the Business |
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34 | (4) |
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34 | (1) |
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35 | (1) |
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35 | (1) |
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Physical and Financial Resources |
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36 | (1) |
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37 | (1) |
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Manager Performance and Development |
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37 | (1) |
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Worker Performance and Attitudes |
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37 | (1) |
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38 | (1) |
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38 | (2) |
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40 | (1) |
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41 | (3) |
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References and Further Reading |
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44 | (1) |
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Chapter 3 The Economic Theory of the Firm |
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45 | (26) |
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Objectives and Learning Outcomes |
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45 | (1) |
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45 | (1) |
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46 | (1) |
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47 | (1) |
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An Overview of the Principles of Economics |
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47 | (5) |
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Principle 1 Trade-offs Are Unavoidable |
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48 | (1) |
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Principle 2 The Cost of Opportunity |
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48 | (1) |
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Principle 3 Marginal Benefit and Marginal Cost |
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49 | (1) |
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Principle 4 Incentives Are Important |
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49 | (1) |
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Principle 5 Exchanging Things Is Normally Beneficial for Everyone |
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49 | (1) |
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Principle 6 Activity Should Be Organized through Markets |
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50 | (1) |
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Principle 7 Government Action Is Sometimes Needed |
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50 | (1) |
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Principle 8 Overall Wealth Depends on the Ability to Produce |
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51 | (1) |
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Principle 9 If the Government Issues Too Much Money, Prices Will Increase |
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51 | (1) |
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Principle 10 In the Short Term There Is a Trade-off between Output and Inflation |
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52 | (1) |
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Demand and Supply in Static Analyses |
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52 | (7) |
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52 | (2) |
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A Closer Look at the Demand Curve |
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54 | (2) |
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A Closer Look at the Supply Curve |
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56 | (1) |
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A Worked Example of a Market with Linear Demand and Supply Functions |
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57 | (1) |
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Using Comparative Statics to Analyze Interference with the Market Price |
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58 | (1) |
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59 | (1) |
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59 | (1) |
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59 | (1) |
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59 | (1) |
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60 | (1) |
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60 | (6) |
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61 | (3) |
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64 | (1) |
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Determination of Quantity, Price, and Profit |
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65 | (1) |
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66 | (1) |
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67 | (3) |
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References and Further Reading |
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70 | (1) |
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Chapter 4 The Economics of Digitalization and Automation |
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71 | (22) |
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Objectives and Learning Outcomes |
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71 | (1) |
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Background and Definitions |
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71 | (2) |
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What Exactly Is Information Technology? |
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73 | (3) |
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76 | (2) |
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The Economics of Information Goods |
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78 | (5) |
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Information Economics at Work: Flexible Manufacturing Systems and Artificial Intelligence |
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83 | (3) |
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Flexible Manufacturing Systems |
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83 | (1) |
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84 | (2) |
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Automation as a Societal Challenge |
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86 | (1) |
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87 | (2) |
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89 | (3) |
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References and Further Reading |
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92 | (1) |
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Chapter 5 Technology, Innovation, and Disruption |
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93 | (28) |
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Objectives and Learning Outcomes |
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93 | (1) |
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93 | (2) |
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Identifying Different Kinds of Technology |
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95 | (3) |
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The General Process of Innovation |
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98 | (1) |
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99 | (3) |
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102 | (4) |
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102 | (1) |
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Technology and Knowledge Push Innovation |
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103 | (1) |
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104 | (2) |
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Capturing the Financial Impacts of Innovation |
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106 | (4) |
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Costs and Benefits of Innovation to the Business |
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106 | (2) |
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Assessing the Cost Performance of the Outcomes of Innovation |
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108 | (2) |
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Iterative Approaches to Innovation |
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110 | (3) |
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110 | (2) |
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112 | (1) |
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The Protection of Innovations through Intellectual Property |
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113 | (3) |
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114 | (1) |
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Patents and Utility Models |
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114 | (1) |
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115 | (1) |
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116 | (1) |
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116 | (1) |
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117 | (2) |
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References and Further Reading |
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119 | (2) |
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Chapter 6 Life Cycle Thinking |
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121 | (28) |
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Objectives and Learning Outcomes |
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121 | (1) |
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What Is Life Cycle Thinking? |
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121 | (1) |
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122 | (1) |
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The Cash Flow Shape Technique |
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123 | (6) |
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Maximum Investment and Maximum Return |
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128 | (1) |
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Average Rates of Investment, Recovery, and Return |
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129 | (1) |
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129 | (6) |
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131 | (1) |
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132 | (1) |
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133 | (2) |
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Cost-Benefit Analysis and Stakeholders |
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135 | (3) |
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136 | (2) |
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Sustainability and Life Cycle Assessment |
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138 | (5) |
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Phase 1 Goals and Scope Definition |
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141 | (1) |
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Phase 2 Inventory Analysis |
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141 | (1) |
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Phase 3 Impact Assessment |
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142 | (1) |
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142 | (1) |
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143 | (1) |
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143 | (3) |
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References and Further Reading |
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146 | (3) |
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PART II The Activity of Managing the Business |
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Chapter 7 Business Modeling |
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149 | (26) |
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Objectives and Learning Outcomes |
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149 | (1) |
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What Is a Business Model? |
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149 | (1) |
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Underlying Classes of Business Models |
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150 | (2) |
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150 | (1) |
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151 | (1) |
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Forces That Shape Business Models |
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152 | (2) |
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Economies of Scale and Scope |
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152 | (1) |
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Transaction Cost Economics |
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153 | (1) |
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Methods of Creating Business Models |
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154 | (5) |
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154 | (1) |
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155 | (2) |
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157 | (1) |
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Infrastructure: Key Partners, Key Activities, and Key Resources |
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157 | (1) |
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Offering: Value Proposition |
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157 | (1) |
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Customers: Customer Classes, Customer Relationships, and Channels |
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158 | (1) |
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Finances: Revenue Stream and Cost Structure |
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158 | (1) |
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Methods of Assessing Business Models |
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159 | (4) |
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159 | (1) |
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159 | (1) |
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159 | (2) |
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Threat of Potential Entrants |
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161 | (1) |
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Bargaining Power of Customers and Suppliers |
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162 | (1) |
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162 | (1) |
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Severity of Rivalry between Competitors |
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163 | (1) |
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Major Types of Business Models |
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163 | (8) |
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163 | (2) |
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165 | (1) |
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166 | (2) |
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168 | (3) |
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171 | (1) |
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171 | (3) |
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References and Further Reading |
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174 | (1) |
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Chapter 8 New Business Formation |
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175 | (22) |
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Objectives and Learning Outcomes |
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175 | (1) |
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What Is Remarkable about New Businesses? |
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175 | (2) |
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Reality Check: The Vast Majority of New Businesses Fail |
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177 | (1) |
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Perspectives on the Process of Starting a Business |
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178 | (6) |
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Naive Procedural Approaches |
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178 | (1) |
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179 | (2) |
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181 | (3) |
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De-risking the Process by Buying into an Existing Business |
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184 | (1) |
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184 | (4) |
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Major Financial Parameters in the Process of Starting a Business |
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185 | (1) |
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186 | (1) |
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186 | (1) |
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Loans from Retail Banks and Commercial Banks |
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186 | (1) |
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187 | (1) |
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187 | (1) |
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Government Grants and Loans |
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187 | (1) |
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187 | (1) |
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Qualities of the Founders |
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188 | (1) |
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188 | (4) |
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Cover Sheet and Executive Summary (One or Two Pages) |
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189 | (1) |
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Founder Background and Team (Two or More Pages) |
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190 | (1) |
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Description of the Product or Service (Two Pages) |
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190 | (1) |
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The Target Market (Three or Four Pages) |
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190 | (1) |
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Market Research (One or Two Pages) |
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190 | (1) |
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Marketing Strategy (One or Two Pages) |
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191 | (1) |
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Competitor Analysis (Two or More Pages) |
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191 | (1) |
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Operations and Logistics (Two or More Pages) |
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191 | (1) |
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Costs and Pricing (One or More Pages) |
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191 | (1) |
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Financial Planning (One or Two Pages) |
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192 | (1) |
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Prospects and Contingency Plans (One or Two Pages) |
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192 | (1) |
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192 | (1) |
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193 | (2) |
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References and Further Reading |
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195 | (2) |
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Chapter 9 Managing Operations |
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197 | (38) |
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Objective and Learning Outcomes |
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197 | (1) |
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A System of Activities Delivering a Product or Service |
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197 | (4) |
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198 | (1) |
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Setting and Maintaining Standards |
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199 | (1) |
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200 | (1) |
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200 | (1) |
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201 | (1) |
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Designing Operations Processes |
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201 | (7) |
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Defining Production Systems |
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201 | (4) |
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Project Operations Systems |
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205 | (1) |
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Job-shop Operations Systems |
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205 | (1) |
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205 | (1) |
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Line and Continuous Operations Systems |
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205 | (1) |
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Digital Manufacturing Operations Systems |
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206 | (1) |
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206 | (1) |
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Professional Service Systems |
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206 | (1) |
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206 | (1) |
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207 | (1) |
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207 | (1) |
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The Role of New Technology in Reshaping the Volume-Variety Trade-off |
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207 | (1) |
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208 | (1) |
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Classification of Different Supply Chain Structures |
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209 | (1) |
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209 | (5) |
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Qualitative and Quantitative Forecasts |
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211 | (3) |
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Enterprise Resource Planning Systems |
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214 | (1) |
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215 | (15) |
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Principle 1 Specify Value from the Customer's Point of View |
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217 | (1) |
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Principle 2 Identify the Value Stream |
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218 | (1) |
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Principle 3 Make Value Flow |
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219 | (3) |
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Principle 4 Establish Pull Signals -- Only Operate as Needed |
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222 | (1) |
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Principle 5 Strive for Perfection -- Delivering Exactly What the Customer Needs |
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222 | (1) |
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The Special Role of Waste in Lean |
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223 | (1) |
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Waste of Scrap and Rework |
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223 | (1) |
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224 | (1) |
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224 | (1) |
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224 | (1) |
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224 | (1) |
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224 | (1) |
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225 | (1) |
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Waste of Underutilized People |
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225 | (1) |
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225 | (1) |
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225 | (1) |
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Visual Tools and Control Boards |
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226 | (1) |
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226 | (2) |
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Overall Equipment Effectiveness |
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228 | (2) |
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230 | (1) |
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230 | (3) |
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References and Further Reading |
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233 | (2) |
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Chapter 10 Managing People |
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235 | (26) |
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Objectives and Learning Outcomes |
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235 | (1) |
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The Scope of Human Resources Management |
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235 | (6) |
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237 | (1) |
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237 | (1) |
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237 | (2) |
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239 | (1) |
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Managing Equal Opportunities and Diversity |
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240 | (1) |
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241 | (6) |
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Models of Managers' Personality Traits |
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241 | (1) |
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241 | (2) |
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243 | (1) |
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Models Based on Power and Tactics |
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244 | (3) |
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247 | (1) |
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247 | (4) |
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Abraham Maslow's Hierarchy of Needs |
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248 | (1) |
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Frederick Herzberg's Two-Factor Theory |
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249 | (1) |
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Douglas McGregor's Theory X and Theory Y |
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250 | (1) |
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Current Topics in Human Resource Management |
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251 | (2) |
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Flexible Patterns of Work and Working from Home |
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251 | (1) |
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252 | (1) |
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Covey's Habits of Managing the Self |
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253 | (2) |
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255 | (1) |
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256 | (2) |
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References and Further Reading |
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258 | (3) |
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261 | (22) |
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Objectives and Learning Outcomes |
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261 | (1) |
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Defining the Scope of Marketing |
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261 | (2) |
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263 | (4) |
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A Worked Example of a Customer Lifetime Value Model |
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265 | (2) |
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Customer Engagement and Business Model Kinds |
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267 | (2) |
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Marketing in B2B versus B2C |
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268 | (1) |
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Developing Customer Engagement through Customer Relationship Management |
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269 | (1) |
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270 | (1) |
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271 | (6) |
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273 | (1) |
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273 | (1) |
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274 | (1) |
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275 | (1) |
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276 | (1) |
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276 | (1) |
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277 | (1) |
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Organizational Culture and Marketing |
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277 | (1) |
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278 | (1) |
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279 | (3) |
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References and Further Reading |
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282 | (1) |
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Chapter 12 Managing Quality and Risk |
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283 | (30) |
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Objectives and Learning Outcomes |
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283 | (1) |
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The Context of Managing Quality and Risk in a Business |
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283 | (3) |
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286 | (13) |
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Quality Management Systems |
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286 | (1) |
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Graphical Methods to Investigate Quality |
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287 | (1) |
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Setting Quality Standards |
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288 | (1) |
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288 | (3) |
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The Quality Loss Function |
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291 | (1) |
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Failure Modes and Effects Analysis |
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291 | (1) |
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292 | (1) |
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Statistical Process Control |
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293 | (3) |
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296 | (1) |
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297 | (1) |
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298 | (1) |
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298 | (1) |
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299 | (1) |
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299 | (1) |
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299 | (6) |
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Risk Identification and Assessment |
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300 | (4) |
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304 | (1) |
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Risk Review and Management |
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305 | (1) |
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305 | (1) |
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306 | (3) |
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References and Further Reading |
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309 | (4) |
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PART III Practical Management Techniques |
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Chapter 13 Financial Planning and the Basics of Financial Accounting |
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313 | (26) |
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Objectives and Learning Outcomes |
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313 | (1) |
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The Role of Financial Management in a Business |
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313 | (3) |
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315 | (1) |
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315 | (1) |
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315 | (1) |
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316 | (1) |
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316 | (10) |
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316 | (1) |
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317 | (2) |
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319 | (3) |
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The Profit and Loss Budget and the Cash Flow Forecast |
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322 | (4) |
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The Basics of Financial Accounting |
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326 | (5) |
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327 | (1) |
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328 | (1) |
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329 | (1) |
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3 Post General Ledger Entries |
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329 | (1) |
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4 Create an Unadjusted Trial Balance |
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329 | (1) |
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5 Adjust General Ledger Entries |
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330 | (1) |
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6 Create an Adjusted Trial Balance |
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330 | (1) |
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7 Generate Financial Statements |
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330 | (1) |
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330 | (1) |
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Three Major Financial Statements |
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331 | (3) |
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The Profit and Loss Statement |
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331 | (1) |
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331 | (3) |
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334 | (1) |
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334 | (2) |
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336 | (2) |
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References and Further Reading |
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338 | (1) |
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Chapter 14 Financial Analysis |
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339 | (22) |
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Objectives and Learning Outcomes |
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339 | (1) |
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Introduction to Financial Analysis |
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339 | (2) |
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Profitability and Solvency |
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340 | (1) |
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341 | (1) |
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341 | (1) |
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341 | (8) |
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342 | (1) |
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343 | (1) |
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344 | (1) |
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A Worked Example of Financial Analysis Using Financial Ratios |
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345 | (4) |
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Cost-Volume-Profit Analysis |
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349 | (7) |
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349 | (1) |
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350 | (1) |
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Bringing the Cost Side and the Revenue Side Together |
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351 | (2) |
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Financial Metrics and Ratios Used in Cost-Volume-Profit Analysis |
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353 | (1) |
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A Worked Example of Cost-Volume-Profit Analysis |
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354 | (1) |
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Limitations in the Presented Methods of Cost-Volume-Profit Analysis |
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355 | (1) |
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356 | (1) |
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|
357 | (3) |
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References and Further Reading |
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360 | (1) |
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Chapter 15 Evaluating Flows of Money |
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|
361 | (20) |
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Objectives and Learning Outcomes |
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|
361 | (1) |
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361 | (1) |
|
Simple Methods of Evaluating Cash Flows over Time |
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|
362 | (3) |
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363 | (1) |
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364 | (1) |
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364 | (1) |
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Making a Decision Based on Different Metrics |
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364 | (1) |
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Evaluating Cash Flows Using Compounding Methods |
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|
365 | (2) |
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|
365 | (1) |
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|
366 | (1) |
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Discounting to Net Present Value and the Minimum Acceptable Rate of Return |
|
|
367 | (2) |
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The Internal Rate of Return |
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|
369 | (3) |
|
Comparing Investments Based on the Internal Rate of Return |
|
|
372 | (2) |
|
Adjusting Future Cash Flows for Inflation |
|
|
372 | (2) |
|
|
374 | (2) |
|
|
376 | (3) |
|
References and Further Reading |
|
|
379 | (2) |
|
Chapter 16 Planning and Monitoring Projects |
|
|
381 | (32) |
|
Objective and Learning Outcomes |
|
|
381 | (1) |
|
The Context of Project Management |
|
|
381 | (1) |
|
|
382 | (12) |
|
|
383 | (2) |
|
Work Breakdown Structure and Work Packages |
|
|
385 | (1) |
|
The Logic Network and the Critical Path |
|
|
386 | (2) |
|
|
388 | (1) |
|
Starting a Simple Network Analysis |
|
|
388 | (1) |
|
Earliest Activity Start and Latest Activity Finish |
|
|
389 | (1) |
|
Constructing the Full Activity-On-Node Diagram |
|
|
390 | (4) |
|
|
394 | (13) |
|
Using Milestones for Project Monitoring |
|
|
394 | (2) |
|
|
396 | (1) |
|
Budgeted Cost of Work Scheduled |
|
|
396 | (2) |
|
Budgeted Cost of Work Performed |
|
|
398 | (4) |
|
Actual Cost of Work Performed |
|
|
402 | (2) |
|
Interpreting the Results of Earned Value Management |
|
|
404 | (2) |
|
Estimating Completion Time and Cost |
|
|
406 | (1) |
|
|
407 | (1) |
|
|
408 | (3) |
|
References and Further Reading |
|
|
411 | (2) |
Glossary |
|
413 | (20) |
Index |
|
433 | |