Understanding Business 11th Edition Ebook PDF Version

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WALKTHROUGH
Understanding Business has long been the MARKET LEADER. We’ve listened to
you and your students and that’s helped us offer you:
Resources that were developed based directly on your feedback—all geared to

make the most of your time and to help students succeed in this course. All the
supplemental resources for Understanding Business are carefully reviewed by Bill,
Jim, and Susan to ensure cohesion with the text.
Technology that leads the way and is consistently being updated to keep up with
you and your students. Connect Business offers students a truly interactive and
adaptive study arena. Interactive Presentations, Interactive Applications, SmartBook,
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grades by a full letter.
Support that is always available to help you in planning your course, working with
technology, and meeting the needs of you and your students.
KEEPING UP WITH WHAT’S NEW

Users of Understanding Business have always appreciated the currency of the material
and the large number of examples from companies of all sizes and industries (e.g., service,
manufacturing, nonprofit, and profit) in the United States and around the world. A glance
at the Chapter Notes will show you that almost all of them are from 2013 or 2014. Accord-
ingly, this edition features the latest business practices and other developments affecting
business including:
• U.S. economic status post-financial crisis and recession
• Growing income inequality
• Gross output (GO)
• Core inflation
• Trans-Pacific Partnership
• Types of social commerce
• JOBS Act of 2012
• Crowdinvesting vs. crowdfunding
• Big data
• Nanomanufacturing
• Generation Z
• Alpha Generation
• Affordable Care Act (Obamacare)
• Ethnographic segmentation
• Mobile/social/on-demand marketing
• Bitcoin and other cryptocurrencies
• Net neutrality
• Internet of Things (IoT)
• And much, much more
vii
RESULTS-DRIVEN TECHNOLOGY FOR STUDENTS
Across the country, instructors and students continue to raise an important question: How can introduction to business
courses further support students throughout the learning process to shape future business leaders? While there is no
one solution, we see the impact of new learning technologies and innovative study tools that not only fully engage
students in course material but also inform instructors of the students’ skill and comprehension levels.
Interactive learning tools, including those offered through McGraw-Hill Connect, are being implemented to increase
teaching effectiveness and learning efficiency in thousands of colleges and universities. By facilitating a stronger connec-
tion with the course and incorporating the latest technologies—such as McGraw-Hill LearnSmart, an adaptive learning
program—these tools enable students to succeed in their college careers, which will ultimately increase the percentage of
students completing their postsecondary degrees and create the business leaders of the future.
Connect Grade Distribution Student Pass Rate

McGraw-Hill Con-
Without
nect is the leading A LearnSmart
online assignment 19.3% A
30.5%
and assessment solution that connects students
with the tools and resources they need to achieve B
38.6% B
success while providing instructors with tools to
33.5%
quickly pick content and assignments according
to the learning objectives they want to emphasize. C
C
28.0%
Connect improves student learning and 22.6%
retention by adapting to the individual student, With
LearnSmart
reinforcing concepts with engaging presenta-
Without With
tions and activities that prepare students for LearnSmart LearnSmart
class, help them master concepts, and review
for exams. You can learn more about what is in 58% more As 25% more students
with LearnSmart passed with LearnSmart
Connect on the next page.
SmartBook Achieve
A revolution in reading Fueled by
LearnSmart, SmartBook Achieve is the
first and only adaptive reading experi-
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sonalizes content for each student in a
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and linear experience, but an engaging
and dynamic one where students are
more likely to master and retain impor-
tant concepts, coming to class better
prepared.
viii
Leveraging a continuously adaptive learning path, the program adjusts to each stu-
dent individually as he or she progresses through the program, creating just-in-time learn-
ing experiences by presenting interactive content that is tailored to each student’s needs.
This model is proven to accelerate learning and strengthen memory recall. A convenient
time-management feature and turnkey reports for instructors also ensure student’s stay
on track.
Interactive Presentations
Aid for Visual Learners These visual pre-
sentations within Connect are designed to rein-
force learning by offering a visual presentation
of the learning objectives highlighted in every
chapter of the text. Interactive presentations are
engaging, online, professional presentations (fully
Section 508 compliant) covering the same core
concepts directly from the chapter, while offer-
ing additional examples and graphics. Interactive
Presentations teach students learning objectives in
a multimedia format, bringing the course and the
book to life. Interactive Presentations are a great
prep tool for students—when the students are bet-
ter prepared, they are more engaged and better
able to participate in class.
Interactive Applications
A higher level of learning These exercises
require students to APPLY what they have learned
in a real-world scenario. These online exercises
will help students assess their understanding of the
concepts.
Click and Drag exercises allow students to

reinforce key models/processes by requiring stu-
dents to label key illustrations and models from
the text or build a process, and then demonstrate
application-level knowledge.
ix
Video cases give students the opportunity to
watch case videos and apply chapter concepts
to a real-world business scenario as the scenario
unfolds.
Decision generators require students to make

real business decisions based on specific real-
world scenarios and cases.
Comprehensive Cases encourage students

to read a case and answer open-ended discussion
questions to demonstrate writing and critical-
thinking skills.
Manager’s Hotseat (Connect Library)—

short video cases that show 15 real managers
applying their years of experience in confronting
certain management and organizational behavior
issues. Students assume the role of the manager as
they watch the video and answer multiple-choice
questions that pop up during the segment, forc-
ing them to make decisions on the spot. Students
learn from the managers’ unscripted mistakes
and successes, and then do a report critiquing the managers’ approach by defending their
reasoning.
Video Cases
Real-world assignments Industry-leading video support helps students understand
concepts and see how real companies and professionals implement business principles
in the workplace. The video cases highlight companies from a broad range of industries,
sizes, and geographic locations, giving students a perspective from a variety of businesses.
x
Media-Rich E-Book
Connect provides students with a cost-saving alternative to the traditional textbook.
A seamless integration of a media-rich e-book features the following:
• A web-optimized e-book, allowing for anytime, anywhere online access to the
textbook.
• Our iSee It! animated video explanations of the most often confused topics can be
accessed within this e-book.
• Highlighting and note-taking capabilities.
PLATINUM EXPERIENCE STUDENT-FRIENDLY

FEATURES
Learning Objectives Everything in the text and supplements package ties back to
the chapter learning objectives. The learning objectives listed throughout the chapter help
students preview what they should know after reading the chapter. Chapter summaries
test students’ knowledge by asking ques-
tions related to the learning objectives. The
A
Getting to know Tony Hsieh
Test Bank, Instructor’s Manual, PowerPoints,
11
lthough online shopping day of interviews went, if our shuttle
sites are becoming the driver wasn’t treated well, then we won’t
dominant force in the hire that person.” The examination
Tony Hsieh
retail world, they often doesn’t end once the person lands the
Online Course, and Connect are all organized Human Resource

fall short of their brick-
and-mortar rivals in terms of customer
service. At the online shoe vendor Zap-
job. Regardless of their position, new
hires must spend their first month help-
ing customers in the call center. If they • CEO of Zappos
efficient
Created an offbeat but
pos, however, a unique company culture can’t thrive, they’re gone.
according to the learning objectives. Management: ensures customers don’t have to sacri-
fice quality service for convenience.
When Tony Hsieh joined Zappos as
A long with creating open and acces-
sible work environments, Hsieh also tries
to break down as many barriers between
•
workplace
rs to wow
CEO, he wanted to change the corporate employees and management as possi-
• Empo wers staffe
work environment for the better. After sell- ble. Zappos executives are affectionately
Finding and Keeping the ing his first company to Microsoft for a referred to as “monkeys,” and the best customers
whopping $265 million, Hsieh didn’t want view from the company’s 10-story Vegas
a job in a gray, cubicle-filled office. “For high-rise is reserved for the call center www.zappos.com
Best Employees me, I didn’t want to be part of a company workers. In fact, Hsieh puts so much faith
where I dreaded going into the office,” in his staff that in 2014 he announced @zappos
Getting to Know Business Professionals said Hsieh. To set Zappos apart from
other online retailers, he wanted his ser-
vice representatives to wow customers
with their energy and expertise. To do that
Zappos would be eliminating most of its
traditional managers, corporate titles,
and hierarchy entirely. Instead, the com-
pany will be replacing its standard
Hsieh needed upbeat employees who chain of command with a “hol-
Every chapter in the text opens with the pro- Learning Objectives
were motivated by the love of their work.
He gave his call center staffers remark-
able freedom, allowing them to talk to
customers for hours at a time or send
acracy.” This new company
structure splits employees into
overlapping but mostly self-
ruling “circles” that allow
file of a business professional whose career

flowers and thank-you notes on the com- them to have a greater
AFTER YOU HAVE READ AND STUDIED THIS CHAPTER, YOU SHOULD BE ABLE TO pany’s dime. voice in how the
Not only does this strategy do won- company is run.
LO 11-1 Explain the importance of human resource management, and ders for customer satisfaction, it also Although time will tell
describe current issues in managing human resources. keeps employee morale sky high. In whether or not this
relates closely to the material in the chapter. LO 11-2 Illustrate the effects of legislation on human resource
management.
LO 11-3 Summarize the five steps in human resource planning.
order to succeed at this job, Zappos’s
service reps must be creative, energetic,
generous, and understanding. But this
commitment to excellence doesn’t end
radical system works, Tony
Hsieh’s commitment to an
offbeat but efficient workplace
has already grown Zappos into
with the company’s spirited call center a $2 billion company. If anybody
These business professionals work for a vari- LO 11-4 Describe methods that companies use to recruit new employees,
and explain some of the issues that make recruitment challenging.
LO 11-5 Outline the six steps in selecting employees.
employees. When candidates for depart-
ments like marketing or management
reach the interview stage, Hsieh starts
testing them before they even set foot in
can pull off such an unorthodox
office structure, it’s Hsieh.
In this chapter, you’ll learn
how businesses that succeed like
ety of businesses from small businesses and LO 11-6 Illustrate employee training and development methods. the company’s Las Vegas headquarters. Zappos recruit, manage, and make
“A lot of our job candidates are from out the most of their employees.
LO 11-7 Trace the six steps in appraising employee performance. of town, and we’ll pick them up from the
airport in a Zappos shuttle, give them a Sources: Jena McGregor, “Zappos Says Goodbye to
LO 11-8 Summarize the objectives of employee compensation programs, Bosses,” The Washington Post, January 3, 2014; Edward
tour, and then they’ll spend the rest of Lewine, “Tony Hsieh’s Office: Welcome to the Rain
and evaluate pay systems and fringe benefits.
nonprofit organizations to large corporations. LO 11-9 Demonstrate how managers use scheduling plans to adapt to
workers’ needs.
the day interviewing,” said Hsieh. “At the
end of the day of interviews, the
recruiter will circle back to the shuttle
driver and ask how he or she was
Forest,” The New York Times, December 28, 2013; Max
Nisen, “Tony Hsieh’s Brilliant Strategy for Hiring Kind
People,” Business Insider, November 22, 2013; Kim Bhasin,
“Tony Hsieh: Here’s Why I Don’t Want My Employees to
Work From Home,” Business Insider, March 6, 2013; and
Adam Bryant, “On a Scale of 1 to 10, How Weird Are You?”
LO 11-10 Describe how employees can move through a company: treated. It doesn’t matter how well the The New York Times, January 9, 2010.
These career profiles are an engaging way to promotion, reassignment, termination, and retirement.
open the chapter and to introduce students to a 298 299
variety of business career paths. nic23165_ch11_298-331.indd 298 11/4/14 10:44 AM nic23165_ch11_298-331.indd 299 11/4/14 10:44 AM
Name That Company Every text chapter opens with a Name That
Company challenge. The answer for the challenge can be found somewhere name that company
in the chapter. This Swiss-based company has many foreign subsidiaries including Jenny
Craig (weight management), Ralston Purina, Chef America (maker of Hot
Pockets), and Dreyer’s Ice Cream in the United States, as well as Perrier in
France. The company employs over 328,000 people and has operations in
almost every country in the world. Name that company. (Find the answer in
the chapter.)
www.rickshawbags.com
seeking sustainability
y
Sustainability’s in the Bag
When it comes to sustainable Rickshaw employees and
to help retain
products, making sure an item is executives
ex abide by the compa- Use LearnSmart ned. Access test prep
environmentally sound is just
the first step. After all, the word
ny’s
ny “three Fs” of sustainable
design:
de form, function and foot-
what you have lear nect course
“sustainability” implies that print.
pr Not only must a product your instructor's Con mart, or go to • What are the advanta
advantages
ges to a firm of using licensing as a method of
something will last for a long make
m as small a carbon footprint to check out LearnSe.com for help. entry in global markets? What are the disadvantages?
time. A shoddy product that as possible, it must also serve a learnsmartadvantag • What services are usually provided by an export-trading company?
needs to be replaced often long-term
lo practical function and
takes a hefty toll on resources, look
lo great doing it. That’s why • What is the key difference between a joint venture and a strategic
which can cancel out the envi- Rickshaw’s
Ri messenger bags are alliance?
ronmental benefits of even the designed
de in a way that ensures
• What makes a company a multinational corporation?
greenest production methods. every
ev piece of fabric cut by the
That’s why Rickshaw company makes it into the bag.
Bagworks in San Francisco The company’s dedication to
makes sustainable accessories sustainability is even incorpo-
designed to last for the long
term. For instance, at first the com-
pany began producing bags using upholstery mill to create its own
rated in its name, which means
“human powered vehicle” in
Japanese. Do you think more com-
Test Prep Questions help students understand and
expensive Italian wool herring-
bone tweed. Although the fabric
fabric, Rickshaw Performance
Tweed. Made from recycled plas-
panies should be as dedicated to
sustainability as Rickshaw?
retain the material in the chapters. These questions stop
was beautiful and environmentally tic bottles, this synthetic fabric
friendly, the prototypes wore out
in a manner of weeks. So
ended up being stronger and
more eco-friendly while still look-
Sources: Mark Dwight, “How to Build a
Sustainable Business,” Inc., November 2013; and
them at important points in the chapter to assess what
nic23165_ch03_060-091.indd 72 9/26/14 2:32 PM
http://blog.rickshawbags.com/the-rickshaw-story/,
Rickshaw teamed up with an ing gorgeous as a handbag. accessed February 2014.
they’ve learned before they continue reading and help them
prep for exams.
Seeking Sustainability boxes highlight corporate
responsibility and help students understand the various
ways business activities affect the environment.
nic23165_ch03_060-091.indd 62 9/26/14 2:31 PM
xi
www.yaofamilywines.com
sspotlight on small business

www.mcdonalds.com
From Setting Picks to Picking Grapes rreaching beyond our borders
Although Americans love to watch rather than investing in an exist-
sports, professional athletes often ing operation. A national hero in McDonald’s: Over 100 Cultures Served
receive criticism for collecting China, Yao Family Wines uses the
enormous paychecks. After all, name recognition of its seven- For decades McDonald’s program, an acceptance
some sports stars make more and-half-foot founder to appeal to has been the undisputed rate even lower than
money in a single season than the nation’s growing consumer king of global food fran- Harvard’s! McDonald’s is
many educators or nurses would class. Yao’s wines are intention- chising. With more than reaching out further in Asia
see in a lifetime. But matters can ally expensive: the cheapest vin- 34,000 restaurants in over and in 2014 opened its first
change drastically for athletes tage goes for about $87 while the 118 countries, Mickey D’s store in Vietnam. The
once their playing days end. priciest bottle, Yao Ming Family serves more than 69 mil- Vietnamese location in Ho
lion customers every day. Chi Minh City is the coun-
Suddenly skills that you’ve spent Reserve, lists for more than
So how did McDonald’s try’s very first drive-thru
your entire life honing are obso- $1,000. With premium brands still
become such a global restaurant. Bringing
lete, often leading to confusion a rarity in China, Yao could end powerhouse? It certainly McDonald’s to Vietnam is a
over what to do next. athletic wear or open a chain of up being just as influential in the didn’t get there through dream come true for Henry
When faced with this problem, sports bars. Instead, he estab- Chinese business world as he hamburgers alone. Since Nguyen, founder of Good
the groundbreaking former NBA lished a high-end winery in was on the basketball court. it first began expanding Day Hospitality, who has
center Yao Ming opted to use his California’s famous Napa Valley. overseas, McDonald’s has been wanting to introduce
Sources: Jason Chow, “Yao Ming’s Napa Winery
resources to start a business. Although many wealthy Chinese Stoops to Conquer China’s Middle Class,” The been careful to include the brand to Vietnam for
Although this is a common post- celebrities have bought vine- Wall Street Journal, September 5, 2013; and regional tastes on its menus along to religious sentiments in India as over a decade. Nguyen brought in
Michelle FlorCruz, “Yao Ming’s Wine Company
retirement tactic for many ath- yards, Yao has set himself apart Sets Sights on China’s Growing Middle Class,” with the usual Big Mac and well by not including any beef or 20 top McDonald’s employees
letes, Yao didn’t unveil a line of by building a brand from scratch International Business Times, September 6, 2013. French fries. For instance, in pork on its menu. For more exam- from Australia to help aid in the
Thailand patrons can order the ples, go to www.mcdonalds.com opening while also sending pro-
Samurai Burger, a pork-patty and explore the various spective Vietnamese employees to
sandwich marinated in teriyaki McDonald’s international franchises Queensland to learn the ropes in a
Spotlight on Small Business boxes feature how the sauce and topped with mayon-
naise and a pickle. If fish is more
websites. Notice how the company
blends the culture of each country
real-life restaurant setting. In the
end, one can only hope that
your taste, try the Ebi Filet-o into the restaurant’s image. McDonald’s remains dedicated to
concepts in the chapter relate to small businesses. shrimp sandwich from Japan.
McDonald’s is also careful to
McDonald’s main global market
concern as of late has been Asia.
quality as it continues adapting and
expanding into the global market.
adapt its menus to local customs So far McDonald’s strategy seems
Sources: Erin Smith, “Some McSkills to Share,”
and culture. In Israel, all meat to be working. In Shanghai the The Warwick Daily News, February 4, 2014; Kate
served in the chain’s restaurants is company’s Hamburger University Taylor, “New Year, New Expansion: McDonald’s to
Open First Restaurant in Vietnam,” Entrepreneur,
100 percent kosher beef. The com- attracts top-level college graduates December 23, 2013; Vivian Giang, “McDonald’s
pany also closes many of its restau- to be trained for management posi- Hamburger University: Step inside the Most
Exclusive School in the World,” Business Insider,
rants on the Sabbath and religious tions. Only about eight out of every April 7, 2012; and McDonald’s, www.mcdonalds
holidays. McDonald’s pays respect 1,000 applicants makes it into the .com, accessed February 2014.
www.medicaltourism.com
making ethical decisionss Reaching Beyond Our Borders boxes focus on

Making Your Operation Your Vacation global issues surrounding business.
The Affordable Care Act (ACA) $10,000 out-of-pocket. Follett, like expected to become a booming
may bring some relief to astro- 1.6 million other Americans, industry with worldwide annual
nomical insurance costs. But as started looking for treatment else- growth estimated between 20
premiums continue to rise at where. In March of 2012, he and 30 percent. Would it be ethi-
home, overseas in countries like underwent surgery in Mexico and cal to force patients to travel
Thailand, Colombia, and India, was back on the California ski thousands of miles and be sepa-
health care is not only affordable, slopes in March of 2013. His total rated from friends and family in a
it’s also high quality. For instance, bill: $10,000, all of which was cov- time of crisis in order to save
in the United States it would cost ered by his company. money?
Patrick Follett, an avid skier, at Right now, few American com-
least $65,000 for his hip replace- panies include medical tourism in Sources: Medical Tourism Association, “Medical
ment surgery. Unlike some their health care plans, but some Tourism Sample Surgery Cost Chart,” www
.medicaltourismassociation.com/en/for-patients.
Americans, Follett had medical of the larger companies like html, accessed March 2014; Kevin Gray, “Medical
insurance and would have part of Aetna and WellPoint are working Tourism: Overseas and Under the Knife,” Men’s
Journal, November 2013; and Elisabeth Rosenthal
the procedure covered. However, with companies to include inter- “The Growing Popularity of Having Surgery
nic23165_ch03_060-091.indd 74 9/26/14 2:32 PM nic23165_ch03_060-091.indd 70 9/26/14 2:31 PM
it would have still cost him at least national coverage. It’s even Overseas,” The New York Times, August 6, 2013.
Making Ethical Decisions boxes offer students eth-

ical dilemmas to consider.
PLATINUM EXPERIENCE INSTRUCTOR RESOURCES

Connect offers instructors autogradable material in an effort to facilitate learning and to
save time.
Student Progress Tracking
Connect Insight is a powerful data

analytics tool that allows instructors
nic23165_ch03_060-091.indd 85 9/26/14 2:32 PM
to leverage aggregated information
about their courses and students to
provide a more personalized teach-
ing and learning experience.
xii
Connect’s Instructor Library
Connect’s Instructor Library serves as a one-stop, secure site for essential course materi-
als, allowing you to save prep time before class. The instructor site resources found in the
library include:
• Instructor’s Manual
• PowerPoint Presentations
• Test Bank/EZ Test
• Monthly Bonus Activities
• Videos
• Video Guide
• Connect Instructor’s Manual
Instructor’s Manual: The authors have carefully reviewed all resources provided in
the Instructor’s Manual to ensure cohesion with the text. It includes everything an instruc-
tor needs to prepare a lecture, including 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.
PowerPoint Presentations: More than 900 PowerPoint slides offer material from the
text, as well as expanded coverage to supplement discussion.
Test Bank and EZ Test Online: The Test Bank and Computerized Test Bank offer
over 8,000 multiple-choice, true/false, short answer, essay, and application questions.
ISBN: 0077474376
Monthly Bonus Activities: Monthly Bonus Activities contain a variety of tools to

help freshen your classes: (1) links to interesting new videos; (2) abstracts of recent articles
with accompanying critical-thinking questions to spark class discussion (sample answers
included); and (3) a PowerPoint file that integrates these elements in an easy-to-use pack-
age. If you’re a current adopter of the text, then we are already sending you the Monthly
Bonus Activities. If you are not receiving them and would like to, please contact your
McGraw-Hill Sales Representative.
Videos: Chapter-specific videos are provided to complement each chapter of the text.
Eleven of the 20 videos have been updated to include interesting companies that students
will identify with such as SXSW, Sonic, and Whole Foods.
Video Guide: The Video Guide offers additional detailed teaching notes to accompany
the chapter videos, and provides essay-style and multiple-choice questions.
Connect Instructor’s Manual: This Instructor’s Manual offers instructors what

they need to set up Connect for their courses. It explains everything from how to get
started to suggestions of what to assign and ideas about assigning credit. This tool was
developed by instructors who have used and continue to use Connect successfully in
their course.
xiii
PLATINUM EXPERIENCE TEACHING OPTIONS
AND SOLUTIONS
Blackboard Partnership
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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
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www.domorenow.com.
Create
Instructors can now tailor their teaching resources to match the way they teach! With
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® can see, hear, and experience class resources, the better they learn. In fact, studies
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xiv
COURSE DESIGN AND DELIVERY
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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 is designed
specifically to support instructors’ assurance of learning initiatives with a simple yet pow-
erful solution. Each test bank question for Understanding Business 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 objectives 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 presenta-
tion 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
recognizes the curricula guidelines detailed in the AACSB standards for business accred-
itation 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 contained in
Understanding Business 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 teaching
package makes no claim of any specific AACSB qualification or evaluation, we have
within Understanding Business labeled selected questions according to the six general
knowledge and skills areas.
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xv
ACKNOWLEDGMENTS
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ACKNOWLEDGMENTS xix
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xx ACKNOWLEDGMENTS
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ACKNOWLEDGMENTS xxi
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College–Sylvania University Massachusetts–Dartmouth
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munity College Community College Northwestern Ohio
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College munity College Community College
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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 Jim McHugh Susan McHugh

Prologue P-1
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 Developing and Pricing Goods and Services 388
15 Distributing Products 416
16 Using Effective Promotions 446
PART 6
Managing Financial Resources 472
17 Understanding Accounting and Financial Information 472
18 Financial Management 502
19 Using Securities Markets for Financing and Investing Opportunities 530
20 Money, Financial Institutions, and the Federal Reserve 564
Bonus Chapters
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
Prologue: Getting Ready for This Course and Your Progress in Service Industries 20
Career P-1 Your Future in Business 22
Top 10 Reasons to Read This Introduction P-1 Summary 22
Learning the Skills You Need to Succeed Today Key Terms 24
and Tomorrow P-2 Critical Thinking 24
Using This Course to Prepare for Your Career P-3
Developing Workplace Skills 25
CONTENTS
Assessing Your Skills and Personality P-4
Taking It to the Net 25
Using Professional Business Strategies Right Now P-4
Learning to Behave Like a Professional P-5 Video Case: Thomas Lennon 26
Doing Your Best in College P-7 Notes 27
Study Hints P-7 Photo Credits 27
Test-Taking Hints P-9
Time Management Hints P-10
CHAPTER 2
Making the Most of the Resources for This
Course P-11 Understanding Economics and How It Affects
Getting the Most from This Text P-12 Business 28
Getting to Know: Matt Flannery, Co-Founder and
PART 1 CEO of Kiva.org 29
How Economic Conditions Affect Businesses 30
Business Trends: Cultivating a Business in What Is Economics? 30
Diverse, Global Environments 2 The Secret to Creating a Wealthy Economy 32
Adam Smith and the Creation of Wealth 32
How Businesses Benefit the Community 33
CHAPTER 1 Making Ethical Decisions: How Corruption Harms
Taking Risks and Making Profits within the the Economy 34
Dynamic Business Environment 2 Understanding Free-Market Capitalism 34
The Foundations of Capitalism 35
Getting to Know: Sammy Hagar, Entrepreneur and
Rock Star 3 How Free Markets Work 36
Entrepreneurship and Wealth Building 4 How Prices Are Determined 37
Revenues, Profits, and Losses 4 The Economic Concept of Supply 37
Matching Risk with Profit 5 The Economic Concept of Demand 37
Standard of Living and Quality of Life 5 The Equilibrium Point, or Market Price 37
Responding to the Various Business Stakeholders 6 Competition within Free Markets 38
Using Business Principles in Nonprofit Spotlight on Small Business: Bugs Bug Orange
Organizations 7
Farmers and Drive Prices Up 39
Entrepreneurship versus Working for Others 8 Benefits and Limitations of Free Markets 40
Opportunities for Entrepreneurs 8 Understanding Socialism 41
Spotlight on Small Business: How a Food Truck The Benefits of Socialism 41
Helped Rebuild a Storm-Struck Community 9 The Negative Consequences of Socialism 41
The Importance of Entrepreneurs to the Creation of Understanding Communism 42
Wealth 9 The Trend Toward Mixed Economies 42
The Business Environment 11 Reaching Beyond Our Borders: Economic
The Economic and Legal Environment 11 Expansion in Africa 44
Making Ethical Decisions: Ethics Begins with You 14 Understanding the U.S. Economic System 44
Key Economic Indicators 44
The Technological Environment 14
Productivity in the United States 48
Reaching Beyond Our Borders: Connecting
Companies with Global Freelancers 15 Productivity in the Service Sector 48
The Competitive Environment 16 The Business Cycle 49
The Social Environment 17 Stabilizing the Economy through Fiscal Policy 49
The Global Environment 18 Fiscal Policy in Action during an Economic Crisis 51
Adapting to Change: Gourmet Airport Eateries Using Monetary Policy to Keep the Economy
Take Flight 19 Growing 51
The Evolution of U.S. Business 20 Summary 52
Progress in the Agricultural and Manufacturing Key Terms 54
Industries 20 Critical Thinking 54
xxiii
xxiv CONTENTS
Developing Workplace Skills 55 Notes 89

Taking It to the Net 56 Photo Credits 91
Video Case: Opportunities International 56
Notes 57 CHAPTER 4
Photo Credits 58 Demanding Ethical and Socially Responsible
Behavior 92
CHAPTER 3 Getting to Know: Patty Stonesifer, CEO of
Martha’s Table 93
Doing Business in Global Markets 60
Ethics Is More Than Legality 94
Getting to Know: Leila Janah, Founder and CEO Making Ethical Decisions: Bernie Madoff’s Ponzi
of Samasource 61 Scheme 95
The Dynamic Global Market 62 Ethical Standards Are Fundamental 96
Why Trade with Other Nations? 63 Ethics Begins with Each of Us 96
The Theories of Comparative and Absolute
Spotlight on Small Business: Turning Ex-Convicts
Advantage 64 into Entrepreneurs 97
Getting Involved in Global Trade 64 Managing Businesses Ethically and
Importing Goods and Services 65 Responsibly 98
Exporting Goods and Services 65 Setting Corporate Ethical Standards 100
Measuring Global Trade 66 Corporate Social Responsibility 102
Strategies for Reaching Global Markets 67 Responsibility to Customers 104
Licensing 68 Responsibility to Investors 105
Exporting 68 Responsibility to Employees 106
Franchising 69 Responsibility to Society and the Environment 107
Contract Manufacturing 69 Social Auditing 108
Reaching Beyond Our Borders: McDonald’s: Over Seeking Sustainability: Sustainability’s in the Bag 109
100 Cultures Served 70 International Ethics and Social Responsibility 110
International Joint Ventures and Strategic Reaching Beyond Our Borders: Going by a
Alliances 70 Different Standard 112
Foreign Direct Investment 71 Summary 113
Forces Affecting Trading in Global Markets 73
Key Terms 114
Sociocultural Forces 73
Critical Thinking 115
Spotlight on Small Business: From Setting Picks to
Picking Grapes 74 Developing Workplace Skills 115
Economic and Financial Forces 74 Taking It to the Net 115
Legal and Regulatory Forces 76 Video Case: Warby Parker/VisionSpring 116
Physical and Environmental Forces 77 Notes 117
Trade Protectionism 77 Photo Credits 117
The World Trade Organization 79
Common Markets 79
The North American and Central American Free PART 2
Trade Agreements 80
The Future of Global Trade 81 Business Ownership: Starting a Small
The Challenge of Offshore Outsourcing 83 Business 118
Globalization and Your Future 84
Making Ethical Decisions: Making Your Operation CHAPTER 5
Your Vacation 85 How to Form a Business 118
Summary 85
Getting to Know: Anne Beiler, Founder of Auntie
Key Terms 87
Anne’s 119
Critical Thinking 87 Basic Forms of Business Ownership 120
Developing Workplace Skills 87 Sole Proprietorships 121
Taking It to the Net 88 Advantages of Sole Proprietorships 121
Video Case: Electra Bicycle Company 88 Disadvantages of Sole Proprietorships 121
CONTENTS xxv
Partnerships 123 Turning Your Passions and Problems into

Advantages of Partnerships 124 Opportunities 155
Disadvantages of Partnerships 125 Entrepreneurial Teams 157
Making Ethical Decisions: Good Business, Bad Micropreneurs and Home-Based Businesses 157
Karma? 127 Web-Based Businesses 159
Corporations 127 Entrepreneurship within Firms 160
Advantages of Corporations 127 Encouraging Entrepreneurship: What Government
Disadvantages of Corporations 129 Can Do 161
Seeking Sustainability: B Corporations Let Getting Started in Small Business 162
Sustainability Set Sail 130 Small versus Big Business 162
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
PART 3
Getting to Know: Prudencio Unanue, Founder of
Goya Foods 151 Business Management: Empowering
The Age of the Entrepreneur 152 Employees to Satisfy Customers 184
The Job-Creating Power of Entrepreneurs in the
United States 152
Spotlight on Small Business: Earning while CHAPTER 7
Learning 153
Why People Take the Entrepreneurial Management and Leadership 184
Challenge 153 Getting to Know: Sheryl Sandberg, COO of
What Does It Take to Be an Entrepreneur? 154 Facebook 185
xxvi CONTENTS
Managers’ Roles Are Evolving 186 Organizational Models 222

The Four Functions of Management 187 Line Organizations 223
Planning and Decision Making 189 Line-and-Staff Organizations 223
Decision Making: Finding the Best Alternative 192 Matrix-Style Organizations 223
Organizing: Creating a Unified System 193 Cross-Functional Self-Managed Teams 225
Tasks and Skills at Different Levels of Going Beyond Organizational Boundaries 226
Management 194 Managing the Interactions among Firms 226
Reaching Beyond Our Borders: Back to School for Transparency and Virtual Organizations 227
Top Managers 195
Spotlight on Small Business: Cutting Back while
Staffing: Getting and Keeping the Right People 195 Cutting Costs 228
Leading: Providing Continuous Vision and Benchmarking and Core Competencies 228
Values 196
Adapting to Change 229
Making Ethical Decisions: What Do You Tell the
Team? 197 Adapting to Change: When Open Communication
Should Not Be So Open 230
Leadership Styles 197
Restructuring for Empowerment 230
Empowering Workers 198
Creating a Change-Oriented Organizational
Managing Knowledge 199
Culture 231
Adapting to Change: Using Social Media during Managing the Informal Organization 232
the Worst of Times 200
Summary 233
Controlling: Making Sure It Works 201
Key Terms 235
A Key Criterion for Measurement: Customer
Satisfaction 202 Critical Thinking 235
Summary 203 Developing Workplace Skills 236
Key Terms 205 Taking It to the Net 237
Critical Thinking 205 Video Case: Whole Foods 237
Developing Workplace Skills 205 Notes 238
Taking It to the Net 206 Photo Credits 238
Video Case: Zappos’s Team Approach 207
Notes 207 CHAPTER 9
Photo Credits 208
Production and Operations
Management 240
CHAPTER 8 Getting to Know: Shahid Khan, CEO of
Structuring Organizations for Today’s Flex-N-Gate 241
Challenges 210 Manufacturing and Services in Perspective 242
Seeking Sustainability: Your Own Farm in a Box 243
Getting to Know: Jenna Lyons, President and
Creative Director of J. Crew 211 Reaching Beyond Our Borders: Nobody Does It
Better 244
Everyone’s Reorganizing 212
Manufacturers and Service Organizations Become
Building an Organization from the Bottom Up 212
More Competitive 244
Making Ethical Decisions: Would You Sacrifice
Safety for Profits? 213 From Production to Operations Management 245
Operations Management in the Service Sector 246
The Changing Organization 214
Production Processes 247
The Development of Organization Design 214
The Need to Improve Production Techniques and Cut
Turning Principles into Organization Design 216
Costs 248
Decisions to Make in Structuring
Organizations 218 Computer-Aided Design and Manufacturing 248
Choosing Centralized or Decentralized Flexible Manufacturing 249
Authority 218 Lean Manufacturing 249
Choosing the Appropriate Span of Control 219 Mass Customization 250
Choosing between Tall and Flat Organization Robotics 250
Structures 219 Spotlight on Small Business: Make Your Own Kind
Weighing the Advantages and Disadvantages of of Music 251
Departmentalization 220 Using Sensing, Measurement, and Process Control 251
CONTENTS xxvii
Operations Management Planning 252 Reinforcing Employee Performance: Reinforcement

Facility Location 252 Theory 281
Facility Location for Manufacturers 253 Treating Employees Fairly: Equity Theory 282
Putting Theory into Action 282
Making Ethical Decisions: Do We Stay or Do We
Go? 254 Motivation through Job Enrichment 283
Taking Operations Management to the Internet 254 Motivating through Open Communication 283
Facility Location in the Future 254 Applying Open Communication in Self-Managed
Teams 284
Facility Layout 254
Materials Requirement Planning 255
Adapting to Change: When Is Social Media Too
Social? 285
Purchasing 257
Recognizing a Job Well Done 285
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
Management of Human Resources: CHAPTER 11
Motivating Employees to Produce Quality Human Resource Management: Finding and
Goods and Services 268 Keeping the Best Employees 298
Getting to Know: Tony Hsieh, CEO of
Zappos 299
CHAPTER 10 Working with People Is Just the Beginning 300
Motivating Employees 268 Developing the Ultimate Resource 300
The Human Resource Challenge 301
Getting to Know: David Novak, CEO of Yum! Laws Affecting Human Resource
Brands 269 Management 302
The Value of Motivation 270 Laws Protecting Employees with Disabilities and
Frederick Taylor: The Father of Scientific Older Employees 304
Management 271
Effects of Legislation 305
Elton Mayo and the Hawthorne Studies 272 Determining a Firm’s Human Resource
Motivation and Maslow’s Hierarchy Needs 305
of Needs 273 Recruiting Employees from a Diverse
Herzberg’s Motivating Factors 274 Population 307
McGregor’s Theory X and Theory Y 276 Spotlight on Small Business: Competing for the
Theory X 276 Cream of the Crop 309
Theory Y 277 Selecting Employees Who Will Be Productive 309
Ouchi’s Theory Z 278 Adapting to Change: Keeping the Right Face on
Goal-Setting Theory and Management by Facebook 311
Objectives 280 Hiring Contingent Workers 311
Meeting Employee Expectations: Expectancy Training and Developing Employees for Optimum
Theory 280 Performance 312
xxviii CONTENTS
Making Ethical Decisions: Intern or Indentured Union Tactics 343

Servant? 313 Management Tactics 344
Management Development 314 Making Ethical Decisions: To Cross or Not to
Networking 315 Cross 345
Diversity in Management Development 316 The Future of Unions and Labor–Management
Appraising Employee Performance to Get Relations 345
Optimum Results 316 Controversial Employee–Management Issues 347
Compensating Employees: Attracting and Keeping Executive Compensation 347
the Best 318 Adapting to Change: College Athletes: What Are
Pay Systems 318 They Worth? 348
Compensating Teams 319 Pay Equity 349
Fringe Benefits 320 Sexual Harassment 350
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
Moving Employees Up, Over, and Out 324 Critical Thinking 356
Promoting and Reassigning Employees 325 Developing Workplace Skills 356
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
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
Seeking Sustainability: Making Sustainability Just
Getting to Know: DeMaurice Smith, Executive Peachy 365
Director of the NFL Players Association 333
Nonprofit Organizations and Marketing 366
Employee–Management Issues 334
The Marketing Mix 366
Labor Unions Yesterday and Today 335
Applying the Marketing Process 367
The History of Organized Labor 335
Designing a Product to Meet Consumer Needs 368
Public Sector Union Membership 336
Setting an Appropriate Price 369
Spotlight on Small Business: The Factory Blaze
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
CONTENTS xxix
Reaching Beyond Our Borders: Two Is Better than The New-Product Development Process 402
One 374 Generating New-Product Ideas 402
Competitive Factors 374 Product Screening 402
Economic Factors 374 Product Analysis 402
Two Different Markets: Consumer and Business-to- Product Development and Testing 402
Business (B2B) 375
Commercialization 403
The Consumer Market 375
Adapting to Change: Making the
Segmenting the Consumer Market 376 Right Cut 404
Reaching Smaller Market Segments 377 The Product Life Cycle 404
Building Marketing Relationships 378 Example of the Product Life Cycle 405
The Consumer Decision-Making Using the Product Life Cycle 405
Process 378
Competitive Pricing 407
Adapting to Change: Turning Negatives to Pricing Objectives 407
Positive 379
Cost-Based Pricing 408
The Business-to-Business Market 380
Your Prospects in Marketing 380 Demand-Based Pricing 408
Summary 381 Competition-Based Pricing 408
Key Terms 383 Break-Even Analysis 408
Other Pricing Strategies 409
How Market Forces Affect Pricing 409
Nonprice Competition 410
Taking It to the Net 384 Summary 410
Video Case: Using the 4 Ps at Energizer 385 Key Terms 412
Notes 385 Critical Thinking 413
Photo Credits 386 Developing Workplace Skills 413
Video Case: Dream Dinners Food-to-Go 414
CHAPTER 14
Notes 415
Developing and Pricing Goods and Photo Credits 415
Services 388
Getting to Know: Kathy Ireland, CEO of Kathy
Ireland Worldwide 389 CHAPTER 15
Product Development and the Total Product
Offer 390 Distributing Products 416
Adapting to Change: Bellying Up to Getting to Know: Reed Hastings, CEO of
Social Media 391 Netflix 417
Distributed Product Development 392 The Emergence of Marketing Intermediaries 418
Product Lines and the Product Mix 393 Seeking Sustainability: Answer May Be Blowing in
the Wind 419
Spotlight on Small Business: Sealing the
Deal 394 Why Marketing Needs Intermediaries 419
Product Differentiation 394 How Intermediaries Create Exchange
Marketing Different Classes of Consumer Goods and Efficiency 420
Services 395 The Value versus the Cost of Intermediaries 421
Marketing Industrial Goods and Services 396 The Utilities Created by Intermediaries 423
Packaging Changes the Product 397 Form Utility 423
The Growing Importance of Packaging 398 Time Utility 423
Branding and Brand Equity 398 Place Utility 423
Brand Categories 399 Possession Utility 424
Reaching Beyond Our Borders: Playing the Name Information Utility 424
Game 400 Service Utility 424
Generating Brand Equity and Loyalty 400 Wholesale Intermediaries 425
Creating Brand Associations 401 Merchant Wholesalers 425
Brand Management 401 Agents and Brokers 426
xxx CONTENTS
Retail Intermediaries 426 Using Social Media to Monitor Ad Effectiveness 455

Retail Distribution Strategy 427 Global Advertising 455
Adapting to Change: Truckin’ On with Social Reaching Beyond Our Borders: What’s in Your
Media 428 Oreo? 456
Nonstore Retailing 428 Personal Selling: Providing Personal
Electronic Retailing 428 Attention 456
Telemarketing 430 Steps in the Selling Process 457
Vending Machines, Kiosks, and Carts 430 The Business-to-Consumer Sales Process 458
Direct Selling 430
Public Relations: Building Relationships 460
Publicity: The Talking Arm of PR 460
Multilevel Marketing 430
Sales Promotion: Giving Buyers Incentives 461
Direct Marketing 431
Word of Mouth and Other Promotional Tools 463
Building Cooperation in Channel Systems 431
Adapting to Change: What Are Companies Yelping
Corporate Distribution Systems 432 About? 464
Contractual Distribution Systems 432
Blogging 464
Administered Distribution Systems 432
Podcasting 465
Supply Chains 432
E-Mail Promotions 465
Reaching Beyond Our Borders: Weak Links Can
Mobile Marketing 465
Break a Chain 434
Managing the Promotion Mix: Putting It All
Logistics: Getting Goods to Consumers Together 465
Efficiently 434
Promotional Strategies 466
Trains Are Great for Large Shipments 436
Summary 467
Trucks Are Good for Small Shipments to Remote
Locations 437 Key Terms 468
Water Transportation Is Inexpensive but Slow 437 Critical Thinking 469
Pipelines Are Fast and Efficient 437 Developing Workplace Skills 469
Air Transportation Is Fast but Expensive 437 Taking It to the Net 470
Intermodal Shipping 438 Video Case: SXSW 470
The Storage Function 438 Notes 471
Tracking Goods 439 Photo Credits 471
What All This Means to You 439
Summary 440
Key Terms 442 PART 6
Critical Thinking 442 Managing Financial Resources 472
CHAPTER 17
Video Case: FedEx 444
Notes 445
Understanding Accounting and Financial
Photo Credits 445
Information 472
Getting to Know: John Raftery, Founder of Patriot
Contractors 473
CHAPTER 16 The Role of Accounting Information 474
Using Effective Promotions 446 What Is Accounting? 474
Getting to Know: Chris Hardwick, Co-Founder Accounting Disciplines 475
of Nerdist Industries 447 Managerial Accounting 475
Promotion and the Promotion Mix 448 Financial Accounting 476
Advertising: Informing, Persuading, and Auditing 477
Reminding 449 Adapting to Change: Elementary, Mr. Auditor,
Television Advertising 452 Elementary 478
Product Placement 453 Tax Accounting 478
Infomercials 453 Government and Not-for-Profit Accounting 478
Online Advertising 453 The Accounting Cycle 479
Making Ethical Decisions: Pay-per-Tweet 454 Using Technology in Accounting 480
CONTENTS xxxi
Understanding Key Financial Statements 481 Making Capital Expenditures 512

The Fundamental Accounting Equation 482 Alternative Sources of Funds 513
The Balance Sheet 482 Obtaining Short-Term Financing 514
Classifying Assets 483 Trade Credit 514
Liabilities and Owners’ Equity Accounts 484 Family and Friends 514
The Income Statement 485 Commercial Banks 515
Revenue 487 Adapting to Change: Threading the Financial
Cost of Goods Sold 487
Needle 516
Operating Expenses 487 Different Forms of Short-Term Loans 516
Spotlight on Small Business: The Ins and Outs of Factoring Accounts Receivable 517
Valuing Inventory 488 Commercial Paper 518
Net Profit or Loss 488 Credit Cards 518
The Statement of Cash Flows 489 Obtaining Long-Term Financing 519
Making Ethical Decisions: Would You Cook the Debt Financing 519
Books? 490 Reaching Beyond Our Borders: Are They Heroes or
The Need for Cash Flow Analysis 490 Hustlers? 520
Analyzing Financial Performance Using Equity Financing 521
Ratios 491 Comparing Debt and Equity Financing 523
Liquidity Ratios 491 Lessons Learned from the Recent Financial Crisis 524
Leverage (Debt) Ratios 492 Summary 525
Profitability (Performance) Ratios 493 Key Terms 526
Activity Ratios 494 Critical Thinking 527
Reaching Beyond Our Borders: Speaking a Developing Workplace Skills 527
Universal Accounting Language 495
Summary 496
Video Case: Starting Up: Tom and Eddie’s 528
Key Terms 497
Notes 529
Photo Credits 529
Video Case: The Accounting Function at Goodwill CHAPTER 19
Industries 499
Using Securities Markets for Financing and
Notes 500
Investing Opportunities 530
Photo Credits 500
Getting to Know: Mellody Hobson, President of
Ariel Investments 531
CHAPTER 18 The Function of Securities Markets 532
Financial Management 502 The Role of Investment Bankers 533
Stock Exchanges 533
Getting to Know: Sabrina Simmons, CFO of
Gap 503 Securities Regulations and the Securities and
Exchange Commission 534
The Role of Finance and Financial Managers 504
Spotlight on Small Business: Giving Small Business
The Value of Understanding Finance 505 a Jump on Funding 535
What Is Financial Management? 506
Foreign Stock Exchanges 536
Financial Planning 507
How Businesses Raise Capital by Selling
Forecasting Financial Needs 507 Stock 537
Working with the Budget Process 508 Advantages and Disadvantages of Issuing
Establishing Financial Controls 508 Stock 537
The Need for Operating Funds 510 Issuing Shares of Common Stock 537
Managing Day-by-Day Needs of the Business 511 Issuing Shares of Preferred Stock 538
Controlling Credit Operations 511 How Businesses Raise Capital by Issuing
Making Ethical Decisions: Good Finance or Bad Bonds 539
Medicine? 512 Learning the Language of Bonds 539
Acquiring Needed Inventory 512 Advantages and Disadvantages of Issuing Bonds 540
xxxii CONTENTS
Different Classes of Bonds 540 The History of Banking and the Need for the
Special Bond Features 541 Fed 574
How Investors Buy Securities 542 Banking and the Great Depression 575
Making Ethical Decisions: Money Going Up in The U.S. Banking System 575
Smoke 543 Commercial Banks 576
Investing through Online Brokers 543 Services Provided by Commercial Banks 576
Choosing the Right Investment Strategy 543 Services to Borrowers 576
Reaching Beyond Our Borders: Global Stocks: Love Making Ethical Decisions: Would You Tell the
Them or Leave Them 544 Teller? 577
Reducing Risk by Diversifying Investments 544 Savings and Loan Associations (S&Ls) 577
Investing in Stocks 545 Credit Unions 577
Stock Splits 546 Other Financial Institutions (Nonbanks) 578
Buying Stock on Margin 546 Spotlight on Small Business: Taking a Bite Out
Understanding Stock Quotations 547 of the Sharks 579
Investing in Bonds 548 The Banking Crisis and How the Government
Investing in High-Risk (Junk) Bonds 548 Protects Your Money 580
Understanding Bond Quotations 548 Protecting Your Funds 581
Investing in Mutual Funds and Exchange-Traded The Federal Deposit Insurance Corporation (FDIC) 581
Funds 549 The Savings Association Insurance Fund (SAIF) 581
Understanding Mutual Fund Quotations 550 The National Credit Union Administration
Understanding Stock Market Indicators 551 (NCUA) 581
Riding the Market’s Roller Coaster 553 Using Technology to Make Banking More
Efficient 581
Investing Challenges in the 21st-Century
Market 555 Online Banking 583
Summary 555 International Banking and Banking Services 583
Key Terms 558 Leaders in International Banking 583
The World Bank and the International Monetary Fund
(IMF) 584
Reaching Beyond Our Borders: New Day, New
Taking It to the Net 560 Issues across the Globe 585
Video Case: Where Did All My Money Go? 560 Summary 585
Notes 561 Key Terms 588
Photo Credits 562 Critical Thinking 588
CHAPTER 20 Taking It to the Net 589

Video Case: The Financial Crisis 589
Money, Financial Institutions, and the Federal
Notes 590
Reserve 564
Photo Credits 591
Getting to Know: Janet Yellen, First Female Chair
of the Federal Reserve 565
Why Money Is Important 566
Bonus Chapters
What Is Money? 566 BONUS CHAPTER A
Adapting to Change: The Bitcoin Is in Working within the Legal Environment A
the Mail 568
What Is the Money Supply? 569 Getting to Know: Eve Wright Taylor, Vice
President & Associate General Counsel for the
Managing Inflation and the Money Supply 569 Miami Heat A-1
The Global Exchange of Money 570 The Case for Laws A-2
Control of the Money Supply 570 Statutory and Common Law A-2
Basics about the Federal Reserve 570
Administrative Agencies A-3
The Reserve Requirement 572 Tort Law A-4
Open-Market Operations 572 Product Liability A-5
The Discount Rate 572 Legally Protecting Ideas: Patents, Copyrights, and
The Federal Reserve’s Check-Clearing Role 572 Trademarks A-6
CONTENTS xxxiii
Sales Law: The Uniform Commercial Code A-8 Notes B-25

Warranties A-8 Photo Credits B-26
Negotiable Instruments A-8
Contract Law A-9
Breach of Contract A-10 BONUS CHAPTER C
Promoting Fair and Competitive Business Managing Risk C
Practices A-10
The History of Antitrust Legislation A-11 Getting to Know: Dan Amos, CEO of Aflac C-1
Laws to Protect Consumers A-12 Understanding Business Risks C-2
Tax Laws A-14 How Rapid Change Affects Risk Management C-3
Bankruptcy Laws A-15 Managing Risk C-3
Deregulation versus Regulation A-17 Reducing Risk C-4
Summary A-19 Avoiding Risk C-4
Key Terms A-21 Self-Insurance C-4
Critical Thinking A-21 Buying Insurance to Cover Risk C-5
Developing Workplace Skills A-22 What Risks Are Uninsurable? C-5
Taking It to the Net A-22 What Risks Are Insurable? C-6
Understanding Insurance Policies C-6
Notes A-22
Rule of Indemnity C-7
Photo Credits A-23
Types of Insurance Companies C-7
Insurance Coverage for Various Kinds
of Risk C-7
BONUS CHAPTER B
Health Insurance C-9
Using Technology to Manage Information B Health Savings Accounts C-9
Getting to Know: Jack Dorsey, Co-Founder of Disability Insurance C-9
Twitter B-1 Workers’ Compensation C-10
The Role of Information Technology B-2 Liability Insurance C-10
Evolution from Data Processing to Business Life Insurance for Businesses C-10
Intelligence B-2 Insurance Coverage for Home-Based
How Information Technology Changes Business B-3 Businesses C-10
Types of Information B-5 The Risk of Damaging the Environment C-10
Managing Information B-6 Protection from Cyber Attacks C-11
Organizing E-Mail and Electronic Files B-7 Summary C-11
Big Data and Data Analytics B-8 Key Terms C-12
The Heart of Knowledge Management: The
Critical Thinking C-12
Internet B-9
Broadband Technology B-10 Developing Workplace Skills C-13
Social Media and Web 2.0 B-12 Taking It to the Net C-13
Web 3.0 B-13 Notes C-14
Who’s the “Boss” of the Internet? B-15 Photo Credits C-14
Virtual Networking and Cloud Computing B-15
Effects of Information Technology on
Management B-17 BONUS CHAPTER D
Human Resource Issues B-17 Managing Personal Finances D
Security Issues B-18
Getting to Know: Alexa von Tobel, Founder and
Privacy Issues B-20
CEO of LearnVest D-1
Stability Issues B-21
The Need for Personal Financial Planning D-2
Technology and You B-21
Financial Planning Begins with Making Money D-2
Summary B-22
Six Steps to Controlling Your Assets D-3
Key Terms B-24
Building Your Financial Base D-6
Critical Thinking B-24 Real Estate: Historically, a Relatively Secure
Developing Workplace Skills B-24 Investment D-7
Taking It to the Net B-25 Tax Deductions and Home Ownership D-8
xxxiv CONTENTS
Where to Put Your Savings D-8 Developing Workplace Skills D-20

Learning to Manage Credit D-9 Taking It to the Net D-21
Protecting Your Financial Base: Buying Notes D-21
Insurance D-11 Photo Credits D-22
Health Insurance D-12
Disability Insurance D-12
EPILOGUE
Homeowner’s or Renter’s Insurance D-12
Getting the Job You Want E
Other Insurance D-13
Planning Your Retirement D-13 Job Search Strategy E-1
Social Security D-14 Searching for Jobs Online E-3
Job Search Resources E-4
Individual Retirement Accounts (IRAs) D-14
Writing Your Résumé E-5
Simple IRAs D-15 Putting Your Résumé Online E-6
MyIRAs D-15 Writing a Cover Letter E-9
401(k) Plans D-16 Preparing for Job Interviews E-11
Keogh Plans D-17 Be Prepared to Change Careers E-14
Financial Planners D-17 Photo Credits E-14
Estate Planning D-17 Glossary G
Summary D-18 Name Index I-1
Key Terms D-20 Organization Index I-7
Critical Thinking D-20 Subject Index I-11
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DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI
Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)
The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.
NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.
MAKONDE LOCK AND KEY AT JUMBE CHAURO

This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]
MODE OF INSERTING THE KEY
With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
“We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
BRAZIER
Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT
SMOOTHING WITH MAIZE-COB
CUTTING THE EDGE

FINISHING THE BOTTOM
LAST SMOOTHING BEFORE

BURNING
FIRING THE BRUSH-PILE

LIGHTING THE FARTHER SIDE OF
THE PILE
TURNING THE RED-HOT VESSEL
NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK
DRAWING THE BARK OFF THE LOG
REMOVING THE OUTER BARK

BEATING THE BARK
WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT
MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN

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DRAWING THE BARK OFF THE LOG

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