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Sunday, August 21, 2011

About Entrepreneurs: So What's Your Answer to the Pickle We're In?

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From Mitchell York, your Guide to Entrepreneurs

So What's Your Answer to the Pickle We're In?
The U.S. economy added 117,000 jobs in July, and the unemployment rate dropped slightly to  9.1%. The stock market will probably rebound today. But even with the better-than-expected jobs report,... Read more

How Will Your Business Be Affected by Budget Deal?
It looks like Congress just might have a deal to avoid a debt ceiling meltdown...we'll know for sure in a day. But for now, if you're an entrepreneur, please answer... Read more

High-Growth Industries Will Attract Small Business
Well, there may not be financial Armageddon after all.  We'll know for sure in about 24 hours. Meantime, if you're thinking about starting a company, assuming the world as we... Read more

Business Legal Organizational Structures
Explore the variety of business legal structures available to entrepreneurs, learn which may be best for your venture, and find tips and resources on setting it up.

 


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Today's Business & Economics Chapter

 
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Business & Investing
Monday August 22, 2011
The Essential Drucker: The Best of Sixty Years of Peter Drucker's Essential Writings on Management (Collins Business Essentials)
by Peter F. Drucker
 

Management as Social Function and Liberal Art

When Karl Marx was beginning work on Das Kapital in the 185Os, the phenomenon of management was unknown. So were the enterprises that managers run. The largest manufacturing company around was a Manchester cotton mill employing fewer than three hundred people and owned by Marx's friend and collaborator Friedrich Engels. And in Engels's mill—one of the most profitable businesses of its day—there were no "managers," only "charge hands" who, themselves workers, enforced discipline over a handful of fellow "proletarians."

Rarely in human history has any institution emerged as quickly as management or had as great an impact so fast. In less than 150 years, management has transformed the social and economic fabric of the world's developed countries. It has created a global economy and set new rules for countries that would participate in that economy as equals. And it has itself been transformed. Few executives are aware of the tremendous impact management has had. Indeed, a good many are like M. Jourdain, the character in Molière's Bourgeois Gentilhomme, who did not know that he spoke prose. They barely realize that they practice—or mispractice—management. As a result, they are ill prepared for the tremendous challenges that now confront them. The truly important problems managers face do not come from technology or politics; they do not originate outside of management and enterprise. They are problems caused by the very success of management itself.

To be sure, the fundamental task of management remains the same: to make people capable of joint performance through common goals, common values, the right structure, and the training and development they need to perform and to respond to change. But the very meaning of this task has changed, if only because the performance of management has converted the workforce from one composed largely of unskilled laborers to one of highly educated knowledge workers.

The Origins and Development of Management

On the threshold of World War I, a few thinkers were just becoming aware of management's existence. But few people even in the most advanced countries had anything to do with it. Now the largest single group in the labor force, more than one-third of the total, are people whom the U.S. Bureau of the Census calls "managerial and professional." Management has been the main agent of this transformation. Management explains why, for the first time in human history, we can employ large numbers of knowledgeable, skilled people in productive work. No earlier society could do this. Indeed, no earlier society could support more than a handful of such people. Until quite recently, no one knew how to put people with different skills and knowledge together to achieve common goals.

Eighteenth-century China was the envy of contemporary Western intellectuals because it supplied more jobs for educated people than all of Europe did—some twenty thousand per year. Today, the United States, with about the same population China then had, graduates nearly a million college students a year, few of whom have the slightest difficulty finding well-paid employment. Management enables us to employ them.

Knowledge, especially advanced knowledge, is always specialized. By itself it produces nothing. Yet a modern business, and not only the largest ones, may employ up to ten thousand highly knowledgeable people who represent up to sixty different knowledge areas. Engineers of all sorts, designers, marketing experts, economists, statisticians, psychologists, planners, accountants, human-resources people-all working together in a joint venture. None would be effective without the managed enterprise.

There is no point in asking which came first, the educational explosion of the last one hundred years or the management that put this knowledge to productive use. Modern management and modern enterprise could not exist without the knowledge base that developed societies have built. But equally, it is management, and management alone, that makes effective all this knowledge and these knowledgeable people. The emergence of management has converted knowledge from social ornament and luxury into the true capital of any economy.

Not many business leaders could have predicted this development back in 1870, when large enterprises were first beginning to take shape. The reason was not so much lack of foresight as lack of precedent. At that time, the only large permanent organization around was the army. Not surprisingly, therefore, its commandand-control structure became the model for the men who were putting together transcontinental railroads, steel mills, modern banks, and department stores. The command model, with a very few at the top giving orders and a great many at the bottom obeying them, remained the norm for nearly one hundred years. But it was never as static as its longevity might suggest. On the contrary, it began to change almost at once, as specialized knowledge of all sorts poured into enterprise.

The first university-trained engineer in manufacturing industry was hired by Siemens in Germany in 1867—his name was Friedrich von Hefner-Alteneck. Within five years he had built a research department. Other specialized departments followed suit. By World War I the standard functions of a manufacturer had been developed: research and engineering, manufacturing, sales, finance and accounting, and a little later, human resources (or personnel).

Even more important for its impact on enterprise—and on the world economy in general—was another management-directed development that took place at this time. That was the application of management to manual work in the form of training. The child of wartime necessity, training has propelled the transformation of the world economy in the last forty years because it allows low-wage countries to do something that traditional economic theory had said could never be done: to become efficient—and yet still low-wage—competitors almost overnight.

Adam Smith reported that it took several hundred years for a country or region to develop a tradition of labor and the expertise in manual and managerial skills needed to produce and market a given product, whether cotton textiles or violins...

(Continues...)

 
 
 
 
 
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About Financial Planning: Setting Your Own Financial Goals

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From Jeremy Vohwinkle, your Guide to Financial Planning
There are a lot of financial assumptions and rules of thumb, but they can only do so much. That's where setting your own specific financial goals comes into play. After all, only your priorities can determine what kind of goals to set.

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People love the idea of owning a home, and sometimes that allure makes people do the wrong thing. That's where risky mortgages come in. For decades, the 30-year fixed-rate mortgage... Read more
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With college costs increasing faster than inflation, it comes as no surprise that many college students today and those who graduated over the past few years are often bogged down... Read more

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Today's Chapter: Water for Elephants: A Novel

 
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Water for Elephants: A Novel
by Sara Gruen
 

I am ninety. Or ninety-three. One or the other.

When you're five, you know your age down to the month. Even in your twenties you know how old you are. I'm twenty-three, you say, or maybe twenty-seven. But then in your thirties something strange starts to happen. It's a mere hiccup at first, an instant of hesitation. How old are you? Oh, I'm-you start confidently, but then you stop. You were going to say thirty-three, but you're not. You're thirty-five. And then you're bothered, because you wonder if this is the beginning of the end. It is, of course, but it's decades before you admit it.

You start to forget words: they're on the tip of your tongue, but instead of eventually dislodging, they stay there. You go upstairs to fetch something, and by the time you get there you can't remember what it was you were after. You call your child by the names of all your other children and finally the dog before you get to his. Sometimes you forget what day it is. And finally you forget the year.

Actually, it's not so much that I've forgotten. It's more like I've stopped keeping track. We're past the millennium, that much I know-such a fuss and bother over nothing, all those young folks clucking with worry and buying canned food because somebody was too lazy to leave space for four digits instead of two-but that could have been last month or three years ago. And besides, what does it really matter? What's the difference between three weeks or three years or even three decades of mushy peas, tapioca, and Depends undergarments?

I am ninety. Or ninety-three. One or the other.

Either there's been an accident or there's roadwork, because a gaggle of old ladies is glued to the window at the end of the hall like children or jailbirds. They're spidery and frail, their hair as fine as mist. Most of them are a good decade younger than me, and this astounds me. Even as your body betrays you, your mind denies it.

I'm parked in the hallway with my walker. I've come a long way since my hip fracture, and thank the Lord for that. For a while it looked like I wouldn't walk again-that's how I got talked into coming here in the first place-but every couple of hours I get up and walk a few steps, and with every day I get a little bit farther before feeling the need to turn around. There may be life in the old dog yet.

There are five of them now, white-headed old things huddled together and pointing crooked fingers at the glass. I wait a while to see if they wander off. They don't.

I glance down, check that my brakes are on, and rise carefully, steadying myself on the wheelchair's arm while making the perilous transfer to the walker. Once I'm squared away, I clutch the gray rubber pads on the arms and shove it forward until my elbows are extended, which turns out to be exactly one floor tile. I drag my left foot forward, make sure it's steady, and then pull the other up beside it. Shove, drag, wait, drag. Shove, drag, wait, drag.

The hallway is long and my feet don't respond the way they used to. It's not Camel's kind of lameness, thank God, but it slows me down nonetheless. Poor old Camel-it's been years since I thought of him. His feet flopped loosely at the end of his legs so he had to lift his knees high and throw them forward. My feet drag, as though they're weighted, and because my back is stooped I end up looking down at my slippers framed by the walker.

It takes a while to get to the end of the hall, but I do-and on my own pins, too. I'm pleased as punch, although once there I realize I still have to find my way back.

They part for me, these old ladies. These are the vital ones, the ones who can either move on their own steam or have friends to wheel them around. These old girls still have their marbles, and they're good to me. I'm a rarity here-an old man among a sea of widows whose hearts still ache for their lost men.

"Oh, here," clucks Hazel. "Let's give Jacob a look."

She pulls Dolly's wheelchair a few feet back and shuffles up beside me, clasping her hands, her milky eyes flashing. "Oh, it's so exciting! They've been at it all morning!"

I edge up to the glass and raise my face, squinting against the sunlight. It's so bright it takes a moment for me to make out what's happening. Then the forms take shape.

In the park at the end of the block is an enormous canvas tent, thickly striped in white and magenta with an unmistakable peaked top-

My ticker lurches so hard I clutch a fist to my chest.

"Jacob! Oh, Jacob!" cries Hazel. "Oh dear! Oh dear!" Her hands flutter in confusion, and she turns toward the hall. "Nurse! Nurse! Hurry! It's Mr. Jankowski!"

"I'm fine," I say, coughing and pounding my chest. That's the problem with these old ladies. They're always afraid you're about to keel over. "Hazel! I'm fine!"

But it's too late. I hear the squeak-squeak-squeak of rubber soles, and moments later I'm engulfed by nurses. I guess I won't have to worry about getting back to my chair after all.

"So what's on the menu tonight?" I grumble as I'm steered into the dining room. "Porridge? Mushy peas? Pablum? Oh, let me guess, it's tapioca isn't it? Is it tapioca? Or are we calling it rice pudding tonight?"

"Oh, Mr. Jankowski, you are a card," the nurse says flatly. She doesn't need to answer, and she knows it. This being Friday, we're having the usual nutritious but uninteresting combination of meat loaf, creamed corn, reconstituted mashed potatoes, and gravy that may have been waved over a piece of beef at some point in its life. And they wonder why I lose weight.

I know some of us don't have teeth, but I do, and I want pot roast. My wife's, complete with leathery bay leaves. I want carrots. I want potatoes boiled in their skins. And I want a deep, rich cabernet sauvignon to wash it all down, not apple juice from a tin. But above all, I want corn on the cob.

Sometimes I think that if I had to choose between an ear of corn or making love to a woman, I'd choose the corn. Not that I wouldn't love to have a final roll in the hay-I am a man yet, and some things never die-but the thought of those sweet kernels bursting between my teeth sure sets my mouth to watering. It's fantasy, I know that. Neither will happen. I just like to weigh the options, as though I were standing in front of Solomon: a final roll in the hay or an ear of corn. What a wonderful dilemma. Sometimes I substitute an apple for the corn.

Everyone at every table is talking about the circus-those who can talk, that is. The silent ones, the ones with frozen faces and withered limbs or whose heads and hands shake too violently to hold utensils, sit around the edges of the room accompanied by aides who spoon little bits of food into their mouths and then coax them into masticating. They remind me of baby birds, except they're lacking all enthusiasm. With the exception of a slight grinding of the jaw, their faces remain still and horrifyingly vacant. Horrifying because I'm well aware of the road I'm on. I'm not there yet, but it's coming. There's only one way to avoid it, and I can't say I much care for that option either.

The nurse parks me in front of my meal. The gravy on the meat loaf has already formed a skin. I poke experimentally with my fork. Its meniscus jiggles, mocking me. Disgusted, I look up and lock eyes with Joseph McGuinty.

He's sitting opposite, a newcomer, an interloper-a retired barrister with a square jaw, pitted nose, and great floppy ears. The ears remind me of Rosie, although nothing else does. She was a fine soul, and he's-well, he's a retired lawyer. I can't imagine what the nurses thought a lawyer and a veterinarian would have in common, but they wheeled him on over to sit opposite me that first night, and here he's been ever since.

He glares at me, his jaw moving back and forth like a cow chewing cud. Incredible. He's actually eating the stuff.

The old ladies chatter like schoolgirls, blissfully unaware.

"They're here until Sunday," says Doris. "Billy stopped to find out."

"Yes, two shows on Saturday and one on Sunday. Randall and his girls are taking me tomorrow," says Norma. She turns to me. "Jacob, will you be going?"

I open my mouth to answer, but before I can Doris blurts out, "And did you see those horses? My word, they're pretty. We had horses when I was a girl. Oh, how I loved to ride." She looks into the distance, and for a split second I can see how lovely she was as a young woman.

"Do you remember when the circus traveled by train?" says Hazel. "The posters would appear a few days ahead-they'd cover every surface in town! You couldn't see a brick in between!"

"Golly, yes. I certainly do," Norma says. "They put posters on the side of our barn one year. The men told Father they used a special glue that would dissolve two days after the show, but darned if our barn wasn't still plastered with them months later!" She chuckles, shaking her head. "Father was fit to be tied!"

"And then a few days later the train would pull in. Always at the crack of dawn."

"My father used to take us down to the tracks to watch them unload. Gosh, that was something to see. And then the parade! And the smell of peanuts roasting-"

"And Cracker Jack!"

"And candy apples, and ice cream, and lemonade!"

"And the sawdust! It would get in your nose!"

"I used to carry water for the elephants," says McGuinty.

I drop my fork and look up. He is positively dripping with self-satisfaction, just waiting for the girls to fawn over him.

"You did not," I say.

There is a beat of silence.

"I beg your pardon?" he says.

"You did not carry water for the elephants."

"Yes, I most certainly did."

"No you didn't."

"Are you calling me a liar?" he says slowly.

"If you say you carried water for elephants, I am."

The girls stare at me with open mouths. My heart's pounding. I know I shouldn't do this, but somehow I can't help myself.

"How dare you!" McGuinty braces his knobby hands on the edge of the table. Stringy tendons appear in his forearms.

"Listen pal," I say. "For decades I've heard old coots like you talk about carrying water for elephants and I'm telling you now, it never happened."

"Old coot? Old coot?" McGuinty pushes himself upright, sending his wheelchair flying backward. He points a gnarled finger at me and then drops as though felled by dynamite. He vanishes beneath the edge of the table, his eyes perplexed, his mouth still open.

"Nurse! Oh, Nurse!" cry the old ladies.

There's the familiar patter of crepe-soled shoes and moments later two nurses haul McGuinty up by the arms. He grumbles, making feeble attempts to shake them off.

A third nurse, a pneumatic black girl in pale pink, stands at the end of the table with her hands on her hips. "What on earth is going on?" she asks.

"That old S-O-B called me a liar, that's what," says McGuinty, safely restored to his chair. He straightens his shirt, lifts his grizzled chin, and crosses his arms in front of him. "And an old coot."

"Oh, I'm sure that's not what Mr. Jankowski meant," the girl in pink says.

"It most certainly is," I say. "And he is, too. Pffffft. Carried water for the elephants indeed. Do you have any idea how much an elephant drinks?"

"Well, I never," says Norma, pursing her lips and shaking her head. "I'm sure I don't know what's gotten into you, Mr. Jankowski."

Oh, I see, I see. So that's how it is.

"It's an outrage!" says McGuinty, leaning slightly toward Norma now that he sees he's got the popular vote. "I don't see why I should have to put up with being called a liar!"

"And an old coot," I remind him.

"Mr. Jankowski!" says the black girl, her voice raised. She comes behind me and releases the brakes on my wheelchair. "I think maybe you should spend some time in your room. Until you calm down."

"Now wait just a minute!" I shout as she swings me away from the table and toward the door. "I don't need to calm down. And besides, I haven't eaten!"

"I'll bring your dinner in," she says from behind.

"I don't want it in my room! Take me back! You can't do this to me!"

But it appears she can. She wheels me down the hall at lightning speed and turns sharply into my room. She jams the brakes on so hard the whole chair jars.

"I'll just go back," I say as she raises my footrests.

"You'll do no such thing," she says, setting my feet on the floor.

"This isn't fair!" I say, my voice rising in a whine. "I've been sitting at that table forever. He's been there two weeks. Why is everyone siding with him?"

"Nobody's siding with anyone." She leans forward, slinging her shoulder under mine. As she lifts me, my head rests next to hers. Her hair is chemically straightened and smells of flowers. When she sets me on the edge of the bed, I am at eye level with her pale pink bosom. And her name tag.

"Rosemary," I say.

"Yes, Mr. Jankowski?" she says.

"He is lying, you know."

"I know no such thing. And neither do you."

"I do, though. I was on a show."

She blinks, irritated. "How do you mean?"

I hesitate and then change my mind. "Never mind," I say.

"Did you work on a circus?"

"I said never mind."

There's a heartbeat of uncomfortable silence.

"Mr. McGuinty could have been seriously hurt, you know," she says, arranging my legs. She works quickly, efficiently, but stops just short of being summary.

"No he couldn't. Lawyers are indestructible."

She stares at me for a long time, actually looking at me as a person. For a moment I think I sense a chink. Then she snaps back into action. "Is your family taking you to the circus this weekend?"

"Oh yes," I say with some pride. "Someone comes every Sunday. Like clockwork."

She shakes out a blanket and spreads it over my legs. "Would you like me to get your dinner?"

"No," I say.

There's an awkward silence. I realize I should have added "thank you," but it's too late now.

"All right then," she says. "I'll be back in a while to see if you need anything else."

Yup. Sure she will. That's what they always say.

But dagnammit, here she is.

"Now don't tell anyone," she says, bustling in and sliding my dinner-table-cum-vanity over my lap. She sets down a paper napkin, plastic fork, and a bowl of fruit that actually looks appetizing, with strawberries, melon, and apple. "I packed it for my break. I'm on a diet. Do you like fruit, Mr. Jankowski?"

I would answer except that my hand is over my mouth and it's trembling. Apple, for God's sake.

She pats my other hand and leaves the room, discreetly ignoring my tears.

I slip a piece of apple into my mouth, savoring its juices. The buzzing fluorescent fixture above me casts its harsh light on my crooked fingers as they pluck pieces of fruit from the bowl. They look foreign to me. Surely they can't be mine.

Age is a terrible thief. Just when you're getting the hang of life, it knocks your legs out from under you and stoops your back. It makes you ache and muddies your head and silently spreads cancer throughout your spouse.

Metastatic, the doctor said. A matter of weeks or months. But my darling was as frail as a bird. She died nine days later. After sixty-one years together, she simply clutched my hand and exhaled.

Although there are times I'd give anything to have her back, I'm glad she went first. Losing her was like being cleft down the middle. It was the moment it all ended for me, and I wouldn't have wanted her to go through that. Being the survivor stinks.

I used to think I preferred getting old to the alternative, but now I'm not sure. Sometimes the monotony of bingo and sing-alongs and ancient dusty people parked in the hallway in wheelchairs makes me long for death. Particularly when I remember that I'm one of the ancient dusty people, filed away like some worthless tchotchke.

But there's nothing to be done about it. All I can do is put in time waiting for the inevitable, observing as the ghosts of my past rattle around my vacuous present. They crash and bang and make themselves at home, mostly because there's no competition. I've stopped fighting them.

They're crashing and banging around in there now.

Make yourselves at home, boys. Stay awhile. Oh, sorry-I see you already have.

Damn ghosts.

(Continues...)

 
 
 
 
 
 
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Excerpted from "Water for Elephants" by SARA GRUEN. Copyright (C) by SARA GRUEN. Excerpted by permission. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher. Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
 

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