DAY 5: QUANTITATIVE ANALYSIS
Cullum, Leo. Cartoon, “Meaningless Statistics.”
Oksman, Warren, and Sherwood C. Frey. “Introduction to Analytical Probability Distributions,” Case UVA-Q-205, pp. 5, 6, 14. Copyright © 1980 by the Darden Graduate Business School Foundation, Charlottesville, Virginia.
DAY 6: FINANCE
“An Introduction to Debt Policy and Value,” Case UVA-F-811, p. 1. Copyright © 1989 by the Darden Graduate Business School Foundation, Charlottesville, Virginia.
Cullum, Leo. Cartoon, “It’s Not a Takeover.”
Cullum, Leo. Cartoon, “Limited Partners.”
DAY 7: OPERATIONS
Cullum, Leo. Cartoon, “We’re Stuck with 700,000 Bushels.”
DAY 8: ECONOMICS
Cullum, Leo. Cartoon, “I Have No Idea What It Means.”
DAY 9: STRATEGY
Ansoff, H. Igor. “Strategies for Diversification.” Harvard Business Review (September/October 1957), Exhibit I, “Product Market Strategies for Business Growth Alternatives,” p. 114. Copyright © 1957 by the President and Fellows of Harvard College; all rights reserved. Reprinted by permission.
Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries and Competitors, Figure 2–1, p. 39. Reprinted with the permission of The Free Press, a Division of Simon & Schuster. Copyright © 1980, 1998 by The Free Press.
Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance, Figure 1–1, p. 5, Figure 1–2, p. 6. Reprinted with the permission of The Free Press, a Division of Simon & Schuster. Copyright © 1985, 1998 by Michael E. Porter.
Waterman, Robert H., Thomas J. Peters, and Julien R. Phillips. “Structure Is Not Organization.” Business Horizons, June 1980, Figure, p. 18. Copyright © 1980 by the Foundation for the School of Business at Indiana University. Used with permission.
DAY 10: MBA MINICOURSES
Borden, Neil H., Jr. “Class Notes on Conducting International Business,” Darden Graduate School of Business, Charlottesville, Virginia, used with permission.
Index
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accounting, 71–118
accounting profits, 167
cost accounting and activity-based costing, 114–115, 118
earnings misstatement cautions, 115–116
financial statements, 81–104
financial statements, ratios and, 104–111, 118
fundamental accounting equation, 82–84, 96–97, 104, 117
fundamentals of, 71–81, 116–117
GAAP and, 73–74
managerial accounting, 111–114, 276
Sarbanes-Oxley Act and, 66–70, 115
Accounting Standards Codification (ASC), 73
accrual accounting, 75–76, 89, 91, 117
accumulated value, 171–172, 197
action levers, 123, 150, 364
action planning, in organizational behavior, 123–124, 148, 150, 158
active listening, 135, 158
activity-based costing (ABC),
114–115, 118
activity forks, in decision trees,
161
activity ratios, 105, 107–108
activity squares, in decision tree, 164
advertising, 11, 36, 38–40
Affluent Society, The (Galbraith), 312
after-tax cost of borrowing, 234,
255
agency agreements, in business law, 382
aggregate supply (AS)/aggregate demand (AD), 290–291
AIDA buying process, 6–7
AIG, 227–228
algebra refresher, 190
alternative products, in consumer analysis, 7
American Capitalism: The Concept of Countervailing Power (Galbraith), 312
amorphous structure, of organization, 147
amortization, 91
Ansoff, H. I., 337
Ansoff matrix, 337–338, 365
APCFB model, in organizational behavior, 124–126, 158
Apple Computer, 153–155
Areas of Dominant Influence (ADIs), 13
Arthur D. Little, 355–357
Art of War, The (Sun-Tzu),
363–364
assembly lines, 262
assets, 82–84
asset value per share, 219–220
awareness, in consumer analysis, 7
backward integration, 333–334
bailment, 379
balance of payments, 315–316, 325
balance sheet, 82–89, 117
double entry system, 84–85
fundamental accounting equation, 82–84, 96–97, 104, 117
income statement’s link to, 94–95
liquidity, 86–87
owners’ equity, 88–89
Statement of Cash Flows link to, 96–97
working capital, 87
bank financing, 233–234
bankruptcy law, 383
barriers to entry, 22, 342
basic organizational model, 141, 158, 329
Basset, Lucinda, 391, 393
Becker, Gary, 313
behavioral economics, 313
behavioral market segmentation, 14
bell curve. See normal distribution
benchmarking, 276
Beta, corporate investments and,
204–207, 255
binomial distribution, 177–179, 198
Black, Fisher, 223
Black-Scholes Option Pricing Model, 223–224
Black Swan investors, 211
blocking strategy, in marketing, 25
blogs, 44, 367
blue ocean strategies, 347
bond market
business financing methods and, 234
monetary policy and, 309
valuation and, 211–216, 255
boss, managing of, 136–138
Boston Consulting Group (BCG), 344, 352–354
bracket median technique, in quantitative analysis, 187
brand equity, 33–34
break-even point, in marketing,
50–55, 59
burden of proof, 376
Burns, David, 391–392
business law, 373–385
agency agreements, 382
bankruptcy law, 383
common law, 373
contracts and property law,
377–378
crimes and torts, 376–377
dispute settlement without courts, 375–376
legal process, 374–375
substantive and procedural laws, 373–374
UCC Article 2: sales contracts, 378–381
UCC Articles 3 and 4: commercial paper, 381–382
UCC Article 9: secured transactions, 383–384
business strategy, 336
business structures
corporations, 201–203
partnerships, 201
proprietorships, 200–201
buyer’s remorse, 8
buying process, in marketing,
6–9, 59
callable bonds, 215–216
call options, 222–223, 224–225,
255
capacity, in operations, 260,
261–265, 287
capital asset pricing model (CAPM), 207–209, 240, 250–251, 255
capital budgeting, 228–232
Capitalism, Socialism and Democracy (Schumpeter), 311
capitalization rate method, in real estate valuation, 388
capitalization ratios, 105, 106
capital leases, 233
capital outflows, 319–320
capital structure, financing decisions and, 235–242, 250, 255
captive sales force, 37
case law, 373
cash basis accounting, 75–76,
117
cash cows, in growth/share matrix, 352
cash flow,
real estate investing and, 386–387
cash flow analysis, 166–176
accumulated value, 171–172,
197
business investment decisions,
231–232
internal rate of return, 175–176, 197
M&A valuation and, 246–254
net present value, 172–175, 197
quantifying, 167–168
steps in, 166–167
stock valuation and, 220
cash flow statement. See statement of cash flows
causal chains, in organizational behavior, 122–123, 158
C corporations, 202–203
Central Limit Theorem, 180
chain management, 270
Champy, James, 357–358
change management strategies,
155–157
channel, in queuing theory, 268
channel intermediaries, 27
channel margin mathematics, 27–31, 59
channel participant, 333
Clayton Act, 385
climate, of organization, 149–150
cloud computing, 283
coercive power, 138
collateralized mortgage obligations (CMOs), 227–228
commercial paper, legal issues,
381–382
Committee of Sponsoring Organizations of the Treadway Commission (COSO), 69
common law, 373
comparative advantage of nations, 314–315
competition
competitive analysis, 21–26, 57
competitive factors of industries, 20
competitive strategy tactics,
347–351, 365
positioning of product, 25–26
pricing decisions, 49
pure competition, 299
Competitive Advantage (Porter),
338–339
Competitive Strategy (Porter),
338–339
conservatism, in accounting, 77–78
consistency, in accounting, 79–80
consul bonds, 215
consumer analysis, 4–16, 57
consumer price index (CPI), 302
contests, as promotions, 43
contingency approach, in operations, 260
contingent liabilities, 77
continuous production process, 262
continuous quality improvement (CQI), 260
contract law, 377
convertible bonds, 215
cooperative advertising, 36
core competencies, strategy and, 357
corporate social responsibility (CSR) reports, 66
corporate strategy, 336–337
corporations, 201–203
cost accounting, 114–115
cost leadership strategy, 343–346, 365
cost of goods sold (COGS), 76, 90
cost per thousand (CPM), in advertising, 40
cost plus pricing, 48
country analysis, in international economics, 319–324, 325
coupons, 41–42
covered options, 222
Covey, Stephen, 394
“crashing the project,” 267
creative/creatives, in advertising, 39
“creative destruction,” 311
creativity, in organizational behavior, 131–132
credit default swaps (CDSs),
227–228
credits, recording of, 93
crimes and torts, 376–377
critical path method of scheduling (CPM), 265–267, 287
Crosby, Philip, 280
cultural relativism, 64
culture, of organization, 150,
329–330
cumulative distribution functions (CDF), 185–189, 198
cumulative preferred shares, 220–221
current and noncurrent assets, 86–87, 97, 101
customer relationship management (CRM), 283–284, 287
customer retention, strategy and,
357
customer structure, of organization, 143, 329
cycle time, in operations, 282
databases, online research and,
368–369
dealer incentives, 43
debits, recording of, 93
decision tree analysis, 160–166, 197
drawing decision tree, 163–166
steps in, 160–161
decline stage, of product life cycle, 19–20
default, of creditor, 384
demassing, of workforce, 149
Deming, W. Edwards, 277–278
demographic market segmentation, 13
dependent variables, in regression analysis, 190
depreciation, 91, 100, 118, 168, 303
derivatives, 226–228
Designated Market Areas (DMAs), 13
differential, in marketing, 33
differentiation strategy, 346–347
direct sales, 46–47
discount factors, in cash flow analysis, 173–175
discount rate, as monetary policy tool, 309
distribution analysis, 7–8, 26–31. See also probability theory
distribution strategies, 35–37, 59
diversification
of corporate investments, 204,
206
as corporate strategy, 337–338, 351
dividends
accounting for, 88, 92, 102
capital structure issues, 242–244
dividend growth model, 217–218, 255
divisional structure, of organization, 143
Dodd-Frank Wall Street Reform and Consumer Protection Act, 70
dogs, in growth/share matrix, 353
double entry system, in accounting, 84–85
Dow Jones Industrial Average, 205
Dreman, David, 209
Drucker, Peter, 139
dummy variables, 195–196
Du Pont chart, 109–110
duration
in bond valuation, 214–215, 255
business investment decisions and, 229
earnings, cautions about misstatement of, 115–116
earnings before interest, taxes, depreciation, and amortization (EBITDA), 91
earnings before interest and taxes (EBIT), 91
economic growth, monetarist thought and, 307–310, 325
economic order quantity (EOQ),
272–274, 287
economics, 288–325
economists of note, 310–313
international economics, 313–324
macroeconomics, 299–310, 324, 325
marketing plan and, 50–55, 58
microeconomics, 291–299, 324
supply and demand, 290–291
economic value added (EVA), 358
economies of scale, 343
efficiency variances, in managerial accounting, 113–114
efficient frontier, 207, 255
efficient market hypothesis (EMH), 209–211
elasticity coefficient, 296–297
elasticity of demand, 295–297, 325
employee incentives, 43
empowerment, of workforce, 129
end game marketing strategy, 20
enterprise resource planning (ERP) software, 276
enterprise value (EV), in M&A valuation, 246–254, 255
entity, as accounting concept, 74
entrepreneurship, 132, 311
equilibrium, in economics, 290–291, 293, 325
ethics, 60–62
relativism, 62, 63–64, 70
Sarbanes-Oxley Act, 66–70
social responsibility, 62, 70
stakeholder analysis, 62, 65–66,
67, 70
event, in critical path method, 266
event fan, in cumulative distribution analysis, 187–188
event forks, in decision trees, 161
evolution/revolution pattern, in organizations, 153–155, 158
exchange rates, 316–319
exclusive distribution, 35–36
executive ethics,
68
expansion strategies, 337–338
expectancy theory of motivation, 126–127, 158
expected monetary value (EMV), 163–165, 186–189, 197
experience curve. See learning curve
expert power, 139
Factiva, 367
Fama, Eugene, 209
Federal Reserve, 211, 309–310, 322
Federal Trade Commission Act,
384
FIFO (First In First Out), 79–80
finance, 199–255
business structures, 200–203
financial management, 228–244
investment types and valuation methods, 203–228
mergers and acquisitions, 244–254
Financial Accounting Standards Board (FASB), 73, 74
financial leverage, 108–110, 237, 243, 396
financial management, 228–244
business financing decisions,
232–244
business investment decisions,
228–232
financial planning, personal, 395–398
financial statements, 81–104
balance sheet, 82–89, 117
income statement, 89–95, 117
reading with ratios, 104–111, 118
statement of cash flows, 95–103, 118
financing activities, in statement of cash flows, 102
financing decisions, in financial management, 232–244
financing methods, 232–235
ratios and, 237–239
risk and reward of financing methods, 235–236, 255
fiscal policy, Keynesian thought and, 304–305, 325
fitness for use, 277
Five C’s of credit, 233–234
Five Forces Theory, 338–342, 365
five forms of strategy, 362–363
fixed costs
marketing plan, 50–51
real estate investing, 386–387
floating exchange rate, 318
flow diagrams, diagnosing capacity problems with, 263, 287
focus strategy, 347
force majeure, 381
forecasting, 189–196, 198
Foreign Corrupt Practices Act, 64
foreign exchange, 315–316
forward integration, 333–334
Four Cs of Internet marketing, 31
Four Ps of marketing, 32–50, 58
place of sale decisions, 35–37
pricing decisions, 47–50
product decisions, 32–35
promotional decisions, 37–47
fractile analysis, 187–189
free cash flow, 250
freestanding inserts (FSIs), 42
French, Kenneth, 209
frequency, in advertising, 39
FRICTO, 236–237, 255
Friedman, Meyer, 133
Friedman, Milton, 62, 300. See also monetarist thought
The Ten-Day MBA 4th Ed. Page 36