Topic
Professional
Subtopic
Leadership Skills
Critical Business Skills
for Success
Course Guidebook
Professors Thomas J. Goldsby, Ryan Hamilton,
Clinton O. Longenecker, Michael A. Roberto,
and Eric Sussman
PUBLISHED BY:
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The Teaching Company.
Michael A. Roberto, D.B.A.
Trustee Professor of Management
Bryant University
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Ryan Hamilton, Ph.D.
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Table of Contents
INTRODUCTION
Professor Biographies .........................................................................i
LECTURE GUIDES
Critical Business Skills: Strategy
Scope .................................................................................................1
LECTURE 1
Strategy Is Making Choices ................................................................3
LECTURE 2
How Apple Raises Competitive Barriers ...........................................10
LECTURE 3
The Danger of Straddling .................................................................17
LECTURE 4
What Trader Joe’s Doesn’t Do..........................................................24
LECTURE 5
First Movers versus Fast Followers ..................................................31
LECTURE 6
:KHQ1HWÀL[0HW%ORFNEXVWHU ..........................................................38
LECTURE 7
Anticipating Your Rival’s Response ..................................................44
LECTURE 8
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Forward and Backward Integration...................................................65
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Mergers and Acquisitions—The Winner’s Curse ..............................72
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Launching a Lean Start-Up...............................................................79
Critical Business Skills: Operations
Scope ...............................................................................................89
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The Power of Superior Operations ...................................................91
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Leaner, Meaner Production ..............................................................98
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Matching Supply and Demand ....................................................... 114
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Rightsizing Inventory ......................................................................122
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Managing Supply and Suppliers .....................................................129
LECTURE 19
The Long Reach of Logistics ..........................................................136
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Table of Contents
LECTURE 20
Rethinking Your Business Processes .............................................143
LECTURE 21
Measuring Operational Performance..............................................150
LECTURE 22
Keeping an Eye on Your Margins ...................................................157
LECTURE 23
Leveraging Your Supply Chain .......................................................164
LECTURE 24
Reducing Risk, Building Resilience ................................................171
Critical Business Skills: Finance and Accounting
Scope .............................................................................................181
LECTURE 25
Accounting and Finance—Decision-Making Tools .........................183
LECTURE 26
How to Interpret a Balance Sheet...................................................190
LECTURE 27
Why the Income Statement Matters ...............................................198
LECTURE 28
How to Analyze a Cash Flow Statement ........................................206
LECTURE 29
Common Size, Trend, and Ratio Analysis ......................................213
LECTURE 30
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Understanding the Time Value of Money........................................228
LECTURE 32
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How Investors Use Net Present Value ...........................................244
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Alternatives to Net Present Value ...................................................252
LECTURE 35
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How to Value a Company’s Stock ..................................................267
Critical Business Skills: Organizational Behavior
Scope .............................................................................................279
LECTURE 37
Achieving Results in Your Organization..........................................281
LECTURE 38
The Value of Great Leadership.......................................................288
LECTURE 39
Emotional Intelligence in the Workplace.........................................295
LECTURE 40
The Art of Effective Communications .............................................303
LECTURE 41
The Motivation-Performance Connection .......................................310
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Winning with Teamwork ..................................................................317
LECTURE 43
Coaching—From Gridiron to Boardroom ........................................324
LECTURE 44
Understanding Power Relationships ..............................................331
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Leading Real Organizational Change.............................................352
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Lifelong Learning for Career Success ............................................359
Critical Business Skills: Marketing
Scope .............................................................................................369
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How to Segment a Market ..............................................................377
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Targeting a Market Segment ..........................................................384
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Positioning Your Offering ................................................................391
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Table of Contents
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Identifying Sources of Sales Growth ..............................................398
LECTURE 54
Deriving Value from Your Customers..............................................405
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The Tactics of Successful Branding................................................419
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Customer-Focused Pricing .............................................................426
LECTURE 58
Marketing Communications That Work ..........................................433
LECTURE 59
The Promise and Perils of Social Media.........................................439
LECTURE 60
Innovative Marketing Research Techniques ...................................446
SUPPLEMENTAL MATERIAL
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Montgomery, The Strategist.
Porter, Competitive Advantage.
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Suggested Reading
Bruner, Deals from Hell.
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Consolidated Balance Sheet: Intel
December 28, 2013 and December 29, 2012
(In Millions, Except Par Value)
2013
2012
Assets
Current assets:
Cash and cash equivalents
$
Short-term investments
5,674
$
8,478
5,972
3,999
3,582
3,833
…
$FFRXQWVUHFHLYDEOHQHWRIDOORZDQFHIRUGRXEWIXO
accounts of $38 ($38 in 2012)
…
1,649
2,512
Total current assets
Other current assets
32,084
31,358
Property, plant and equipment, net
31,428
27,983
…
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Other long-term assets
Total assets
10,513
9,710
5,150
6,235
5,489
$
4,148
92,358
$
281
$
84,351
Liabilities and stockholders’ equity
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2,969
312
3,023
…
Total current liabilities
13,568
12,898
Long-term debt
13,165
13,136
…
Stockholders’ equity:
…
Retained earnings
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
35,477
32,138
58,256
51,203
92,358
$
84,351
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Why the Income Statement Matters
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2
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Income Statement: Apple Inc.
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Net sales
September 28,
2013
September 29,
2012
$
$
107,910
156,508
Cost of sales (1)
106,606
87,846
Gross margin
64,304
68,662
2SHUDWLQJH[SHQVHV
Research and development (1)
4,475
3,381
10,830
10,040
15,305
13,421
48,999
55,241
1,156
522
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50,155
55,763
3URYLVLRQIRULQFRPHWD[HV
13,118
14,030
Selling, general and administrative (1)
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Operating income
2WKHULQFRPH H[SHQVH QHW
Net income
$
37,037
$
41,733
Basic
$
40.03
$
44.64
Diluted
$
39.75
$
44.15
Earnings per share:
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212
Common Size, Trend, and Ratio Analysis
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Common Size Analysis
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Reported
in 2013
Line Item
Converted
to Percentage
Revenues
$ 84.2 B
100.0%
COGS
$ 42.4 B
50.4%*
Operating income (operating margin)
$ 14.5 B
17.2%
Net income (net margin)
$ 11.3 B
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Lecture 29: Common Size, Trend, and Ratio Analysis
Line Item
%
P&G 2013
P&G 2012
ColgatePalmolive 2013
Gross margin
49.6%
49.3%
58.6%
Operating margin
17.2%
15.9%
20.4%
Net margin
13.4%
12.9%
12.9%
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it mostly consists of ¿[HG FRVWV²WKRVH WKDW GRQ¶W FKDQJH ZLWK
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sales commissions.
Trend Analysis
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because costs were growing faster than sales revenue.
Applying Analyses to Other Financial Statements
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current liabilities.
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receivables from customers.
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turns over or sells its inventory. The formula is similar to that for
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Lecture 29: Common Size, Trend, and Ratio Analysis
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Suggested Reading
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Understanding the Time Value of Money
Lecture 31
2
Lecture 31: Understanding the Time Value of Money
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Lecture 31: Understanding the Time Value of Money
Single Cash Flows
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consistently over time. The formula is:
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Lecture 31: Understanding the Time Value of Money
Growing Annuities
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the numbers, we get:
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make the investment.
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Asset Class
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generally make sense.
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.
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formula:
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Assessing an Investment
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Year
0
Robot
($1,500,000)
MRI
($1,500,000)
Dialysis
($1,500,000)
1
$200,000
$300,000
$500,000
2
$300,000
$400,000
$500,000
3
$400,000
$600,000
$500,000
4
$500,000
$650,000
$500,000
5
$650,000
$750,000
$500,000
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Year
Surgical Robot
0
1
2
3
4
5
<HDUHQGFDVKÀRZ
($1,500,000) $200,000 $300,000 $400,000 $500,000 $650,000
Present value @ 10%
($1,500,000) $181,818 $247,934 $300,526 $341,507 $403,599
NPV
($24,616)
ż
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Year
MRI
0
1
2
3
4
5
<HDUHQGFDVKÀRZ
($1,500,000) $300,000 $400,000 $600,000 $650,000 $700,000
Present value @ 10%
($1,500,000) $272,727 $330,579 $450,789 $443,959 $434,645
NPV
($432,698)
Year
Dialysis
0
1
2
3
4
5
<HDUHQGFDVKÀRZ
($1,500,000) $500,000 $500,000 $500,000 $500,000 $500,000
Present value @ 10%
($1,500,000) $454,545 $413,223 $375,657 $341,507 $310,461
NPV
$395,393
%
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is less than 0, the investment is not worth making because it will
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Rules for Calculating NPV
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Suggested Reading
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Questions to Consider
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Steps for Applying the NPV Formula
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Alternatives to Net Present Value
Lecture 34
,
Lecture 34: Alternatives to Net Present Value
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NPV and IRR
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Coaching—From Gridiron to Boardroom
Lecture 43
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Lecture 43: Coaching—From Gridiron to Boardroom
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An attribute-by-segment matrix is a valuable tool for identifying targets that may
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