Class Information
Class #2 – September 29
Business 095 – 4 credits
 Tuesdays - 5pm-8:40pm
 KCI building, Room 4006

Ben Dubin ben@dubin.com
Mobile number: 408-621-0170 – Text me or call me.
Leave a message I don’t answer and I will get
back to you. Don’t forget to tell me who you are in
your text)
1
Important Dates & Deadlines
Late registration accepted with instructor's add code/signature.
Sept 21 – Oct 2
Deadline varies for each course. Generally, the deadline is Friday of the second week for
12-week classes (October 11). Each class may be different. To verify the exact date for
your classes, access your MyPortal.fhda.edu account.
Oct 16
Deadline to file a pass/no pass option. You can complete the pass/no pass option online
before the term begins. Once the term has started, you must submit your completed
Pass/No Pass Form to the Admissions & Records Office. To download the Pass/No Pass
Form, log into your MyPortal.fhda.edu account.
Nov 9
Veterans day observed
Nov 26-29
Thanksgiving!
Dec 8-11
Finals week
June 22-26
Final Exam week
2
© 2009 - Ben Dubin -, Inc. All rights reserved.
Schedule
Sept 29
(Today!)
 Slides presented on the How to Market Goods and
Services for your business
 Sample Business article analysis
 Mystery Entrepreneur
 Check blog for additional readings & assignments
Oct 6
 Slides presented on the Forms of Businesses as well as
Planning and Organizing your Business
 Business Article Analysis #1 due – Topic: Small
Business. Need to turn it in and in class review
 Start to think of preliminary idea for your business
presentation
 Mystery Entrepreneur
 Check blog for assignments - http://bus95.blogspot.com
3
© 2009 - Ben Dubin -, Inc. All rights reserved.
Class Blog
http://bus95.blogspot.com
All
files from class will be
there along with some
interesting required
readings
4
© 2009 - Ben Dubin -, Inc. All rights reserved.
Textbook
5
Textbook
Reid Hoffman
6
Class #2 Agenda
Market Capitalization
The Art of Positioning
Marketing!
Mystery Founder
7
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is the most valuable company
in the US?
How do we determine the total
value of a company?
Market Capitalization = total
number of shares X share price
We also just call it Market Cap
It really how much the company
is worth and what someone would
have to pay to buy them
8
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is the most valuable company
in the US?
Last year, the most valuable
company in the US is was….
Exxon Mobile (XOM)
4.19B shares X $72.96 = $306B
9
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is the most valuable company
in the US?
But today the old leader is back
on top again
Apple (AAPL)
$109.06/share
They have just 5.82 billion shares
So their market capitalization is
$634 billion
10
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
11
What is the most valuable company
in the US?
Last March (2015)
Apple (AAPL)
$126.30/share
They have just 5.82 billion shares
So their market capitalization
WAS $739.02 billion
$105B LOST!!!
12
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is the most valuable company
in the US?
Apple is the most valuable
company in the US today
And it they are worth $105 Billion
LESS today just a ½ year ago!
13
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is the most valuable company
in the US?
By the way…
Exxon has dropped to #3
Google is #2 with a market cap is:
$429B
#3 – Exxon is $359B
#4 – Microsoft is $352B
#5 - Berkshire Hathaway is $320B
14
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is the most valuable company
in the US?
The other top ten companies are:
Johnson & Johnson = $256B
General Electric = $254B
Wells Fargo = $266B
Wal-mart = $204B
15
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Where it all begins….
In talking with people that are
thinking about starting a company,
business, etc. they all face one big
initial hurdle….
Starting!
16
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Guy Kawasaki
Guy Kawasaki (born August 30, 1954) is a Silicon Valley marketing
executive. He was one of the Apple employees originally responsible
for marketing the Macintosh in 1984. He popularized the term
"evangelist" in marketing the Macintosh, and the concepts of
evangelism marketing and technology evangelism.
17
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
The Art of Starting
1.Make Meaning
2.Make Mantra
3.Get Going
4.Define your Business model
5.Weave a mat
18
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Make Meaning
Why are you starting your
business?
If your organization never existed,
the world would be worse
because ___________________
19
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Make Mantra
Like a mission statement…
…but shorter, cooler, more
meaningful, etc.
20
Make Mantra
Authentic athletic performance
Fun family entertainment
Rewarding everyday moments
Think
Winning is everything
21
Make Mantra
 Coca-Cola
 Mission statement: The CocaCola company exists to benefit
and refresh everyone it touches
 Manta could be: Refresh the
World
22
© 2006The McGraw-Hill Companies, Inc. All rights reserved.
Get Going
 Thing Big
 Find a few soul mates
 Polarize people
 Design different
 Use prototypes
23
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Define your business
model
 Be specific
 More everything
 Keep it simple
 10 words or less
 Elevator pitch
 Copy someone
24
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Weave a MAT
Milestones
Assumptions
Tasks
25
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Quote
“There is only one boss. The
customer. And he can fire
everybody in the company from the
chairman on down, simply by
spending his money somewhere
else.”
Sam Walton
26
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What and Why
 Big Rule
 Target Market
 Stages of Market

© 2009 Ben Dubin - All rights reserved.
What is Marketing?
Marketing is your strategy
for allocating resources
(time and money) in order
to achieve your objectives (a
fair profit for supplying a
good product or service).
McGraw-Hill/Irwin
28
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is Marketing? (cont)
Marketing is essentially about marshalling the
resources of an organization so that they meet the
changing needs of the customer on whom the
organization depends.
Marketing is the process whereby society, to supply
its consumption needs, evolves distributive systems
composed of participants, who, interacting under
constraints - technical (economic) and ethical
(social) - create the transactions or flows which
resolve market separations and result in exchange
and consumption.
McGraw-Hill/Irwin
29
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is Marketing? (cont)
Marketing is the social process by which individual and groups
obtain what they need and want through creating and
exchanging products and value with others
Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably Marketing looks not only at identifying customer needs, but also
satisfying them (short-term) and anticipating them in the future
(long-term retention).
The right product, in the right place,
at the right time, at the right price.
McGraw-Hill/Irwin
30
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Big Rule
Know your
customer!
McGraw-Hill/Irwin
31
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Customers
McGraw-Hill/Irwin
32
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Breaking it down
Markets may be very big –
we need to be able to make
them more manageable.
How?
McGraw-Hill/Irwin
33
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Term – Market Segment
A market segment is a subgroup of
people or organizations sharing one
or more characteristics that cause
them to have similar product and/or
service needs.
McGraw-Hill/Irwin
34
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Market Segment
A true market segment meets all of the
following criteria:
• it is distinct from other segments (different
segments have different needs),
• it is homogeneous within the segment
(exhibits common needs);
• it responds similarly to a market stimulus,
and it can be reached by a market
intervention.
McGraw-Hill/Irwin
35
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Term – Target Market
Target Market = the group of
potential customers selected for
marketing
i.e. you “target” to aim for
McGraw-Hill/Irwin
36
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Stages of Market
McGraw-Hill/Irwin
37
Stages of Market
Crossing the Chasm, Moore
McGraw-Hill/Irwin
38
Stages of Market
Crossing the Chasm, Moore
McGraw-Hill/Irwin
39
Stages of Market
Innovators – the first 5%-10%
that adopt the product
Early Adopters – The next 10%15%
Early Majority – Next 30%
Late Majority – Next 30%
Laggards – Remaining 20%
McGraw-Hill/Irwin
40
Why Market?
To get your customer’s attention
To educate them
Motivate them to buy
Get them to actually buy
Get them to buy again
McGraw-Hill/Irwin
41
Why Market?
McGraw-Hill/Irwin
42
Innovators and Early Adopters Characteristics
Venturesomeness: the willingness and desire to be daring in
trying something new and different
Social integration: frequent and extensive contact with others
in one’s area
Cosmopolitan: point of view extending beyond the immediate
neighborhood or community
Social mobility: upward movement on the social scale
Privilegedness: attitude and possession of money (less risky
to try something new)
McGraw-Hill/Irwin
43
Target Market Influencers
In addition to targeting innovators and early
adopters, finding the innovators and early
adopters among the influencers of your market
is important for a marketing plan with a limited
budget
Groups of influencers – athletes, actors, wealthy
people, grade school kids, college students,
seniors,…………..
McGraw-Hill/Irwin
44
Mystery Founder
?
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
This person started out as an
early entrepreneur.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder grew up in a
Catholic working class family.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder was the youngest
of five kids.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder’s other four
siblings were all girls.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder was a local
person.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder grew up in
Oaktown.
Yes, Oakland, California.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder’s father was a
welder.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder wasn’t great in
school.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder was a just a
mediocre student.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder “learned to work
hard and sought a way to fulfill
(his/her) dreams”
(this is an actual quote from
our founder).
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
When our founder was just 13
years old our founder got
his/her first job paying only $5
per week.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
No, it wasn’t you normal kind
of “kid” job.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder would sit in foul
territory near the baselines to
retrieve baseballs grounded
foul by batters for the Oakland
A’s.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Not that kind of
Bat Boy!!!
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder graduated from
high school.
Yeah!!!!!
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder did not graduated
from college.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
No, our founder wasn’t a
winner at all.
Our founder never even went
to college.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Being a Mystery Founder, our
founder started a company (as
founders tend to do).
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Oh, some more personal
information out our founder.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder married at the age
of 19.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder opened his/her
business at the age of 20.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Opps!!!!
I am sorry.
I was wrong about our founder
not going to college.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Well…..
…..what I mean is the he/she
didn’t go to a 4 year college
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Our founder went to a…..
….Community College!
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Not just any Community
College…..
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
….but a decent one…
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
….actually
…..a good one
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
….ok…..
….a really good one….
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
….a really really really good
one….
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
By the way, our founder’s
business was just 7.8 miles
from this very classroom.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
?
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
83
Mystery Founder
84
Mystery Founder
85
Mystery Founder
Daily newspaper, The Memphis Commercial Appeal, stated that she would be the
perfect model for an entrepreneurial Barbie doll.
86
Mystery Founder
Debbie Fields
Mystery Founder
Debbie Fields
Mystery Founder
Not the See’s Candy lady
Mystery Founder
Not the Betty Crocker lady either
Mystery Founder
Not Aunt Jemima either
Mystery Founder
Not Uncle Ben’s either
Mystery Founder
Debbie Field’s
Mystery Founder
94
Mystery Founder
Mystery Founder
On August 16, 1977, Mrs. Fields Chocolate
Chippery first opened its doors in Palo Alto,
California.
Halfway through her first day she had not made a
single sale, so she went outside and started handing
out her cookies for free.
Soon people were streaming in to the shop to buy
more of her cookies.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Her company motto "Good enough never is", says
all about her business philosophy. She worked hard
and her customer satisfaction was a priority. That,
and the great cookies she baked.
She later changed the company name to Mrs.
Fields Cookies to allow for other type of cookies than
just chocolate chip.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
In 1987 Mrs. Fields' Cookies did well financially. It
earned a profit of 18.5 percent on sales of $87
million, up from $72.6 million in 1986.
The company in 1987 purchased La Petite
Boulangerie, a chain of 119 French bakery/sandwich
stores, from PepsiCo for $15 million.
In just four weeks Randy Fields used specially
developed software to help him and his wife reduce
La Petite Boulangerie's administrative staff from 53
to just three individuals.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
One of the business innovations
she saw to was the introduction of
state-of-the-art computer systems
in 1989 for streamlining her
company operations.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
The firm equipped each of its stores with
inexpensive IBM-compatible computers that were
linked by modems to the company's larger system in
Park City. Computerization allowed the firm's retail
stores to plan daily production schedules, monitor
stocks and order materials automatically,
communicate with headquarters using electronic
mail, improve employee training, and handle payroll
and other accounting tasks.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Soon after that, in 1990, she
started franchising the business
concept.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Mr. Fields, aka Randy Fields,
was a Stanford Universitytrained economist.
They got married in 1976.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Mr. Fields was a Stanford graduate
and had many parties at their
house. Debbie was a great cook
and she cooked for many dinner
parties.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
•For about a year as a new wife, Mrs. Fields tried to fit into her
Randy’s world as a dutiful spouse by hosting visitors and making polite
conversation.
•However, a painful incident in which she tried to pretend she was a
sophisticated person made her decide to do something else with her
life.
•She said, "at last I understood that I had to do something that was
mine.... I gave up, in that moment, the desire to succeed in other
people's eyes and realized that first I had to succeed for myself."
•She elaborated, "I couldn't be Randy's shadow any more, his
tagalong.... Somehow I would have to change, to become an
independent, self-respecting individual able to stand on my two feet."
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
•An early crisis illustrated how the young company operated.
Mrs. Fields refused to replace higher cost raisins with less
costly but also less tasty dates.
•Debbi Fields explained that, "The point wasn't to make money,
the point was to bake great cookies, and we sacrificed for that
principle.
•From the very first, I set up a policy that we still follow today.
Our cookies had to be warm and fresh and when they were
two hours out of the oven, what hadn't been sold was donated
to the Red Cross to be given to blood donors, or to other
deserving charities, and we baked a new batch. We guaranteed
everything we sold."
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Her husband's business acquaintances loved
her cookies, so she asked them what they
thought about starting a cookie business.
"Bad idea," they said with their mouths
stuffed full of cookies. "Never work," they
said, "Forget it." Debbi's mother, her in-laws,
and her friends and fellow students at
Foothill College also said she would fail.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
Just like her parents in Oakland,
she had five daughters: Jessica,
Jenessa, Jennifer, Ashley and
McKenzie.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
In 1993 she eventually sold out
to private investors and turned
her attention to motherhood.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mystery Founder
In 1997 she divorced long time
husband and remarried in 1998 to
Michael Rose and moved to Memphis,
Tennessee.
© 2009 - Ben Dubin -, Inc. All rights reserved.
Mrs. Fields Today
 The
company has grown into over 650
retail bakeries in the United States
 There are bakeries 80 in 11 different
countries
 Like Ray Kroc, Mrs. Fields began
franchising in 1990
110
Mrs. Fields Today
 She
currently lives in Memphis, Tennessee
with her second husband, former Holiday
Inn and Harrah's CEO, Michael Rose.
 She
and her husband are very involved in
philanthropic work throughout the area.
111
Mrs. Fields Today
 The
company is officially now called:
Mrs. Fields Famous Brands, LLC
112
Mrs. Fields Today
 TCBY
is also owned by the LLC, as is
PretzelTime, Great American Cookies and
Pretzelmaker
113
Mrs. Fields Today
 The
LLC describes itself as:
• a retailer of freshly baked, on-
premises specialty cookies and
brownies in the United States and a
retailer of soft-serve frozen yogurt
with live active cultures.
114
Mrs. Fields Today
 As
of December 29, 2007, the Company's
franchise systems operated through a
network of 1,608 retail concept locations
throughout the United States and in 22
foreign countries.
115
Mrs. Fields Today
 Franchising
–
 Start-up
Cost: $100,000 to $200,000
 Total Investment: $179,100 to $251,100
 All prospects must be 18 years of age and
up.
 Net Worth requirement is $150K and liquid
capital is $75K.
116
Mrs. Field's Today
 Market
cap = $? billion
 Revenue = $? billion
 Profit = $? Billion

I don’t have these numbers, Mrs. Fields Famous
Brands, LLC is a private company and they do not
publish their numbers.
117
Mrs. Field's Today
 http://www.youtube.com/watch?v=qLZnQ
8ptOCY
118
Mrs. Field's Today




June 5, 2008 - Mrs. Fields announced plans to begin efforts to
restructure their debt by offering a deal to current bondholders.
The plan also included the option of filing a prepackaged
bankruptcy in the event enough noteholders didn't agree to the
offer.
July 10, 2008 - Stephen Russo resigns as CEO. On July 15, 2008, the
Board of Managers of the Company appointed Michael R. Ward
and John Lauck as Interim Co-Chief Executive Officers to fill the
role vacated by Stephen Russo.
August 15, 2008 - Mrs. Fields Famous Brands announced plans to
implement a prepackaged Plan of Reorganization and file for
Chapter 11 bankruptcy.
August 24, 2008 - Mrs. Fields Famous Brands officially files for
Chapter 11 protection.
119
Mrs. Field's Today
 LESSON
#1 - MAKE YOUR CRITICS EAT
THEIR WORDS.
"The greatest failure is not to try," says
Fields. "Had I listened to all the people
during the course of my life who said, "You
can't. You'll fail. It won't work. You don't
have it," I wouldn't be here today."
120
Mrs. Field's Today
 LESSON
#2 - PASSION IS THE KEY IN A
SUCCESSFUL BUSINESS RECIPE.
"You have to have passion when you're
finding a recipe for a career," says Fields.
"If you love what you are doing, you'll
never work a day in your life."
121
Mrs. Field's Today

LESSON #3 - LET YOUR CUSTOMERS TRY AND
BUY YOUR PRODUCT.
"I learned how important what I call 'try and buy'
was," says Fields. "I didn't want to advertise and
say my cookies are the world's best. It would be
presumptuous of me to say that. Instead I wanted
people to actually experience the product, try the
product, and if they thought it was worthy, if they
liked it, then they could buy it."
122
Mrs. Field's Today
LESSON
#4 - GOOD ENOUGH
NEVER IS.
"Good enough never is," says Fields.
"Set your standards so high that even
the flaws are considered excellent."
123
Mrs. Field's Today

LESSON #5 - STOP DOING WHAT IS NOT WORKING
When Fields opened up her very first store, she was
excited. She had finally created a solid business plan
and found a banker that believed in her. On the store's
first day of business, Fields' husband questioned her
about her long-term financial objectives, but Fields was
so excited to finally be in business, she dismissed him.
"Oh my gosh, Randy," she told him. "You know, I've got
an annual goal. I've got monthly plans. But today I just
want to get started. I just want to open up the store."
124
Mrs. Fields’ Mission Statement
"To Share the Fun of
Cookies”
125
Next Week!

Business Article Analysis #1 due – Topic: Small
Business
• Find an article – anywhere – that is about a small business.
Then I want you to just write a paragraph about the
company why you think the company is interesting or not,
and why.
• Need to turn it in and in class review of some of them

Start to think of preliminary idea for your business
© 2009 - Ben Dubin -, Inc. All rights reserved.