Things I’ve learnt in MBA
Its scary how much of what we learn, we dont retain. Here are some quotes, equations which I have stuck to me. Stuff I truly beleive in. This is a work in progress page and will remain so until july 3rd 2009 and beyond!
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001. Trust =>
(Credibility + Reliability + Intimacy) / (Self Interest)
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002. Leadership = Influence
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003. Anything that distorts equilibrium price will harm the economy sooner or later
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004. Right to Private Property is key to efficient economy
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005. Smart Regulation <> More Regulation
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006. IQ is a threshold qualification, EQ is the ture differentiator of success
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007. Outsourcing means converting fixed cost to variable cost, coverting fixed cost to variable cost means transfering risk
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008. Risk => Variation
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009. Influence can be acheived through EPO (Empathy, Positivism and then Organising) sequence
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010. Negative does not work
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011. CAPM is based on the assumption that the marginal investor is diversified
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012. COGS, in comparison to total sales, has a higher leverage on gross profit
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013. The need for innovation can arise from:
Product Economics (Led by customer, Intel),
Customer Economics (Lead the customer, YT) or
System Economics (Ignore the customer, IBM)
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014. Customer service <> Customer Intimacy = Business Model
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015. Organization = People + Architechture + Routines + Culture
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016. Value Created = Maximum that people are willing to pay for an economic activity – oppurtunity costs of the activity
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017. Strategy follows Structure
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018. Listen to the Market, not the Customer
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019. Customers are mostly gained based on Financial and Tangible Benefits, retained mostly based on Non-Financial and Non-Tangible Benefits
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020. Gaining Market Share and Profit Maximization are often not complementary objectives
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021. Average Profit is Maximized when Marginal Cost = Marginal Revenue
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022. Segmenting Needs is better than Segmenting Customers
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023. A company has a competitive advantage if it outperforms industry norm.
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024. “Inventory is evil”
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025. A company has a competitive advantage if it outperforms industry norm.
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026. ROE = (EAT/EBT)*(EBT/EBIT)*(EBIT/Sales)*(Sales/Inv. Capital)*(Inv. Capital/Owners’ Equity)
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work in progress…
