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…

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