MM 010

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MM 010Perspectives on ManagementJanuary 19,
2006Prof. John C. Clavin 84Prof. Peter W.
Bell 86David Hood, MBA 06
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May 20, 2008
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Today

• Background
• Course Format
• Framework
• What the CEO Wants You to Know, Ram Charan

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Background
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Index Cards

• Your name
• Name and Location of High School
• Place of Birth
• Intended major/concentration?
• Mothers Career (optional)
• Fathers Career (optional)
• Please bring them back filled in next week!

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Index Cards
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What do we want to achieve?

• Understanding the basic components of a business
  and how they impact one another (thus avoiding a
  silo/chimney experience)
• Learn about the language of business
• Get some insight into potential fields of further
  study
• Begin to explore career opportunities

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MM 010Course Format
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Course Format

• 14 Sessions
• 2 Foundations Classes
• 9 Case Studies with Guest Speakers
• 2 Group Presentation days
• 1 Wrap Up Class
• Your seat is your seatno changes
• Please bring your name card each week
• Course Material (see Syllabus)
• What the CEO Wants You to Know, Ram Charan
• Case Packet-BC Bookstore
• Grading Policy
• Class Participation 35
• Weekly Quiz 25
• Group Project 20
• Final 20

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Class Session and Office Hours

• Class Session-Thursdays, Fulton 145
• Promptly start at 430 PM
• Most Times Quick Break around 545 PM
• Conclude by 7 PM
• Office Hours Fulton 552
• 3 PM until 415 PM on Thursdays
• By Appointment

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Expectations

• You will be here each week, on time, and prepared
• We will be here each week, on time, and prepared
• You should expect to be challenged and the
  environment should be one that allows us to
  challenge each other (us included)
• We most classes are taught by either Peter or
  John

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Special Guests

• 9 Sessions
• Format
• Approx. one hour
• May be here for the first half as an attendee
• You will have background info for each one
• Please submit 3 questions for the guest speaker
  in writing BEFORE class begins
• Discussion topics
• Career path and background
• What is a career in his/her industry and function
• Overview of his/her company and industry
• Emphasis is on QA, Class Participation-Expected

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Weekly Quiz

• Each Week, first thing
• 5 to 10 minutes
• 1 minute notice
• Everyone stops at the same time
• Must show up to participate
• Grading
• Check, Check minus, check plus
• Bonus question

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Class Participation

• Allows us to learn from one another
• Preparation is key
• Forces each of us to listen
• Boldness with well-thought analysis
• Real World (informal, professional, focused)you
  must make the effort
• You must show up to participate
• Feel free to see us if you have
  questions/concerns

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Group Presentation

• 7 Groups (5 or 6 per group)
• You will pick your own groups
• Submit groups on February 16, 2006
• Case based scenario(s)
• Group presentation from the perspective of a key
  protagonist in the case
• Class member audience will act as Board of
  Directors/Stakeholders and question management
  during presentation
• Focus on analysis, plan of action, and
  presentation skills

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Final Exam

• One case
• Set of key questions
• Focus will be on the analysis of the issues,
  metrics of the business, and execution issues

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Break
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The beautiful thing about MM010 is we do not even
try and cover everything. Therefore, you might
learn something, not just remember something.
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Quiz

• Demonstrate that you learned something from What
  the CEO Wants You to Know by providing 2
  takeaways from your reading of the book.

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Preparation Questions

• What does Ram Charan describe as the universal
  language of business?
• Compute the R, M, V for two public companies of
  your choosing and then compare and contrast them.
  Also determine the R, M, V for a business you
  have actually worked for or are familiar. Is it
  a good business?
• Do you think that the issues facing a street
  vendor are analogous to those facing the CEO of a
  billion dollar global corporation. Why or why
  not? Give examples.

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What do we want to achieve?

• Understanding the basic components of a business
  and how they impact one another (thus avoiding a
  silo/chimney experience)
• Learn about the language of business
• Get some insight into potential fields of further
  study
• Begin to explore career opportunities

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What the CEO Wants You to Know

• The universal language of business
• RM x V
• R Return
• M Margin Net Earnings/Sales
• V Velocity Sales/Assets
• Cash Generation
• Growth
• Customers
• Some Basics The Lemonade Stand

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What Does All This Mean?It Depends who You Are?

• Investor
• Employee
• Customer
• Vendor
• Competitor
• Government (SEC, IRS, FTC)
• Lender (Bank, Bondholder)

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Next WeekHow To Read a Financial Report

• http//philanthropy.ml.com/ipo/resources/pdf/howto
  readfinreport.pdf
• Pfizer, Home Depot, eBay
• Use your business acumen to compute the R, M, V
  for these three companies (please use at least
  the most recent three year period)
• Be prepared to discuss your analysis of the
  total business with the class

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The Total Business

• What were sales for the past twelve months
• Are sales growing, declining, or flatwhy?
• What is the profit marginis it growing?
• How are the margins versus the competition? How
  does it compare with other industries?
• What is the asset velocity?
• How much cash is the company generating?
• What does the external environment look like?

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Summary

• Universal Language applies to every business,
  How does this company make money???R, M, V,
  Cash Generation
• Try and look at the Total Business as you
  evaluate cases, companies, career opportunities,
  etc