Kickoff Week Flashcards
Define Scarcity
The condition in which wants are forever greater than the available supply of time, goods and resources. Even if it was free.
Why is Scarcity the underlying fundamental problem?
Time is Scarce
Incomes are Scarce
Resources are Scarce
Define Resources
The inputs used to make the goods/services that individuals and society desires
What are some examples of resources
Raw materials, physical capital, labor, human capital, entrepreneurship, technology
Define Physical Capital
Human-made goods used to make other goods (equipment, machinery, etc.)
Define Human Capital
experience, training, education of labor force
Define Entrepreneurship
the ability to organize the other inputs and to take the risk
What are the 3 main economical questions for society?
What goods/services should we make?
How to make the goods/services?
How do we allocate the goods/services that we do make?
Define Efficiency
How can we make resources go as far as possible?
Define Equity
How we split up the end result.
Define Economics
The study of scarcity in society and the decisions it drives, including the distribution of goods and services
Normative vs Positive Economics
Normative is centered around moral, ethical, and subjective beliefs of how things should be.
Positive is centered around factual testable and objective beliefs on how the world is.
Define Microeconomics
the study of choices facing individuals (households, businesses and even government), and their interactions.
Define Macroeconomics
The study of how the aggregate of individual decisions (microeconomics) affect an entire economy (national or global)
Who are the 3 microeconomic agents
Households, Firms (business) / Industries, Government
What are the four steps of Supply Chain
Plan, Source, Make, Deliver
Simple Supply Chain
Bring Stuff in, Make Stuff, Ship Stuff Out
Medium Complicated Supply Chain
Suppliers, Distributors, Manufactures, Wholesalers, Retailers
Why is a smaller supply chain easier than a bigger one?
Communication is easy
What happens as supply chains get larger?
Major corporate departments (Purchasing, Marketing, Sales, Operations) get siloed.
What is the Integrated Supply Chain
End to End Supply Chain, from resources to consumers
What is the Risk Equation
Risk = Probability x Consequences
What are the six major themes of Supply Chain
Talent, Strategy, Relationship Management, Visibility, Coordination, Design
What’s a good format to answer a question?
A - B - A
Answer - Background - Answer
For Presenting, what is your AIM
Audience, Intent, Message
You should know your AIM when structuring a presentation
During a Presentation what should you ask about your audience?
Who are they?
Why are they here?
What is important to them?
What do they already know about the topic?
For a presentation, how do you define your Intention?
When we’re done, we want the audience to……
Fore a presentation, how do you define Message?
If people only remember one things, we want it to be…
What is Integrated Decision Making?
“Big Picture” thinking.
Thinking “Globally” rather than “Locally”
Why do Organizations Lean?
Reduce Costs
What are the 3 categories you can cut costs from?
Labor, Material, Overhead
What is a concern of trying to reduce Labor Cost?
the work force get’s demoralized
What’s the best growth strategy from a Lean Theory of Constraint?
Make the customer an offer they can not refuse and grow capacity by eliminating waste
What is TOC
Theory of Constraint
What are the basics focus areas for TOC?
Grow the Market, Eliminate waste at the constraint, eliminate policy that barriers growth.
What are the 2 premises of TOC?
The Goal of a business is to achieve sustainable growth and stability, now and in the future.
A system’s constraint(s) determine its output
What are the 4 obstacles of Theory of Constraint, and what are the 4 Pillars to overcome them?
- The Perception of reality as complexity - Inherent simplicity
- Accepting conflicts as given - Inherent harmony
- Our tendency to blame others - Inherent goodness
- Thinking that ‘we know” - Inherent potential/humanity
What are the Three Illusions that limit paradigms?
The Illusion of Complexity
The Illusion of Conflict
The Illusion of Certainty
What is the TOC 5 step focusing process
- Identify the system’s constraint
- Decide how to exploit the system’s constraint
- subordinate everything else to that decision
- elevate the system’s constraint
- if the constraint was broken in previous steps, start over.
What are the three types of constraints
Physical
Market
Policy
What are the policy constraints
Mindset constraints
Method constraints
Measures constraints
What are Mindset Constraints
Thought Process that blocks design, implementation or methods
What are Methods Constraints
Procedures or techniques that are incompatible with goals
What are measures constraints
Statistics/measurables that drive behaviors that do not improve the business or do not agree with organizational goals
What is the “Trinity” of Policy Constraints
- You don’t understand
- We are Different
- That won’t work here
Lean Supply Chain Principle 1
Improving the performance of every subsystem in isolation will not improve system performance. Improvements in subsystem performance must be gauged only through their impact on the whole system.
System Thinking requires “Uncommon Thinking”
What are the TOC Performance Measures?
Throughput - the rate which a system generates
Investment - Money invested in things for a system
Operating expense - Money that turns investment into throughput
Why Study Leadership?
Climb the ladder
Ethics
Productivity
Define Leadership
The ability to influence a group toward the achievement of goals
Define Management
Use of authority inherent in designated formal rank to obtain compliance from organizational members
What are the 4 steps of leadership
Understand
Predict
Facilitate
Influence
How do leaders “Understand”
They interpret the environment and help followers understand how their contributions affect the organization
How do leaders “Predict”
Leaders use the knowledge they have gained to forecast future contingencies and needs
How do leaders “Facilitate”
Leaders have the potential to coalesce support and motivate their followers
What are 4 leader levers
SMART Goals
Monitoring and Accountability
Incentives/Recognition
Social Capital
What are the four leadership forms
Strategic Leadership
Tactical Leadership
Operational Leadership
Project Leadership
What is Strategic Leadership
Where and how should we compete as an organization
what is tactical leadership
how do we mobilize resources to realize our organizational goals
what is operational leadership
How do we cultivate a culture of excellence and motivate people
What is project Leadership
how to I manage a team to accomplish our near-term goals
What are the three basic skills of a leader
Conceptual skills - think analytically and integrate
human skills - ability to work with others
Technical skills - ability to perform a task
What is Finance?
The allocation and pricing of financial resources
Finance can be inside and outside the firm, what are some examples of each
Inside - making decisions about Investing, Financing, or dividends
outside - Valuing a particular financial asset - Stocks, Bonds, Derivatives
Who are the financial managers
the decision makers, generally the highest ranking officials (C-suite) and the “employees” or “Shareholders”
Who are the Shareholders
They are the Owners of the firm
What do shareholders want?
to maximize their wealth in the firm. They direct the managerial team to make financially appealing decisions
What is the “Agency Problem”
Shareholders own the firm
Managers make the decisions
“Separation of ownership and control”
How do shareholders align with the Managers of a firm?
Pay - structuring compensation packages to incentivize good performance
Watch from the board and scrutinize when capital is raised
Regulate - legal disclosure and anti-fraud laws
Threaten - to fire them
What is the most important thing in “value”
Cash. Cash is king.
What are three outside the firm financial securities
Common stock
Derivative Securities
Fixed Income Securities (money market, bond market, preferred stock)
What are the two things we can do with Cash
Buy things NOW
Invest so it “Grows”
What are the 3 defining features of Cash Flow
The Amount
The Direction
The Timing
What is Cash Accounting
Cash Receipts - Cash Dispursements = Net Operational Cash Flow
What is Accrual Accounting
Revenus - Expenses = Net Income
What is a Balance Sheet
A Snapshot of wealth at a point in time
What is the Accounting Equation
Assets = Liabilities + Owners Equity
Benefits to be consumed in the future = Creditor Claims = owners claims
What are “receivables”
Amount to be collected for products already delivered
What is the Inventory Cost Flow
“Finished Goods” (Balance Sheet) become “Cost of Sales” (Income Statement) after they’ve been sold
Define Depreciation
An allocation of the portion of the initial cost of buildings and equipment to a year. Depreciation represents the ‘consumption’ of a building or equipment benefits for the year
What are the Two Cost Paths
Expense - A benefit Consumed
Asset - A benefit deferred
What is Goodwill
An intangible asset that arises when a company purchases another entity for an amount greater than the entity’s net asset market value (Assets - Liabilities)
What are current liabilities
obligations to provide cash or services for benefits already received, within the span of one year
What are long term liabilities?
debt or lease obligations to lessors, banks, institutional investors, and public investors
What is stockholder’s equity?
the net assets (assets - liabilities) of the firm. Essentially the shareholders claim on the assets, not the market value.
What is an Income Statement
to provide a measure of the change in weather from doing business over a period of time
What is Operating Income (EBIT)
Revenues - all operating expenses, or earnings before interest and taxes
What is Net Income (GAAP earnings)
Revenues - all expenses
What is EBITA
Earnings Before Interest, Taxes, and Depreciation/Amortization
What is a Statement of Cash Flow
Explanation of why the cash changed during a period (usually between balance sheets)
What are the three Cash Flow activities
Operating Activities
Investing activities
Financing activities
What are Cash Operating Activities
Cash flows that are associated with incomes producing activities
What are Cash Investing activities
Cash flows that are associated with the purchase and sale of concurrent assets, such as property, equipment, and intangibles
What are Cash Financing Activities?
Cash flows that are associated with obtaining or repaying resources from/to creditors or owners
What is Free Cash Flow
The amount of cash available primarily from earnings that can be used to finance growth, pay dividends, repurchase stock, pay down debts
Between two balance sheets, what two things track changes between them?
Income Statement (Revenue - expenses)
Statement of Cash Flow
what is the ProMBA Definition of Marketing
Marketing is the customer-centric philosophy, strategies, and tactics necessary to consistently create, communicate and deliver customer value in order to capture value from customers in return during acquisition, expansion, and retention.
SIMPLE: Create, Communicate, and deliver customer value
What is the Marketing Value Process
Identify the value
Choose the value
Provide the value
Communicate the Value
Assess the delivered Value
Repeat.
What is Customer Value
Customer Value is the customer’s perception of what they want to have happen (consequence) in a specific use situation with the help of a product/service offering, in order to accomplish a desired purpose or goal
What are the three aspects of Presence
Credibility
Connection
Confidence
How can you improve your credibility
Look the part
What does Authoritative look like
Take up space
Keep head still
Appear relaxed
Keep Eye Contact
Stay Slow
Speak in Lower Tones
What does Approachable look like
Minimize footprint
Nod
Smile
Make indirect eye contact
Speak in higher tones
Fidget
How do you move with purpose
Walk on transitions
make eye contact - one person, one thought
Break the bubble - big gestures
What is the GROW Model for Coaching
Goal - What is your goal
Reality - What is the reality of the ‘gap’
Options - What options do you have
Will - What will you do
What makes a good supply chain
Communication, Planning, Efficiency
What makes a bad supply chain
Bad Communication
What is a SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
What things give you a competitive advantage?
Better
Cheaper
Faster (premium)
Niche
What is the basis of strategy
Present Decisions, Based on the Past, to frame the future
What things should you learn about someone?
Who they are (without asking) - how they identify (work, family, etc),
What are some of their key relationships?
What are their goals and accomplishments?
Define Asset
Something you’ve paid for, but not consumed
What is “cheap money”
When you can pay to get money that has a lower interest rate then the ROI you can get with it
What is shareholders equity?
Common stock
Retained earnings
treasury stock
accumulated other comprehensive income
What is Cost of Sales (Goods/Services)
The cost to the company for the Item or Service
