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TLFeBOOK ® MBA In A Day What You Would Learn at Top-Tier Business Schools (If You Only Had the Time!) Steven Stralser, Ph.D. John Wiley & Sons, Inc. TLFeBOOK TLFeBOOK More Praise for MBA In A Day® “Steve Stralser is a unique talent. It is unusual to meet people who are both highly professional as well as generous with their knowledge. Not only is Professor Stralser’s advice invaluable for business professionals, but those in the arts who are more focused on their creative endeavors would benefit from reading MBA In A Day® to help strengthen their business skills.” —Bobi Leonard, CEO, Arcara Enterprises, Inc. “Steve’s book is a valuable asset to anyone needing to avoid the pitfalls of business, be they a small business owner, a physician, a lawyer, or just about anyone who deals with business. Just because you have not had the opportunity to study for a formal MBA, why be at a disadvantage in the business world? In just a few days of quality reading time you will level the playing field. Let your own brainpower do the rest.” —George Reiss, MD, Clinical Instructor, Mayo Clinic; Eye Physician, Phoenix Coyotes Professional Hockey Club “Professor Stralser’s MBA In A Day® contains insights that are incredibly valuable for any entrepreneur obsessed with success. They provide quick access to sound practical thinking on the real-world business issues most likely to confront the busy start-up entrepreneur.” —Michael Hool, Partner, Rogers & Theobald, LLC; Chairman, Arizona Venture Capital Conference “Steve has an uncanny ability to distill business concepts to their true fundamentals without confusing or losing the audience. He also provides user-friendly templates that can help readers begin to improve their knowledge and performance immediately.” —Ed Robinson, Capacity Building Solutions Inc.; TEC Chair, Group 663 “I have personally seen MBA In A Day® in action. Our company has organized several live seminars for physicians based on the MBA In A Day® content. The information was highly relevant, easily understandable, and highly valued by the participants. Based on this, I believe anyone who reads this book will take away something practical and actionable that will improve their approach to the business side of their professional careers.” —Sidney Auerbach, RPh, President, Worldwide Healthcare Communications “If you want the knowledge to build your business, whatever your industry, you must understand business. MBA In A Day® is an essential guide to everyday practical decision making.” —Croom Lawrence, MBA, Senior Marketing Manager, Wyeth Pharmaceuticals TLFeBOOK “Professor Stralser has been teaching MBA principles for years in top-tier business schools. His MBA In A Day® treatment of these same principles is your ‘graduation’ into the world of business!” —R. Glenn Williamson, Partner, Nest Ventures LLC, providers of early stage financing and equity “You could read this book in a day, but the nonbusiness professional can go back and refer to it every day!” —Barry Moltz, Author, You Need to Be a Little Crazy: The Truth about Starting and Growing Your Business “Easy to read, highly practical, and comprehensive in nature. I highly recommend this book to both experienced and new business owners alike.” —Scott Gabehart, MIM, CBA, Business Valuation Consultant “Professor Stralser has the ability to impart entrepreneurial attitudes and processes. His teachings give one a solid guide to incorporating business techniques into professional practice. For those who have no business experience, he explains things in understandable terms and for those who understand business, he reinforces what they have been doing all along.” —Martin Blume, DO, MBA, Parkway Medical, PLC “Dr. Stralser has provided physicians with a focused, structured, and comprehensive resource for the business side of their practices—an area they have typically managed by trial and error. His book is a valuable tool to help them maintain and grow their bottom line.” —Rick Nevins, MD, FAAFP, President, Nevins & Associates Consulting “Having recently benefited by being a ‘student’ in an MBA In A Day® seminar, I am looking forward to being able to offer this book to our 2,000+ physician members. MBA In A Day® will provide our physician members with a quick reference to deal with the practical, business side of medicine they have not yet experienced.” —Beverly Hurt, Executive Vice President, Indianapolis Medical Society “This book is an absolute must-read for anyone who finds that knowledge of business principles and concepts would be helpful, available here in a concise, clear manner that immediately elevates your expertise in this area.” —Gerald Jacobs, Attorney TLFeBOOK “This book is a must for any type of entrepreneur who has become successful to a certain point using ‘street skills’ and deep knowledge of an industry combined with a unique idea. The MBA fundamentals made real by Professor Stralser in his new book will provide a handy tool kit that will enlighten and empower the reader to take his or her organization successfully beyond the start-up phase into sustainable growth.” —Stephen Lindstrom, Co-founder, Behcon, Inc., medical practice owners and managers; Adjunct Instructor, McGuire Entrepreneurship Program, University of Arizona “MBA In A Day® contains insightful and applicable information to anyone interested in running a business, or already doing so. As the president of a young, growing company, I found that the fundamental concepts addressed in the book not only complemented my practical experience, but also provided a helpful, supplementary education in important business principles.” —Alison Chozen, Entrepreneur and President, Sterling Truffle Bar; Co-founder, Mosaic Event Management “As an advanced-practice nurse, I highly recommend Dr. Stralser’s book as an essential road map on how to navigate today’s complex health-care terrain. As more nurses are looking beyond hospitals and exploring entrepreneurship, they will find the fundamentals of business explained here. A must-read.” —Carol E. Heiser, RN, MA, ND (Clinical Nursing Doctorate), Clinical Education Specialist, Immersion Medical, Inc. “MBA In A Day® has proven to be as essential in my daily practice as my stethoscope. I wish I had had Professor Stralser’s book when I started my medical practice.” —Robert S. Knight, MD, FAAFP, Medical Director, Plumtree Family Health Center, LLC “Professor Stralser’s book is an easy-to-understand guide about business for busy professionals whose intense professional training missed important topics like marketing, accounting, finance, and management.” —Quinn Williams, Chair, Emerging Business and Venture Capital Group, Greenberg Traurig, LLP “In advising clients, I often get the sense that they do not have a good grasp of how to manage their businesses or employees. Professor Stralser’s book is a straightforward and invaluable primer that will assist readers in the development and management of their businesses.” —Charles S. Mishkind, Miller, Canfield, Paddock and Stone, PLC TLFeBOOK “Dr. Stralser’s book, MBA In A Day®, provides a practical guide to understanding basic business concepts. This valuable resource offers hands-on training for the development of the skills needed to manage a small business or practice, such as marketing and promotion, financial management, leadership skills, and information technology, to name a few. A surefire way to build your business!” —Christine Mauro, Vice President, EURO RSCG Advertising & Public Relations “We spend years and years to train in our profession, yet often miss important concepts we need to succeed. Professor Stralser’s MBA In A Day® is a must for any professional, entrepreneur, or business owner who wants to succeed in an increasingly complex world!” —Steven F. Isenberg, MD “What was once taught only in MBA courses is now found in Dr. Stralser’s book, which gives small business owners and entrepreneurs the tools and strategies to take their businesses to the next level.” —Kristin A. Donaldson, Vice President of Small Business, Greater Phoenix Chamber of Commerce “Professor Stralser has been teaching MBA principles for years in top-tier business schools. His MBA In A Day® is practical and succinct, yet broad in scope and well referenced—highly recommended.” —John Hensing, MD, Senior Vice President, Care Management and Quality, Banner Health “Though I have developed significant, valuable expertise in the counseling profession after 20 years as the executive director of a nonprofit treatment center, the greatest challenge I have faced is from the lack of basic business skills not taught in our graduate programs. Everyone who has excelled from direct practice to management positions should do themselves an enormous favor and purchase this easy-to-read guide to effective management of any business! It is without a doubt my new, frequently used management resource manual.” —Stephanie Orr, Executive Director, CASA “As a practicing attorney, I moved into a management position in a midsized law firm. I could have used MBA In A Day® as it would have been incredibly valuable in understanding and applying basic concepts to aid me in making our law practice more successful.” —Mort Scult, Partner, Stinson Morrison Hecker LLP TLFeBOOK ® MBA In A Day TLFeBOOK TLFeBOOK ® MBA In A Day What You Would Learn at Top-Tier Business Schools (If You Only Had the Time!) Steven Stralser, Ph.D. John Wiley & Sons, Inc. TLFeBOOK Copyright © 2004 by Steven Stralser. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. The publisher is not engaged in rendering professional services, and you should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services please contact our Customer Care Department within the U.S. at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Designations used by companies to distinguish their products are often claimed by trademarks. In all instances where the author or publisher is aware of a claim, the product names appear in Initial Capital letters. Readers, however, should contact the appropriate companies for more complete information regarding trademarks and registration. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.Wiley.com. Library of Congress Cataloging-in-Publication Data: Stralser, Steven, 1945– MBA in a day® : what you would learn at top-tier business schools (if you only had the time!) / Steven Stralser. p. cm. ISBN 0-471-68054-0 (cloth) 1. Business education. 2. Industrial management—Study and teaching (Graduate) 3. Master of business administration degree. I. Title. HF1111.S77 2004 658—dc22 2004007668 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 TLFeBOOK To my father, Harold, a hero in many ways TLFeBOOK TLFeBOOK Contents Preface xv Acknowledgments xix About the Author xxi SECTION I: PEOPLE, MANAGEMENT, AND POLICY Chapter 1 Human Resources 3 Chapter 2 Organizational Behavior 18 Chapter 3 Leadership and Team Building 38 Chapter 4 Ethics 57 Chapter 5 Negotiation 71 xi TLFeBOOK xii CONTENTS SECTION II: MONEY: ECONOMICS, FINANCE, AND ACCOUNTING Chapter 6 Accounting and Finance 97 Chapter 7 International, National, and Local Economics 124 SECTION III: MARKETS AND STRATEGY Chapter 8 Marketing, Strategy, and Competitive Analysis 145 Chapter 9 Advertising and Promotion 170 Chapter 10 Communications and Presentations 187 SECTION IV: SYSTEMS AND PROCESSES Chapter 11 Project Management 211 Chapter 12 Management Information Systems 228 TLFeBOOK Contents xiii Chapter 13 E-Commerce and Uses of the World Wide Web 247 Chapter 14 Quality Management Systems Index 264 289 TLFeBOOK TLFeBOOK Preface O f course you can’t get an MBA degree in a day—ask anyone who has put in the months and years needed to accomplish this challenging and rewarding achievement—but this book is where you will find, in basic, easy-to-understand language, MBA concepts and principles that are presented in the gold standard of business education throughout the world—the master of business administration. The story behind this book comes from my years teaching in a full-time MBA program where I began to notice something I found very interesting. Every semester, in addition to the traditional MBA students who had taken time off from their corporate life to enroll in the MBA program, I would find one or two students who were clearly “outliers” to these mainstream corporate types—for example, a physician, an attorney, an executive director from a nonprofit organization, or a small business owner or entrepreneur. It did not take long to realize this trend was an indicator of an underlying interest, and need, for these well-educated professionals— well trained in the education of their profession—to learn about the “business side” of their professional lives. These non-business-trained professionals wanted to fill a gap and learn business principles and concepts needed in their professional practices but not taught in medical schools or other professional schools such as law, engineering, architecture, veterinary, or other highly specialized training programs. I also realized that for every physician, attorney, architect, or entrepreneur who can take the time to enroll in an MBA program, there are many more who are pressed for time and focused on the day-to-day challenges of running a successful practice, operating a small business, or launching a new venture but who would benefit from learning the essential principles and concepts found in the coursework of an MBA xv TLFeBOOK xvi PREFACE program. It is for these successful—albeit time-sensitive—professionals that this book is written. In this book, you will learn the fundamental concepts and principles that full-time MBA students learn and that also have applicability to professional services providers, small business owners, and entrepreneurs as well as corporations and industry. These principles and concepts are not industry or profession specific—they are classic, strategic, and essential in performing in today’s complex economic environment. The book begins with Section I: People, Management, and Policy, which focuses on the human side of business. Chapter 1, “Human Resources,” explores how human assets are critical to success and competitive advantage. Chapter 2, “Organizational Behavior,” explores the dynamics of how people work together in an organizational setting. Chapter 3, “Leadership and Team Building,” explores the differences between managing and leading and presents concepts behind the effective use of teams as a means to achieve organizational goals. Chapter 4, “Ethics,” focuses on the complexities and issues that managers face in doing the right thing in an increasingly ambiguous and uncertain organizational environment. Chapter 5, “Negotiation,” presents essential processes for navigating through the dynamics of conflict and agreement, providing a useful understanding of how this subject is critical to managers who must negotiate to some degree, on several levels, every day. Section II: Money: Economics, Finance, and Accounting, focuses on the concepts and principles we associate with the financial side of an organization and its economic context. Chapter 6, “Accounting and Finance,” explores the way we keep score in business, providing the essentials of accounting systems and financial statements. Chapter 7, “International, National, and Local Economics,” provides a vocabulary of economic fundamentals to understand how nations, corporations, and individuals behave in markets to efficiently apply and allocate scarce resources and make their way through global economic systems. Section III: Markets and Strategy explores the way organizations read, adapt, and communicate with their customers, competitors, and constituencies. In Chapter 8, “Marketing, Strategy, and Competitive Analysis,” we review how organizations analyze their industry and their competition and then develop the way they communicate with their TLFeBOOK Preface xvii target customers. Chapter 9, “Advertising and Promotion,” looks at the specifics of companies’ communication with customers and clients. Chapter 10, “Communications and Presentations,” presents principles and concepts about an increasingly important part of managing a business today—how to present our ideas and communicate effectively. Section IV: Systems and Processes explores the key areas for organizations to implement their strategies and maintain competitiveness and sustainability. Chapter 11, “Project Management,” explains how managers can tackle specific projects from start to finish and efficiently manage them. In Chapter 12, “Management Information Systems,” we explore the increasingly important essentials of today’s cyber-environment and how technology can be harnessed to achieve organizational excellence. Chapter 13, “E-Commerce and Uses of the World Wide Web,” explores the use of the Web both as a means to communicate with customers, clients, and constituencies and also as a tool for organizational efficiency and productivity. And finally, in a world where quality is the key driver to market success and sustainability, Chapter 14, “Quality Management Systems,” explores the concepts and principles of developing a culture and organizational purpose focused on quality. TLFeBOOK
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