NewYorkChicagoSanFranciscoLisbonLondonMadridMexicoCityMilanNewDelhiSanJuanSeoulSingaporeSydneyTorontoDR.MILOSOBELMBANUTSHELLINA®Copyright©2010byDr.MiloSobel.Allrightsreserved.ExceptaspermittedundertheUnitedStatesCopyrightActof1976,nopartofthispublicationmaybereproducedordistributedinanyformorbyanymeans,orstoredinadatabaseorretrievalsystem,withoutthepriorwrittenpermissionofthepublisher.ISBN:978-0-07-174542-0MHID:0-07-174542-4ThematerialinthiseBookalsoappearsintheprintversionofthistitle:ISBN:978-0-07-170172-3,MHID:0-07-170172-9.Alltrademarksaretrademarksoftheirrespectiveowners.Ratherthanputatrademarksymbolaftereveryoccurrenceofatrademarkedname,weusenamesinaneditorialfashiononly,andtothebenefitofthetrademarkowner,withnointentionofinfringementofthetrademark.Wheresuchdesignationsappearinthisbook,theyhavebeenprintedwithinitialcaps.McGraw-HilleBooksareavailableatspecialquantitydiscountstouseaspremiumsandsalespromotions,orforuseincorporatetrainingprograms.Tocontactarepresentativepleasee-mailusatbulksales@mcgraw-hill.com.Productorbrandnamesusedinthisbookmaybetradenamesortrademarks.Wherewebelievethattheremaybeproprietaryclaimstosuchtradenamesortrademarks,thenamehasbeenusedwithaninitialcapitalorithasbeencapitalizedinthestyleusedbythenameclaimantoritmayhavethetrademarkofregisteredsymbol.Regardlessofhowitappears,allsuchnameshavebeenusedinaneditorialmannerwithoutanyintenttoconveyendorsementoforotheraf•liationwiththenameclaimant.Neithertheauthornorthepublisherintendstoexpressanyjudgmentastothevalidityorlegalstatusofanysuchproprietaryclaims.TERMSOFUSEThisisacopyrightedworkandTheMcGraw-HillCompanies,Inc.(“McGraw-Hill”)anditslicensorsreserveallrightsinandtothework.Useofthisworkissubjecttotheseterms.ExceptaspermittedundertheCopyrightActof1976andtherighttostoreandretrieveonecopyofthework,youmaynotdecompile,disassemble,reverseengineer,reproduce,modify,createderivativeworksbasedupon,transmit,distribute,disseminate,sell,publishorsublicensetheworkoranypartofitwithoutMcGraw-Hill’spriorconsent.Youmayusetheworkforyourownnoncommercialandpersonaluse;anyotheruseoftheworkisstrictlyprohibited.Yourrighttousetheworkmaybeterminatedifyoufailtocomplywiththeseterms.THEWORKISPROVIDED“ASIS.”McGRAW-HILLANDITSLICENSORSMAKENOGUAR-ANTEESORWARRANTIESASTOTHEACCURACY,ADEQUACYORCOMPLETENESSOFORRESULTSTOBEOBTAINEDFROMUSINGTHEWORK,INCLUDINGANYINFORMA-TIONTHATCANBEACCESSEDTHROUGHTHEWORKVIAHYPERLINKOROTHERWISE,ANDEXPRESSLYDISCLAIMANYWARRANTY,EXPRESSORIMPLIED,INCLUDINGBUTNOTLIMITEDTOIMPLIEDWARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.McGraw-Hillanditslicensorsdonotwarrantorguaranteethatthefunctionscontainedintheworkwillmeetyourrequirementsorthatitsoperationwillbeuninterruptedorerrorfree.NeitherMcGraw-Hillnoritslicensorsshallbeliabletoyouoranyoneelseforanyinaccuracy,errororomission,regardlessofcause,intheworkorforanydamagesresultingtherefrom.McGraw-Hillhasnoresponsibilityforthecontentofanyinformationaccessedthroughthework.UndernocircumstancesshallMcGraw-Hilland/oritslicensorsbeliableforanyindirect,incidental,special,punitive,consequentialorsimilardamagesthatresultfromtheuseoforinabilitytousethework,evenifanyofthemhasbeenadvisedofthepossibilityofsuchdamages.Thislimitationofliabilityshallapplytoanyclaimorcausewhatsoeverwhethersuchclaimorcausearisesincontract,tortorotherwise.Thisbookisdedicatedtomyparents,FayandHenryL.Sobel,MBAs(MyBelovedAllies)ThispageintentionallyleftblankvCONTENTSAcknowledgmentsxiPrologue:OrientationtotheProgramxiiiTheMBA“SecretsofLife”xv1MarketingandProductManagement1DifferingSchoolsofThought1CustomerServiceandCustomerFocus4TheMacroenvironment8DimensionsofBuyerPerception9ParticipantsintheBuyingProcess13TheRationalBuyerVis-à-VistheEmotionalBuyer14CognitiveDissonance15PostpurchaseDissonance(AlsoKnownas“Buyer’sRemorse”)15DimensionsofMarketSegmentation16MarketingStrategies17ProductPositioning18MarketingResearch20TheMarketingMix20FactorsinMarketingAnalysis49TheMarketingandProductManagementChecklist512AccountingandFinance53RiskManagement53FinancialStatements55Tax-ReductionConsiderations63“Creative”Accounting67InternalControl68OtherPeople’sMoney(OPM)69ImprovingCashFlow71Budgets72TimeValueofMoney(DiscountedCashFlow)73InvestmentAppraisal74MoreAlphabetSoup?77KeyFinancialRatios82LeaseversusBuyversusRent91Funding93SomeTips102TheAccountingandFinanceChecklist1033HumanResourcesandOperationsManagement105HumanResourcesManagement105DimensionsofManagerialEffectiveness119WorkversusPlay122PsychologicalContractsintheWorkplace124LineversusStaff125Communication126Compensation131Learning133DiversityandDiscrimination136CrisisManagement137OperationsManagement138EconomiesofScale140CrossoverAnalysis143BreakevenAnalysis145LinearProgramming148NetworkAnalysis150TheParetoPrinciple:80/20Rule152QueuingTheory154viCONTENTSMonteCarloSimulation155Just-in-Time(JIT)ProductionSystem155EconomicOrderQuantity(EOQ)andReorderPoint(ROP)156TheHumanResourcesManagementChecklist158TheOperationsManagementChecklist1584Statistics159ConductingaResearchProject160BasicTerminology163KeyS