What's Your MBA IQ?: A Manager's Career Development Tool

Preface xv

Acknowledgments xvii

Introduction xix

Learning Module 1 General Management, Leadership, and Strategy 1

Learning Objective 1.1: Understand the Scope and Nature of Corporate Strategies 2

Learning Objective 1.2: Understand the Importance of Planning and Organizing Skills 10

Learning Objective 1.3: Understand the Importance of Directing and Leading Skills 14

Learning Objective 1.4: Understand the Importance of Controlling and Measuring Skills 19

Learning Objective 1.5: Understand the Importance of Motivating Skills 21

Learning Objective 1.6: Understand the Importance of Problem-Solving and Decision-Making Skills 23

Learning Objective 1.7: Understand the Importance of Negotiating Skills 30

Learning Objective 1.8: Understand the Importance of Communication Skills 32

Learning Objective 1.9: Understand the Importance of Conflict Management Skills 35

Learning Objective 1.10: Understand the Various Issues in Organizational Behavior, Culture, Change,
Development, Effectiveness, and Decline 38

Learning Objective 1.11: Understand How to Measure and Manage Business Performance Results 42

Learning Module 2 Operations Management 45

Learning Objective 2.1: Understand the Strategic Importance of Demand Forecasting 46

Learning Objective 2.2: Understand the Production Strategies and Manufacturing Performance Measures 47

Learning Objective 2.3: Understand the Production-Related Value Concepts 48

Learning Objective 2.4: Understand the Philosophies of Just-In-Time and Lean Operations 49

Learning Objective 2.5: Understand the Principles and Techniques of Inventory Management 52

Learning Objective 2.6: Understand the Principles and Techniques of Supply-Chain and Logistics Management 56

Learning Objective 2.7: Understand the Various Planning Systems Applicable to Manufacturing and Distribution Operations 58

Learning Objective 2.8: Understand the Various Short-Term Scheduling Systems Used in Production 60

Learning Objective 2.9: Understand the Theory of Constraints in Operations 62

Learning Objective 2.10: Understand the Principles of Production Economics and Application of Decision Tools 63

Learning Objective 2.11: Understand the Principles and Techniques of Equipment Maintenance and System Reliability 65

Learning Objective 2.12: Understand the Production Process Flows and Metrics 66

Learning Objective 2.13: Understand the Technology Deployed in Manufacturing and Service Operations 67

Learning Module 3 Marketing Management 71

Learning Objective 3.1: Understand the Components of Marketing Mix 72

Learning Objective 3.2: Understand the Expectancy-Value Model in Consumer Markets 72

Learning Objective 3.3: Understand the Brand Elements and Calculate a Brand Value 72

Learning Objective 3.4: Understand Competitor Analysis 73

Learning Objective 3.5: Understand the Pricing Strategies and Methods 73

Learning Objective 3.6: Understand the Marketing Communications Mix 75

Learning Objective 3.7: Understand the New-Product Development Process 75

Learning Objective 3.8: Compute the Customer Retention Rate 76

Learning Objective 3.9: Compute the Lifetime Value of a Customer 77

Learning Objective 3.10: Compute the Customer Conviction in Terms of Net Promoter Score 78

Learning Objective 3.11: Compute the Customer Loyalty Score 78

Learning Objective 3.12: Compute the Net Marketing Contribution Amount 78

Learning Objective 3.13: Compute the Marketing Profitability Metrics 80

Learning Objective 3.14: Compute the Market Development Index 80

Learning Objective 3.15: Compute the Market Share Index 80

Learning Objective 3.16: Compute a Product’s Lifecycle Cost and Economic Value to a Customer 81

Learning Objective 3.17: Compute the Relative Performance, Price, and Customer Value of a Product 81

Learning Objective 3.18: Compute a Marketing Channel Intermediary’s Transaction Value 82

Learning Objective 3.19: Understand the Relationships Among Price, Profit, and Market Share 83

Learning Objective 3.20: Understand a Marketing Channel’s Performance 83

Learning Objective 3.21: Evaluate the Advertising’s Effectiveness with Customer Response Index 83

Learning Objective 3.22: Learn How to Conduct a Marketing Portfolio Analysis 85

LearningObjective 3.23: Learn How to Develop a Marketing Budget 85

Learning Objective 3.24: Understand the Financial Performance Metrics Related to Marketing 85

Learning Objective 3.25: Understand the Nature of Marketing of Services 86

Learning Objective 3.26: Understand the Strategies in Product Management 87

Learning Objective 3.27: Understand the Stages in a Product Lifecycle 88

Learning Module 4 Quality and Process Management 91

Learning Objective 4.1: Understand the Basic Quality Concepts 91

Learning Objective 4.2: Understand the Various Definitions of Quality 93

Learning Objective 4.3: Calculate the Cost of Quality 94

Learning Objective 4.4: Calculate the Six-Sigma Metric 94

Learning Objective 4.5: Compute the Return-on-Quality Metric 96

Learning Objective 4.6: Apply Quality Tools 96

Learning Objective 4.7: Apply Statistical Process Control Techniques 98

Learning Objective 4.8: Compute Taguchi’s Quality Loss Function 100

Learning Objective 4.9: Understand the Role of Inspection and Quality at Source 100

Learning Objective 4.10: Understand the Process Management Methods and Tools 101

Learning Module 5 Human Resources Management 103

Learning Objective 5.1: Understand the Human Resources Planning Process 103

Learning Objective 5.2: Understand the Relationship between Job Analysis and Job Descriptions 104

Learning Objective 5.3: Understand the Recruitment Methods and Alternatives 105

Learning Objective 5.4: Understand the Employee Selection Process 106

Learning Objective 5.5: Understand the Employee Selection Tests and their Characteristics 107

Learning Objective 5.6: Understand the Employment Interview Process 108

Learning Objective 5.7: Understand the Pre-Employment Screening Process 108

Learning Objective 5.8: Understand the Employee Training and Development Process 109

Learning Objective 5.9: Understand the Management Development Process 110

Learning Objective 5.10: Understand the Organization Development Process 111

Learning Objective 5.11: Understand the Career Planning and Development Process 112

Learning Objective 5.12: Understand the Employee Performance Appraisal Process 113

Learning Objective 5.13: Understand the Employee Relations Issues 114

Learning Objective 5.14: Compute the Human Capital Metrics 116

Learning Module 6 Accounting 119

Learning Objective 6.1: Understand the Basic Concepts of Financial Accounting 120

Learning Objective 6.2: Understand the Purpose of the Accounting Cycle 121

Learning Objective 6.3: Understand the Types and Contents of Financial Statements 122

Learning Objective 6.4: Understand the Intermediate Concepts of Financial Accounting 128

Learning Objective 6.5: Understand the Advanced Concepts of Financial Accounting 132

Learning Objective 6.6: Learn How to Analyze Financial Statements 133

Learning Objective 6.7: Understand Various Cost Concepts and Cost Behaviors 140

Learning Objective 6.8: Understand the Principles and Techniques of Operating Budgets 143

Learning Objective 6.9: Understand the Application of Transfer Pricing 146

Learning Objective 6.10: Understand the Application of Cost-Volume-Profit Analysis 148

Learning Objective 6.11: Understand the Meaning and Application of Relevant Costs 150

Learning Objective 6.12: Understand Various Costing Systems for Products and Services 151

Learning Objective 6.13: Understand the Meaning and Application of Responsibility Accounting 152

Learning Module 7 Finance 153

Learning Objective 7.1: Understand the Need for Financial Plans and Controls 154

Learning Objective 7.2: Understand the Principles and Techniques of Cash Management 157

Learning Objective 7.3: Understand the Techniques of Managing Current Assets 160

Learning Objective 7.4: Understand the Various Types of Debt and Equity in a Capital Structure 163

Learning Objective 7.5: Understand the Techniques for Evaluating the Cost of Capital 169

Learning Objective 7.6: Understand the Principles and Techniques of Capital Budgeting 171

Learning Objective 7.7: Understand the Various Types and Risks of Financial Instruments 179

Learning Objective 7.8: Understand the Various Types of Valuation Models 182

Learning Objective 7.9: Understand the Nature of Business Mergers and Acquisitions 185

Learning Objective 7.10: Understand the Implications of Dividend Policies, Stock Splits, Stock Dividends, and Stock Repurchases 187

Learning Module 8 Information Technology 191

Learning Objective 8.1: Understand How to Plan and Manage the Information Technology Function 192

Learning Objective 8.2: Understand How Business Application Systems are Developed and Maintained 196

Learning Objective 8.3: Understand How Business Application Systems are Operated and Improved 198

Learning Objective 8.4: Understand the Need for Contingency Plans to Ensure the Continuity of Business Operations 201

Learning Objective 8.5: Understand How Information Technology Operations Are Managed 207

Learning Objective 8.6: Understand the Technology Behind Computer Network Management 211

Learning Objective 8.7: Understand how to Manage the Information Technology Security Function 217

Learning Objective 8.8: Understand How Databases are Designed and Managed 223

Learning Objective 8.9: Understand How Electronic Commerce is Facilitated and Managed 228

Learning Module 9 Corporate Control, Law, Ethics, and Governance 235

Learning Objective 9.1: Understand the Nature and Types of Corporate Control Systems 236

Learning Objective 9.2: Understand the Nature and Types of Corporate Risk 241

Learning Objective 9.3: Understand the Scope and Nature of Business Law, Policy, and Ethics, Including Social Responsibility 247

Learning Objective 9.4: Understand the Various Issues in Corporate Governance 256

Learning Objective 9.5: Understand the Nature and Types of Corporate Audits 260

Learning Objective 9.6: Understand the Nature and Types of Corporate Fraud 263

Learning Objective 9.7: Understand the Issues in Corporate Law Regarding Agency Problems and Costs 266

Learning Module 10 International Business 269

Learning Objective 10.1: Understand How to Develop and Manage International Business Strategies 269

Learning Objective 10.2: Understand the Various Issues in International Trade and Investment 271

Learning Objective 10.3: Understand the Nature of International Production Economics 275

Learning Objective 10.4: Understand the Nature of International Trade Laws 276

Learning Objective 10.5: Understand the Various Issues in International Financial Systems 280

Learning Objective 10.6: Understand How to Staff and Manage International Operations 281

Learning Objective 10.7: Understand the Various Issues in Conducting International Business in Cross Cultures 281

Learning Module 11 Project Management 287

Learning Objective 11.1: Define Project Management and Identify Success Criteria for Projects 287

Learning Objective 11.2: Understand the Various Types of Risks in Project Management 289

Learning Objective 11.3: Understand the Various Types of Project Structures and Organizations 291

Learning Objective 11.4: Understand the Project Management Process, Including its Lifecycles 294

Learning Objective 11.5: Understand the Various Methods in Project Planning, Estimating, Controlling, and Reporting 296

Learning Objective 11.6: Understand the Various Methods in Project Scheduling 303

Learning Objective 11.7: Understand the Project Management Metrics, Problems, and Governance Mechanisms, Including Project Audits 306

Learning Module 12 Decision Sciences and Managerial Economics 311

Learning Objective 12.1: Learn How to Apply Quantitative Methods to Business 311

Learning Objective 12.2: Understand the Basic Principles and Concepts in Economics 321

Learning Objective 12.3: Understand the Basic Principles and Applications of Microeconomics 322

Learning Objective 12.4: Understand the Basic Principles and Applications of Macroeconomics 325

Learning Objective 12.5: Understand the Basic Principles and Applications of Key Economic Indicators 332

Learning Objective 12.6: Understand the Nature of Economic Business Cycles and Industry Growth Levels 333

References 337

Index 339