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Learn the essential top business
school concepts; skills and
language whilst keeping your job
and your cash
30DAY
MBA
THE
COLIN BARROW
30DAY
MBA
THE
Learn the essential top business
school concepts; skills and
language whilst keeping your job
and your cash
London and Philadelphia
Publisher’s note
Every possible effort has been made to ensure that the information contained in this
book is accurate at the time of going to press; and the publishers and author cannot
accept responsibility for any errors or omissions; however caused。 No responsibility
for loss or damage occasioned to any person acting; or refraining from action; as a
result of the material in this publication can be accepted by the editor; the publisher
or the author。
First published in Great Britain and the United States in 2009 by Kogan Page
Limited
Apart from any fair dealing for the purposes of research or private study; or
criticism or review; as permi。。ed under the Copyright; Designs and Patents Act
1988; this publication may only be reproduced; stored or transmi。。ed; in any form
or by any means; with the prior permission in writing of the publishers; or in the
case of reprographic reproduction in accordance with the terms and licences issued
by the CLA。 Enquiries concerning reproduction outside these terms should be sent
to the publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street; #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
koganpage
。 Colin Barrow; 2009
The right of Colin Barrow to be identified as the author of this work has been
asserted by him in accordance with the Copyright; Designs and Patents Act 1988。
ISBN 978 0 7494 5412 8
British Library Cataloguing…in…Publication Data
A CIP record for this book is available from the British Library。
Library of Congress Cataloging…in…Publication Data
Barrow; Colin。
The thirty…day MBA : learn the essential top business school concepts; skills
and language whilst keeping your job and your cash / Colin Barrow。
p。 cm。
Includes index。
ISBN 978…0…7494…5412…8
1。 Industrial management。 2。 Management—Study and teaching。 3。 Master of
business administration degree。 I。 Title。
HD31。B36895 2008
650—dc22
2008039238
Typeset by JS Typese。。ing Ltd; Porthcawl; Mid Glamorgan
Printed and bound in India by Replika Press Pvt Ltd
Contents
Introduction 1
1。 Accounting 16
The rules of the game 17; Fundamental conventions 17;
Accounting conventions 21; The rule makers 22;
Bookkeeping – the way transactions are recorded 23; Cash
flow 24; The profit and loss account (ine statement) 28;
The balance sheet 32; Filing accounts 37; Financial ratios 39;
Analysing accounts 40; Accounting ratios 41; Ge。。ing
pany accounts 49; Ratio analysis spreadsheets 51;
Break…even analysis 51
2。 Finance 52
Sources of funds 53; How gearing works 53; Borrowed
money 55; Banks 55; Bonds; debentures and mortgages 57;
Asset…backed financiers 59; Equity 60; Sources of equity
capital 61; Hybrids 68; Cost of capital 69; Investment
decisions 72; Budgets and variances 77
3。 Marketing 81
Ge。。ing the measure of markets 82; Understanding
customers 86; Segmenting markets 90; The marketing
mix 94; Selling 108; Negotiating 110; Market research 111
4。 Organizational behaviour 120
Strategy vs structure; people and systems 121; Structures –
the options 122; Building and running a team 129; The board
of directors 130; People 132; Motivation 140; Leadership 144;
Management 146; Delegation: the essential management
skill 151; Systems 153; Managing change 158
5。 Business history 162
How business history is studied in business schools 163;
Babylon and beyond (4000 。。。。–1000 。。。。) 164; Mediaeval
merchants (1000–1700) 168; The era of ventures (1700–1900)
170
6。 Business law 175
Corporate structures 176; Employment law 180;
Employment legislation 183; Intellectual property 185;
Principles of taxation 190
7。 Economics 195
Schools of economic thought 196; Micro vs macroeconomics
196; Market structures 197; Essential economics 199; Business
cycles 201; Inflation 204; Interest rates 206; Economic policy
and tools 207; More concerns 209
8。 Entrepreneurship 213
Why entrepreneurship ma。。ers 213; Who make good
entrepreneurs? 214; Entrepreneurial categories 217;
Entrepreneurship in practice 220
9。 Ethics and social responsibility 221
Teaching ethics and social responsibility in business
schools 223; Owners vs directors: the start of the ethical
tug of war 223; Understanding stakeholders 226; Mapping
out the stakeholders 226; Assessing obligations 227;
Stakeholder strategies 228; Implementing ethical and
responsible strategies 229; Does being ethical pay off? 231
10。 Operations management 233
Outsourcing and the value chain 234; Production methods
and control 235; Inventory management 240; Quality 242;
Information technology 243
11。 Quantitative and qualitative research and analysis 246
Quantitative research and analysis 247; Qualitative
research and analysis 255; Triangulation 258
12。 Strategy 261
Devising strategy – the overview 263; The experience (or
learning) curve 264; Differentiation 266; Focus 266; Industry
analysis 268; Shaping strategy – tools and techniques 269;
Implementing strategy – business plans 274; What business
are you really in? 277
iv Contents
Appendix: Personal development and lifetime learning 278
Learning for free from the world’s top business schools 279;
The world’s best management development programmes 284;
Free knowledge tools to stay ahead 287; MBA information
resource centre 294; Keeping track of the MBA world 299;
Ranking the schools 302; The standards for business school
applicants 305
Index 307
Contents v
THIS PAGE INTENTIONALLY
LEFT BLANK
vi
Introduction
。 What an MBA knows
。 Why YOU need that knowledge too
。 Where to get MBA knowledge
。 How to use this book
I le。。 the family business; in my case the Army; a。。er a few short years。 I
hadn’t given much thought to a career before I ‘joined up’ and I followed
a similar approach when I le。。。 I found a job in sales and within a year or
so was in a very junior management position。 The pany I worked for
was in the vanguard of some new munications technology that was in
great demand。 One of my clients; a major newspaper publisher; was keen
that we should adapt our product more closely to their needs。 The changes
looked relatively minor; just some alterations to casing; a tweak or two in
programming; and the prospects of some big future orders and mission
cheques looked distinctly possible。
I made the case to my boss; the area sales manager; detailing the likely
level of demand my client would have for the product; the price we could
achieve and when they would need deliveries。 He in turn promised to push
it hard with his boss; the sales and marketing director。 A month went by
and my boss reported back that the directors had considered the proposal
and decided not to proceed。 I thought either my boss had made a poor
presentation of my facts or the board had failed to grasp the nature of the
opportunity。 Either way; I’d lost the chance of an order and big payout。
A few months later; during an evening around the bar at a pany sales
conference with the chairman’s son; who was wisely to pursue a career as
a distinguished playwright; I discovered the truth of what happened to my
irresistible opportunity。 Though profitable; in a modest way; the pany I
worked for was strapped for cash。 In fact the chairman had recently had to
sell his Rolls and buy a Bentley on hire purchase; using the balance to help
pay the wages for a month。 The ‘modest’ tweaks I was proposing called
2 The Thirty…Day MBA
for new moulds from a supplier to which the pany already owed a
small fortune。 I was shortly to discover that the technology on which our
products were based was already about to be overtaken by an international
petitor with a global reach and that the economy was about to go into
one of the UK’s then all…too…frequent economic troughs。
It was a