Fundamental Equation of Business

Value = Benefits – Price

To make sure that Value is greater than zero, executives have two – only two – possible strategies:
1) Make price lower
2) Make benefits bigger

Highly Effective Habits

A habit is the intersection of knowledge, skill, and desire.

Knowledge is the theoretical component, the “what” to do and “why” to do it.

Skill is the practical side of “how” to do it. 

Desire is the motivational side, the “want” to do it.

Mad Money

Bulls make money.
Bears make money.
Pigs get slaughtered.

Booyah!

Cynics

A cynic is someone that knows the price of everything and the value of nothing.

The Big Five

1) Return on Investment Capital (ROIC)
2) Equity Growth
3) Earning per Share Growth (EPS)
4) Sales Growth
5) Cash Flow Growth

Marketing

People don’t know what they want – they only want what they know.  Example: people wanted a quicker mode of transportation, but could not express their need for a car.  

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization goals. 

John F. Kennedy’s Consumer Bill of Rights give consumers the Right to Choose, Right to be Heard, Right to be Informed, and Right to be Safe.

Esprit de corps

All.
Together.
Now.

Mission, Vision, Values

Mission: simply delight you…every day.

Vision: To be the first choice of consumers and customers around the world by bringing together innovative ideas, continuous improvement and people who make things happen.

Values: Act with INTEGRITY.  Use IMAGINATION. Be INCLUSIVE. Work as a TEAM. Have PASSION to excel.

Business Priorities

1) Operating Profit
2) Revenue
3) Cash Flow
4) Share