Critical Business Skills for Success

What do we mean when we talk about business strategy? Start thinking more smartly about strategy with this introductory look at four key facts about competition and the two drivers of profitability: industry structure and competitive advantage.

Five essential forces shape any business strategy, and together, they create a framework that can help you better make key strategic choices. Central to this discussion of these five strategic forces: Apple's meteoric rise to the top of the market.

Professor Roberto introduces you to the three paths that lead to competitive advantage and four basic competitive strategies. Then, using case studies including JC Penney, IBM, and Dell, he explains both the dangers of straddling between competitive positions.

Passionate customers, tremendous profits, happy employees - the Trader Joe's grocery chain is a powerful business success story. Discover how their secret for success lies in their use of trade-offs to make it hard for imitators and to mitigate the negative effects of the industry.

Discover the strengths - and drawbacks - of being a first mover who establishes a market position and fast followers, who can learn from first movers' mistakes. Along the way, you'll consider relevant examples from industries including video game systems and social media networks.

Netflix's ultimate domination of the video rental market is a classic example of disruptive innovation: a serious threat to traditional business - and often the hardest to respond to.

Get a stronger grip on competitive dynamics and the importance of understanding your competitor. Professor Roberto guides you through powerful lessons from three situations where new entrants did battle with incumbents: NutraSweet with Holland Sweetener Company; British Airways and Aer Lingus with Ryanair; and another perspective on Blockbuster versus Netflix.

Turn now to corporate strategy, which involves determining where to compete, not how. Explore the corporate strategies of horizontal and vertical integration (and their two types) in the context of Disney's acquisition of Pixar animation studios. As a multi-business unit corporate, why build a particular portfolio of businesses?

What happens when the whole is worth less than the proposed sum of the parts? You've got a diversification discount, common for many unrelated diversifiers in the United States, and one that has led to many corporate breakups. If you're going to diversify, you need to do it the smart way. Learn how here.

Professor Roberto explains in more detail vertical integration and its two key directions: forward and backward. Does vertical integration make economic sense? Learn about vertical integration's rationales (and risks) by digging deep into interesting stories of vertical integration involving Disney's retail stores and Zara's "fast fashion" strategy.

Mergers and acquisitions are part of daily life in the business world. Why do some bad deals get done, leaving the acquirer in a trouble spot? When can a hostile takeover be the right strategy to take, and how does one work? What happens if a bidding war occurs? What are some alternatives to merging?

Professor Roberto concludes with a reflection on the challenges of launching your own business. You'll learn what makes entrepreneurship different from leading a complex, large organization; how the simple "marshmallow challenge" reveals different approaches to start-up strategies; and key questions any entrepreneur must answer before starting.

What exactly is operations management, and how can you make it work to your advantage? Turn your attention to operational capabilities: the composite of processes, people, and technology that helps you execute your strategy. Observe a case study featuring both production operations and service operations.

Production operations are the greatest value-adding activity in all of business. Whether you're making the product yourself or through others, explore the decisions involved in successful production operations, and get a glimpse at developments to look for in the future, including 3-D printing and reshoring.

Turn now to service operations, the successful management of which takes into account the psychology of winning customers through great experiences. From the Service Quality Scale to the details of process improvement, find out how to seize the movement where services are increasingly dominating the 21st-century business landscape.

Sales and operations (S&OP) planning integrates a company's sales forecasts with the operations plans from the purchasing, production, and logistics departments. Learn how qualitative and quantitative forecasts are used to gather and share information; how the principles of S&OP can help you better match your supply and demand; and more.

Master the fundamentals of right-sizing your inventory through inventory management. Specifically, focus on four basic strategies used to maintain just the right amount of inventory.

Supply management is the one department that accounts for well over half of a company's total spend, and involves decisions that impact its long-term profitability. By examining fundamental questions about what to buy and how to select suppliers, you'll leverage effective supply management practices that can set you apart from the crowd.

Logistics are responsible for ensuring that the right products are available in the right quantities at the right time to meet customer expectations. Professor Goldsby introduces you to three key aspects of logistics, including its role in providing "reach" and the movement, storage, and technology used to meet customer requirements.

Ways to improve business processes are indispensable to success. Gain simple tools and methods for improving the processes that matter to your organization. Learn how to create and use powerful, yet simple tools called process maps.

Why is performance measurement so important to the health of an organization? How do the four dimensions of the "Balanced Scorecard" framework (financial performance, customer assessment, internal business process, and learning and growth) work? What is the "triple-bottom-line" approach, and how does it measure sustainable business performances?

Obliterate the assumption that all business is good business. Instead, come up with more precise numbers that show how different customers affect your business by understanding the contribution margin.

Among the most pervasive developments in business organization over the past few decades is supply chain management. Learn how this discipline, a higher order of operations management, uses your network of suppliers and customers to achieve maximum effectiveness and help you better leverage your company's supply chain.

Professor Goldsby introduces you to the hottest topic in modern business: risk management. How can you overcome perilous situations, or dampen their effects? What are common internal and external risks to an organization? And how will tools like the "Failure Mode and Effects Analysis" help you identify and prioritize them?

This introduction unpacks some key concepts in accounting and finance; dispels some common myths about accounting; and gives you a helpful overview of three essential statements companies routinely prepare to communicate critical financial data to shareholders and owners.