A
- AAA (American Automobile Association), 143, 145
- accounts payable, 210
- accounts receivable, 209
- accrued expenses payable, 210
- accumulated retained earnings, 211
- action plan section
- overview, 21–22
- sample, 373–375
- addressable market, 75
- Adidas, 97
- Adobe Systems, 138
- advisor leadership style, 327
- affiliate linking, 192
- Airbnb, 273
- Aldi, 153
- Alibaba, 88, 105, 132
- alpha testing, 114–115
- AM General Corporation, 76, 90
- Amazon, 65, 88, 105, 107, 149, 169, 172, 175, 194–196, 243, 273, 278–279
- American Airlines, 69
- American Automobile Association (AAA), 143, 145
- American Express, 143
- American Public University System, 269
- American Red Cross, 55
- Ansoff, Igor, 292
- Ansoff Matrix, 292–293
- new market, existing product, 293, 296–297
- new product and new market, 293, 300–302
- new product, existing market, 293, 297, 299
- same product and same market, 292, 294–296
- Apple, 57, 88, 115, 149, 243, 275
- Ask For Funding, 36
- Aspen Institute, 48, 260
- asset turnover, 232
- assets, 207–210, 228–229
- AT&T, 195
B
- B2B (business-to-business), 100, 109, 134–138
- B2C (business-to-consumer), 99–100, 134, 137
- Baby Boomers, 120, 157
- backward integration, 150
- bad customers, 122–123
- behavior of, 122
- handling, 123
- reforming, 122
- balance sheets, 21, 206–211
- assets, 207–210
- accounts receivable, 209
- current assets, 207, 209
- fixed assets, 209–210
- intangibles, 210
- inventories, 209
- liquid, 207
- defined, 206–207
- estimated balance sheets, 228–230
- liabilities, 207, 210–211
- accounts payable, 210
- accrued expenses payable, 210
- current liabilities, 210
- long-term liabilities, 211
- owners’ equity, 210–211
- accumulated retained earnings, 211
- invested capital, 211
- Barnard, Chester, 60
- BCG (Boston Consulting Group), 305
- Bell, Alexander Graham, 195
- Benioff, Marc, 44
- Berkshire Hathaway, 302
- beta testing, 115
- Bezos, Jeff, 74, 196
- Biden, Joe, 246
- Big Five Personality Test, 328–329
- Blockbuster Video, 191, 243
- Bloomberg BusinessWeek, 260
- BMW, 56, 300
- Booking.com, 144
- Booz Allen Hamilton, 48
- boss leadership style, 327
- Boston Consulting Group (BCG), 305
- bottom-of-the-pyramid opportunities, 91
- Boulevard of Broken Seams, 88
- BRIC countries (Brazil, Russia, India, and China), 130–131
- bridge financing, 32
- British Library, 13
- budgets, 221, 233–238
- creating, 234–238
- bottom-up approach, 237–238
- starting point, 236
- top-down approach, 236–237
- importance of, 234
- as incentive, 238
- master budget, 234
- mistaking budget for plan, 351
- business customers
- decision-making process, 136
- derived demand, 135
- forces to be reckoned with, 136–137
- questions to consider, 137
- unique forces, 138
- business environment, 69–93
- critical success factors, 85–88
- adopting new technologies, procedures, and policies, 86
- business drivers, 86–87
- company name, 88
- defined, 85
- distribution, 87
- government regulation, 88
- importance of, 88
- location, 87
- marketing, 87–88
- priorities, 86
- specificity, 85
- industry analysis, 71–84
- finances, 80–82
- markets, 75–78
- questionnaire, 71–72
- relationships, 78–80
- structure, 73–75
- supporting data, 82–84
- SWOT analysis, 89–93
- defined, 89
- opportunities, 89–91
- threats, 92–93
- understanding underlying forces that shape, 70
- business environment section
- how industry operates, 19
- opportunities and threats, 19
- overview, 19
- sample, 357–361
- business model, 190–197
- competitive advantage, 194–195
- core competence, 195–196
- making money from plan, 191
- sustained competitive advantage, 196–197
- timing, 193
- business plans
- art and science, 28–29
- assumptions, 25
- budgets, 221, 233–238
- creating, 234–238
- importance of, 234
- master budget, 234
- business environment, 69–93
- critical success factors, 85–88
- industry analysis, 71–84
- SWOT analysis, 89–93
- understanding underlying forces that shape, 70
- change, 241–263
- anticipating, 259–261
- dangers of ignoring, 242–243
- dimensions of, 243–259
- preparing for, 261–263
- collecting ideas, 27–28
- company culture, 329–332
- competition, 139–160
- competing against, 158–160
- identifying, 142–151
- predicting, 155–158
- tracking, 151–154
- value of competitors, 140–142
- constituencies, 27
- customers, 117–138
- behavior, 124–127
- big picture, 118–119
- business customers, 134–138
- categorizing, 119–124
- decision-making process, 128–129
- global customers, 130–131
- market segmentation, 96–113
- serving better, 132–134
- detailed view of future, 25
- financial statements, 201–220
- balance sheets, 21, 206–211
- cash-flow statements, 21, 211–214
- financial ratios, 214–220
- income statements, 21, 203–206
- overview, 201–202
- forecasts, 221–233
- assumptions, 222–223
- DuPont formula, 231–233
- estimated balance sheets, 228–230
- flawed numbers, 223
- pro-forma income statements, 224–228
- projected cash-flow statements, 230
- format
- hard copy vs. soft copy, 17
- length of, 17
- function of, 1–2
- goals and objectives lists, 57–66
- creating business goals, 61
- creating business objectives, 62
- efficiency vs. effectiveness, 60
- goals, defined, 58–59
- GOWN acronym, 59
- importance of, 57–58
- keeping mission on track through goals, 64–65
- matching to mission, 62–63
- objectives, defined, 59
- SMART approach, 58
- time frame for reaching, 63, 65–66
- good ideas vs. investment, 24
- growth, 285–311
- benefits of, 309–310
- expanding, 292–302
- managing, 310–311
- product life cycle, 286–292
- product portfolio management, 302–308
- importance for small companies, 26
- importance of, 23–37
- leadership, 325–329
- from front vs. from back, 326
- personality traits, 328–329
- skills, 329
- styles of, 327–328
- lending resources, 33–37
- market strategies, 95–115
- market segmentation, 96–113
- test marketing, 113–115
- mission statements, 51–66
- creating, 54
- effective, 52
- examples of, 55–56
- keeping on track through goals, 64–65
- length of, 52
- matching goals and objectives to, 62–63
- mission creep, 54
- origin of, 52
- overview, 51
- preparing for, 53–54
- product categories, 56
- tangible image of company, 55
- understanding business, 53
- understanding customer, 53
- mistakes, 349–353
- allowing one person to dominate plan, 352
- avoiding reasonable risk, 351
- failure to plan, 349
- faking plans, 353
- fear of change, 352
- ignoring strengths, 351
- lack of motivation and reward, 352
- lack of values, 350
- lack of vision, 350
- mistaking budget for plan, 351
- second-guessing customers, 350
- underestimating competition, 350
- ongoing process, 30
- organizational structure, 315–323
- basic design, 317
- choosing, 321
- divisional format, 318–319
- dynamic capabilities model, 322–323
- form follows function, 315–317
- functional model, 318
- management levels, 320–321
- matrix format, 319–320
- past performance, 26
- planning process, 24–25
- prediction vs. process, 1, 8
- preparing to create, 77–1
- assembling planning team, 14–16
- format, 17
- identifying planning resources, 8–14
- questions to consider, 343–347
- conciseness of plan, 347
- goals and mission in sync, 343
- knowing customers, 344–345
- knowing strengths and weaknesses, 345
- pointing to major opportunities, 344
- preparation for threats, 344
- readiness for change, 346–347
- standing behind numbers, 346
- strategy makes sense, 346
- tracking competitors, 345
- up-to-date plan, 347
- worst that could happen, 347
- revenue and profit growth, 29
- sample, 355–380
- sections of, 17–22, 355–380
- action plan, 21–22, 373–375
- business environment, 19, 357–361
- company description, 19–20, 362–365
- company overview, 18–19, 356–357
- company strategy, 20, 365–369
- executive summary, 17–18, 356
- financial review, 20–21, 369–372
- self-assessment, 163–181
- overview, 163–164
- SWOT analysis, 164–180
- SWOT grid, 180–181
- signs that plan needs refreshing, 337–341
- competition heats up, 339
- costs increase, 340
- failure to meet milestones, 338
- goals change abruptly, 338
- growth occurs too quickly, 341
- important customers defect, 339
- morale slumps, 340
- new technology, 338
- product demand falls, 339
- projections don’t pan out, 340
- revenues fall, 340
- unwanted surprises, 341
- stakeholders, 30–31
- strategic thinking, 28–30
- strategy, 265–284
- creating, 284
- evolution of new models, 279–280
- generic strategies, 265–278
- market leaders and the market followers, 281–283
- outsourcing and offshoring, 280
- value chain, 183–199
- business model, 190–197
- defined, 184
- developing, 187–189
- earmarking resources, 197–199
- links in, 184–186
- summarizing key business activities, 184
- value equation, 183
- value proposition, 189–190
- values statements, 39–48
- black-or-white philosophy, 41
- creating, 46–48
- crises, 43–44
- defined, 42, 44
- ethics and legal issues, 42–43
- following through, 48
- imagining response to difficult dilemmas, 46
- importance of, 39–41, 44–45
- promoting during annual employee performance reviews, 48
- stakeholders, 46
- terms to avoid, 48
- utilitarianism, 41–42
- venture capital, 31–33
- vision statements, 48–50
- changing, 49–50
- creating, 49
- defined, 48
- following through, 332
- business-to-business (B2B), 100, 109, 134–138
- business-to-consumer (B2C), 99–100, 134, 137
C
- California State Association of Counties, 83–84
- calls to action (CTAs), 129
- Campbell Soup, 301
- Canon, 259
- Capterra, 113, 202
- Carnegie, Andrew, 186
- Carvana, 105
- cash-flow statements, 21, 211–214
- buildings, equipment, machinery, 214
- cost of goods produced, 213
- defined, 211
- dividend distribution to owners, 214
- dividend income, 213
- gross receipts on sales, 213
- interest expense and taxes, 214
- interest income, 213
- invested capital, 213
- long-term debt reduction, 214
- projected cash-flow statements, 230
- sales, general, and administration expense, 213
- Census Bureau, 83
- centralized finance (Ce-Fi) lenders, 36
- Certified Development Company (CDC/504) program, 34
- Chamber of Commerce, 13
- Chandler, A.D., Jr., 316
- change, 241–263
- anticipating, 259–261
- dangers of ignoring, 242–243
- examples of, 242–243
- excuses, 242
- dimensions of, 243–259
- cultural trends, 253–255
- economic trends, 248–253
- governmental trends, 244–248
- technological trends, 255–259
- fear of, 352
- preparing for, 261–263
- readiness for, 346–347
- size of company and, 252
- skill in dealing with, 329
- Churchill, Winston, 327
- Cisco Systems, 64–65, 294
- CLV (customer lifetime value), 132–133
- Coca-Cola, 57, 150, 293–294
- COGS (cost of goods sold), 205, 226
- Colgate, 301
- colleague leadership style, 327
- Columbia Pictures, 293
- commodities marketplace, 77
- communication skills, 329
- company culture, 329–332
- company description section
- capabilities and resources, 19–20
- consumer viewpoint, 20
- overview, 19–20
- sample, 362–365
- company overview section
- overview, 18–19
- planning documents, 18–19
- sample, 356–357
- company strategy section
- alternative possibilities for action, 20
- overview, 20
- sample, 365–369
- Company Strengths and Weaknesses Questionnaire, 165
- competition, 139–160
- analyzing, 158–160
- choosing battles, 160
- profiling, 160
- resources, 158–160
- identifying, 142–151
- customer choice, 143–145
- future competition, 149–151
- product and service usage, 146
- product-selection process, 145
- strategic groups, 147–149
- industry structure, 73–74
- predicting, 155–158
- assumptions, 156–158
- goals, 155–156
- refreshing plans when competition heats up, 339
- tracking, 151–154, 345
- capabilities, 151–153
- strategies, 153–154
- underestimating, 350
- understanding rival’s customers, 123–124
- value of competitors, 140–142
- competitive advantage, 194–197
- defined, 195
- sustained competitive advantage, 196–197
- concreteness in language, 134
- confirmation bias, 157
- construction industry, 298
- Coors, 301
- core competence, 195–196
- corporate social responsibility (CSR), 331
- cost of goods produced, 213
- cost of goods sold (COGS), 205, 226
- Costco, 105, 150, 153, 269
- cost-per-thousand (CPM) ratio, 112
- costs, 205–206
- cost of goods sold, 205
- depreciation expense, 205
- increasing, 340
- interest expense, 205
- sales, general, and administration expense, 205
- taxes, 206
- COVID-19 pandemic, 43, 57, 79, 105, 175, 194, 246–247, 251, 278
- CPM (cost-per-thousand) ratio, 112
- Craftsman, 126
- Craigslist, 192
- critical success factors (CSFs), 85–88, 177–180
- adopting new technologies, procedures, and policies, 86
- business drivers, 86–87
- capabilities and resources compared to, 178–179
- company name, 88
- defined, 85, 177
- distribution, 87
- government regulation, 88
- importance of, 88
- location, 87
- marketing, 87–88
- priorities, 86
- specificity, 85
- CSR (corporate social responsibility), 331
- CTAs (calls to action), 129
- cultural trends, 253–255
- demographic changes, 253
- lifestyle changes, 254–255
- social changes, 254
- currency value, 251, 253
- current assets, 207, 209, 228
- current liabilities, 210, 229
- current ratio, 216
- customer interviews, 114
- customer lifestyle, 102
- customer lifetime value (CLV), 132–133
- customer profiles, 101–102
- customer service units, 134, 169–170
- customer value equation, 141
- customers, 96–113, 117–138
- behavior, 124–127
- customer motives, 127
- customer needs, 125–127
- benefits of, 96–97
- big picture, 118–119
- business customers, 134–138
- decision-making process, 136
- derived demand, 135
- forces to be reckoned with, 136–137
- questions to consider, 137
- unique forces, 138
- categorizing, 119–124
- bad customers, 122–123
- generations, 120–121
- understanding rival’s customers, 123–124
- data analytics and privacy, 125
- decision-making process, 128–129
- defection of, 339
- global customers, 130–131
- good customers, 96, 121
- identifying, 122, 344–345
- benefits, 108–109
- decision-making, 108–110
- demographic data, 101
- distribution and delivery, 105–106
- features, 103–104, 108
- geographic data, 100–101
- lifestyle, 102
- packaging, 104
- pricing, 104–105
- profiles, 101–102
- what customers buy, 103–106
- who buys, 98–103
- why customers buy, 107–110
- identifying competition based on customer choice, 143–145
- second-guessing, 350
- serving better, 132–134
- studying customer base, 168–170
- test marketing, 113–115
- useful segments
- identifying customers, 111
- reaching market, 111–113
- scaling, 110–111
D
- D&B Hoovers, 83
- D2C (direct to consumer), 80, 175
- data analytics, 106–107, 125
- Dean and DeLuca, 105
- debt-to-equity, 218
- decentralized finance (De-Fi) lenders, 36
- decision-making process (DMP), 108–110, 128–129
- actual decision-makers, 109
- business customers, 136
- customer loyalty, 109–110
- five-step adoption process, 129
- level of product use, 109–110
- perceptions of reality, 128
- speed of purchase decisions, 109
- decision-making units (DMUs), 109, 136
- decline stage in product life cycle, 286–287, 290
- De-Fi (decentralized finance) lenders, 36
- delivery, 105–106
- Deloitte, 260
- demographic changes, 253
- demographic data, 101
- depreciation, 227
- depreciation expense, 205
- DeWalt, 126
- diffusion curve, 255–256
- dimensions of change
- cultural trends, 253–255
- demographic changes, 253
- lifestyle changes, 254–255
- social changes, 254
- economic trends, 248–253
- currency value, 251, 253
- GDP, 249
- inflation rates, 250–251
- interest rates, 249–250
- governmental trends, 244–248
- executive branch, 246
- foreign governments, 247–248
- judicial branch, 246–247
- legislative branch, 246
- local and state governments, 247
- reaction cycle, 245
- technological trends, 255–259
- diffusion curve, 255–256
- personality types, 256–258
- tracking, 258–259
- direct marketing, 111–112
- direct to consumer (D2C), 80, 175
- Disaster Loan Programs, 34
- distribution channels, 80, 91, 105, 174–175
- distribution systems, 79
- dividend distribution to owners, 214
- dividend income, 213
- divisional format, 318–319
- DMP. See decision-making process
- DMUs (decision-making units), 109, 136
- Dollar Shave Club, 150
- Doritos, 173–174
- Drucker, Peter, 53, 63
- Dun & Bradstreet
- Industry Handbook, 84
- Industry Norms and Key Business Ratios, 215
- Reports, 83
- DuPont formula, 231–233
- components of, 232–233
- DuPont chart, 232
- what-if analysis, 233
- Dylan, Bob, 252
- dynamic capabilities model, 322–323
E
- early adopters, 256–258
- early majority, 257
- earnings before interest expense and taxes (EBIT), 218
- Eastman, George, 70
- Eastman Kodak, 70–71, 259
- eBay, 91, 105, 131–132, 175, 192, 273
- economic trends, 248–253
- currency value, 251, 253
- GDP, 249
- inflation rates, 250–251
- interest rates, 249–250
- economies of scale, 74, 80
- Economist, 260
- ecosystem partners, 280
- Edible Complex, The, 88
- Edison, Thomas, 303
- 80 percent experience curve, 271
- Einstein, Albert, 206
- elevator pitches, 18
- Encyclopedia of Emerging Industries, 84
- Encyclopedia of Global Industries, 84
- enhanced products, 119
- entry barriers, 74–75
- environmental scanning, 243–244
- Equifax, 45
- ESG (environment, social issues, governance), 331
- estimated balance sheets, 228–230
- assets, 228–229
- liabilities, 229
- owners’ equity, 230
- Etsy, 105
- executive branch, 246
- executive summary section
- length of, 18
- overview, 17–18
- sample, 356
- summarize, say, reiterate, 18
- exit barriers, 75
- expansion, 292–302
- Ansoff Matrix, 292–293
- new market, existing product, 296–297
- new product and new market, 293, 300–302
- new product, existing market, 293, 297, 299
- same product and same market, 292, 294–296
- steps for, 293–294
- Expedia, 144
- experience curve, 81, 269–272
- defined, 269
- 80 percent experience curve, 271
- intangibles, 270
- learning, 271
- scale, 270–271
- scope, 271
F
- Facebook, 107, 191, 243, 273, 291
- fast-moving consumer goods (FMCGs), 119, 150, 268
- Federal Reserve Bank, 250
- Federal Trade Commission, 83
- FedEx, 35
- FICO scores, 202
- financial ratios, 214–220
- defined, 215
- long-term responsibilities, 217–218
- debt-to-equity, 218
- times interest earned, 218
- profitability, 218–220
- defined, 218
- net profit margin, 219
- return on equity, 220
- return on investment, 219–220
- short-term obligations, 215–217
- current ratio, 216
- inventory turnover, 216–217
- quick ratio, 216
- receivables turnover, 217
- financial review section
- financial documents, 21
- financial projections, 21
- overview, 20–21
- sample, 369–372
- financial statements, 201–220
- balance sheets, 21, 206–211
- cash-flow statements, 21, 211–214
- financial ratios, 214–220
- income statements, 21, 203–206
- overview, 201–202
- Financial Times, 260
- first-stage financing, 32
- first-tier competitors, 144–145
- fixed assets, 209–210, 229
- Fluor Corporation, 298
- FMCGs (fast-moving consumer goods), 119, 150, 268
- FNB Bank, 37
- focus strategy, 267, 276–278
- defined, 277
- difficulties of, 278
- limited territory, 277
- niche markets, 277
- Food and Drug Administration, 88
- Forbes, 260
- Ford, Henry, 97, 172, 292
- Ford Motor Company, 42, 57, 69, 97–98, 172
- forecasts, 221–233
- assumptions, 222–223
- DuPont formula, 231–233
- estimated balance sheets, 228–230
- assets, 228–229
- liabilities, 229
- owners’ equity, 230
- flawed numbers, 223
- pro-forma income statements, 224–228
- anticipated costs, 226–228
- defined, 224
- projected revenue, 224–226
- projected cash-flow statements, 230
- Foreign Affairs, 260
- foreign governments, 247–248
- forward integration, 150
- Fox, 111
- freemiums, 9, 192
- Frontgate, 105
- Fuld+Company, 159
- functional model, 318
- Functions of the Executive (Barnard), 60
G
- Gallup, 64
- game theory, 155
- Gary, Elbert, 186
- Gates, Bill, 309–310
- GDP (Gross Domestic Product), 249
- Gen Xers, 120, 330
- Gen Zers, 105, 121
- General Electric (GE), 155–156, 243, 302–303, 310–311
- General Motors (GM), 26, 69, 76, 98, 118, 242
- geographic data, 100–101
- gig economy, 273
- global customers, 130–132
- globalization, 65, 74, 86, 130–131, 149–150, 153, 169, 247, 251, 266, 281, 323, 329
- goals, objectives, words, numbers (GOWN), 59
- goals and objectives lists, 57–66
- creating business goals, 61
- creating business objectives, 62
- defined, 19
- efficiency vs. effectiveness, 60
- goals, defined, 58–59
- GOWN acronym, 59
- importance of, 57–58
- keeping mission on track through goals, 64–65
- matching to mission, 62–63
- objectives, defined, 59
- sample, 363
- SMART approach, 58
- time frame for reaching, 63, 65–66
- Goldman Sachs, 243
- Google, 55, 58, 107, 115, 176, 191, 243, 256, 275
- governmental trends, 244–248
- executive branch, 246
- foreign governments, 247–248
- judicial branch, 246–247
- legislative branch, 246
- local and state governments, 247
- reaction cycle, 245
- GOWN (goals, objectives, words, numbers), 59
- Great Place To Work, 44
- Gross Domestic Product (GDP), 249
- gross receipts on sales, 213
- gross revenue on sales, 204
- Groth, Kristian, 355
- growth, 285–311
- benefits of, 309–310
- expanding, 292–302
- Ansoff Matrix, 292–293
- new market, existing product, 293, 296–297
- new product and new market, 293, 300–302
- new product, existing market, 293, 297, 299
- same product and same market, 292, 294–296
- steps for, 293–294
- managing, 310–311
- occurring too quickly, 340
- product life cycle, 286–292
- decline stage, 290
- determining current stage, 290–292
- growth stage, 288–289
- introduction stage, 287–288
- maturity stage, 288–289
- product portfolio management, 302–308
- Growth-Share Grid, 305–308
- portfolio analysis, 304–308
- strategic business units, 302–304
- growth stage in product life cycle, 286–289
- Growth-Share Grid, 305–308
H
- Haas School of Business, 56
- Handbook of North American Industry, 84
- Hanes, 175
- Harley-Davidson, 293
- Harvard Business Review, 169–170
- head-to-head competitors, 144–145
- Hewlett-Packard, 243, 259
- Hierarchy of Needs model, 126
- Home Depot, 105, 126, 131–132
- Honda, 196, 275
- Hsieh, Tony, 169–170
- Huawei, 65, 150
- Hyundai, 157
I
- IBM, 242, 280, 310
- IdeaPros, 36
- Immelt, Jeff, 311
- In Search of Excellence, 243
- income statements, 21, 203–206
- costs, 205–206
- cost of goods sold, 205
- depreciation expense, 205
- interest expense, 205
- sales, general, and administration expense, 205
- taxes, 206
- defined, 203
- net profit, 203
- profits, 206
- gross profit, 206
- net profit, 206
- operating profit, 206
- profit before taxes, 206
- pro-forma income statements, 203, 224–228
- revenue, 203–204
- gross revenue on sales, 204
- incumbents, 74
- independent thinking skills, 329
- indirect competitors, 145
- industry analysis, 71–84
- finances, 80–82
- costs, 80–81
- profit margins, 81–82
- markets, 75–78
- growing vs. shrinking, 76
- product differentiation, 77
- product substitution, 77–78
- size, 75–76
- questionnaire, 71–72
- relationships, 78–80
- customer satisfaction, 79
- distribution channel, 79–80
- supply and demand, 78–79
- structure, 73–75
- entry barriers, 74–75
- exit barriers, 75
- rivals, 73–74
- technology, 74
- inflation rates, 250–251
- information management skills, 329
- initial capital, 177
- innovators, 256–258
- intangibles, 210
- Intel, 114
- interest coverage, 218
- interest expense, 214, 227
- interest income, 213
- interest rates, 249–250
- introduction stage in product life cycle, 286–288
- inventories, 209
- inventory turnover, 216–217
- invested capital, 211, 213
- IRS, 10
- ITT Industries, 243
J
- JCPenney, 278
- JIT (just-in-time), 90
- Jobs, Steve, 29, 74
- John Deere, 150
- John Wiley & Sons, Inc., 56
- Johnson & Johnson, 146
- judicial branch, 246–247
- just-in-time (JIT), 90
L
- laggards, 256–257
- late majority, 257
- leadership, 325–329
- from front vs. from back, 326
- personality traits, 328–329
- skills, 329
- styles of, 327–328
- leadership styles, 327–328
- learning curves, 81
- legislative branch, 246
- lending resources
- bank loans, 33, 36
- bootstrapping, 33
- commercial lines of credit, 36
- credit cards, 35
- crowdfunding, 35–36
- De-Fi lenders, 36
- family and friends, 33, 35
- international, 37
- Small Business Administration, 34
- LGBTQ community, 90
- liabilities, 207, 210–211, 229
- accounts payable, 210
- accrued expenses payable, 210
- current liabilities, 210, 229
- long-term liabilities, 211, 229
- libraries, 13, 83–84
- Library of Congress, 215
- lifestyle
- customer lifestyle, 102
- lifestyle changes, 254–255
- LinkedIn, 190
- liquidity, 207, 215
- list brokers, 112
- local governments, 247
- long-term debt reduction, 214
- long-term liabilities, 211, 229
- long-term ratios, 217–218
- debt-to-equity, 218
- times interest earned, 218
- low-cost leadership strategy, 267–274
- experience curve, 269–272
- defined, 269
- 80 percent experience curve, 271
- intangibles, 270
- learning, 271
- scale, 270–271
- scope, 271
- low-cost culture, 272–274
- no-frills products, 268–269
- platforms vs. pipelines, 272–273
- Lucaz, Cora, 355
- Lyft, 300
M
- Mackey, John, 333
- Macy’s, 105, 278
- Mahindra, 150
- management by objectives (MBO), 63
- Mandela, Nelson, 326
- market followers, 281–283
- market leaders, 281–282
- market pain points, 91
- market segmentation, 96–113
- benefits of, 96–97
- good customers, 96
- identifying segments, 98–110
- benefits, 108–109
- decision-making, 108–110
- demographic data, 101
- distribution and delivery, 105–106
- features, 103–104, 108
- geographic data, 100–101
- lifestyle, 102
- packaging, 104
- pricing, 104–105
- profiles, 101–102
- what customers buy, 103–106
- who buys, 98–103
- why customers buy, 107–110
- useful segments, 110–113
- identifying customers, 111
- reaching market, 111–113
- scaling, 110–111
- Maslow, Abraham, 126
- mass customization, 106–107
- master budget, 234
- matrix format, 319–320
- Mattel, 131–132
- maturity stage in product life cycle, 286–289
- MBO (management by objectives), 63
- McDonald’s, 293–294
- McKinsey & Co, 242, 260
- Merck, 170
- Merrill Lynch, 84
- mezzanine financing, 32
- MicroLoan Program, 34
- Microsoft, 190, 243, 280, 309–310
- Millennials, 101–102, 105, 120–121, 330
- MINI Cooper USA, 56, 175
- Minolta, 259
- mission statements, 51–66
- creating, 54
- defined, 19
- effective, 52
- examples of, 55–56
- following through, 332
- goals in sync with, 343
- keeping on track through goals, 64–65
- length of, 52
- matching goals and objectives to, 62–63
- mission creep, 54
- origin of, 52
- overview, 51
- preparing for, 53–54
- product categories, 56
- sample, 363
- tangible image of company, 55
- understanding business, 53
- understanding customer, 53
- value proposition vs., 189
- monopolies, 73
- monopsonies, 73
- Moody’s, 215
- Morgan Stanley, 84
- Motel 6, 277
- Motorola, 58, 243
- MSNBC, 111
- Musk, Elon, 74, 155
- MySpace, 291
N
- National Federation of Independent Business (NFIB), 10
- National Semiconductor Corporation, 301
- native content, 192
- needs fulfillment, 125–127
- net profit, 203
- net profit margin, 219, 233
- Netflix, 107, 191, 243
- New York Times, 192, 260
- Newell Brands, 301–302
- News Corp., 291
- NFIB (National Federation of Independent Business), 10
- Nike, 97
- Noémie, 105
- no-frills products, 103–104, 268–269
- Nolo, 10
- Northrup Grumman, 301
- Nucor Steel, 177–178
O
- Office Depot, 105
- offshoring, 280–281
- oligopolies, 73
- Omaha Steaks, 105
- online resources
- Ask For Funding, 36
- Big Five Personality Test, 329
- British Library, 13
- California State Association of Counties, 83–84
- Capterra, 202
- Census Bureau, 83
- Cheat Sheet (companion to book), 4
- D&B Hoovers, 83
- Dun & Bradstreet, 215
- Dun & Bradstreet Reports, 83
- Federal Trade Commission, 83
- FNB Bank, 37
- Fuld+Company, 159
- game theory, 155
- Great Place To Work, 44
- Harvard Business Review, 82
- IdeaPros, 36
- IRS, 10
- Kickstarter, 36
- Kiva, 37
- Library of Congress, 215
- Lucidchart, 82
- MindTools, 82
- National Federation of Independent Business, 10
- Nolo, 10
- Numerator, 83
- Open-Source Psychometrics, 329
- Porter Five-Forces Model, 82
- Quicken, 228
- Securities & Exchange Commission, 83
- Service Corps of Retired Executives, 10, 13
- Small Business Administration, 10
- Spotfund, 36
- Standard & Poor Industry Surveys, 83
- Standard and Poor’s Industry Surveys, 215
- StartEngine, 36
- Statista, 83
- Truity, 329
- US Department of Commerce, 83
- US Justice Department, 83
- Zappos and customer service, 170
- OPM (Other People’s Money), 37
- Oracle, 294
- Orbitz, 144
- organizational structure, 315–323
- basic design, 317
- choosing, 321
- divisional format, 318–319
- dynamic capabilities model, 322–323
- form follows function, 315–317
- functional model, 318
- management levels, 320–321
- matrix format, 319–320
- Other People’s Money (OPM), 37
- outsourcing, 280–281
- owners’ equity, 210–211, 230
- accumulated retained earnings, 211
- invested capital, 211
P
- packaging, 104
- paywalls, 192
- PepsiCo, 150, 173
- personality traits, 328–329
- PEST (political, economic, social/cultural, and technological) analysis, 243
- planning resources, 8–14
- books, 9
- business networking organizations, 14
- business organizations, 13
- business-planning software, 12
- caution, 11–12
- current information, 9–11
- direct contact, 11
- fact checking, 12
- online resources, 9–12
- professional help, 12–13
- retired businesspeople, 13
- tailored searches, 11
- you, 8
- planning team, 14–16
- assigning duties, 15
- delegating responsibility, 15
- establishing schedule, 15
- ground rules, 15
- identifying key steps, 15
- organizing around plan, 16
- project director, 16
- senior plan editor, 16
- size of, 15
- size of company and, 14
- willingness of members, 16
- political, economic, social/cultural, and technological (PEST) analysis, 243
- polyopolies, 73
- Porsche, 275
- Porter Five-Forces Model, 82
- portfolio analysis, 304–308
- defined, 304
- Growth-Share Grid, 305–308
- market growth, 306
- problem children, 306
- relative market share, 306
- positive cash flow, 177
- Powell’s Books, 194
- pricing, 104–105
- pro forma statements, 21
- Probability and Impact Grid, 262–263
- Procter & Gamble, 111, 150
- product benefits, 108–109
- product differentiation, 77, 267–268, 274–276
- defined, 274
- packaging, 276
- product features, 275
- service industry, 276
- product features, 103–104, 108
- product life cycle, 256, 286–292
- decline stage, 290
- defined, 286
- determining current stage, 290–292
- growth stage, 288–289
- introduction stage, 287–288
- maturity stage, 288–289
- overview, 286–287
- product portfolio management
- Growth-Share Grid, 305–308
- portfolio analysis, 304–308
- strategic business units, 302–304
- product substitution, 77–78
- profit margins, 81–82
- profitability ratios, 218–220
- defined, 218
- net profit margin, 219
- return on equity, 220
- return on investment, 219–220
- profits, 206
- gross profit, 206
- net profit, 206
- operating profit, 206
- profit before taxes, 206
- pro-forma income statements, 203, 224–228
- anticipated costs, 226–228
- defined, 224
- projected revenue, 224–226
- projected cash-flow statements, 230
- psychographic data, 102
- Public Policy, 260
- Puma, 97
- PwC, 260
R
- R&D (research and development), 170–171
- Rakuten, 105
- receivables turnover, 217
- Regeneron, 170
- repression of innovation (ROI), 89
- research and development (R&D), 170–171
- resiliency, 79
- resource allocation, 197–199
- return on assets (ROA), 219, 232
- return on equity (ROE), 220, 231–232
- return on investment (ROI), 219–220
- revenue, 29, 203–204
- falling, 340
- gross revenue on sales, 204
- projected revenue, 224–226
- Revlon, 119
- Revson, Charles, 119
- “richness vs. reach” dilemma, 112
- ROA (return on assets), 219, 232
- Robinhood, 105
- ROE (return on equity), 220, 231–232
- ROI (repression of innovation), 89
- ROI (return on investment), 219–220
- Rolex, 105, 190
- Ryan Air, 269
S
- Saks Fifth Avenue, 105
- sales, general, and administration (SG&A) expense, 133, 205, 213, 227
- Salesforce, Inc., 44–46
- Sam’s Club, 269
- SBA (Small Business Administration), 10, 13, 34
- SBIC (Small Business Investment Company), 34
- SBUs (strategic business units), 302–304, 318–319
- scaling, 110–111
- scenario planning, 260–261
- Schwab, 84
- Sciutto, Kent, 298
- SCORE (Service Corps of Retired Executives), 10, 13
- Sears, 126, 242, 278
- second-stage financing, 32
- Securities and Exchange Commission (SEC), 11, 83–84
- securities firms, 84
- seed financing, 32
- self-assessment, 163–181
- overview, 163–164
- SWOT analysis, 164–181
- capabilities and resources, 166–177
- Company Strengths and Weaknesses Questionnaire, 165–166
- competition, 180
- completing, 180–181
- critical success factors, 177–180
- frames of reference, 165–166
- overview, 164
- SWOT grid, 180–181
- SellMax, 35
- Sephora, 279
- Service Corps of Retired Executives (SCORE), 10, 13
- SG&A (sales, general, and administration) expense, 133, 205, 213, 227
- Shopify, 190
- short-term ratios, 215–217
- current ratio, 216
- inventory turnover, 216–217
- quick ratio, 216
- receivables turnover, 217
- showrooming, 77
- Silent Generation, 120, 157
- situation analysis, 89
- Slack, 190
- Sloan, Alfred P., Jr., 98
- Small Business Administration (SBA), 10, 13, 34
- Small Business Investment Company (SBIC), 34
- SMART approach (Specific, Measurable, Attainable, Relevant, and Time-bound), 58
- SMEs (subject matter experts), 83
- Smith, Adam, 140
- Smith, Fred, 35
- social changes, 254
- social/cultural, technological, economic, and political (STEP) analysis, 243
- Sony, 71, 259
- Southwest Airlines, 95
- Specific, Measurable, Attainable, Relevant, and Time-bound (SMART approach), 58
- Spirit Airlines, 103–104, 108, 269
- Spotfund, 36
- Spotify, 107
- SPOTS Syndrome (Strategic Plans On Top Shelves), 29
- Square, 250
- stakeholders
- defined, 31
- lending resources, 33–36
- venture capital, 31–33
- Standard and Poor Industry Surveys, 83, 215
- Starbucks, 91, 95, 132–133
- StartEngine, 36
- start-up financing, 32
- state governments, 247
- STEP (social/cultural, technological, economic, and political) analysis, 243
- strategic business units (SBUs), 302–304, 318–319
- strategic groups, 147–149
- dividing competition into, 148–149
- traits of, 147
- variables, 148
- Strategic Plans On Top Shelves (SPOTS Syndrome), 29
- strategy, 95–115, 265–284
- creating, 284
- factors affecting, 279–281
- generic strategies, 265–278
- focus, 267, 276–278
- low cost, 267–274
- overview, 265–266
- product differentiation, 267–268, 274–276
- making sense, 346
- market leaders and the market followers, 281–283
- market segmentation, 96–113
- identifying segments, 98–110
- useful segments, 110–113
- Strategy and Structure, 316
- strengths and weaknesses, opportunities, and threats analysis. See SWOT analysis
- strengths-and-weaknesses grids, 180–181
- Subaru, 90
- subject matter experts (SMEs), 83
- Suite 07, 355
- Sullivan, Louis, 315–316
- Sun Tzu, 160
- Sundance, 105
- supply and demand, 78–79
- sustained competitive advantage, 196–197
- Swatch Group, 154
- SWOT (strengths and weaknesses, opportunities, and threats) analysis, 89–93, 164–181
- capabilities and resources, 166–177
- customer base, 168–170
- digital presence, 171
- distribution and delivery, 174–176
- financial condition, 176–177
- management, 167
- marketing and sales, 173–174
- operations, 172–173
- organization, 168
- research and development, 170–171
- Company Strengths and Weaknesses Questionnaire, 165–166
- competition, 180
- completing, 180–181
- critical success factors, 177–180
- defined, 89
- frames of reference, 165–166
- competitive view, 166
- internal view, 165–166
- outside view, 166
- ignoring strengths, 351
- knowing strengths and weaknesses, 345
- opportunities, 89–91
- bottom-of-the-pyramid opportunities, 91
- changing laws or regulations, 91
- fresh organization models, 91
- new customer segments, 90
- new distribution channels, 91
- new pools of workers, 90
- new processes, 90
- new technology, 89–90
- new uses for old products, 90
- nontraditional new locations, 91
- overview, 164
- sample, 364
- SWOT grid, 180–181
- threats, 92–93
- economic threats, 93
- political threats, 92
- social threats, 92
- technology threats, 92
- synergy, 301–302
T
- Taco Bell, 154
- Taco Bueno, 154
- Target, 105
- Target Roofing & Sheet Metal, 43
- taxes, 227
- team skills, 329
- technological trends, 255–259
- diffusion curve, 255–256
- personality types, 256–258
- tracking, 258–259
- Tesla, 56, 88, 90, 140, 275
- test marketing, 113–115
- alpha testing, 114–115
- beta testing, 115
- customer interviews, 114
- Thomas Cook, 143
- Tiffany & Co., 105
- TikTok, 77, 88
- Time, Inc., 291
- times interest earned, 218
- Timex, 104–105
- T.J. Maxx, 105
- Toyota, 90, 275
- trade associations, 84
- Travelocity, 144
- Tripadvisor.com, 144
- Trip.com, 144
- Trivago, 144
- TSMC, 157
- Turn-Key Construction Group, Inc., 298
- Turo, 300
U
- Uber, 273, 300
- Unilever, 150
- United Airlines, 104
- University of Phoenix, 269
- Upjohn, 146
- US Department of Commerce, 83
- US Justice Department, 83
- US Steel (USX Corporation), 135–136, 186, 242
V
- value chain, 183–199
- business model, 190–197
- competitive advantage, 194–195
- core competence, 195–196
- making money from plan, 191
- sustained competitive advantage, 196–197
- timing, 193
- defined, 184
- developing, 187–189
- framework for, 187–188
- links in, 184–186
- primary links, 185
- supporting links, 185–186
- resource allocation, 197–199
- summarizing key business activities, 184
- value equation, 183
- value proposition, 189–190
- value equation, 141, 183
- value proposition, 189–190
- Value-Line, 215
- values statements, 39–48
- black-or-white philosophy, 41
- creating, 46–48
- crises, 43–44
- defined, 18, 42, 44
- ethics and legal issues, 42–43
- following through, 48
- imagining response to difficult dilemmas, 46
- importance of, 39–41, 44–45
- lack of values, 350
- promoting during annual employee performance reviews, 48
- stakeholders, 46
- terms to avoid, 48
- utilitarianism, 41–42
- venture capital (VC), 31–33
- connecting with, 32
- homework, 33
- overview, 31
- pitch, 33
- terminology, 32
- vision statements, 48–50
- changing, 49–50
- creating, 49
- defined, 18, 48
- following through, 332
- lack of vision, 350
- sample, 363
- Volkswagen, 43
- Volvo, 275
- VUCA (volatility, uncertainty, complexity, ambiguity), 1, 89, 93
W
- Wall Street Journal, 260
- Walmart, 95, 105, 111, 153, 169, 172
- Walt Disney Co., 56
- Walton, Sam, 172
- webrooming, 77
- Weetabix, 301
- Welch, Jack, 155–156, 310
- Wells Fargo, 84
- Whole Foods, 333
- working capital, 221
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