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June 16, 2005

Five (six) things I learned in business school

From Fred Wilson: The Five Things I Learned In Business School. I tried this exercise with my parents a few months ago. His is more finance-heavy, maybe it's a Wharton vs. Cornell thing. Note the first is the same for both of us. Here's my updated list:

  1. Finance: the time value of money. Everybody knows a dollar today is worth more than a dollar tomorrow but before b-school I never really understand understood (clearly spelling/grammar is not one of them) the underpinings and the scale of the concept.
  2. Management: incentives are everything, or... people generally do exactly that for which they will be rewarded.
  3. Strategy: industry structures are not formed by God, but rather by real people making active decisions. Why does Dell make $3b per year while many of their suppliers struggle to survive? It's not just luck.
  4. Accounting: "postcard from Bolivia" - my professor says not to write off a receivable till you receive a "postcard from Bolivia." He still receives real postcards from students visiting Bolivia.
  5. Econ: opportunity costs matter - always acknowledge and quantify them.
  6. Marketing: marketing is not just advertising. When you buy an Apple product, it comes in beautiful packaging and is a pleasure to open. Marketing encompasses product definition and every customer interaction.

Posted by sam at 08:57 PM