How business works

348 349HOW BUSINESS WORKS
Index

design 306–07 raw materials costs 140 secondary market 171
environmental responsibility 122 raw materials inventory 139 secondary stock offering 19
evolution 300–11 Recency Bias theory 156 securities and capital markets 170–73
extension 46 recession, employment turnover 82 Securities Exchange Co 153
franchise 22 recruitment and selection 82–83 selling and buying businesses 40–41
levels 180–81 red flags indicating fraud 152 selling price 143
life cycle 184–85 referral markets 209 sensory marketing 206–07
positioning 182–83 relationship marketing 208–09 sensory testing 207
product-process matrix 310–11 remuneration 107 service costing 143
promotion 190–91 reporting line, altering 67 service jobs 272
samples 201 reporting structure 18, 19, 69 share capital, raising 165
professional corporation (PC) 16 research and development costs 115 share split 166–67
profit, corporate failure signs 151 residual value 124 share of voice (advertising) 213
profit-and-loss statement 114–15 retail space optimization 221 shareholders 60–63
profit margin 143 retailers, selling through 188–89
profit maximization 60 retained earnings 150 divestitures 45
profitability ratios 148 retained profits 157 and financial statements 108
profits, retained 157, 168 return on equity (ROE) ratio 148 funds 117
project accounting 101 return on marketing investment liability 16, 17
project management 94–95 and management 18, 19
professional (PMP) 73 (ROMI) 242–43 shares and dividends
time-based management 294–95 revenue recognition principle 113 corporate failure signs 151
tools 94, 295 reverse merger 45 dividends 168–69
promotion of product 190–91 reverse supply chain 330–31 share capital, raising 165
property management 17 rewards and motivation 86–87 share flotation 160–63
prospective costs 141 rights issue shares 165 share value 62, 71, 120, 121, 159
psychological pricing 187 Ritz-Carlton hotel group 279 share value, establishing 166–67
public companies 18–19 robot.txt 231 types 164–65
public issue shares 165 ROI (return on investment) 242 short-term financing 156–59
public limited company (plc) 16 Rolex 18 shortage management 135
public relations 191 RSS (rich site summary) 226 silo mentality 68, 69
push/pull strategy 189, 220, 222 single-member company (SMC) 17
PwC 18, 145 S Six Sigma control 320–21
skimming pricing 186
Q salaries and wages 115, 132, 152 slice and dice data 248
sales small cap listed company 163
quality control 318–19 small and medium-sized enterprises
quality management 308–09 and fraud 152, 153
KPIs 146 (SMEs) 38
total quality management 292–93 pipeline 238 social economic scale 261
quality product positioning 182 pitch 239 social enterprise 25
questionable costs 141 promotion 191, 205 social graph 229
revenue 132 social lead targeting 211
R tracking 249 social media marketing 228–29
sales tax 106
radio marketing 201, 210, 213 salvage/scrap/residual value 124 and benchmarking 327
raising money see funding search algorithm 231 big data 262
raw data 251 search engine optimization (SEO) and branding 234
see also blogging
230–31 social media monitoring 229
Sears 330 sole proprietors 14–15
solvency ratios 149

INDEX

spam use regulation 266–67 TV
span of control 58
special offers regulation 266–67 tangible/fixed assets 117–19, 124, valuation of company 18, 19
spinoffs 44, 45 125, 133, 138–39, 153 value 186
splog 225 Value Added Tax (VAT) 106
spreadsheets 249 task culture 65 value chain 324–25
staff evaluation 84–85 tax accounting 114–15, 120 value product positioning 182
tax payments 106, 109, 115, 119, 120, value-stream mapping 288
performance–management cycle 64 vanity metrics 253
staff position 58 133, 169 venture capitalists (VCs) 35, 37
stakeholders 60–63 team-based structure 76–77 vidcasting 226–27
team-building leadership 90–91 Virgin 15
and corporate social responsibility technology, mass customization virtual business incubator 39
(CSR) 335 Visa 161
278–79
and financial statements 108–09 telemarketing 218–19 W
and share value 62
Standard Oil 15 regulation 266–67 wages and salaries 107, 132
star schema data 248 terabyte 263 Walt Disney 292–93
Starbucks 72, 208, 335 TERM (technology-enabled warehousing 331
start-up pivot 28 warrant 172
start-ups 26–39 relationship management) 264 waste elimination 288–89
concept development 28–29 term loan 34, 158 Watson Wyatt index 245
funding 34–37 ticker symbols 19 Wessex Water 107, 109, 114–15,
incubators see business accelerators time-based management 294–95
TOFU (top of funnel marketing) 220 117–19, 122–23
and incubators total quality management 292–93 wholesalers, selling through 188–89
types 30–31 who’s who 50–65
statistics 109, 251 quality management 308–09 Wikispeed 287
“sticky” customers 204 Toyota 288–89, 290, 298, 308 windfalls 133
stock exchange listing 160–61, 162 tracking stock 45 WIP (work in progress) 317
stock exchanges, world’s top 162 trade event marketing 200, 205, 210 WOM (word-of-mouth) marketing 204
stock-keeping unit (SKU) 317 traditional marketing 200–02 working capital/total assets 150
straight-line method of depreciation traditional offline advertising WorldCom 153
Wyndham Hotel Group 23
124–25 212–13
strategic capital 244 transaction marketing 209 X
structural capital 245 transnational corporation 21
subsidiary company 105 transparent customization 279
Subway 23 trending product claims 302
success metrics (marketing) 242 trial balance 103
sunk costs 141 tunneling 152
super angels 35 turnover 114–15
supplier markets 208 TV marketing 200, 210, 213
suppliers’ payments 133 TVR (television rating point) 213
supply chain 322–35
surplus management 135 U Xerox 70, 71
sustainability, KPIs 147
sustainable investment 106 undertrading 151 Z
swap ratio 43 underwriters 162
sweepstakes and contests unquoted/unlisted company 19 Z-score models, forecasting with 150
useful/economic life 124 Zappos 77
regulation 266–67 USP (unique selling point) 33 zero-based budget 137
SWOT analysis 33 utility company, debt affordability 120 Zeta analysis 151
synergy 47

350 351HOW BUSINESS WORKS
Acknowledgments

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