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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

BUS 1001 - Achieving Success Through Self-Directed Learning By Michael D. Schmidt MBA Candidate at Rushmore University Submitted: June 1, 2002 Advisor: Professor Hella Bauer-Eden MSc Course: BUS 1001 Student: Michael D. Schmidt E-mail: mailto:[email protected] URL: http://www.mdschmidt.net Credits: 3 Word Count: 5310 A copy of this paper is being sent to [email protected]

By submitting this paper, I affirm that this work is my own except for where the words or ideas of others are specifically acknowledged. I also affirm that this work did not exist before the beginning of the course I am submitting this for.

Target Audience This paper was written for the review of my Rushmore MBA course advisor and view by other MBA students as information to help them with their MBA program. Purpose of this Paper This paper was done to help develop my skills of reviewing and preparing material to write successful papers; to review the basic areas of an MBA for determining my course of study. Executive Summary Reading Silbiger's book gave me a good overall synopsis of the areas studied in an MBA program. This study confirmed my interest in organizational behavior, quantitative analysis, operations, finance, and strategy. While writing my profile, I reviewed the available courses and listed those that struck my interest at that time. I still feel strongly about pursuing course 2001-Crosby on Leadership, 2002Hargrave on Strategic Planning, and 2053-Siegel on Finance. I plan to use what I have learned from this paper to continue developing my curriculum with my advisor.

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

BUS 1001 - Achieving Success Through Self-Directed Learning.................................... 1 Introduction .................................................................................................................. 2 Marketing ..................................................................................................................... 3 Ethics ........................................................................................................................... 4 Accounting ................................................................................................................... 5 Organizational Behavior............................................................................................... 6 Quantitative Analysis ................................................................................................... 7 Finance ........................................................................................................................ 9 Operations ................................................................................................................. 10 Economics ................................................................................................................. 12 Strategy...................................................................................................................... 13 MBA Mini-Courses ..................................................................................................... 15

Introduction The U.S. automotive industry continues to experience the effects of global competition. Advances in technology, lean manufacturing, and migration of production to low-cost countries, such as Mexico, have not provided the competitive advantage to prevent loss of market share. The drive for reducing cost has been placed on all of the suppliers to the automotive component divisions and car groups. The company I work for provides technical services, which includes design and engineering of automotive component parts, automated equipment, paint systems, facilities design and construction, and supplier quality. These services have been provided, primarily to the automotive industry, for over fifty years. The demand for lower cost and higher quality by automotive customers has made it very difficult to maintain a profit. Building and growing a company, through establishing solid working relationships and partnerships with its customers, has slowly become a thing of the past in the automotive arena. Today, price is the foremost deciding factor for awarding business to suppliers. Small operating margins, that most automotive suppliers are forced to live under, mean little budget is available for marketing and training. As an operations manager, I have been focused on ensuring that technical projects have the right resources, are completed on time, meet the cost targets, and that the customer is satisfied. What is missing in my toolkit, to be more effective in contributing to the overall operations, is knowledge of marketing, strategy, and finance that are presented in Silbiger's book, The Ten Day MBA. I hope to gain insight from the nine disciplines of an MBA presented in this book to develop my MBA curriculum. Submitted June 1, 2002

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

Marketing Silbiger states in his book, The Ten Day MBA, that his concentration will be on product marketing, rather than services marketing, but the same frameworks and vocabulary are applicable to both.1 This statement caught my attention because of my lack of experience and knowledge of marketing, and because I have worked in the services industry for the past 17 years. It is difficult to appreciate something that one does not understand. Observing marketing from a distance would give one the impression that it does not require any real quantitative analysis, or need for accuracy. I realize this is a wrong assumption after having read Silbiger's explanation of the seven-part marketing strategy process2, which is: 1. 2. 3. 4. 5. 6. 7.

Consumer Analysis Market Analysis Review of the Competition and Self Review of the Distribution Channels Development of a "Preliminary" Marketing Mix Evaluation of the Economics Revision and Extension of Steps 1-6 until a consistent plan emerges

When marketing products, the first step in developing a marketing plan is to answer important questions about the consumer. Who is buying and using the product? What is the need of the consumer? What is the buying process? Understanding the buying process, for example, will give valuable information for deciding where, who, and how to reach the consumer of your product. This can lead the marketing manager to choose a segment plan approach. Segments, according to Silbiger, are homogeneous groups of similar consumers with similar needs and desires.3 This will narrow the marketing efforts from a global approach to a smaller, more meaningful one that is based on the four target variables used in segmenting consumer markets: demographic, geographic, psychographic and behavioral. Marketing mix refers to the marketing efforts that are chosen. These efforts are referred to as the Four P's of marketing, which are product, place, promotion, and price.4 The promotional decisions include all of the advertising and sales efforts of the plan. A technical services company directs most of its budget and resources towards the sales effort, rather than advertising. Getting in front of the decision-maker of a potential customer is the primary goal in selling services. Selling services is still a problem solving and consultant type of sales, much like the Fuller Brush and Kirby vacuum cleaner door-to-door sales of the past. The salesman of services understands the technical aspects of the services his company can provide, and how these services can be applied in solving the customer's problems. This type of sales requires the salesman to give Submitted June 1, 2002

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presentations that ultimately convince the customer of the capability of his company. The salesman usually becomes the primary point of contact with a new customer, until the start-up problems are resolved and relationships are developed between the key personnel of each company.

Ethics Integrity, honesty, trust and commitment are words that I associate with ethics. In business, as in personal matters, these virtues are what contribute to the success and long-term growth of a company. Ethics directly relates to profitability. These principals apply not only to a company's customers, but also to their employees and suppliers. Treating them with respect, keeping promises, negotiating in good faith, and truthful communication are all ingredients for success. Top management sets the example of the operating principals for a company; and we have seen evidence in the news recently of poor ethical practices by top management and how it has affected companies, such as Enron. The practices by the CFO of one of the companies, for whom I worked, are an example of what can happen when ethical principals are not followed. As the company accumulated debt, and revenues started declining from the downturn in the economy, financial reporting to the investors and bank was distorted. Projected business conditions and revenue forecasts were overstated. Over time, the company could not meet their covenants with the bank, which resulted in a total lack of confidence in the company on the bank's part. It was common, in years past, that purchasing people in the automotive industry would accept gratuities of various types from their suppliers. Some automotive contracts meant millions in revenue to suppliers, which put purchasing in a position of power − a power that sometimes was abused. Many examples could be cited where this practice of accepting gifts, by a few people in purchasing, went beyond the accepted and into the unethical. Silbiger explains that, although there are no set formulas for solving ethical dilemmas, Stakeholder Analysis is a framework with which to organize ones thoughts, weigh various elements, and reach a decision. This method involves identifying the affected parties, the harms and benefits of certain actions on those affected parties, and the responsibilities and rights of all stakeholders.5 The organized approach of this method allows the MBA to take a global look at an issue, which is helpful but the decision may not be clear and concise just from this analysis. Some decisions have elements that might involve each of the social, political and environmental ethical areas, where additional consideration and analysis is required before making a judgment. Short and long-term Submitted June 1, 2002

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consequences of each alternative need to be identified, and a contingency plan for each alternative developed before a decision can be made.

Accounting When the business of my company began a downturn, and the CFO and upper management began to distort the financial reporting to the investors and bank, the bank ordered a third party workout team to come in and run the company. Their focus was on the cash flow of the company, and all of the accounting details that were involved. Many companies and individuals will tell you that the bottom line in business is profitability. It was valuable for me to gain the understanding, through daily involvement with the workout team, that a company can be profitable yet be in trouble at the same time. The cash flow statement was the accounting tool that had not been consistently used by my company. The cash flow statement should always be used along with the balance sheet and income statement − they work together to tell the entire story about the health of a company. The primary service that my company provides is engineering and design documents for customer products and manufacturing equipment. The sales revenue, as reported on an income statement, is accrued, as the engineering labor hours are worked; and the cost of goods sold are the associated direct labor pay, benefits and payroll taxes. The difference between sales revenue and cost of goods sold (COGS) is the gross margin. The sales, general and administrative costs (SG&A) are the non-direct costs of the business, which includes indirect payroll and taxes for staff personnel, rent, utilities, office supplies, advertising and other non-direct allocated costs. Many companies include depreciation in the SG&A costs; however, my company does not, which is an acceptable practice in the technical services industry. The difference between gross margin and SG&A costs is the operating income, or EBITDA (earnings before interest, taxes, depreciation and amortization). EBITDA is the bottom line on the income statement for many service companies, and it is what operations performance is based upon. Accounts Receivable (AR) is a key factor in cash flow that relates to how quickly payment is received for services rendered. The revenue that the company accrues as labor hours are worked, which is "Unbilled Accounts Receivables," may not be billed to the customer until the end of a project or at incremental milestone dates. Likewise, after services are billed, which turns "Unbilled Accounts Receivable" into “Accounts Receivable," or “AR," the payment terms may be net 30 or 60 days after date of invoice. Employees are paid each week, or every two weeks, which requires cash that the company may not have on a weekly basis because of the timing of receivables. The bank will loan the Submitted June 1, 2002

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company money to meet payroll and other obligations based on the company's Unbilled Accounts Receivable and AR. The amount borrowed is typically based on a percentage of the receivables, and only those receivables that are less than 180 days old. The income statement shows the amount of sales revenue generated, but the cash flow statement shows how that revenue was turned into cash.

Organizational Behavior Organizational Behavior (OB) classes attempt to teach MBA's how to deal with the human challenges in the workplace.6 Hundreds of books are available for managers that give insight and instruction for motivating people, and dealing with difficult employee situations. However, managers have to experience these things before they can really appreciate the complexity of managing people. Most people can describe the managers for whom they have worked − some they consider to be good, while others they consider to be bad. They can tell you how the good manager treated the employees, dealt with issues, and their motivational techniques. Good managers are good leaders. Leaders have vision, shape the future, and have the ability to meet the challenges of business and people. Managers are reactive, not pro-active, and their focus is on solving problems. Leaders set goals, and reach people on an emotional level. Leaders have three characteristics in their profile; vision, commitment, and management skills. These qualities vary in proportion depending on individual and job situation.7 Job situation can refer to many scenarios, including cultural, when considering that business is conducted globally today. In 1959, Friedman and Roseman identified the Type A behavior type, which is the person who is driven by achievement, fast-paced, aggressive, and exhibits impatience and a selfcentered attitude. This demanding, dictatorial approach was effective in the 1960’s and 1970’s, but does not work in today’s business world. Type B personalities are the opposite of the Type A’s, less aggressive, and more peopleoriented. Most people fall somewhere between these two types. Organizations are made up of various types of people, and people are what make an organization. There are six basic elements that define an organization; systems, climate, culture, strategy, structure, and policies and procedures. Organization structure is one element with which business people are most familiar − an organizational chart shows the company’s reporting and accountability structure. These charts can be presented in several different styles, which is dependent upon how a company is organized. Styles can include functional, product, customer, geographic, and divisional. Everyone expects changes in the organization when a new manager takes charge, when Submitted June 1, 2002

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a company is in a growth period, or when a company is in trouble. When I returned to Dayton, Ohio, to manage the company's largest operation, I first analyzed the organization. I had to learn who the people were, what they were doing, and their capabilities. Being a good listener is a valuable trait to have when gaining information and understanding about an operation. It did not take long to realize that changes were necessary in department and individual responsibility reporting structures. People naturally resist change, but communicating the "why" things are done, not just the "what," helps effectively implement change. The results of the changes I made were realized at the end of the year in increased business and EBITDA.

Quantitative Analysis Quantitative Analysis (QA) provides the most important tools to the MBA. Just as it is important for the MBA to be able to read and understand the three financial statements, the methods used in analyzing data are important in the decisionmaking process. Decision theory teaches how to break complex problems into manageable parts. A decision tree diagram can organize the problem's alternatives, risks, and uncertainty,8 which are the basic elements involved in creating a tree diagram. At each alternative an activity fork, symbolized by a square, or an event fork, which is symbolized as a circle, is drawn. The event fork is used when an alternative is uncertain as to the outcome; i.e., the test of a product either passes or fails.

.60 Test

Pass

Manufacture product $100,000

.40 Fail

No Test At each event alternative, the probability of each outcome is estimated and represented as a decimal percentage. The financial outcome of each decision is estimated, which is $100,000 in the example above. This value is multiplied by the probabilities at each fork to determine the expected monetary value (EMV), which would result in $60,000 ($100,000 x .60) if the test were successful in our example above. After repeating this process for each event, subtract the estimated cost from the EMV value and choose the highest dollar alternative. Submitted June 1, 2002

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

This is an excellent analysis tool because it requires the decision-maker to think of all possible alternatives, organize them, and estimate financial outcomes. Software is available that makes this process easier and less tedious. TreeAge Software, Inc., www.treeage.com, publishes DATA 3.5 software for costeffectiveness analysis, decision analysis, and Markov modeling. Decision Support Services (DSS), www.treeplan.com, publishes inexpensive decision modeling addins for Excel. Cash flow analysis, net present value, probability theory, and regression analysis and forecasting are other useful problems-solving tools used by the MBA. Cash flow analysis not only involves accounting information that looks at shortterm measurements but also considers timing over the entire life a project or entire operation. Cash flow involves tracking only the cash coming into a company through receivables or sales, and the cash paid out through COGS, SG&A, and taxes. What is our "Cash In?" and "Cash Out?" were questions asked and tracked daily by the workout group that came into our company. The bank established a new borrowing base each week that set a limit on the amount that could be borrowed. Monies needed over the borrowing limit came from cash flow, which had to be positive in order to sustain operations. Net present value (NPV) takes the cash flow analysis picture over time and paints it in today's dollar value. A dollar today is worth more than a dollar received in the future. NPV analysis takes future cash flows and discounts them to their value today. Using NPV enables all projects to be compared and considered on an equal financial basis, regardless of timing.9 Probability and Statistics is used extensively in most manufacturing operations for determining product quality at various stages of the manufacturing process. SPC (Statistical Process Control) uses control charts for recording actual data over a span of time compared to the engineering specification limits. A company can determine whether their processes are in control, or out of control by using statistical methods. Statistical methods are also used in other areas of business, besides manufacturing, and are a valuable tool in the decision-making process. The most commonly used distribution is Normal Distribution, and is represented by the bell curve. Based on a sampling of data or outcomes, the curve tends to fill in and become bell shaped.10 It is known, according to the Central Limit Theorem, that the majority of samples fall at or near the mean value, with the number of samples tailing off as one moves away from the mean value. The total area under the bell curve is equal to 1.0, which is equal to the probability of 1.0 (100%) for the total sample. Approximately 68% of the samples fall within one standard deviation (SD) of the mean; approximately 95% fall within two SDs; Submitted June 1, 2002

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

and, approximately 98% fall within three SDs. Normal distribution tables are available to determine the probability for any specific point on the curve. This provides the probability for any outcome in the decision-making process. An example of how data is used statistically in business can be found in the insurance industry. Insurance companies have actuarial tables that reflect their statistical analysis of the average life expectancy of men and women at any given age. From these numbers, the insurance companies then calculate the appropriate premiums for a particular individual, of a certain age, to purchase a given amount of insurance.

Finance The investments area and financial management are the two career paths for the MBA in finance. The investments area is outward, “market” focused, where financial management is inward, “company” focused. The two areas are interconnected because the performance of a business, for which the finance department is to a large extent responsible, affects its investors’ share of the firm’s profits.11 I have always been a conservative investor, and I have relied on the recommendations of my financial advisor in making changes to my portfolio. My advisor explains what investment options he recommends and the estimated risk involved for each option. One basic investment fact is the higher the return, the higher the risk. The risk associated with stocks, for example, exists because the market price for stocks fluctuates daily, which is a volatile situation. Analysts track and measure the market price movement of individual and groups of stocks to estimate their risk, or beta. If a stock or group of stocks moves in line with the entire market, it is said to be perfectly correlated with a beta of 1.0. A stock that moves in opposition to the market is said to be negatively correlated with a beta of –1.0. The effects of individual stocks and other investment risks can be lowered by having a portfolio consisting of high, medium and low risk investments, which is called diversification. Companies, and the government, issue bonds to raise cash, and they have a fixed rate of interest (coupon). Bonds have a maturity date, at which time the original principal amount, face or par value, is paid. Higher coupon rates are given to bonds with longer maturity dates because investors have their money tied up for a longer period of time. There are other types of bonds that include zero coupon bonds, consuls, convertible bonds, callable bonds and junk bonds. A zero coupon bond pays no interest, but pays a lump sum at maturity. A consul bond is one that never pays back the principal amount, but continues to pay interest forever. Convertible bonds are those that can be converted to Submitted June 1, 2002

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common stock at a predetermined conversion ratio. Lastly, a junk bond is one that has a high risk of default because they may be subordinated to the claims of other bonds issued by a company. Junk bonds pay high rates of return because of the high risk.12 The role of the MBA in corporate financial management is to provide their company with recommendations for making investment and financial decisions. The term used for this activity is capital budgeting. The MBA uses his/her accounting and finance tools, primarily payback periods and net present value, in providing information necessary in making investment decisions for projects and capital expenditures. Paybacks are easy to calculate but do not consider the time value of money like net present value. Net present value calculations can include discount rates and profitability index to compare several projects based on today’s dollar value and projected risk. A financial manager’s responsibilities are multi-faceted, and include preparing financial reports for running the day-to-day operations, overseeing the flow of cash, monitoring credit, assessing risks of various transactions, raising capital and communicating with stock holders and investors. The guiding principle of financial management is to maximize the firm’s value by financing cash needs at the least cost possible, at a level of risk that management can live with.13

Operations Operations vary, as vastly as the number of different products and services that exist, but every operation has some basic business similarities. A successful operation is dependent on many people that have different roles and responsibilities in contributing to the process flow from start to finish. To make everything work together requires that everyone understands their job and is given the tools to do that job. Much time and resources are spent on determining the most efficient and cost effective approach for every step of the total process. This is true of services, too, not only manufacturing operations. How to produce a product for the least cost and with the highest quality are the basic ingredients for profit. There are five basic issues involved in producing a product or service14: • • • • •

Capacity Scheduling Inventory Standards Control

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

Capacity addresses how much can be produced. Factors to consider in determining capacity are methods, materials, manpower, machinery, money, and messages. These are called the Six M’s of Capacity. A services company, such as a staffing company, like Manpower, Inc., is most concerned with the availability of trained, and qualified people to fill temporary openings with their clients. And, at the same time, they want to maintain or increase the number of openings for new positions to grow their business (capacity). Recruiters for staffing companies are able to effectively handle a certain number of job openings − this is their capacity. Hiring an additional recruiter would be necessary as the company’s number of job openings increases and the increased level is sustained. Capacity is more commonly associated with a manufacturing environment, where machines have maximum output limits, which are the number of parts they can process per minute. Scheduling all of the tasks of the production process requires tools such as Gantt Charts or Critical Path Method (CPM). Each task or activity is listed in order of their sequence, and includes the estimated time for completion. The critical activities, which can hold up a project or process, can be identified from this charting of activities. Inventory is natural topic of argument between financial, sales and production departments. Finance wants to carry the least amount of inventory possible, production wants to run as efficiently as possible which may result in some excess inventory, and sales wants to have product available at all times for customers. Material Requirements Planning (MRP) is a computer software system that is used for production planning and inventory control. MRP coordinates the entire process, from forecasting customer demands, sending material orders to vendors, sending build orders to manufacturing, to the shipment of finished product.15 Standards are established to compare budgeted to actual performance. The difference is called variance. Paying more for materials than planned, by using more material or labor than estimated results in variance. Tracking and analyzing standards allows production managers to control the process. Other standards used in industry today are ISO 9000 and QS9000. Companies earn ISO or QS9000 certification through documentation of all internal processes that are part of the quality system, with evidence these processes are being followed. Certification does not insure quality, but it does establish discipline in complying with company processes.

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

Economics Economics can be studied on a micro or macro level. Microeconomics focuses on individuals, families, companies, and industries, where macroeconomics deals with cities, countries, and world economics. Microeconomic concepts include opportunity costs, where decisions are made regarding allocation of limited resources. Opportunity costs occur when production increases where output, time, and money are limited. If a company has the opportunity to sell one additional unit at a profit, the company should produce it. Marginal revenue from the sale of this one additional unit should be greater than the marginal cost to produce that unit. The basic marginal decision rule is: increase production if and only if the revenue is greater than the marginal cost. Buyer’s responsiveness or sensitivity to changes in price is called elasticity. If consumers are very sensitive to price changes, their demand is called elastic. For example, consumers respond strongly, purchasing more, to special offerings in the fast food industry. When consumers are not sensitive to prices their demand is called inelastic. Medical services are a good example of consumers not changing their purchasing behavior with increases in the price of services.16 Macroeconomics affects everyone, but it is difficult to understand what drives change in economic conditions on a U.S. or global basis. The recession we currently are in poses so many questions about how we got here and how soon the economy will turn around. Economists cannot even agree on what drives the economy.17 One of the main indicators used in macroeconomics to measure the health of the economy is the gross national product (GNP). The GNP is the market value of the total goods and services produced in a year. The GNP is adjusted each year to compensate for the change in prices from year to year. An increase in price level is called inflation, and when the GNP is adjusted for inflation it is called real GNP. Using real GNP values gives analysts the ability to measure the real growth of an economy.18 Below is a chart that shows real GNP in billions of chained 1996 dollars, with forecast numbers through September, provided by the U.S. Department of Commerce, Bureau of Economic Analysis:

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

Strategy One of the turning points in the company I work for occurred when several strategic decisions cost the company a major piece of business with its largest customer. The risk involved was not analyzed thoroughly because of our past strong position and key support with our customer. A no-compromising approach was taken when presented alternative plans by the decision-making committee of the customer. The loss of this business came just before the downturn in the economy, which continued the downward economic spiral of the company. This is an example of what Silbiger explains about strategy in his book: Strategic thinking involves a comprehensive analysis of a business in relation to its industry, its competitors, and the business environment in both the short- and the long-term.19 My research on strategy led me to the McKinsey and Company website, http://www.mckinsey.com/. They publish The McKinsey Quarterly, which is an online journal featuring information on business strategy, finance, management, operations, and organization. I immediately subscribed, which gives me access to their articles, and their monthly newsletter. This will be very useful and informative for me as I continue my MBA studies. Strategy should always look at the company as a whole, and with implementing change as the ultimate goal. In the late 1970’s, Thomas J. Peters, of In Search of Excellence fame, Robert H. Waterman, and Julien R. Phillips created the Seven S model. Peters and Waterman were part of the McKinsey and Company at that time, and Waterman is still a director there. The Seven S model was the result of their study of forty-three successful American companies, including Johnson & Johnson, Proctor & Gamble, IBM, Delta Airlines and McDonalds.

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt

The Seven S’s are: • • • • • • •

Structure Systems Skills Style Staff Strategy Superordinate Goals or Shared Values

Picture a wheel with superordinate goals as the hub, and the other six elements at the end of the spokes of the wheel. Each element interconnects with the other elements, which speaks of them all working together for achieving effective change. Addressing each of these elements in strategic planning organizes the entire process for tackling complicated company organizational problems and reaching its goals. Structure relates to how a company is organized, which is characterized by the organizational chart. Some companies that are geographically or product organized may struggle with change towards a more integrated organization. Systems are the processes, procedures, and tools with which the company operates and gathers information. Customer, competition, operations and manpower information is needed when challenges requiring decisions for change come about. Skills are the specific abilities and expertise of the staff of a company. For example, the company I work for has a business unit that is known for its specialized expertise in automotive interior design and engineering. For them to develop a strategy for obtaining automotive brake system business, questions about how to obtain the manpower with the skills and experience need to be answered. Style or culture is a company’s beliefs, thoughts, and behaviors that management instills throughout the entire organization over time. People resist change, and become set in their ways; because of that, to change a company’s culture is a difficult thing to accomplish. Companies that are part of mergers and acquisitions experience style and cultural changes that have long lasting effects. Staff is not just warm bodies, but relates to the things that are important to them, such as working environment, compensation, training, and appraisals. This also involves motivation, which is something that is often overlooked by Submitted June 1, 2002

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management when considering change. The ability for a company to succeed depends greatly on a motivated and appreciated staff. Strategy is the plan of action leading to change and achieving company goals. Superordinate goals or Shared Values are the guiding principals of an organization. Peters writes, “The word superordinate literally means of a higher Values speak of teamwork, respect, fairness, trust, integrity, and order.”20 recognition. Strategy is one of the topics I would like to learn more about in my MBA studies. Many companies invest time and money each year for strategic planning meetings. I have participated in these types of meetings, and have been disappointed in the lack of follow-up and implementation. I would like to change this, when given the opportunity, as I become more knowledgeable about strategy.

MBA Mini-Courses Sibinger presents brief overviews of research, public speaking, negotiating, international business, and business law, of which I will only touch on a few. Research has changed dramatically with the advent of the Internet, which gives us access to a world of information at our fingertips. I must admit that I enjoy research because I like information and data, and have spent time on research while writing this paper. Various search engines are available via the Internet but not all search engines give the same results, so you must visit multiple sites to obtain a good search. Other resources used in research include books, periodicals, computer service databases (for a fee), interviews, trade shows, and magazines. I am not experienced in, or very good at negotiating. My goal is not to become and expert in this art, but to understand the basic strategy used in negotiating. Silbiger points out that in negotiating you must know your opponent, know yourself, do your homework, determine your strategy and limits ahead of time, and review each negotiation afterwards for improving future negotiations. Working three years in Mexico taught me many of the things that Silbiger outlines for conducting international business. Having a good understanding of the culture and customs of the host country is essential. I realized that I was a guest in Mexico, and adapted to their way of doing business. I treated the nationals with respect, and gained their confidence, which resulted in a successful operation. Submitted June 1, 2002

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BUS1001, Achieving Success Through Self-Directed Learning, Michael D. Schmidt BIBLIOGRAPHY Silbiger, Stephen. The Ten Day MBA. Revised Edition. New York: William Morrow, 1999. Turabian, Kate L. A Manual for Writers of Term Papers, Theses, and Dissertations. Sixth Edition. Chicago: The University of Chicago Press, 1996. Steven Silbiger, The Ten Day MBA, rev. ed. (New York, N.Y.: William Morrow, 1999), 3-4. Ibid. 3 Ibid., 11. 4 Ibid., 28. 5 Ibid., 59. 6 Ibid., 107. 7 Ibid., 116. 8 Ibid., 145. 9 Ibid., 157-58. 10 Ibid., 165-66. 11 Ibid., 186. 12 Ibid., 193-98. 13 Ibid., 233. 14 Ibid., 238. 15 Ibid., 253. 16 Ibid., 270-71. 17 Ibid., 274. 18 Ibid., 275-76. 19 Ibid., 297. 20 Ibid., 302. 1 2

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