Exam on Thursday

For the upcoming exam, in addition to the study guide covering the chapters, you should also know the material discussed in class. Be familiar with agency costs, all aspects of franchising and Al Dunlap's rules (posted below).

Chapter 8/9 Discussion

Al Dunlap's Four Simple Rules of Management:
1. Get the right management team
2. Pinch pennies
3. Know the business you're in
4. Get a real strategy

Have a good break! We'll talk about chapters 10 and 11 when we return and that will end the material needed for Exam 2 (to be given on 3/29).

Assignment for Thursday

The assignment for Thursday is to write about the Parable of the Talents (Mathew 25:14-30) and relate it to the discussion we have had. Papers will be collected at the beginning of class and late papers will not be accepted. This assignment is worth 25 points.

March 1 Meeting

Do not forget that Thursday will be a joint meeting to hear two speakers:
Charles (Chuck) Staley and Maryann Coty. Some information on Staley can be found at http://www.anderson.edu/events/archive01/2001-07-09.html and http://www.anderson.edu/events/archive04/2004-12-07.html. Information on Coty can be found at http://www.anderson.edu/INvision/index.html.

Top Ten Franchises for 2007

According to Entrepreneur Magazine, the top ten franchises for 2007 are:
1. Subway
2. Dunkin' Donuts
3. Jackson Hewitt Tax Service
4. 7-Eleven, Inc.
5. UPS Store/Mail Boxes, etc.
6. Domino's Pizza
7. Jiffy Lube
8. Sonic Drive In Restaurants
9. McDonald's
10. Papa John's Int'l

Ethics and Social Responsibility

The bare minimum anyone must adhere to is the law (government regulation and legislation). In almost every profession, there is then a code/statement of ethics that practitioners are expected to adhere to: the one for the American Marketing Association, for example, can be found here. These codes represent the minimal acceptable behaviors within the field. Organizations and companies often have their own code as well. Above all of those resides the ethics of the individual - what will they do when confronted with a gray area. From a Biblical perspective, Proverbs 22:1 speaks to this better than any other verse.

Social Responsibility was addressed by Milton Friedman in his landmark paper, "The Social Responsibility of Business is to Increase its Profits" in the New York Times (September 13, 1970). A copy of it can be found here. While the entire paper is wonderful, to me the best issues can be found early on in the first, second and fourth paragraphs.

Chapter One Misc.

The quote from Dicken's when Marley is told he was a good man of business:
"Business?! The common welfare was my business; charity, mercy, forbearance and benevolence were all my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business.”

Words to definitely know from within the chapter (this does not mean you do not need to know others, but you would be remiss in not being very familiar with these):
Capitalism
Business
Profit
Free Enterprise
Capital
Natural Monopoly
Equilibrium
GDP
Inflation
Deficit