The Executive MBA for Engineers and Scientists »

All too often, a simple lack of understanding of fundamental business concepts is enough to prevent capable scientists and engineers from receiving otherwise deserved promotions. These days, technical merit and hard work alone no longer guarantee upward mobility. For scientists and engineers with aspirations of moving up the corporate ladder a keen grasp of business basics is a must.

Presenting concepts in a manner that is easily accessible, The Executive MBA for Engineers and Scientists covers the business principles and applications that today’s technical managers need to know. The book touches upon all the essentials, including marketing, sales, finance, manufacturing, and accounting. It details technical considerations including quality control, technical services, and R & D and highlights how to effectively integrate business concepts with technical considerations. Examples based on the author’s experience working in the pharmaceutical industry and with the Food and Drug Administration illustrate how similar situations can occur in other industries and explain how to solve the problems using the same techniques.

This easy-reading reference not only facilitates the understanding required of today’s technical professional but also provides a time-saving reference for business men and women on the move upward in sales, marketing, and manufacturing who need to expand their knowledge of technical functions. From break-even analysis to technical quality control, this practical guide arms you with the business savvy required to walk into your next meeting with confidence and walk out with an increased sense of accomplishment.

Preface xiii

Acknowledgments xvii

Author xix

Part I The Elements

Chapter 1 Business: An Overview 3

Deliver What You Promise. On Time! 4

Interrelations of Various Business Areas 6

Forms of Business Organization 8

Sole Proprietorship 8

Partnership 9

Corporation 10

Some Variations 11

Current Trends 12

Goals of a Business 13

Company Philosophies 14

Relatives in a Business 16

16

Chapter 2 Marketing 19

Marketing Research 19

Customers 21

Differential Advantage 21

Consumer Demographics 22

Consumer Decision Process 23

Cognitive Dissonance 25

Product Life Cycle 25

Principle of Reverse Effect 27

Marketing Your Talents 30

Chapter 3 Sales 31

Who Should Be a Salesperson? Where Are Such People? 32

What Are the Characteristics of a Successful Salesperson? 32

Who Are Your Customers? 33

Where Are Your Customers? 34

How Do Industrial and General Sales Differ? 34

How Are Salespeople Compensated? 39

Straight Salary 39

Commission Only 40

Salary Plus Commission 40

Is Segmentation Territorial or by Product? 41

What Is a Sales Forecast? 42

What Is the Function of a Sales Manager? 43

Chapter 4 Finance 45

Management's Primary Goal 46

Depreciation 46

A Brief Overview of Depreciation 47

Debt and Equity 49

Stocks and Bonds 50

Time Value of Money: The Single Most Important Concept in Finance 54

Annuities 62

Bond Valuation 64

Stock Valuation 65

Expected Value 66

Economies of Scale 67

Diminishing Returns 68

Understanding Financial Statements 69

Ratio Analysis 73

Capital Budgeting 76

Cash Flow 82

Degree of Operating Leverage 82

Risks and Rates of Return 83

Chapter 5 Break-Even Analysis 85

Fixedand Variable Costs 86

Assumptions 87

Example of Technique 87

Nonlinear Break-Even Analysis 94

Chapter 6 Statistics: A Little Bit, Simply Explained 97

Cause and Effect 98

Standard Deviation and Normal Curve 99

Standard Deviation and Width of Distribution 103

Z Value 104

Chapter 7 Graphs, Charts, And Equations 107

Visual Means of Presenting Data 108

Text Charts 109

Line Charts 110

Bar Charts 111

Pie Charts 112

Combination Charts 114

Summary 114

Chapter 8 Manufacturing 117

Types of Production Systems 118

Job Shop Production 118

Batch Production 118

Continuous Production 118

Combination Production 119

Inputs to Production Planning Systems 119

Key Personnel 120

Total Quality Management (TQM) 121

Just-in-Time (JIT) Inventory 122

Types of Inventories 124

Chapter 9 Accounting 127

Accounting and Bookkeeping 127

Budgets 128

Accounting Functions 128

Cost Accounting and Managerial Accounting 130

Accounting System Procedures 131

Ledgers 132

Financial Statements 132

Conclusions 132

Part II Elements of the Technical Area

Chapter 10 Technical Function: Overview 137

Basic Research 138

Applied Research 139

Invention 139

Patents 142

Innovation 143

Technology I44

Chapter 11 Quality Control 145

Consumer Quality Issues 146

Produce the Best! 146

Quality Characteristics 147

Total Quality Management (TQM) 149

Malcolm Baldrige Award 150

Quality Levels and Costs: Different Views 150

Customer Service 151

Chapter 12 Technical Service 153

Definition 153

Summary 155

Chapter 13 Research And Development 157

Overview 157

Benefits of Research and Development 159

R&D and Its Relationships with Other Areas of the Company 161

Laboratory Structure 162

Comparison of Research and Development and Technical Service 165

Directing Research and Development Operations 165

Part III Integrating Business and Technical Areas for Profit

Chapter 14 The Corporation as a Unit: An Overview 171

Corporation Structure 171

Chairman of the Board 173

Chief Executive Officer (CEO) 174

Chief Operating Officer (COO) 174

President 174

Executive Ethics 174

CEO Classifications 175

CEOs and Communication 176

Defining Your Business 177

Goal Setting and Strategic Planning 179

Preface 180

Mission 180

Objectives 180

Threats and Opportunities 181

Weaknesses and Strengths 181

Growth 182

Buildings and Equipment (Optional Section) 182

Personnel 183

Research and Development 183

Closing Comments 184

Summarizing the Strategic Plan 184

Management Styles 185

Chapter 15 Business and Technical Relationships: Symbiosis To Maximize Profits 187

Chapter 16 People Skills: How To Get Along With Others (The Most Important Chapter In This Book) 193

Introduction 193

Listening 194

Communications 198

Nonverbal Communications 203

When Someone Points Out an Error You Made 206

Navigating Two-Way Streets 207

How to Lose Friends 207

Negotiation 208

Information Gathering 208

Negotiators and Decision Makers 209

Have Several Issues for Discussion 209

Be Prepared to Walk Away 210

Compliments after Negotiations 211

Conclusion 211

Chapter 17 Current Concepts, Trends, And Tools 213

Working from Home (Telecommuting) 213

Social Responsibility 214

Domestic and Foreign Outsourcing 215

Not Invented Here (NIH) Syndrome 217

Tools of Your Trade 218

Contract Assignments and Short Term Employment 219

Bonuses 221

Awards 221

Attempts to Mislead 222

Accuracy of Information 222

Part IV Planning Ahead

Chapter 18 Your Career 229

Your General Plan 230

Your Strategic Plan 231

Meet New People 232

Observe 232

Visibility 233

Job Descriptions 233

Systems 234

Interviews 235

Other Considerations 236

Final Words 236

Chapter 19 Starting Your Own Business 237

First Steps 237

Unique Selling Proposition (USP) 237

Partners: Pros and Cons 239

Customer Issues 240

Financing and Credit 241

Chapter 20 ...And A Little Bit More 243

Expectations 243

Professional Characteristics 244

Risk 244

Profit Improvement: Back to Basics 245

Setbacks 246

Attitude 246

Time-Your Nonrenewable Resource 247

Problem Solving 248

Decision Making 251

Training 251

Priorities 253

Report Format 254

Laboratory Report Form 254

Reference Points 254

Learn about Yourself 255

Learn about Others 255

Teams 255

Dealing with Media 256

Measurements 257

Miscellany 258

Final Thoughts 259

Index 261