1. Jose Reports OPEC

4. Net Neutrality What would Dr. S think?

6. DPQ 10/26/10

8. Leadership

9. Leadership Because knowledge is the scarcest of resources, leadership is the most important factor in business success Because knowledge is the scarcest of resources, leadership is the most important factor in business success

10. Leadership Different leadership skills are needed at different phases of a business… i.e., during radical market transformation, rapid growth, acquisitions Different leadership skills are needed at different phases of a business… i.e., during radical market transformation, rapid growth, acquisitions

11. Leadership Because knowledge is the scarcest of resources, leadership is the most important factor in business success Because knowledge is the scarcest of resources, leadership is the most important factor in business success Different leadership skills are needed at different phases of a business… i.e., during radical market transformation, rapid growth, acquisitions Different leadership skills are needed at different phases of a business… i.e., during radical market transformation, rapid growth, acquisitions Remember: leaders receive information from the marketplace, rather than give orders to the market as in socialism Remember: leaders receive information from the marketplace, rather than give orders to the market as in socialism

12. Leadership Many hugely successful business people never attended college or received a degree like these billionaires: Bill Gates (MSFT), Steve Jobs (Apple), Sir Richard Branson (Virgin enterprises), Ralph Lauren (fashion), Dave Thomas (Wendy’s), Henry Ford (Ford), Many hugely successful business people never attended college or received a degree like these billionaires: Bill Gates (MSFT), Steve Jobs (Apple), Sir Richard Branson (Virgin enterprises), Ralph Lauren (fashion), Dave Thomas (Wendy’s), Henry Ford (Ford),

13. Franchises

14. Franchises A business method that involves a company (franchisor) licensing trademarks and business systems to individuals or companies unrelated to the franchisor A business method that involves a company (franchisor) licensing trademarks and business systems to individuals or companies unrelated to the franchisor

15. Franchises Subway, McDonald’s, 7-11, Hampton Inns, Supercuts, H&R Block, Dunkin’ Donuts, Jani King, ServePro, AMPM Subway, McDonald’s, 7-11, Hampton Inns, Supercuts, H&R Block, Dunkin’ Donuts, Jani King, ServePro, AMPM

16. Franchises In franchise operations knowledge is shared in both directions In franchise operations knowledge is shared in both directions

17. Franchises Local people know their markets; franchisers know how to advertise, economies of scale in purchasing, how to run the operation Local people know their markets; franchisers know how to advertise, economies of scale in purchasing, how to run the operation

18. Franchises In franchise operations knowledge is shared in both directions In franchise operations knowledge is shared in both directions Local people know their markets; franchisers know how to advertise, economies of scale in purchasing, how to run the operation Local people know their markets; franchisers know how to advertise, economies of scale in purchasing, how to run the operation One third of all revenues from retail sales of goods and services is from franchised businesses; in hotels, it’s 75% One third of all revenues from retail sales of goods and services is from franchised businesses; in hotels, it’s 75%

20. Winners and Losers Remember: profits are contingent on efficiency in producing what consumers want, at a price they are willing to pay Remember: profits are contingent on efficiency in producing what consumers want, at a price they are willing to pay

21. Winners and Losers Remember: profits are contingent on efficiency in producing what consumers want, at a price they are willing to pay Remember: profits are contingent on efficiency in producing what consumers want, at a price they are willing to pay This prospect of profits (and fear of losses) is crucial to the functioning of the market as a whole This prospect of profits (and fear of losses) is crucial to the functioning of the market as a whole

22. Winners and Losers Remember: profits are contingent on efficiency in producing what consumers want, at a price they are willing to pay Remember: profits are contingent on efficiency in producing what consumers want, at a price they are willing to pay This prospect of profits (and fear of losses) is crucial to the functioning of the market as a whole This prospect of profits (and fear of losses) is crucial to the functioning of the market as a whole Only about 10% of the total economy is profit, but it motivates efficiency in producing the other 90% Only about 10% of the total economy is profit, but it motivates efficiency in producing the other 90%

23. Winners and Losers Monopoly is the enemy of efficiency Monopoly is the enemy of efficiency

24. Winners and Losers Monopoly is the enemy of efficiency Monopoly is the enemy of efficiency Dr. S sez: “What is called capitalism might more accurately be called consumerism. It is the consumers who call the tune and those capitalists who want to remain capitalists have to learn to dance to it.” Dr. S sez: “What is called capitalism might more accurately be called consumerism. It is the consumers who call the tune and those capitalists who want to remain capitalists have to learn to dance to it.”

25. Winners and Losers Monopoly is the enemy of efficiency Monopoly is the enemy of efficiency Dr. S sez: “What is called capitalism might more accurately be called consumerism. It is the consumers who call the tune and those capitalists who want to remain capitalists have to learn to dance to it.” Dr. S sez: “What is called capitalism might more accurately be called consumerism. It is the consumers who call the tune and those capitalists who want to remain capitalists have to learn to dance to it.” The efficient allocation of scarce resources that have alternative uses means that some must lose the ability to use those resources, i.e., typewriters The efficient allocation of scarce resources that have alternative uses means that some must lose the ability to use those resources, i.e., typewriters

26. Assignment for Nov. 16 Read and study Chapter 9 of Basic Economics: “Productivity and Pay” Read and study Chapter 9 of Basic Economics: “Productivity and Pay”