MBA 2019

Nearing the end of my MBA program, outlined a few simple yet important things that I have learned in the past two years.

Income statement: High revenue is good but the bottom line or net profit is a key indicator of a company's success, and it is obtained after considering the cost of goods sold, operating expense, interest, tax. Debt is not necessarily bad.

STP: Not everyone will like the product. The product needs to find the right customer, and it's never the other way round. Segmenting the market, targeting the right customers and positioning the product to reach the target customers are essential.

Diversification: Rather than putting all funds in a single entity, business benefits if it puts it in different entities. Even if some investments fail, a few will do well, thereby ensuring that the mean of the return doesn't fall. The risk is optimized.

Time value of money: Money today is better than money tomorrow. Inflation risk among other risks is the reason. Any entity which lends it to another will expect a premium to compensate for the risk.

Economies of scale: Larger companies have an advantage because the fixed cost is spread which reduces the per unit cost.

It would be great to hear from some of you. Let's make LinkedIn a little better, batch of 2019. :)

Orginally published on LinkedIn