Copyright © 2006, Red Mercury, LLC All Rights Reserved

60 Minute MBA

Hey you! Information about each slide is in the Notes section, so make sure the notes are visible as you read through the slides. Enjoy!These slides are in mid-update for 2006. Some info on what might be updated can be found here: http://60minutemba.com

60 Minute MBA

= $1.00= $0.67= $0.02

Present Value

Low Risk, Low Discount4% per year10 years= $0.67High Risk,High Discount50% per year10 years= $0.02

Discount Rate

Buzzwords so far

• Discount Rate

• Present Value

Finance Continued:Covering Cost of Capital

ConsistoCorp

NoinvestoCorp

Opportunity Cost of Capital

ConsistoCorp

NoinvestoCorp

Buzzword Update

• Discount Rate

• Present Value

• Cost of Capital

• Opportunity Cost of Capital

A

60 Minute MBA

1. Create a product that a particular customer wants

2. Tell that customer how much they want your product

Marketing

+ ???? = + =

+ =

Product People Want + Let Them Know = $$$$$$

I HATE IT!

I like where you are going with this, but if you could add more

guns and explosions, that would be great.

Segmenting

Love the skateboards.More guns.

More explosions.

Targeting

Skateboarding

Guns

Explosions

Cars

Sports Plants

CoolNew

Positioning

Advertising

Buzzword Update

• Discount Rate

• Present Value

• Cost of Capital

• Opportunity Cost of Capital

• Segmenting

• Targeting

• Positioning

A

A

60 Minute MBA

$85,000

$150,000

$90,000

Buzzword Update

• Discount Rate• Present Value• Cost of Capital• Opportunity Cost of Capital• Segmenting• Targeting• Positioning

• BATNA (Best Alternative to Negotiated Agreement)

A

A

A

60 Minute MBA

Our Industry’s Problem

Realistic Production Schedule

Estimated Production Schedule

Required Production Schedule

Christmas

Management /

Developer Gap

Continuous Improvement

Close the GapI know what it takes

“Deploy yourself.

Strike hard.

Try everything.”- Warren Bennis, “On Becoming a Leader”

Questions

A

A

A

A

Why do we have to make money?Why is $1 tomorrow not worth $1?Why can’t I get investors?Doesn’t marketing kill good ideas?What if I’m negotiating with a butthead?Why can’t I just sell crack to kids?

Scott Corleyscott@red–mercury.comhttp://www.red-mercury.com

60 Minute MBA