U.S. productivity

American workers are the most productive in the world, according to recent UN statistics. The U.S. economy produced the most wealth per capita per year followed by Ireland, Luxembourg, Belgium and France. Factors explaining the high U.S. productivity rate include longer work hours, higher information and communication levels, corporate structure, and fluidity of competition and foreign trade.
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Mad Men

The television series "Mad Men" first aired on AMC in 2007. The show centers on the staff of the Sterling Cooper advertising agency on New York's Madison Avenue during the early 1960s. The main character is Don Draper, the firm's creative director. The storyline draws on the era's business setting and depicts the changing social fabric of the 1960s.
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Adam Smith

Adam Smith is considered the "father of economics". The Scottish philosopher and economist lived during the 18th century. His principle economic premise held that if government left the marketplace to its own devices, the free market would guarantee a result beneficial to the populace. Smith published one of the most influential books of all time, The Wealth of Nations, in 1776.
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Business four stages

Most businesses will generally experience four stages: start-up, growth, maturity, and decline. Start-ups are businesses that have recently come into existence. Businesses in the growth phase can often function using their own limited resources. Mature firms have achieved a certain amount of name recognition. Businesses in the declining phase tend to experience a shrinking market.
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Forecast vs. prediction

The terms forecast and prediction are sometimes used interchangeably. Forecast implies probability. A forecast is made by observing the trend of similar events and is often based on historical data. Prediction implies hypothesis. A prediction is derived from a theory which states that if a certain set of conditions is satisfied, a particular set of events will occur.
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Business workflow analysis

Business workflow analysis is a collaborative process that involves the following: the people that do the work, those with the vision of how best to do the work, and people that know which best applications will support that vision. Successful workflow analysis should yield significant results in productivity gains and general adaptability, as well as cost savings.
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Entrepreneurial spirit

The U.S. holds an unprecedented entrepreneurial spirit. According to the Small Business Administration, nearly 672,000 new companies with employees were created in the U.S., the highest rate of new start-ups in U.S. history. Industry experts attribute the high rate to increased layoffs, less executive job security, and more flexibility to operate a business as a secondary source of income.
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Tulips

The dot com bust of the early 1990s is an example of a historic speculative bubble. The most cited speculative bubble in history centered around the tulip business in 17th century Holland. The Dutch craze for the flower bulbs sent prices skyrocketing. Many speculators invested assuming ever-increasing prices. The market crashed after a two-year surge in 1637 causing government intervention.
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Profit margin

A company's profit margin is defined as net income divided by net revenue. Profit margin is usually expressed as a percentage. Calculating profit margin allows for normalized comparison of companies in the same industry. Higher profit margins indicate good performance while lower margins indicate inefficiency. Profit margins vary from industry to industry.
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Customer service

A Rockefeller University survey found that almost 70% of customers leave because of perceived rude or indifferent behavior by an employee, versus about 20% combined for price and product quality. Another study of customer complaint behavior, conducted by research consultancy TARP, found that only 5% of customers with problems complain to management while 50% simply walk away.
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Delegation guidelines

The hallmark of good supervision is effective delegation. Author Thomas R. Horton suggests the following delegation guidelines: delegate the entire task to one person; select the appropriate person; clarify the preferred results; delegate responsibility and authority; ask for a summary back from the delegatee; get progress feedback; evaluate and reward performance.
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ROI

ROI stands for Return On Investment. The simple ratio is used to evaluate the net benefits of a project or investment versus its cost. In math terms, the ROI ratio equals the benefit divided by the cost. ROI is a popular method due to its simplicity. If the resulting ROI is negative, the project or investment is deemed a poor investment.
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The customer is always right

The phrase "the customer is always right" was coined in the late 19th century by Marshall Field and Harry Gordon Selfridge for Marshall Field's Department Store. Nordstrom adopted the same customer philosophy during the 20th century and became American's largest specialty retailer. Nordstrom's legendary customer service has been the subject of books, magazine features, and countless news stories.
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Economies of scale

The concept of "economy of scale" suggests generally that as production output increases, unit cost decreases. Economies of scale are achieved through such things as mass production, technology, marketing and communication. Economies of scale may also be produced through location, for example, production facilities that share services or fast food restaurants that share customers.
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Green business

A green business is an ecologically-friendly business. It is not limited to any particular market — it could be any kind of product for any market. What characterizes a green business is that it is run in such a way as to conserve natural resources, eliminate waste and remain ecologically in balance. Addressing climate change is the number one perceived green issue among most businesses.
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Multitasking

Several research studies have concluded that multitasking can actually result in less productivity and efficiency. Researchers conclude that for various types of tasks, people lose time when they switch from task to task. Further, as task complexity increases, lost time increases. The stops, starts and interruptions of multitasking generally slows people down in terms of bottom line output.
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Standard Oil

John D. Rockefeller built Standard Oil during the 19th Century, earning him the distinction of being America's first billionaire. Standard Oil was established in Ohio in 1870 and by the turn of the century became one of the largest multinational corporations in the world. Standard Oil was broken up into 34 independent companies in 1911 by the U.S. Supreme Court under the Sherman Antitrust act.
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The 50-50-90 rule

The 50-50-90 rule suggests that anytime you have a 50-50 chance of getting something right, there is a 90 percent probability you will get it wrong.
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The 80-20 rule

The 80-20 rule, also known as the Pereto Principal, states that for many events, 80% of the effects come from 20% of the causes. The business application of this rule of thumb says for most companies, 80% of its revenue comes from 20% of its customers.
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Endowments

Nearly 80 universities have endowments over $1 billion, according to data compiled by the Boston Globe. A robust stock market and generous donations have helped boost endowments to record levels. Some lawmakers are calling for more endowment spending to offset tuition increases. They suggest requiring colleges to spend at least 5 percent of their endowments each year, as nonprofits are required.
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Competitive advantage

The most important attribute that Warren Buffet looks for in a company is "sustainable competitive advantage". According to author Erica Olsen, competitive advantage can be boiled down to one question: what is a company best at in its market and why? Olsen suggests that the best companies always understand their competitive advantage and make it a key aspect of planning, strategy and growth.
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Energy costs

CEOs have ranked energy costs as one of their biggest challenges, according to the Business Roundtable's Energy Task Force. Energy prices are rising in the face of increasing demand. Public policy has leaned against nuclear and coal energy sources, drilling and building oil refineries. At the same time, global demand has risen steadily, especially from new powerhouse economies in Asia and Europe.
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CEO Express

CEOExpress.com, the executive’s interface to the Internet, employs expert human editors and "mind ergonomics" to deliver the most critical and useful web information in a clear, easy-to-use format. CEOExpress filters and organizes the content executives need on the Internet while adding features to the site to make their lives even more streamlined and efficient.
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Business and Management Today

There is no federal law that requires employers to provide vacation time, paid or unpaid, to its employers. Most employees consider it to be one of their most important benefits. Workplace experts agree that it is important to productivity and morale for employees to take time off in order to rest and rejuvenate. The typical U.S. worker receives ten vacation days per year.
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MBA degrees

George W. Bush is the first U.S. President to hold an MBA degree. Dartmouth College established the first graduate business school in 1900 offering an advanced degree in commercial sciences, the fore bearer of the modern MBA. Today, more than 100,000 MBA degrees are awarded each year in the U.S. The estimated average cost of an MBA at an accredited institution is about $80,000.
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