Entrepreneurial spirit

The U.S. holds an unprecedented entrepreneurial spirit. According to the Small Business Administration, over 500,000 new companies with employees are created annually in the United States. 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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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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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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The Leadership Engine

"The Leadership Engine: How Winning Companies Build Leaders at Every Level", by Noel Tichy and Eli Cohen, suggest that effective mangers lead as well as manage. The authors conclude that the best companies have "good leaders who nurture the development of other leaders at all levels of the organization."
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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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Internet search

Internet search engines are no longer limited in querying only web pages for results. The web has evolved into a vast collection of files that support a variety of applications. Google's Universal search and Yahoo's Glue search well beyond web pages, bringing back results from images, video, news, blogs, and even from specific web sites such as WebMD and Wikipedia.
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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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China

China is an economic superpower. According to the World Bank, China has been the world’s leading producer of steel, copper, aluminum, cement, and coal for several years. China is second in oil imports and is the world's second largest auto market. With ample supplies of money, resources, and people, the world's fastest growing economy will continue its unprecedented growth into the 21st century.
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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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Social computing

Social computing, via websites such as FaceBook and Twitter, puts power in communities, not institutions. As more individuals use the Internet to shop, work, and exchange ideas, a more egalitarian social structure is emerging. Individuals take cues from one another, rather than traditional sources of authority — like corporations, media outlets, political institutions or organized religions.
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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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Vacation benefits

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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10/80/10 Performance Principal

The 10/80/10 Performance Principal identifies workers in three categories. The first 10% are self-starters; they possess the right skills, knowledge and beliefs to be highly effective. The middle 80% represents the adaptors; employees with some of the skills and knowledge to be successful. The last 10% represent workers that will not be successful regardless of training or direction.
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