MBA in 1 hour

The course is designed for Pre-MBAs looking to complete the basic course before landing on the campus. It will cover basics of finance, accounting, marketing, statistics and strategy.Finance & EconomicsI. How to handle a declining profitability problem ?1.Find historical income statements for your department/company2.Find out whether decreasing revenue/increasing cost is an industry specific issue or a company specific problem3.Identify the exact sub division or product where the problem lies and ask 5 WhysII. What is optimal production quantity1. We all know that Profits= Revenue- Costs. To get maximize profits, you need to take 1st degree differential and equate to 02.When Marginal Revenue = Marginal Cost that is when profit maximization optima takes place.III. When to hire or fire?1. The law of diminishing marginal utility states that the marginal utility of a good or service declines as its available supply increases beyond a threshold2. If you keep on hiring, the overall output of goods/services will increase until a point, post which the utility will start stagnating or decreasingIV. Should the govt. regulate1. There are 6 scenarios of market failures - only where the government needs to step in, one of them being “adverse selection”.2. Adverse selection is when there is information asymmetry and hence sellers have information about the services that buyers do not have.V. How to defer the taxes1. Firms pay taxes on Profits i.e.Revenue-Costs. Thus, if you increase costs to the firm, taxable income could go down2. The faster an asset is written off for tax purposes, the greater the tax is deferred to future periods and more funds are available in present for investment/operations3. Two ways to decrease your firm’s taxable income:Increase Depreciation cost todayLeverage LIFO method of accounting (where applicable)VI. Analyzing pulse of a firmWhat will you learn?Accounting has a list of operating ratios that help us in financial diagnosis. A few of such operating ratios are:Gross Margin Ratio, Working Capital days, Receivable turnover, Inventory turnoverMarketingWhat is flanker brand1. To protect your brand from competitors, launching a flanker brand may be advisable to protect brand equity2. Flanker brand is a deteriorated version of the original brand targeting the income segment below your current target marketStatisticsI. Where should you invest your 1 Dollar?1. Simple Linear Regression is a very simple tool to identify the correlation between the desired output(revenue) and its parameters(marketing/product launch)2. If the R square for a problem is very close to 0, it indicates that the X variable may not really be related to y.3. This implies one shouldn't pump more money or effort in input parameter X.II. Building confidence intervals1. The larger sample space you have the more standard deviation will exist when you report data from a sample survey2. Central Limit Theorem says that the distribution of the sample mean will be normal when the distribution of data in the population is normal3. The width of the confidence interval tells us more about how certain (or uncertain) we are about the true figure in the populationIII. Learn decision makingWhat will you learn?I. Start with a hypothesis (launch/not launch) - a status quo, and conduct a survey2. Create a simple random sample that has unbiased and independent information and get statistics parameters on it such as alpha, p-value, etc.3. If the P-value is less than Alpha (0.01<0.05), then you reject your hypothesis because the evidence is strong enough