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Data-driven decision-making

Using data and statistics to help make business decisions by indicating key aspects, trends, and information within the data/survey.

Value of Data

Data is valuable for measuring components, testing future trends, and has monetary value as companies like Google and Facebook use data for advertising.

Key Performance Indicators

Metrics like financial, sales, marketing, operational, customer, and corporate responsibility used to evaluate performance.

Operations Management

Focuses on planning, supervising production, and turning inputs into outputs efficiently, working with supply chain management and logistics.

Production Types

Decisions in production planning include production process, site selection, facility layouts, and resource planning.

Quality Management

Involves ensuring products meet standards, quality control, and methods like Total Quality Management and Six Sigma.

Mass Production

Manufacturing many identical goods at once to keep costs low using standardized processes.

Customization

Producing goods or services according to individual customer needs.

Mass Customization

Using mass-production techniques but custom-tailoring products to individual customer needs.

Critical Path Method (CPM)

Identifying project activities, their relationships, and order for completion to determine the critical path and project end date.

Investing

The act of using money to generate returns in the form of interest, dividends, or through the appreciation of the investment product.

Types of Investments

Various products like stocks, bonds, CDs, and treasury debt where each carries a level of risk connected to the income it provides.

investment

Involves lending money to the federal government, earning interest, and receiving the principal back in the future.

Commercial Deposits (CDs)

Involves lending money to banks, earning interest, and getting the principal back in the future, similar to treasury debt for a bank.

Stocks

Purchasing partial ownership in a company, with the investment growing when the company performs well.

Dividends

Payments to stockholders from a corporation's profits, which can be in cash or stock form.

Retained Earnings

Profits reinvested in the business for growth, providing financial resources for operations like R&D, expansion, etc.

Decision Rule

If interest rate (i) is higher than return rate (r), pay down debt; if return rate (r) is higher than interest rate (i), invest.

Bank Vulnerability

Deposits are short-term while bank assets (loans, securities) are long-term, leading to risk due to maturity mismatch.

Irrational Investing

Investors often make irrational decisions leading to losses, influenced by factors like representativeness, overconfidence, loss aversion, etc.

Personal savings

Funds sourced from individual savings, a significant contributor to new/small/start-up businesses.

Venture Capital

Equity financing for high-growth potential companies, typically reserved for new growth industries with proven management teams.

Secured loans vs unsecured loans

Unsecured loans rely on creditworthiness, while secured loans are tied to collateral owned by the business.

Angel Investment

Equity investment by individuals or groups in companies, more common than venture capital and focused on early growth stages.

Human Resources Management

The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals, leveraging employees for competitive advantage.