Step 1. Pick the right business to work for (business that offers greatest career opportunities)
Chapter 1. how to find companies that offer greatest career opportunities (w/ durable competitive advantage)
have products that:- never really change
- easy to sell
- own a piece of consumer's mind
- sell unique product, e.g. Coca Cola, Hershey
- sell unique service, sell what people need
- low cost buyer and seller of product/service that the public is consistently in need of - offer low cost through high volum, e.g. Walmart, Costco, Burlington
Chapter 2. quick test for identifying the best company to work for
- per share earnings test (10 year period) - consistent and has upward trend- debt test - long term debt must be low, debt load should be < 5*net earnings
- gross margin test - must be higher
gross profit = revenue - cost of good sold
gross margin = gross profit/revenue
Step 2. Delegate
Chapter 3. rules for delegating authority
- every business culture is unique- leave managers alone - let them continue to think their business as their own
- managers must have a GREAT deal of INTEGRITY
Step 3. Find the right manager for the job
Chapter 4. where to start search for manager
- change manager only when necessary- promote from within if possible
- look for talent w/ proven talent record
Chapter 5. victor or victim
- must have an internal locus of control- victor = with internal locus of control - in control of themselves, take responsibility for their failures
- victim = with external locus of control - don't believe that they have power to solve their problems
