ENT 526 Lecture Notes - Lecture 5: Jack Welch, Compound Annual Growth Rate, The Home Depot

• School: Ryerson University
• Department: Entrepreneurship and Strategy
• Course: ENT 526
• Professor: Sean Wise

Document Summary

Cagr put on slide deck: reason to invest. Machiavelli: branson virgin mobile cannot move your number in canada. Amazon vs bookstore: book store has limited shelf space. Home depot: stacked empty boxed to make it look full. Why is talent so key: knowledge based economy, focus on brains not resources. Jack welch: 6 or 9 theory, fired the bottom 10, reallocate to top 20, each division needs to be number 1 or number 2, idea of thinning the ranks. Bottom up: motivate employees, cheaper (usually, they know the business and culture. Top down: eliminate competition, experience, position/personal power, don"t need training, bring new ideas, bring connections and network. Never give up equity always pay with cash. Board of directors: brain of the corporation, address the big decisions, liable for company actions. Startup hiring catch 22: vicious cycle, need a job for experience need experience for the job. Make a small profit off each transaction.