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Business unit

A logical element or segment of a company (such as accounting, production, marketing) representing a specific business function, and a definite place on the organizational chart, under the domain of a manager. Also called department, division, or a functional area.

Economic value The value of an asset deriving from its ability to generate income.
A company that generates more revenue from less assets is better than one that requires huge assets to generate little revenue. While this concept seems pretty straight forward, the asset efficiency values change dramatically depending on the industry.

Asset efficiency Asset Efficiency = (Revenues / Total Assets) x N

Example: If a company generates $1 million in revenue, using $2 million in assets, the company would generate $50 revenue for every $100 in assets. (50 = (1 / 2) x 100)

Cost to serve Cost to aquire & retain Lifetime value

Employee value Best practice Switching costs

A best practice is a technique or methodology that, through experience and research, has proven to reliably lead to a desired result. Fixed cost that buyers (switchers) face when they change suppliers (previous dealers) This refers to the extra values businesses typically realize when they reach a certain size. To fully understand the benefits of scale, there is nothing like experience. In economics and business, a network effect (also called network externality or demand-side economies of scale) is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service is dependent on the number of others using it. The classic example is the telephone. The more people own telephones, the more valuable the telephone is to each owner.

Benefits of scale a.k.a. Network effects

Economies of scale Retrofit

the cost advantages that a business obtains due to expansion. There are factors that cause a producers average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in existence or available at the time of original manufacture. To install or fit (a device or system, for example) for use in or on an existing structure, especially an older dwelling. By using technology to link directly with suppliers, sub-contractors, factories, distributors and customers around the world, companies can reduce the process time of tedious labour intensive tasks, speed up the order and delivery of components and speed up deliveries of finished goods to customers. It will allow instant feedback of information from suppliers or customers and keep inventories to the optimum levels. It facilitates this through a paperless flow of information. A direct and effortless solution to a problem.We now use the term 'silver bullet' to refer to an action which cuts through complexity and provides an immediate solution to a problem. The allusion is to a miraculous fix, otherwise portrayed as 'waving a magic wand'. This figurative use derives from the use of actual silver bullets and the widespread folk belief that they were the only way of killing werewolves or other supernatural beings. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering. Where an established brick-and-mortar company hooks up with venture investors and a new management team to launch an Internet spinoff.

e-Enabled

Silver bullet

Carve out

Machiavellian strategies

of, like, or befitting Machiavelli.

being or acting in accordance with the principles of government analyzed in Machiavelli's The Prince, in which political expediency is placed above morality and the use of craft and deceit to maintain the authority and carry out the policies of a ruler is described.

Guerilla advertising

The concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional, potentially interactive, and consumers are targeted in unexpected places. The objective of guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and consequently turn viral. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing . The term has since entered the popular vocabulary and marketing textbooks. (Military) Military practice in weapon firing, a drill, or a manoeuvre without using live ammunition Informal a trial or practice, esp in simulated conditions; rehearsal

Dry run