Table Of ContentPraise for Key MBA Models
This book is not just an enjoyable read. It also offers practical models to accelerate
your learning of key management concepts and boost your capacity to engage
in meaningful, executive conversations. It’s a must-read for anyone who wants to
perform more effectively each and every day.
CYRIL BOUQUET, PROFESSOR OF STRATEGY, INSTITUTE OF MANAGEMENT
DEVELOPMENT (IMD)
I would love to have had this elegant and crisp reference guide before, during
and after every business school class, including Julian Birkinshaw’s! Some of the
frameworks feel like reunions with old friends, some completely new introductions.
All are explained with beautiful simplicity. I expect this to become the model Model
handbook.
RICHARD HYTNER, DEPUTY CHAIRMAN, SAATCHI & SAATCHI WORLDWIDE
The greatest value of this book is that it tells us the topmost models that managers
should not only know about but should also know when and how to use. It’s an
excellent book to use for the regular reinforcement of business and management
concepts.
RAVI ARORA, VICE PRESIDENT, TATA QUALITY MANAGEMENT SERVICE
Key MBA Models
JULIAN BIR KIN SHAW
KEN M A RK
Key MBA Models
The 60+ models every manager and
business student needs to know
Pearson Education Limited
Edinburgh Gate
Harlow CM20 2JE
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
First published 2015 (print and electronic)
© Pearson Education Limited 2015 (print and electronic)
The rights of Julian Birkinshaw and Ken Mark to be identified as authors of this work have been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-01685-6 (print)
978-1-292-01687-0 (PDF)
978-1-292-01686-3 (ePub)
978-1-292-01688-7 (eText)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Birkinshaw, Julian M.
Key MBA models : the 60+ models every manager and business student needs to know / Julian
Birkinshaw, Ken Mark.
pages cm
Includes index.
ISBN 978-1-292-01685-6
1. Management. I. Mark, Ken. II. Title.
HD31.B49747 2015
658--dc23
2015002445
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval
system, distribution or transmission in any form or by any means, electronic, mechanical, recording or
otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting
restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
The ePublication is protected by copyright and must not be copied, reproduced, transferred, distrib-
uted, leased, licensed or publicly performed or used in any way except as specifically permitted in
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as strictly permitted by applicable copyright law. Any unauthorised distribution or use of this text may
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in law accordingly.
All trademarks used herein are the property of their respective owners. The use of any trademark in this
text does not vest in the authors or publisher any trademark ownership rights in such trademarks, nor
does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.
10 9 8 7 6 5 4 3 2 1
19 18 17 16 15
Print edition typeset in 9.25 Helvetica Neue Pro by 3
Printed by Ashford Colour Press Ltd, Gosport
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
Contents
About the authors x
Acknowledgements xi
Introduction xiii
PART ONE Organisational behaviour 1
1 Change management: Kotter’s eight-step model 3
2 Cognitive biases in decision making 7
3 Emotional intelligence 11
4 Managing work groups: Belbin team roles 14
5 Matrix management 18
6 Mintzberg’s managerial roles 22
7 Motivation: Theory X and Theory Y 27
8 Negotiating techniques: BATNA 31
9 Schein’s model of organisational culture 34
10 360-degree assessment 37
PART TWO Marketing 41
11 Customer lifetime value 43
12 Ethnographic market research 47
13 Market orientation 51
14 Multichannel marketing 55
15 Net promoter score 58
16 The 4Ps of marketing 62
17 Pricing strategies: dynamic pricing 66
18 Product life cycle 70
19 Segmentation and personalised marketing 74
PART THREE Strategy and organisation 79
20 The ambidextrous organisation 81
21 The BCG growth-share matrix 85
22 Blue ocean strategy 90
23 Core competence and the resource-based view 94
vii
24 Corporate social responsibility: the triple bottom line 98
25 Corporate strategy: parenting advantage 102
26 Five forces analysis 107
27 Game theory: the prisoner’s dilemma 111
28 Generic strategies 115
29 The McKinsey 7S framework 119
PART FOUR Innovation and entrepreneurship 123
30 Brainstorming 125
31 Design thinking 129
32 Disruptive innovation 133
33 Greiner’s growth model 138
34 Open innovation 143
35 The seven domains assessment model for entrepreneurs 147
36 Stage/gate model for new product development 152
37 Scenario planning 156
PART FIVE Accounting 161
38 The accrual method in accounting 163
39 Activity-based costing 166
40 The balanced scorecard 170
41 The DuPont identity 174
42 Economic value added 178
43 Ratio analysis 183
PART SIX Finance 187
44 Black-Scholes options pricing model 189
45 Bond valuation 193
46 Capital asset pricing model 199
47 Capital budgeting 202
48 Modern portfolio theory 207
49 Modigliani-Miller theorem 212
50 Time value of money 216
51 Valuing the firm 221
52 Weighted average cost of capital 231
viii Contents
PART SEVEN Operations 235
53 Agile development 237
54 The bullwhip effect 241
55 Decision trees 245
56 Just-in-time production 249
57 Sensitivity analysis 253
58 The service-profit chain 256
59 Six Sigma 259
60 Theory of constraints 263
61 Total quality management 267
Index 271
Contents ix
