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[Illustration:ModernBusiness]
FORGINGAHEADINBUSINESS
[Illustration:ModernBusiness]
ALEXANDERHAMILTONINSTITUTEASTORPLACENEWYORKCITY_CanadianAddress,C.P.R.Bldg.,Toronto.__AustralianAddress,8aCastlereaghStreet,Sydney._
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Copyright,1921,byAlexanderHamiltonInstitute
CONTENTS
PAGE
FOREWORD--THELAWOFSUCCESS7
CHAPTER
ITHEMODERNBUSINESSCOURSEANDSERVICE9
IITHEDANGEROFSPECIALIZINGTOOEARLY30
IIIPUSHINGBEYONDTHEHALF-WAYMARK35
IVAPERSONALPROBLEM43
VTHEQUESTIONBEFOREYOU69
VIDESCRIPTIVEOUTLINEOFTHECOURSE72
VIIADVISORYCOUNCIL,LECTURERSANDSTAFF97
ADVERTISEMENTS121
OrganizationoftheAlexanderHamiltonInstitute
_AdvisoryCouncil_
JosephFrenchJohnson,D.C.S.,LL.D.Dean,NewYorkUniversitySchoolofCommerce,AccountsandFinanceFrankA.Vanderlip,A.M.,LL.D.FinancierT.ColemanduPont,D.C.S.BusinessExecutiveJohnHaysHammond,D.Sc.,LL.D.ConsultingEngineerJeremiahW.Jenks,Ph.D.,LL.D.ResearchProfessorofGovernmentandPublicAdministration,New
YorkUniversity
_SpecialLecturers_
ErastusW.Bulkley,Memberofthefirm,SpencerTraskandCompanyHerbertS.Collins,Vice-President,UnitedCigarStoresCompanyHenryM.Edwards,Auditor,NewYorkEdisonCompanyHarringtonEmerson,EfficiencyEngineerCharlesErnestForsdick,Controller,UnionOilCompany
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OrlandoC.Harn,ChairmanofSales,NationalLeadCompanyA.BartonHepburn,Chairman,AdvisoryBoard,ChaseNationalBank,NewYorkFredericH.Hurdman,CertifiedPublicAccountantLawrenceM.Jacobs,Vice-President,InternationalBankingCorporationJacksonJohnson,Chairman,InternationalShoeCompany,St.LouisFowlerManning,DirectorofSales,DiamondMatchCompanyFinleyH.McAdow,PastPresident,NationalAssociationofCreditMenGeneralCharlesMiller,FormerChairmanoftheBoard,Galena-SignalOilCompanyMelvilleW.Mix,President,DodgeManufacturingCompanyEmmettH.Naylor,Secretary-Treasurer,WritingPaperManufacturers'AssociationHolbrookF.J.Porter,ConsultingEngineerWeldingRing,ExporterArthurW.Thompson,President,ThePhiladelphiaCompanyofPittsburghFrederickS.Todman,GeneralManager,Hirsch,Lillienthal&CompanyJohnC.Traphagen,Treasurer,MercantileTrustandDepositCompanyofNewYorkJohnWanamaker,MerchantWalterN.Whitney,Vice-President,ContinentalGroceryStores,Inc.
_Authors,CollaboratorsandStaffMembers_
AlbertW.Atwood,A.B.,TheStockandProduceExchangeBruceBarton,GeneralPublicityDwightE.Beebe,B.L.,CollectionsRalphStarrButler,A.B.,MarketingandMerchandisingGeoffreyS.Childs,B.C.S.,OfficeMethodsEdwinJ.Clapp,Ph.D.,TransportationandTerminalFacilitiesRaymondJ.Comyns,B.C.S.,PersonalSalesmanshipHerbertF.deBower,LL.B.,BusinessPromotionRolandP.Falkner,Ph.D.,BusinessStatisticsMajorB.Foster,M.A.,BankingPrinciplesCharlesW.Gerstenberg,Ph.B.,LL.B.,FinanceLeoGreendlinger,M.C.S.,C.P.A.(N.Y.),FinancialandBusiness
StatementsJ.AntondeHaas,Ph.D.,ForeignTradeandShippingJohnHaysHammond,ConsultingEngineerEdwardR.Hardy,Ph.B.,FireInsuranceWarrenF.Hickernell,Ph.D.,BusinessConditionsSolomonS.Huebner,Ph.D.,MarineInsuranceCharlesW.Hurd,BusinessCorrespondenceJeremiahW.Jenks,Ph.D.,LL.D.,RelationofGovernmenttoBusinessJosephFrenchJohnson,D.C.S.,LL.D.,EconomicProblems;BusinessEthicsWalterS.Johnson,B.A.,B.C.L.,CommercialLawEdwardD.Jones,Ph.D.,Investments
JohnG.Jones,SalesManagementDexterS.Kimball,A.B.,M.E.,CostFinding;FactoryManagementBernardLichtenberg,M.C.S.,AdvertisingPrinciplesFrankL.McVey,Ph.D.,LL.D.,EconomicsJohnT.Madden,B.C.S.,C.P.A.(N.Y.),AccountingPracticeMacMartin,AdvertisingCampaignsG.F.Michelbacher,M.S.,CompensationandLiabilityInsuranceT.VassarMorton,Litt.B.,CreditPracticeBruceD.Mudgett,Ph.D.,LifeInsuranceE.L.StewartPatterson,DomesticandForeignExchange
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FredericE.Reeve,C.P.A.,AccountingPrinciplesJesseH.Riddle,M.A.,BankingFrederickC.Russell,B.C.S.,AuditingBernardK.Sandwell,B.A.,InternationalFinanceWilliamW.Swanson,Ph.D.,MoneyandBankingJohnB.Swinney,A.B.,MerchandisingWilliamH.Walker,LL.D.,CorporationFinance
THELAWOFSUCCESS
Duringthewinterof1883aslim,studiousyoungmanwasworkingasassistantforemaninagreasylittlemachineshopatAurora,Illinois.HewassavingmoneywithaviewtospendingthenextyearattheStateUniversity,andhewasdevotingeveryminuteofhissparetimetothoughtandreading.Hewasnotmakingmuchofastirintheworld,andonlyafewofhisclosefriendsevergaveasecondthoughttohisambitionsorprospects.
Oneofthesefriendswasanewspaperreporter,arecentHarvardgraduate.He,too,wasinterestedinstudy,especiallyoffinancialquestions,and
hefounditapleasuretoguidethereadingoftheyoungforeman.Manyaneveningthetwofriendsspentinthediscussionofgreateconomicandfinancialproblems.Thoughbothmenhadtheirambitionsanddreams,itdidnotoccurtoeitheronethathewouldeverplayabigpartinsolvingtheseproblems.
AfewyearslatertheHarvardgraduatebecamefinancialeditorofthe_ChicagoTribune_andbroughtintheyoungermanashisassistant.Duringtheiryearsofnewspaperworktogethertheycontinuedtostudyandthink,andtheirknowledgeofbusinessprinciplesandmethodsgraduallybroadened.Theywerefittingthemselvesalmostwithoutknowingittostepforwardintopositionsofleadership.
Today,theformerreporteristheheadofagreatuniversityschoolofcommerce;theassistantforemanbecamethepresidentofthelargestbankintheUnitedStates.OneofthesemenisJosephFrenchJohnson,nowDeanoftheNewYorkUniversitySchoolofCommerce,AccountsandFinance.TheotherisFrankA.Vanderlip,thegreatfinancier.
Thelifehistoriesofmostmenwhohavesucceededinalargewayareequallysimple.Theyhavelookedahead,theyhaveplanned,theyhaveequippedthemselveswithallthebusinessknowledgeavailable,andsuccesshasfollowed._Successmustfollow._Thelawofsuccessisasdefiniteasthelawofgravity.Hereitis:
_Prepareinadvanceforopportunities._
Itisnotthedramaticmomentsoflifethatcount.Itisthequietplanningandreadingofthemanwhoisgettingreadynowforwhatisgoingtohappentwo,fiveortenyearsfromnow.
ChapterI
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THEMODERNBUSINESSCOURSEANDSERVICE
AsDeanofNewYorkUniversitySchoolofCommerce,AccountsandFinance,JosephFrenchJohnsonhadformanyyearscontinuallyreceivedlettersrequestingadviceonwhattoreadonbusiness.
Thesedemandscamenotonlyfromyoungmen,butfrommatureandableexecutives,andsometimesevenfromthemostsuccessfulbusinessleaders.ToallsuchrequestsDeanJohnsonwasobligedtoreplythattheonlypracticalwaytostudythefundamentalprinciplesofbusinessinasystematicmannerwastoattendthelecturesinuniversityschoolsofcommerce.
Atthattimetheliteratureofbusinesswasscantyandforthemostpartofdoubtfulvalue.Workingalone,amancouldgetbutlittlehelpinhiseffortstowidenanddeepenhisknowledgeofbusinessprinciples.
Itbecameevidentthattherewasagreatneedforanorganized,logicalstatementofthebasicprinciplesonwhichsuccessfulbusinessisfounded.Itwasdeterminedtoestablishaninstitutionwhichshouldmeetthedemand.AfteryearsofpreparationtheAlexanderHamiltonInstitutewasestablishedin1909.
Thename
Inselectingthename,itwasagreedthatnonecouldbesosuitableasthatofAlexanderHamilton.
Hamiltonisperhapschieflyrememberedforhismasterlystatesmanship;buthewasequallyconspicuousassoldier,financier,author,organizerandpracticaleconomist.
HewaswithoutdoubtthegreatestmanagereveremployedbytheUnitedStatesGovernment.WhenhebecamethefirstSecretaryoftheTreasury,hefoundachaoticgovernment,withoutmoney,withoutcredit,andwithout
organization.Hesecuredorder,providedfundsandcreatedprosperity.HeinvestigatedtheindustriesanddirectedtheearlycommercialdevelopmentoftheUnitedStates."Hetouchedthedeadcorpseofthepubliccredit,anditspranguponitsfeet.Hesmotetherockofthenation'sresourcesandabundantstreamsofrevenuegushedforth."
Hamiltonwasagreatexecutiveandsystematizer;hehimselfworkedoutanaccountingsystemfortheUnitedStatesGovernmentwhich,withbutslightmodifications,remainedinforceformorethanahundredyears.
Theplan
TheModernBusinessCourseandServiceisasystematic,time-savingmethodofbringingtoanyman'sofficeorhomethatbusinessknowledgeandtrainingwhichheneeds,butwhichhecannotacquirethroughhisownexperience.
Itisdesignedforthebenefitoftwogroupsofmen:
(1)thosewhoalreadyareinexecutiveorsemi-executivepositions;
(2)youngmenwhohavebrainsandtheambitiontobecomebusiness
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executives.
Itisintended,ingeneral,forthemenwhoarelookingandmovingahead;forlive,keen-witted,energeticmen;formenwhoarenotsatisfiedtoremainintheranksorinsubordinatepositions.Thesemenmayormaynothavehadathoroughschoolandcollegetraining;thatisnotanessential.Theymayormaynothavewealthandhighposition;thatisunimportant.Butthey_must_haveabilityandenoughseriouspurposetospendaportionoftheirsparetimeinreadingandthinkingaboutbusinessproblems.
Theorganization
TheModernBusinessCourseandServiceisconductedbyanorganizationmadeupofbusinessandprofessionalmenandofuniversityspecialistsinbusinesssubjects.Inasmuchassuchaninstitutionderivesitsstrengthalmostwhollyfromthemenwhoareidentifiedwithit,acompletelistofthesemen,withbriefbiographicalnotestoshowwhotheyareandwhattheyhaveaccomplished,isgiveninChapterVII,onpages97to118.
TheInstituteorganizationconsistsoffourgroups:
ADVISORYCOUNCIL
AUTHORSANDCOLLABORATORS
SPECIALLECTURERS
INSTITUTESTAFF_a._CONSULTANTSTAFF_b._ADMINISTRATIVESTAFF
BusinessandeducationalauthorityofthehigheststandingisrepresentedintheAdvisoryCounciloftheInstitute.
_ThisAdvisoryCouncil_consistsofFrankA.Vanderlip,thefinancier;T.
ColemanduPont,thebusinessexecutive;JohnHaysHammond,theeminentengineer;JosephFrenchJohnson,DeanoftheNewYorkUniversitySchoolofCommerce;andJeremiahW.Jenks,thestatisticianandeconomist.TheCouncilhasgeneralsupervisionanddirectionofthepoliciesandactivitiesoftheInstitute.Noimportantmoveofanykindismadewithoutthesanctionofthisbody.
_TheAuthorsandCollaborators_aremenprominentineducationalandbusinesscircles.Asauthors,co-authorsandcollaboratorstheyareresponsiblefortheModernBusinessvolumes.TheirwritingisdoneundertheguidanceandwiththecooperationoftheInstitute'sEditorialBoard.Eachoneischosenbecauseofhisparticulartrainingandabilityinthefieldhecovers.
_TheSpecialLecturers_,whosebusinessconnectionsarestatedonpages111to118,aremenofhighcommercialstandingwhohavedevotedtimeandthoughttopreparingwrittenlecturesfortheModernBusinessCourseandService.Theselecturespresentsomeoftheresultsoftheirsuccessfulbusinessexperience.
_TheInstituteStaff_activelyconductstheModernBusinessCourseandService.ManyofthemembersoftheStaffarealsomembersofthefacultiesofuniversityschoolsofcommerce.EverymemberoftheStaffis
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aspecialistwhoinsomeonebusinesssubjectisentitledtorankasanauthority.Theirnames,businessanduniversityconnectionsandofficialdutiesintheInstitutearestatedonpages100to110.
(a)_TheConsultantStaff_aretheexpertswhodonotgivetheirentiretimetotheInstitute,butwhoarecalleduponforspecialinformationandadvicewhenevertheoccasionrequires.
(b)_TheAdministrativeStaff_consistsoftheSeniorandJuniorExecutiveswhoareactiveintheadministrativeworkoftheorganization.ThesemenareheadsofthedepartmentsresponsibleforthesuccessfulmanagementoftheAlexanderHamiltonInstitute.
Subjectscovered
TheModernBusinessCourseandServicebringstoasubscribertheessentialbusinessknowledgethathedoesnotacquireinhisownexperience.ThesubjectmatteroftheCourseandServiceistreatedunderthefollowing24heads:
1.BUSINESSANDTHEMAN2.ECONOMICS--THESCIENCEOFBUSINESS3.BUSINESSORGANIZATION
4.PLANTMANAGEMENT5.MARKETINGANDMERCHANDISING6.SALESMANSHIPANDSALESMANAGEMENT7.ADVERTISINGPRINCIPLES8.OFFICEADMINISTRATION9.ACCOUNTINGPRINCIPLES10.CREDITANDCOLLECTIONS11.BUSINESSCORRESPONDENCE12.COSTFINDING13.ADVERTISINGCAMPAIGNS14.CORPORATIONFINANCE15.TRANSPORTATION16.FOREIGNTRADEANDSHIPPING
17.BANKING18.INTERNATIONALEXCHANGE19.INSURANCE20.THESTOCKANDPRODUCEEXCHANGES21.ACCOUNTINGPRACTICEANDAUDITING22.FINANCIALANDBUSINESSSTATEMENTS23.INVESTMENTS24.BUSINESSANDTHEGOVERNMENT
Simple,elastic,workable
TheModernBusinessCourseandServicecoverstheessentialsubjectson
whicheverybusinessmanshouldbewellinformed.
Whenanenrolmentisaccepted,theInstituteundertakes,
1._Tosupplythesubscriber_withtheModernBusinessText--themostcompleteandbestorganizedtreatmentofbusinessprinciplesandpracticethathasyetbeenproduced.
2._Toguideandilluminate_hisreadingoftheTextbyaseriesofModernBusinessTalks.
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3._Tobringhimintotouch_withtheideasandmethodsofsomeoftheforemostbusinessandprofessionalmeninthecountrythroughaseriesofModernBusinessLectures.
4._Togivehimfacilities_forapplyingandtestinghisknowledgeofbusinessprinciplesthroughaseriesofModernBusinessProblems.
5._Tokeephiminformed_oncurrentbusinesseventsandthetrendoffutureaffairsinthecommercialworldbymeansofMonthlyLettersonBusinessConditions.
6._Toacquainthim_withimportanteventscoveringtheproductionandpricesofgeneralcommoditiesandthecurrentsecuritymarket.
7._Tosupply_himwithfourModernBusinessReportsonimportantproblems;thereportstobeselectedbyhimfromanextensivelist.
8._Torenderpersonalservice_throughanswerstoallinquiriesinconnectionwithhisreadingoftheCourse.
AnenrolmentfortheModernBusinessCourseandServicecoversaperiodoftwoyears.DuringthattimeeachsubscriberisconstantlyintouchwiththemembersoftheInstituteStaff.Therearenorigidrules--noredtape--torestrictorannoy;instead,thereispersonalguidanceandsincerecooperation.
Themorecarefullyyouconsidertheplan,themoreclearlyyouwillseehowwellitisadaptedtotheneedsofbusymenwhomustmakeeveryminuteandeveryounceofeffortproducethegreatestpossibleresults.
YouwillseemoreclearlytheactualscopeoftheModernBusinessCourseandServiceifyoukeepinviewitseightmainfeatures:
1--TEXT2--TALKS3--LECTURES4--PROBLEMS5--MONTHLYLETTERS6--FINANCIALANDTRADEREVIEWS7--REPORTS8--SERVICE
1--Text
ThebasisoftheCourseandServiceisaseriesoftwenty-fourtext-books
preparedunderthecarefulsupervisionofitseditors,assistedbywell-knownauthorities.Insomecasesthelatterappearasauthors,inothersascollaboratorsinthepreparationoftheTexts.
DeanJosephFrenchJohnsonisEditor-in-ChiefoftheCourse.ThemanagingeditorisDr.RolandP.Falkner.AssociatedwiththemisalargeeditorialstaffwhichtakesanactiveshareinthewritingandpreparationoftheCourse.Theauthorsandcollaboratorsarespecialistswhorankasauthoritiesintheirparticularfield.Theseriesiswidelyrecognizedasthemostimportantcontributionyetmadetobusinessliterature.
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ThevolumesintheModernBusinessSeriesaresoldapartfromtheInstituteCourseonlytouniversitiesforuseasprescribedtext-booksinclassroomwork.AmongtheuniversitieswhichhaveusedtheInstitute'svolumesastextsare:
BostonUniversityBrownUniversityCedarCrestCollegeCoeCollegeCollegeoftheCityofNewYorkCollegeofWilliamandMaryColoradoCollegeColumbiaUniversityCornellUniversityDartmouthCollegeDenverUniversityDrakeUniversityDuquesneUniversityElmiraCollegeGeorgetownUniversityGeorgiaSchoolofTechnologyGrinnellCollegeKansasStateAgriculturalCollege
LawrenceCollegeMarquetteUniversityMiamiUniversityMiddleburyCollegeNewHampshireCollegeNewYorkUniversityNorthwesternUniversityOhioStateUniversityOhioUniversityOregonAgriculturalCollegePennsylvaniaStateCollegePurdueUniversityQueensUniversity
RosePolytechnicInstituteSouthDakotaStateCollegeStateCollegeofWashingtonSyracuseUniversityToledoUniversityTrinityCollegeTulaneUniversityVanderbiltUniversityVirginiaPolytechnicInstituteUniversityofAlabamaUniversityofAkronUniversityofArizonaUniversityofBritishColumbia
UniversityofCaliforniaUniversityofChicagoUniversityofCincinnatiUniversityofColoradoUniversityofIllinoisUniversityofIndianaUniversityofIowaUniversityofKansasUniversityofMichiganUniversityofMinnesota
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UniversityofNebraskaUniversityofOregonUniversityofPittsburghUniversityofTexasUniversityofWashingtonUniversityofWisconsinWashingtonandLeeUniversityYaleUniversity
Thereareaboutthreehundredandfiftypagesineachofthetwenty-fourvolumes.Eachvolumeiscarefullyindexedandcontains,inadditiontothetext,afewreviewsuggestionsaftereachchapterwhichareofgreatvalueinmasteringthesubject.
QuestionsofCommercialLawastheyaffecteachsubjectarediscussedinthevolumepertainingtothatparticularunitoftheCourse.
_BusinessandtheMan__Volume1_
ByJOSEPHFRENCHJOHNSON,D.C.S.,LL.D.,DeanofNewYorkUniversitySchoolofCommerce,AccountsandFinance;ChairmanoftheAdvisoryCouncil,AlexanderHamiltonInstitute.
_Economics--theScienceofBusiness__Volume2_
ByJOSEPHFRENCHJOHNSON,D.C.S.,LL.D.,incollaborationwithFRANKL.MCVEY,Ph.D.,LL.D.,President,UniversityofKentucky.
_BusinessOrganization__Volume3_
ByCHARLESW.GERSTENBERG,Ph.B.,LL.B.,ProfessorofFinance,andHeadoftheDepartmentofFinance,NewYorkUniversitySchoolofCommerce,withthecollaborationofWALTERS.JOHNSON,B.A.,B.C.L.,MemberoftheBaroftheProvinceofQuebec,LectureronRailwayandConstitutionalLaw,McGillUniversity.
_PlantManagement__Volume4_
ByDEXTERS.KIMBALL,A.B.,M.E.,Dean,EngineeringCollege,CornellUniversity.
_MarketingandMerchandising__Volume5_
PreparedbytheAlexanderHamiltonInstituteincollaborationwithRALPHSTARRBUTLER,A.B.,AdvertisingManageroftheUnitedStatesRubberCompany,andJOHNB.SWINNEY,A.B.,SuperintendentofMerchandising,WinchesterStores.
_SalesmanshipandSalesManagement__Volume6_
ByJOHNG.JONES,Vice-PresidentandDirectorofSalesandAdvertising,AlexanderHamiltonInstitute.
_AdvertisingPrinciples__Volume7_
ByHERBERTF.DEBOWER,LL.B.,Vice-President,AlexanderHamiltonInstitute.
_OfficeAdministration__Volume8_
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ByGEOFFREYS.CHILDS,B.C.S.,OfficeManageroftheAlexanderHamiltonInstitute.
_AccountingPrinciples__Volume9_
ByFREDERICE.REEVE,C.P.A.,andFREDERICKC.RUSSELL,Controller,AlexanderHamiltonInstitute.
_CreditandCollections__Volume10_
ByDWIGHTE.BEEBE,B.L.,DirectorofServiceoftheAlexanderHamiltonInstitute,andT.VASSARMORTON,Litt.B.,Bursar,AlexanderHamiltonInstitute.
_BusinessCorrespondence__Volume11_
ByCHARLESW.HURD,AssociateEditor,AlexanderHamiltonInstitute,incollaborationwithBRUCEBARTON,President,Barton,Durstine&Osborn,Inc.
_CostFinding__Volume12_
ByDEXTERS.KIMBALL,M.E.,Dean,EngineeringCollege,CornellUniversity.
_AdvertisingCampaigns__Volume13_
ByMACMARTIN,PresidentoftheMacMartinAdvertisingAgency.
_CorporationFinance__Volume14_
ByWILLIAMH.WALKER,LL.D.,DeanofDuquesneUniversitySchoolofAccounts,FinanceandCommerce.
_Transportation__Volume15_
ByEDWINJ.CLAPP,Ph.D.,formerlyProfessorofEconomics,NewYork
University.
_ForeignTradeandShipping__Volume16_
ByJ.ANTONDEHAAS,Ph.D.,ProfessorofForeignTrade,NewYorkUniversity.
_Banking__Volume17_
ByMAJORB.FOSTER,M.A.,AssistanttotheExecutiveCommittee,AlexanderHamiltonInstitute,incollaborationwithJESSEH.RIDDLE.
_InternationalExchange__Volume18_
PreparedbytheAlexanderHamiltonInstituteincollaborationwithE.L.STEWARTPATTERSON,SuperintendentoftheEasternTownshipsBranches,CanadianBankofCommerce.
_Insurance__Volume19_
PreparedbytheAlexanderHamiltonInstitute,incollaborationwithEDWARDR.HARDY,Ph.B.,LectureronFireInsurance,NewYorkUniversitySchoolofCommerce,AssistantManager,NewYorkFire
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InsuranceExchange;S.S.HUEBNER,Ph.D.,ProfessorofInsurance,UniversityofPennsylvania;G.F.MICHELBACHER,M.A.,ActuaryoftheNationalWorkmen'sCompensationServiceBureau,andBRUCED.MUDGETT,Ph.D.,AssociateProfessorofEconomics,UniversityofMinnesota.
_TheStockandProduceExchanges__Volume20_
ByALBERTW.ATWOOD,A.B.,AssociateinJournalism,ColumbiaUniversity.
_AccountingPracticeandAuditing__Volume21_
ByJOHNTHOMASMADDEN,B.C.S.,C.P.A.(N.Y.),ProfessorofAccountingandHeadoftheDepartmentofAccounting,NewYorkUniversitySchoolofCommerce.
_FinancialandBusinessStatements__Volume22_
ByLEOGREENDLINGER,M.C.S.,C.P.A.(N.Y.),SecretaryandTreasurer,AlexanderHamiltonInstitute;formerlyAssistantProfessorofAccounting,NewYorkUniversitySchoolofCommerce.
_Investments__Volume23_
ByEDWARDD.JONES,Ph.D.,formerlyProfessorofCommerceandIndustry,UniversityofMichigan.
_BusinessandtheGovernment__Volume24_
ByJEREMIAHW.JENKS,Ph.D.,LL.D.,ResearchProfessorofGovernmentandPublicAdministration,NewYorkUniversity,MemberofAdvisoryCouncil,ChairmanoftheBoard,AlexanderHamiltonInstitute,incollaborationwithJohnHaysHammond,consultingengineerandpublicist.
2--Talks
TheModernBusinessTalks,whicharesentfortnightly,areinformaldiscussionsoftheprinciplestreatedintheText.Asthenameindicates,theseTalksbringupmanyspecificpointsandcases,andshowmoreclearlywhyandhowtheunderlyingprinciplesofscientificbusinessshouldbeapplied.Theyareparticularlydirect,practicalandstimulating.TheirperiodicvisitsservetokeepeverysubscriberintouchwiththeInstituteStaffandalivetotheimportanceoffollowingtheCoursesystematically.TheTalksarepreparedbymembersoftheInstituteStafforotherauthorities.
InthepamphletwhichcontainstheTalkthereadingassignmentforthefollowingtwoweeksissuggested.Onreceivingthefortnightlyinstalment
ofnewmaterial,thesubscriberwillordinarilyreadtheTalkbeforetakingupthereadingassignment,andthusgetabird's-eyeviewofthegroundthatistobecoveredduringthesucceedingtwoweeks.
Someofthesubjectsdiscussedare:
_TheShortestWaytotheExecutive'sChair__TheMarketValueofBrains__SharingtheProduct__PitfallsofPartnership_
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_ACorporateVenture__PuttingtheMessageAcross__TheDominanceofSalesmanship__LeadingtheSalesForce__Credit,theMotivePowerofBusiness__CostRecordsasProfitMakers__OvercomingCorporationDifficulties__TheHundredThousandDollarLetter__MakingAdvertisingPay__TheRailwayaPublicServant__BuildingUpYourBankCredit__CashinginonForeignTrade__SafeguardsofInsurance__WhatDoYouKnowAboutWallStreet?__TheBenefitsofSpeculation__CapitalizingtheAuditor'sViewpoint__BasingDecisionsonFacts__ReadingAccountingRecords__SavingSalesmen__HoldingtheWatchonYourInvestment__SatisfyingYourForeignCustomer_
3--Lectures
ThewrittenModernBusinessLectures,whicharesenttosubscribersmonthlyduringthetwo-yearCourse,havebeenespeciallypreparedfortheInstitutebyeminentbusinessexecutives,publicistsandaccountants,andreflecttheexperienceofthesemeninsuccessfullyhandlingbusinessproblems.
Theyareintended,first,toshowhowthesemenhaveactuallyappliedtheprinciplesdiscussedintheModernBusinessCourse;second,togivefurtherinformationastolargeandhighlydevelopedbusinessconcernsandtheirmethods;and,third,tobringsubscribersintoclosertouchwiththewidecircleofrepresentative,successfulmenofaffairs.
SomeofthesubjectsoftheLecturesare:
_EssentialsofaSuccessfulEnterprise__TheValueofTradeAssociations__MarketingaNationallyAdvertisedProduct__RetailStoreManagement__TheCreationofaSellingOrganisation__EfficientCreditManagement__OrganisinganAccountingDepartment__CostandEfficiencyRecords__MarketabilityofSecurities__BuildingaMail-OrderBusiness__ElementsofEffectiveAdvertising_
_TheRailwayasaBusinessDeveloper__SellinginForeignMarkets__HowBanksServeBusiness__TheForeignExchangeField__TheDay'sWorkinWallStreet__WhyBusinessNeedstheAuditor__TheInvestmentSecurityBusiness_
4--Problems
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OneofthestrongestfeaturesoftheCourseistheseriesoftwenty-fourProblems--suchproblemsasaccountants,financiers,bankersandbusinessmanagersmeetinpractice--especiallypreparedfortheCoursebymembersoftheInstituteStaff.
EachProblemisacarefullywordedstatementofalltheessentialfactorsinsomebusinesssituation;inotherwords,thesituationispresentedanddescribedjustasitmightbeinthereportofasubordinateofficialtotheheadofabusinessenterprise.TheProblemsaresoarrangedastocorrespondcloselytotheassignedreading.Forinstance,afterthesubjectofcostaccountshasbeendiscussed,aProblemisgiveninwhichaknowledgeofcostaccountingprinciplesiscalledfor.Thus,theProblemsservenotmerelytotestthesubscriber'sunderstandingandthinkingpower,butalsotofixinhismindandmakedefinitethestatementsandprinciplescontainedintheTextvolumes.
WhensolutionstotheProblemsaresentin,theyarecriticised,graded,andreturnedwithsuggestionsforfurtherstudy.SolutionstotheProblemsarenot,however,required.Someofthetitlesare:
_ThePresident'sChoice__AdvertisingtheAyer-HallSaws__RemodelingtheRowland-JohnsonCompany'sSalesOrganization_
_AQuestionofProfitsandFinancialCondition__ThreeForeignExchangeSituations__Scudder'sSystemtoBeattheMarket__TheReorganisationoftheIndustrialRealtyCompany__EmbarkinginForeignTrade__AFireandItsConsequences_
5--MonthlyLetteronBusinessConditions
Abusinessexecutivemusthaveaknowledgeofthefundamentalprinciplesrelatingtotheinternalorganizationandmanagementofabusiness.
Heshouldalsohaveabasisofjudgingthoseexternalbusinessconditionsoverwhichnoonegroupofmenhascontrol,buttothetrendofwhicheverylineofbusinessmustbeadjustedinordertogainthemaximumofprofitandsuffertheminimumofloss.
TheresultsofthesestudiesarepresentedtothebusinessmaninaclearandconcisemannerintheMonthlyLetteronBusinessConditions.
Inordertokeepsubscribersinformedregardingthestateofbusinessathomeandabroad,andasabasisforapplyingtheprinciplesexplainedintheText,theMonthlyLetterswillprovemosthelpful.TheeconomicexpertsofourBusinessConditionsBureauareconstantlybringingtogetherandinterpretingfactsandfiguresregardingbankclearings,pigiron
production,unfilledsteelorders,exportsandimports,railroadearnings,andsuchindicesoffinancialconditionsasthereserves,loansanddepositsoftheFederalReserveBanks.
Thelettersdiscusspoliticaleventsanddevelopmentsinthebusinessworldwhichhaveaninfluenceuponpricemovementsandconditionsofactivityordepression.Thebusinessmanwillfindthemparticularlyinteresting,astheyshowhimwhattoexpectinthefuturebypointingoutthepresenttrendofaffairs.
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6--FinancialandTradeReviews
TheFinancialandTradeReviewsareissuedmonthlybyourBureauofBusinessConditionsandaredesignedtocoverinatimelyandinterestingfashiontheactivitiesinthesecuritymarketbyanalyzingindividualandgroupsecuritiesandbypresentingstatisticsonpricesandearningsofstandardstocksandbonds.
TheReviewscovertheproductionandpricetrendsofbasiccommoditiesandmattersofinterestinforeignfields.Leadingarticlesdealwithcurrenteventsofnoteandinteresttothebusinesscommunity.
TheFinancialandTradeReviewisavaluablesupplementtotheprinciplesbroughtoutintheregularreadingschedule.
7--ModernBusinessReports
TheModernBusinessReportsarewrittenbyprofessionalandtradeexpertsandmembersoftheInstituteStaff,andcoverbothimportantbusinessproblemsofgeneralinterestandtechnicalsubjectsrelatingtoAccounting,Sales,OfficeMethods,Merchandising,Productionandotherspecializeddepartments.
FromtimetotimeadescriptivelistoftheseReportsissenttoeachsubscriber.FromtheseliststhesubscribermaychoosefourReportsatanytimeduringthetwo-yearperiodofhisenrolment.
TheseReportsrunfromtentofiftypagesinlength.Eachoneispreparedinreferencetosomespecificproblemandistheresultofspecialinvestigation.Thesubjectscoverawidefield,andeverysubscriberwillfindamongthemanumberwhichareofparticularinteresttohim.
ThelistofReportsincludessuchtitlesas:
_PreparationfortheAccountingProfession_
_ProfitSharing__TerritorialSupervisionofSalesmen__AdvertisingAmericanGoodsinForeignMarkets__AnalysisofBankReports__PromotionandOrganizationofaPublicServiceCorporation__ThePsychologyandStrategyofCollecting__DeskEfficiency__HowtoReadtheFinancialPageofaNewspaper__Employes'PensionSystems__EvaluationofPublicUtilities_.
8--Service
ThereadingmatteroftheModernBusinessCourseisinitselfofremarkablevalue;subscribershavetoldusoverandoveragainthatonevolume,orsometimesonepamphlet,oroneReport,hasbroughtthemideasworthvastlymorethanthefeefortheCourseandService.
Thisvalueislargelyenhancedbythefactthatbackofthereadingmatterthereisanorganizationofmenwhoareanxioustocooperateineverywaypossiblewitheachsubscriber.Thisorganizationisequippedtorenderserviceateverystageofthesubscriber'sprogress.
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Firstofall,certainmembersoftheStaffareassignedtothepleasanttaskofcarryingoncorrespondencewithsubscribers.Theymakeanearnesteffortwheneveranewenrolmentisreceivedtogetintotouchwiththesubscriberandlearnunderwhatconditionsheisworking,whatexperienceandeducationhehashadandwhatobjectshehasinview.Withthisinformationbeforethemtheycanoftenmakesuggestionsthataredirectlyhelpfulandthatmeanalargerincreaseinthesubscriber'spersonalbenefitfromhisuseoftheCourseandService.
Furthermore,everyonewhothinksashereadscomesacrossstatementsandopinionswhichhedoesnotfullyunderstandorwhichhequestions.Theprivilegeofaskingaboutanysuchstatementsoropinionsisfreelyopentoallsubscribers.Thereisnolimitwhatevertothenumberofquestionswhichmaybesubmitted,basedontheTextorotherreadingmatteroftheCourse.
Thefourgreatactivitiesofbusiness
Therearefourfundamentalactivitiesineverybusiness--Production,Marketing,Financing,andAccounting.
Onthefollowingpageyouwillseethewholefieldofbusinesschartedin
suchawayastoshowclearlytherelationofvariousbusinessactivitiestoeachother.Economics,thestudyofbusinessconditionsandbusinesspolicies,isthehubofallbusinessactivity.Radiatingfromitarethefourgranddivisionsofbusiness--Production,Marketing,Financing,Accounting.Theseinturnaresubdividedintothemoredetailedactivitieswhichtheyinclude.
TheModernBusinessCourseandServiceisathoroughtreatmentofallthedivisionsindicated.
[Illustration:
ECONOMICS
ACCOUNTING
ACCOUNTINGPRINCIPLESFINANCIALANDBUSINESSSTATEMENTACCOUNTINGPRACTICEANDAUDITING
FINANCE
CORPORATIONFINANCEBANKINGCREDITANDCOLLECTIONSBUSINESSORGANIZATION
INSURANCETHESTOCKANDPRODUCEEXCHANGESINTERNATIONALEXCHANGEINVESTMENTS
PRODUCTION
MARKETING
COPYRIGHT1921,BYALEXANDERHAMILTONINSTITUTE]
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ASurveyofModernBusinessScience
AllbusinessactivitiesmaybeclassifiedunderProduction,Marketing,FinancingandAccounting.Forpurposesofsystematicstudy,eachofthesemaybesubdividedasshownabove.
Inaddition,therearetwoimportantforceswhichcontrolbusiness--ManandGovernment.Forthatreasonadiscussionoftherelationbetween"BusinessandtheMan"and"BusinessandtheGovernment"naturallyformsapartofthesurveyofmodernbusiness.ThefirsttwoandthelasttwoassignmentsintheModernBusinessCourseandServicecovertheseimportantsubjects.
Thearrangementofthesubjectshasbeencarefullyplannedsothatthemaximumbenefitwillbederivedbyfollowingtheassignmentsintheirregularorder.Inthechartyouseethelogicalarrangementofthesesubjectsasrelatedtothebusinessworld.NotethattheorderinwhichthesesubjectsaretreatedintheCourseisnotaccordingtotheirarrangementinthechart.Onthecontrary,themoregeneralsubjectsarefirstconsidered;thencomethemorecomplex--thespecializationsandenlargementsuponthefoundationsubjects.Thisplanpermitsaprogressivearrangementthatmakesforabroadunderstandingofthescienceof
business.
Justasanyuniversityorcollegerequiresaknowledgeofcertainsubjectsbeforeotherscanbetakenup,becausethismoregeneralknowledgeisessentialtoaproperunderstandingofthemoreadvanced,sowehavearrangedthesubjectstreatedintheModernBusinessCourseandServiceinasimilarmanner.
Texts,Talks,Lectures,Problems,MonthlyLetters,FinancialandTradeReviews,ReportsandService--thesearetheimportantfeaturesoftheModernBusinessCourseandService.
ChapterII
THEDANGEROFSPECIALIZINGTOOEARLY
Agreatmanyyoungmenthinktheyhavefoundaquickandeasyroadtosuccessbyconcentratingtheirmindswhollyonthejobstheyhappentohold.
Itisperfectlytruethatabusinessmanmustnotunderestimatetheimportanceofdetails.
Butitisalsotruethatlargesuccessisalwaysbuiltuponaclearunderstandingofbasicprinciples.
Thecommonfallacythatitisbestforaman--especiallyayoungman--toconfinehisthoughtandstudiestohisownspecialtyhasinmanyinstancesprovedruinous.Itiseasilypossibletospecializesomuchastoloseallsenseoftheimportanceofabroad,well-balancedbusinesstraining.
Weallknowthelawyerwhoiswrappedupinhisquibbles;theaccountant
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technicalknowledgeintoresults.
Everyonewhoholds,orexpectsevertohold,apositionofbusinessresponsibilityshouldbefamiliarwiththewholefieldofmodernbusiness.Thereasonsforthisareapparenttoanyonewhohastodowiththehandlingoflargeproblems.Itisnecessaryalwaystotakeintoaccount_all_theimportantfactorsinsuchproblems.Nomatterhowablyamarketingoranaccountingdifficultymaybemet,thesolutionisworsethanuselessifitaffectsunfavorablyanyotherphaseofthebusiness.
Abusinessexecutivecannotaffordtomakemanyseriousmistakes.Toguardagainstmistakes,hemustbefortifiedwithanall-roundknowledgeofbusinesspractice--notmerelyapartialorone-sidedknowledge.
TheprinciplesofProduction,Marketing,FinancingandAccountingarefundamentalandapplytoalllinesofbusiness.Themanwhosaystheydonotapplybecausehisbusinessis"different"issimplyexposinghisfailuretogetdowntorockbottominhisthinking.Everybusinesshasitspointsofdifference,justaseverymanhasanindividualityofhisown.Butweknowthathumannature,broadlyspeaking,ismuchthesameinall.Inalikesenseallbusinessmovesalongsimilarlines.Itallconsistsofproducing,marketing,financingandaccounting.
Thebroadprinciplesofmodernbusinessscience,therefore,governall
business.Theyarerelatedto_your_problems,nomatterhow"different"yourbusinessmayappeartobeonthesurface.
ChapterIII
PUSHINGBEYONDTHEHALF-WAYMARK
Thereisalwaysadangerofhalf-waysuccess.Amanmaybeattheheadofanoffice,adepartment,asalesforce,orabusiness,andyetbeonlya
half-waysuccess,ifwhathehassofaraccomplishedbemeasuredagainsthisactualcapacity.Mostmen,infact,possessnativeabilitysufficienttocarrythemforwardintobiggerpositionsthanthosetheynowoccupy.Buttoaccomplishthatresultitisnecessarytokeepcontinuallymovingahead.
Chiefamongthecharacteristicsthatcarrymenpastthehalf-waymarkontheroadtosuccessiseagernesstokeeponlearningmoreaboutbusinessprinciplesandbusinessmethods.
ThelateMarshallFieldsaid:
"Themanwhoputstenthousanddollarsadditionalcapitalinto
anestablishedbusinessisprettycertainofincreasedreturns;andinthesamewaythemanwhoputsadditionalcapitalintohisbrains--information,welldirectedthoughtandstudyofpossibilities--willassurely--yes,moresurely--getincreasedreturns.Thereisnocapitalandnoincreaseofcapitalsaferandsurerthanthat."
Theablestmeninbusinessareconstantstudents.ManyoftheforemostbusinessexecutivesoftheUnitedStateshaveforthisreasonwelcomedanopportunitytoenrolfortheModernBusinessCourseandService.This
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CourseandServicebringstotheminconvenient,time-savingform,anexplanationofworkingprinciplesthathaveprovedsuccessfulineverylineofbusiness.
Thekindofmenenrolled
PresidentsofbigcorporationsareoftenenrolledfortheModernBusinessCourseandServicealongwithambitiousyoungermenintheiremploy.Amongthe145,000subscribersaresuchmenas:
H.S.Kimball,PresidentoftheRemingtonArmsCorporationJohnJ.Arnold,PresidentoftheBankers'UnionofForeignCommerceandFinanceE.R.Behrend,PresidentoftheHammermillPaperCompanyH.C.Osborn,President,AmericanMultigraphSalesCompanyMelvilleW.Mix,PresidentoftheDodgeManufacturingCompanyWilliamH.Ingersoll,MarketingManagerofRobt.H.IngersollandBrothersCharlesE.Hires,President,HiresRootBeerCompanyP.W.Litchfield,Vice-PresidentoftheGoodyearTireandRubberCompanyEzraHershey,Treasurer,HersheyChocolateCompanyWilliamA.Candler,Secretary,Coca-ColaCompany
GeorgeM.Verity,President,AmericanRollingMillCompanyCharlesE.Murnan,Vice-President,UnitedDrugCompanyW.F.MacGlashan,President,TheBeaverBoardCompaniesH.D.Carter,GeneralManager,RegalShoeCompanyFrancisA.Countway,PresidentofLeverBrothersCompany(_ManufacturersofLuxandLifebuoySoap_)E.E.Amick,Vice-President,FirstNationalBankofKansasCityRaymondW.Stevens,Vice-President,IllinoisLifeInsuranceCompanyRoyW.Howard,ChairmanoftheBoardofDirectors,Scripps-McRaeNewspapersStephenB.Mambert,Vice-President,ThomasA.EdisonIndustriesS.L.Avery,President,UnitedStatesGypsumCompany
--andscoresofothersequallyprominent.
Thesemen,andthousandsofotherInstitutesubscribers,knowthatastudyoftheprincipleswhichhavebroughtunusualsuccesstoothermenincreasestheirowncapacityforfurtherachievement.
Greatbusinessorganizations
Officers,departmentheadsandjuniorsofalargenumberofimportantcompaniesareenrolledfortheModernBusinessCourseandService.TheprimepurposeoftheCourseandServiceistodevelopthebusinessknowledgeandjudgmentofeachsubscriber,andtheheadsofthese
companiesrealizethattheincreasedefficiencyonthepartofindividualswhichresultsfromthistrainingcarrieswithitgreaterefficiencyandprofitsfortheircompanies.
Thetendencyinlargebusinessorganizations,unlessthechiefexecutivesareunusuallythoughtfulandfar-sighted,istorepressinitiativeandconstructivethinkingexceptonthepartofthefewmenwhodirecttheaffairs.TheModernBusinessCourseandServicecounteractsthistendency.Itencouragesthoughtandinitiative.Itdevelopsmen.Itstimulatesthewholeorganizationandmakespossiblemorerapidexpansion
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UnitedStatesSteelCorporation771WesternElectricCompany254WesternUnionTelegraphCompany291WestinghouseElectricandManufacturingCompany501Willys-OverlandCompany191WinchesterRepeatingArmsCompany211F.W.WoolworthCompany81
Manyofthemenenrolledinthesegreatcompaniesareheadsoftheirorganizations;presidentsandvice-presidents.Mostofthemareimportantofficialsanddepartmentheads;afewaremenwithsmallerresponsibilities.
ThesoundbusinessreasonwhichunderliesthefavorableactionofsomanygreatcorporationsiswellexpressedbyPresidentGeorgeM.Verity,oftheAmericanRollingMillCompany,whosays:
"WhenIlearnedthatsomefiftyofourmenhaddecidedtotakeuptheModernBusinessCourseandService,thestockofthiscompanyroseseveralpointsinmyestimation."
ThefollowingexpressionsregardingthevalueoftheCoursetomeninbigcorporationsaretypicalofmanythatwehavereceived:
"WehavebeenfamiliarwithyourCourseofinstructioneversinceitwasfirstoffered,andregarditasanexcellentoneformenengagedintheinvestmentsecuritybusiness.AlargenumberofourmenaretakingtheCourse,andwehaverecommendedittomanyofourassociates."
SPENCERTRASK&COMPANY,_InvestmentBankers,NewYorkCity._
"Realizingmylackofexperience,IsubscribedtoyourCourseandfounditofincalculablevalue.Itgavemequicklythefundamentalsofaccounting,ofwhichIhadknownnothing.Itgavemeabroadelementaryinsightintomodernmarketing
methods.Thevolumeoncreditswasalsohelpful.TheCoursesavedmemanyexpensiveblunders.
"Briefly,foronestartinginabusinessofhisownIconsidertheAlexanderHamiltonInstituteCoursepracticallyindispensable.Inadditiontoitsindirectvalue,IhavebeenabletoputadefiniteworthonthisCourse,tomyselfandthefirm,ofmanythousandsofdollars."
J.ROYALLEN,_Treasurer,MintProductsCompany,Inc.,Mfrs.of"LifeSavers."_
"ThegoodthatourpeoplehavereceivedfromtheAlexander
HamiltonInstituteCoursehasbeenphenomenal.Itisnotonlythemostinstructiveandvaluabletreatiseonlivesubjectsformenwhoaretrainingforbusinesscareers,butitisthemostconcise,instructiveandclearlypresentedformofeducation,toourminds,thathasbeenpresentedforthebenefitofexecutives."
CHARLESE.MURNAN,_Vice-President,UnitedDrugCompany,Boston._
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"InmylongbusinessexperienceIhaveneversubscribedtoanythingfromwhichIhavereceivedgreatervalue,inwhichIhavetakengreaterinterest,andfromwhichIhavereceivedgreaterinspirationformywork.Idonotbelieveanyonecantakeuptheworkwithoutfindingitnotonlyeffective,butofgreatvalue."
CHARLESE.HIRES,_President,HiresRootBeerCompany,Philadelphia._
"MyappreciationoftheAlexanderHamiltonInstituteCourseisbasednotonlyuponthebroadscopeofitsappealandthecloseco-ordinationofthesubjectstreated,butalsofromthebenefitthatIhavepersonallyderivedfromfollowingtheCourse."
STEPHENB.MAMBERT,_Vice-PresidentandFinancialDirector,ThomasA.EdisonIndustries._
"ItseemstomethatyourModernBusinessCourseaffordsanopportunityforthestudyofpracticalbusinessmethodsandtheacquisitionofbusinessknowledgewhichwillbevaluabletoanymanambitioustosucceedinbusiness."
F.W.HILLS,_Comptroller,
AmericanSmeltingandRefiningCo.,NewYork._
"Wehadtwobuildingsitesinview.WhenitcametoafinaldecisionIappliedtheprincipleswhichwerelaiddownintheCourse;itbecameclearatoncethatthefirstsite--whichhadoriginallyseemedsoattractive--wasactuallylessdesirableforourpurposes.
"Knowingthefundamentalprinciples,itwasasimplemattertoanalyzethevariousrequirementsofthisbusinessstepbystep;asaresultofthisanalysiswehaveasiteevenmoresuitablethantheoneoriginallycontemplated;andwewereabletobuyitnotmerelyonmorefavorableterms,butatanactualsavingof
morethan$82,000."
GEORGEH.BORST,_President,TwentiethCenturyStorageWarehouse,Philadelphia._
"MyexperiencewiththeAlexanderHamiltonInstituteleavesmeonlywiththeregretthatIdidnotmakecontactwithitatanearliertime."
SAMUELG.MCMEEN,_President,ColumbusRailwayandLightCompany,Columbus._
"Ihavebeenlookingforsomethingofthiskindforsometime
pastandammorethanpleasedthatthisshouldbebroughttomyattention."
R.C.NORBERG,_GeneralSalesManager,WillardStorageBatteryCompany,Cleveland._
"Theexceedinglyinterestingmannerinwhichthesubjectsaretreatedwasanagreeablesurprisetome.IbecamesoabsorbedinthereadingthatIamreluctanttolayitdownwhenbed-timeormeal-timearrives."
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V.J.FAETH,_GeneralManager,Winterroth&Co.,PianoMerchants,NewYorkCity._
Theunqualifiedindorsementsofthesesuccessfulexecutives,andthefactthatalargenumberofmeninalmosteverynationallyknownorganizationareenrolled,proveconclusivelythatthereisagreatneedfortraininginbusinessfundamentals.Whereverthewheelofbusinessturns--theneedisgreat.Itisamattertobereckonedwithbyeverymanandconcerninbusiness.
ChapterIV
APERSONALPROBLEM
HowisitpossiblethattheModernBusinessCourseandServiceshouldbehelpfulaliketothegrizzledexecutiveandtotheyoungmanwhohasnotyetmadehismarkinbusiness?Whyisitthatinagreatmanyorganizationsourlistofsubscribersbeginswiththepresident,includespracticallyalltheofficersanddepartmentheads,andendswitha
selectedgroupofmenwhoasyetareinsubordinatepositions?
Theanswerissimple.Themainproblemofeverybusinessmanistheproblemofdevelopinghimself.Itmakesnodifferencehowgreatorhowsmallaman'spositionmaybe,theonlywaytoenlargehisinfluenceandhisincomeisfirsttoenlargehimself.Thegreatestbusinessmeninthecountryarequickesttoacceptandapplythistruth.
Itmaysometimesappearasthoughamanbecomesabiggerbusinessmanbybeingpromotedintoabiggerjob.Thetruthisjustthereverse.Thebigjobnaturallygravitatestothewell-trained,capableman.Ifthejobprovestoolargefortheman,itdoesn'ttakelongforittoshriveluntilitbecomesaperfectfit.
Ontheotherhand,amanwhoreallybecomesbiggerthanhisjobsimplygrowsoutofitandintoanother;orheenlargesthejobanditsrewardstofithismeasure.
Wheredoyoubelong?
Youareamemberofoneortheotherofthesetwogroups:
(1)thosewhohave"arrived"
(2)thosewhoareontheirwaytowardsuccess.
Thereis,tobesure,athirdgroupwhichunfortunatelyconstitutesanoverwhelmingmajority,thegroupmadeupofpurposelessdrifterswhohavenospecialambitionsandusuallylittlenativeability.TothisgrouptheInstitutehasnothingtooffer.
Theymightrefuseindignantlytosignacontracttoworkforthenexttenyearsatthesamesalarytheyarenowreceiving.Yettheendoftheten-yearperiodwillfindmostoftheminthesameposition,oronlyatrifleahead.
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Find_your_placeandsalaryonthischart
+------------------+|PRESIDENT||OR||GENERALMANAGER||$15,000to$30,000|+---------+--------+|+-------------------+---------+---------+-------------------+||||+--------+--------++--------+--------++--------+--------++--------+--------+|VICE-PRESIDENT||VICE-PRESIDENT||COMPTROLLER||TREAS.&SEC'Y||INCHARGEOF||INCHARGEOF||INCHARGEOF||INCHARGEOF||PRODUCTION||MARKETING||ACCOUNTS||FINANCE||$8,000to$15,000||$8,000to$15,000||$8,000to$15,000||$8,000to$15,000|+--------+--------++--------+--------++--------+--------++--------+--------+||||Abovethislinearemenwhounderstandthefundamentalsunderlyingalldepartmentsofbusiness===============================================================================Belowarethe$1,800and$4,000menwhobysystematicallytrainingthemselvescanclimbhigher
||||+--------+--------++--------+--------++--------+--------++--------+--------+|_Staffof_||_Staffof_||_Staffof_||_Staffof_||COSTDEPARTMENT||SALESADVERTISING||ACCOUNTINGAND||CREDITAND||FACTORYAND||CORRESPONDENCE||STATISTICAL||INSURANCE||OFFICEFORCE||AND||DEPARTMENTS||FINANCEAND||||TRANSPORTATION||||INVESTMENT||||DEPT'S||||DEPARTMENTS|+--------+--------++--------+--------++--------+--------++--------+--------+
Forthereisonlyonepowerintheworldthatcanliftaman,andthatisthepowerofaddedknowledgeandtraining.
ForyearstheAlexanderHamiltonInstitutehasspecializedinonething;ithasonlyoneCourse;itssolebusinessistotakemenwhoknowonedepartmentofbusiness,andbyaddingtotheirequipmentaknowledgeoftheotherfundamentalsshownonthechartontheprecedingpage,tofitthemforhigherpositions.
Ifyoualreadyhavereachedabusinesspositionoflargeresponsibility,thatsurelydoesnotmeanthatyouhavestoppedgrowing.Theboundlessopportunitiesthatareopentoallarebeckoningyouon.Nonoteworthybusinessmanattainshisfulldevelopmentuntilheiswellpastmiddleage.Infact,themanofrealpowerneverappearstohavereachedhislimit.Yourrealachievementsarestillaheadofyou.Asyoulookoverthepagesfollowing,youwillseethatthebrainiestexecutivesinthecountry
areusingtheModernBusinessCourseandServiceasequipmentforstillbiggerundertakings.
Ifyouarestilltrudgingintheranks,orifyouhaveadvancedonlypartwaytowardyourgoal,youwillbekeenlyinterestedinthecommentsofthosewhohavefoundtheModernBusinessCourseandServiceanimmensehelpinhasteningtheirprogress.Thesemenarerapidlyforgingahead.Theyaresettingafasterandfasterpace.Unlessyouareabletokeepupwiththem,youmustdrifttotherear.
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Becausetheyoungmenofthisgenerationaregettingabettertrainingthanhasbeenavailableinpreviousgenerations,thestandardsofbusinessabilityhaverisenandwillcontinuetorise.Yesterday,amanoflimitedexperienceandtrainingwasoftenabletoforcehiswayintoanexecutiveposition;today,itismuchmoredifficulttodoso;tomorrow,itwillbeimpossible.
Thebusinessleadersofafewshortyearsfromnowwillbethemenwhotodayarepreparingthemselvesforthedutiesofleadership.
Yourgains
Youmayask:"_WhatcantheInstitutedoforme?_"
Theanswertoyourquestionisoutlinedinthe"ChartoftheModernBusinessCourseandService"whichisprintedonpage49.ThatChartshowshowtheorganizedknowledgeaboutbusinessprinciplesandbusinesspracticewhichhasbeencollectedandclassifiedbytheAlexanderHamiltonInstituteistransmittedtosubscribersthroughtheeightfeaturesoftheCourseandService--Text,Talks,Lectures,Problems,MonthlyLetters,FinancialandTradeReviews,Reports,andService.
_Inwhatwayscanabusinessmancashinonthisknowledge?_Agreatmany
directandpracticalbenefitsthatnaturallyfollowtheuseoftheModernBusinessCourseandServicemightbecited.SevenofthemostimportantareshownintheChartonthefollowingpage.
ThemostobviousanddirectbenefitconsistsinaBETTERUNDERSTANDINGOFSOUNDBUSINESSPRINCIPLES.
TheotherbenefitsshownontheChartare:
ABILITYTOPLANEFFECTIVELY
INCREASEDCONFIDENCEINHANDLINGBIGDEALS
ABILITYTOMAKEQUICKERANDMOREACCURATEDECISIONS
MORELEISUREFORRECREATIONANDCONSTRUCTIVETHOUGHT
INCREASEDABILITYTOHANDLEMEN
INSURANCEAGAINSTMISTAKES.
TheinevitableresultsofthesegainsinpersonalpowerandefficiencyareLARGERINCOMEANDAGREATERSUCCESSINBUSINESS.
[Illustration:
_ChartoftheModernBusinessCourseandService_
ORGANIZEDBUSINESSKNOWLEDGECollectedandclassifiedbyALEXANDERHAMILTONINSTITUTEORGANIZATION(AdvisoryCouncil,StaffandSpecialLecturers)TransmittedtoSubscribersthru
REPORTSLECTURES
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TALKSTEXTSPROBLEMSSERVICEMONTHLYLETTERS
ThisknowledgeassimilatedbyTheWide-AwakeBusinessManresultsin
BETTERUNDERSTANDINGOFBUSINESSPRINCIPLESABILITYTOPLANMOREEFFECTIVELYINCREASEDCONFIDENCEINHANDLINGBIGPROBLEMSQUICKERANDMOREACCURATEDECISIONSMORETIMEFORCONSTRUCTIVETHINKINGGREATERABILITYTOHANDLEMENKNOWLEDGETHATPREVENTSMISTAKES
LARGERINCOMEandGREATERSUCCESSINBUSINESS
]
NoteonthefollowingpageswhatsubscribersfortheModernBusinessCourseandServicehavetosayinthatconnection.
Betterunderstanding
Amancannotgofarinbusinessunlesshe_thinks_.Andhemustnotonlythink,butthinkstraight.Hisconclusionsmustbebasedonsoundprinciples.
Unlessamanisthinkingalongrightlines,hewillhavelittle
initiative,andhisjudgmentwillbepoor.
Thenecessityforeverylivebusinessmantounderstandtheprinciplesuponwhichmodernbusinessisbasedcannotbeoverstated.TheModernBusinessCourseandServicegivesthatunderstanding.Itilluminatespointsthatwereobscureanditanswersmanypuzzlingquestions.Itlightsuptheroadahead,sothatthebusinessmancanseemoreclearlythepaththatheshouldtake.
Mr.Wm.H.Ingersoll,MarketingManagerforthefamousIngersollwatch,saysthattheModernBusinessCourseandService
"givesthefirstcoherentpresentationoftheentiresubjectof
business.Itgivesoneaperspectiveandanappreciationofessentials,aswellasmuchknowledgeregardingrightandwrongmethodsofprocedure."
AsafairexampleofthemannerinwhichtheModernBusinessCourseandServicestimulatesthoughtandleadstoprogressiveaction,evenincompaniesthatalreadywerewellorganizedandhighlysuccessful,takethefollowingnotefromMr.NormanW.Wilson,Vice-PresidentoftheHammermillPaperCompany:
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"Everymoment'stimeIhavedevotedtoithasbeenwellrewarded.IwantyoutoknowwhatahighregardIhavefortheworkyouaredoingandtoknowthatImakeitapointtoencourageourpeopleheretostudyyourCourse."
Mr.J.H.Hansen,PresidentoftheJ.H.HansenCadillacCompanyofOmaha,emphasizesthepracticalinformationthattheModernBusinessCourseandServicehasbroughttohim:
"WhenIlocatedinNebraskaasasalesmanfortheCadillacautomobile,arepresentativeoftheInstitutepersuadedmethatImightjustaswelltryforthebigprizesinbusinessasforoneofthemediocreones.ThedecisiontoenrolintheModernBusinessCourseandServicewasaturning-pointinmylife.
"Iknewsomethingaboutsellingalready.ButnowIbegantoseebusinessasawhole,andtherelationofeachdepartmenttoit.Advertisingandcosts;accountingandofficeorganization;thecontrolofmen,andcorporationfinance--alltheseelements,whicharenecessaryifamanistosucceedinbusinessforhimself,cametomewiththeInstitute'shelp.
"WhentheopportunityarrivedIwasreadyforit.Weorganizedourcompanyandthefirstyeardidmorethanamilliondollar
business.
"Inmyjudgment,thereasonwhysomanymennevergetintobusinessforthemselvesorfailaftertheydogetin,isbecausetheyarenotpreparedfortheiropportunitywhenitcomes."
Mr.H.C.Smith,President,Allith-ProutyManufacturingCompany,Chicago,stateswhytheModernBusinessCourseandServiceishelpfulwithoutbeingrevolutionary:
"Allmenwhohavebeensuccessfulmustbecreditedwithhavinggoodbusinessprinciples.YourCoursedoesnotrequirechanging
theseprinciples,butitwillbroadenone'sownideasandenablehimtogetgreaterresults."
Increasedconfidence
Agreatmanymenaccomplishlessthantheirabilitiesandenergyentitlethemtoaccomplish,simplybecausetheydonotfeelsureofthemselves.Theboldestmanalivebecomesuncertainandtimidinthefaceofunfamiliardifficulties.ThemanwhofollowstheModernBusinessCourseandServicebecomesacquaintedatcloserangewithbusinessdifficultiesaswellaswithtriedmethodsofovercomingthem;helearnshowtotacklesuchdifficultiesandgoesforwardwithoutfearormisgivings.
TheseriesofModernBusinessProblemswhichconstituteanimportantfeatureoftheModernBusinessCourseandServiceisespeciallyintendedtocultivatefamiliaritywithdifficultbusinesssituationsandtherebytocreateself-confidence.Theyareproblemsofthekindwhichexecutivesareconstantlymeeting.Themanwhocansolvethemsuccessfullyshouldhavenodifficultywhenhemeetssimilarproblemsthatariseinhisownwork.
Abetterandbroadergraspoftheprinciplesandpracticesthatunderlie
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allbusinessalsosuggestswaysofwideningthescopeofone'sbusinessactivityandgivesthenecessaryconfidencetogoaheadanddoit.Mr.JohnMcBride,ofMcBride'sTheatreTicketOffice,NewYork,wroteusaftercompletingtheModernBusinessCourse:
"Theaveragemancandoublehisfaithinhimselfinafewmonthsifhewillmasterthefundamentalsofbusinessthroughyourtraining."
Mr.W.H.Schmelzel,PresidentoftheW.H.SchmelzelCompany,ofSt.Paul,Minnesota,wroteafterhehadfollowedtheCourse:
"Itismypersonalopinionthateveryyoungbusinessmanoftodaydependsagreatdealonconsultationoradvicefromasuccessfulandexperiencedadviserorfriendonallmattersofabusinessnature.
"IntheearlydaysofmybusinessexperienceIwasconfrontedwiththetaskofmakingdecisionspreparingmyselffortheproblemsIwastosolveintheyearstofollow.HavingbeenbornandraisedinasmalltowninaWesternState,IwascontentwithadviceandconsultationofmyacquaintancesinmatterspertainingtothethoughtsIwishedtocarryout.
"Iwas,therefore,eagertoobtainassistancefromacorpsofexpertsintheirparticularline,andaftergivingyourModernBusinessCourseconsiderablescrutiny,andbeinginformedontheclassofmen,thatIfeltconfidentoftheirsuccess,andIrealizedthatsuchaCoursehadmerit,andonewhichIcouldaffordtoconsult,advisewithandbuildmyfuturewithideasandmethodsyouhadsoablyworkedout."
Quickerdecisions
Istheabilitytodecidethingsquicklyaninbornfaculty?No,itislargelyahabitofmindwhichanyonemaycultivateinhimself.However,we
mustbearinmindthatitisnecessarynotonlytodecidequickly;theremustbeveryfewmistakes.Thisrequiresamindthatistrainedtograspasituationandtothinkaccuratelyaswellasrapidly.
_Thesecretofquickandaccuratedecisionisknowledgeofprinciples._Ifamanknowswhatprincipleappliesinhandlingagivencase,hehasnodifficultyinmakinguphismindanddecidingwhattodo.Ifthebalancesheetofagivenconcernwerelaidbeforeyouandyouwereaskedtodecideatonce(assumingthatthefigureswerecorrect)whethertoshipa$10,000orderofgoodstothatcompany,possiblyyouwouldnotknowwhattosay.Butifyouwerefamiliarwiththedefiniteprinciplesofaccountingandfinancewhichwouldenableyoutoanalyzethatbalancesheetandmakeityieldavividpictureofthefinancialconditionoftheconcern,youwould
nothesitateamoment.Youwouldreplyinstantly.
Whatdecisionmeanttothisman
Ayoungman,whosenamewearenotatlibertytogive,toldusofadramaticincidentwhichillustratesthevaluethatkeenbusinessmenattachtopreparednessandquickdecisions.Uptoaboutayearagothisyoungmanwasheadaccountantforhiscompany.TheBoardofDirectorshadbeeninsessionaboutanhouroneafternoonwhenamessengercametohis
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deskandtoldhimthathewaswantedintheboardroom.
Asheenteredtheroomthepresidentsnappedathim,"Wouldyouadviseustoissueablockofcollateraltrustbondstofinanceanewadditiontoourfactorywhichwillcostabout$60,000?"
"No,"saidtheaccountant,"thecompany'screditisgoodenoughforanissueof$60,000onetothree-yearnoteswithoutsecurity.Ifnecessary,thenewbuildingcouldbemortgagedafterconstruction,and,atthepresentrate,thebusinesscouldpayoffthewholeloaninfiveyears."
Arapid-fireseriesofquestionsfollowed,coveringthefinancial,advertisingandsalespolicyofthefirm,toeachofwhichtheaccountantgaveconcentratedthought,quickdecisionandconvincingreply.
Thepresident'sfinalquestionwas,"Howwouldyouliketobecometreasurerofthiscompanyat$6,000ayear?"
Intheletterthattoldofthisincidentthissubscribersaid:
"Idon'tknowwhetherIowemosttoyouortomyfriendintheCarnegieSteelCompanywhourgedmetoenrolforyourCourseandService.IcouldhaveansweredfewifanyofthequestionsaskedmewithouttheknowledgeIgainedfromit.Ifoundoutlater
thatthepresidentknewallthetimeIwasfollowingyourCourse,andwantedtoprovetotherestofthedirectorsthatIcouldintelligentlyconsideranddiscussbusinessproblems."
Mr.CharlesC.Chase,intheAdvertisingDepartmentofBrownCompany,ofPortland,Maine,bringsoutanothermethodofsecuringhelpindecidingquestionsthatareoutsidethescopeofhispreviousexperience.Hesays:
"TothefellowswhohaveaskedmeabouttheCourseandwhatIbelieveitwilldoforthem,Ihavesaid:
"ThroughasubscriptiontotheCourseoftheAlexanderHamiltonInstituteyounotonlyallyyourselfwitha"BoardofDirectors"
whosecombinedbusinessexperienceprobablyamountstoatleastfivehundredsuccessfulyears--aBoardthemembersofwhichhavehadspecializedexperienceineveryimportantphaseofbusiness--butwhohavebeenassembledfortheverydefinitepurposeofhelpingmen."
Thismethodisequallyvaluabletotheexecutive,accordingtoMr.LynnP.Talley,DeputyGovernoroftheFederalReserveBankofDallas:
"WheneverIamconfrontedwithaproblemrelatingtofundamentaleconomicconditionsofbusinesspracticeorbusinesspolicy,Ifindgreatcomfortandsatisfactionintakingdownthevolumerelatingtothesubjectandalwaysfindelucidationofthe
problemsthatconfrontme."
Mr.JamesP.Robertson,ofSmith,RobertsonandCompany,Seattle,says:
"AsageneralreadingCourseonbusinessIcantruthfullysayitishighgrade,andcanrecommendittoanyoneinterestedinthestudyofbusiness."
Mr.A.E.Winger,President,AmericanLithographicCompany,writes:
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"IthinkyourCourseisanexcellentoneandamparticularlyimpressedwiththeunderlyingthoughtthatIfindthroughouttheentireCourse--applicationofprinciples.Ithasbeenmyexperiencethatsoundjudgmentisthemostessentialrequisiteofanyexecutive,andthatthejudgmentrequiredinbusinesstodaycanbestbeformedbyathoroughknowledgeofbusinessprinciples."
Mr.SamuelCochrane,President,CochraneChemicalCompany,JerseyCity,sumsuptheargumentinthisremark:
"IfIhadenrolledwithyouayearortwoago,Ishouldbebetterabletohandletheproblemsputuptomeeveryday."
Moreleisure
Thesecretofleisureisnottodolesswork,buttoorganizeworksothatagreatervolumecanbehandledinlesstime.Noactivemanwishestocutdownhisproductiveefforts.Agreatmanymen,however,aresotiedtotheirbusinesstasksbydetailandroutinethattheyhavelittletimeorenergyleftforconstructivethought.Frequentlytheydonotgetenoughrecreationandphysicalexercisetokeeptheminprimecondition.Asaresult,theyarefritteringawaythebestyearsoftheirlifeinhandling
smalldetailsthatneverbringthemanywhere.
Toagreaterorlesserextent,thisistrueofallofus.Howtoescapefromthetime-wastingenergy-absorbingroutineanddetailsisavitalquestion.
Being"swampedwithtoomuchdetail"isinrealityakindofbusinessdisease--andaverydangerousone.Itismostlikelytoattacktheofficersofrapidlyexpandingconcernsandenergetic,ambitiousmenwhoareconstantlytakingonnewresponsibilities.Unlessonecanshakeoffthisdisease,itwillprobablygooneatingawaymoreandmoreofhistimeandenergyuntilheloseshisgriponlargeaffairsandtohischagrin,seesothermenofsmallerabilityrisingabovehim.Itisasbadforaman
tobe"toobusy"asforhimtobenotbusyenough.
Asamatteroffact,itisunnecessaryforanymantobesoharassedwithdetails--exceptasatemporarycondition--thathecannotgiveareasonableamountoftimetorecreation,readingandthought.Thecompanyburdenedbythedetail-typeofexecutiveisnotgettingwhatitpaysfor.Hisnaturalabilitiesarebeingdivertedtothingsthatcheapermencoulddoequallywell.Heowesittohiscompany,aswellastohimself,toreorganizehiswork.
Cuttingoutthedetails
Itisnecessarilytrueinallsuchcasesthatmanyoftheover-busyman'sdutiesrecurdayafterday.Theyareofasemi-routinenatureandcouldbemadewhollyroutinebygivingtheproperinstructionstosomeoneelse.Inotherwords,thisisaproblemoforganizationsimilartothatoforganizingafactory,astore,orabodyofmen.TheprinciplesthatarediscussedintheModernBusinessCourseandServiceapplytoanindividualjustaswellastoacompany.Amancanorganizehisdeskverymuchonthesameplanthathewouldorganizeafactory.Whenhedoesso,heinvariablyfindsthathisefficiencyisincreased,hisworkismoreproductive,andhehimselfhasmoreleisure.
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Accordingly,anybusinessmanwhodesirestoforgeaheadshouldreducethedetailsofhisworktoroutinewhichcanbecarriedonwithoutspecialthought.TheModernBusinessCourseandServiceisadirectandinvaluableaidtothemanwhofeelshimselftieddownbydetails.
Ofcourse,wemustconsiderinthisconnectionthemanwhothinksthatheismuchbusierthanhereallyis.Therearesparemomentsineveryman'sday.Thereisthehalf-hourbeforeoraftertheeveningmeal;thetimespentintravelingtoandfromwork;theoneortwoeveningsaweekthateventhebusiestmanshouldspendathome.Themeasureofaman'schancesofsuccessmayreadilybetakenbylearningthemannerinwhichheuses--orwastes--hissparetime.
NobetterusecanbemadeoftheseoddmomentsthaninreadingtheModernBusinessCourse.Thisreadingisnottiring;itisrecreativeandstimulating.Itwillenableanymantoorganizehisworksoastoincreasehisleisureforreadingandstudy.Itwillhelphimtorisetoahigherlevelwherehisthoughtandenergywillbemoreproductive.
Manyofthebigbusinessexecutivesareinvestingtheirsparemomentsinjustthisway.Theyrealizethegreatresultsthatareboundtofollow.Itisunquestionablytruethattheuseofone'ssparemomentscountheavilyindetermininghowmuchwillbeaccomplishedayearortwohence.
Thefollowingalsogivetheiropinion:
"Foragoodmanyyearsasapractisingminingengineer,Igraduallybegantorealizethattherewassomethingwrongwithengineersinregardtotheirbusinesssuccess.Somethingthatseemedtostandbetweenthemostbrilliantofmenandsuccessinbusiness.Afteralongstudyofmenandconditions,IsubscribedtoyourCourse.FromthenonIbegantotakegreaterresponsibilitiesandlargerfeesbecauseofmyaddedconfidenceandbusinessknowledge.ItrulyfeelthatyourcourseferriedmeacrosstothatphaseofprofessionalgraspwhereIbecamesuccessfulinbusinessasaprofessionalengineer."
GLENVILLEA.COLLINS,_ConsultingEngineerofSeattle._
Muchthesamethoughtsareadmirablyexpressedbyanotherbusyexecutive,Mr.J.H.Carter,Vice-President,NationalCityBankofNewYork:
"YouwillnodoubtbeinterestedtoknowthattheclassformedundertheauspicesoftheCityBankClubtofollowtheAlexanderHamiltonInstituteCourse,whichyouhelpedstartabouttwoyearsagolastSpring,isjustcompletingitsstudy.
"Themajorityoftheoriginalenrolmentoffiftymembershave
followedtheCourseregularly.Ithasheldtheinterestofthementhroughoutandhasprovedunusuallystimulatingandinteresting.
"Theofficialstaffofthebankhasgiventheclassitsheartymoralsupport,and,inaddition,hasofferedtorefundapartofthefeetothosecompletingtheCoursesuccessfully.Wefeelthatthispolicyhasnotonlyencouragedthemen,buthasbenefitedthebankaswell.
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"Personally,IcannotspeaktoohighlyoftheCourse.IfeelthatthetimeIhavegiventoitduringthepastfewyearscouldnothavebeenemployedtogreateradvantage."
Increasedabilitytohandlemen
Therearejusttwofactorsthatdetermineaman'scompetencetodirecttheworkofothermen:
1.Hissuperiorknowledgeoftheworkinhand.2.Hisabilitytocommandrespect.
Asamatteroffact,thesecondfactorisalmostwhollyincludedinthefirst.Themanwhoreallyknowswhatheistalkingaboutalwayscommandsrespect.Themanwhoislargelya"bluff,"nomatterhow"magnetic"orforcefulhispersonality,issoonfoundoutandretiredinfavorofthemanofsmallerpretensions,butmoreknowledge.Thehistoryofalmostanybusinesssuccessdemonstratesthetruthofthisstatement.
Modernbusinessaffairsaresocomplexthatitiswhollyoutofthequestiontoputanuntrainedmanincommand.Onemightaswelltalkofputtinganuntrainedmaninchargeofamodernbattleship.Inbothpositionsbroad-gaugeknowledgeandjudgmentareabsolutelyessential.The
sameprincipleappliesequallytotheminorcommands.Theleadingbusinessmenofthecountryareforthemostpartquiet,self-controlledmen,whothinkbeforetheyspeakandwhoareconstantlystudyingbusinessproblems.Thisisthetypeofmanbestfittedtocontrolanddirecttheworkofothers.
Themanwhodevelopshimself,developshisabilitytohandlemen.ThroughtheModernBusinessCourseandServicethetrainingcanbesecuredthatmakesforself-developmentandforsuccess.
T.H.BaileyWhipple,ofthePublicityDepartmentoftheWestinghouseElectricCompany,writes:
"YourCourseunquestionablydoesformenwhatexperienceandnativeabilityalonecanneverdo."
Mr.G.E.Lucas,OfficeEfficiencyEngineer,SaylesFinishingPlants,says:
"IamindeedgladthatItooktheopportunitytoenrolfortheModernBusinessCourseandService.WhatIhaveobtainedhasbeenofverymaterialbenefittome.Myownexperiencebearsontheexperienceofmyothercolleagueswhohavebeengettinghelpandinformationfromyouinthepasttwoyears.Allthereportsthatwehaveobtainedhavebeenthoroughlysatisfactoryandverycomplete."
TheexperienceofMr.S.G.McMeen,President,ColumbusRailwayPowerandLightCompany,Columbus,Ohio,isequallytothepoint:
"Myexperiencebeganmanyyearsagointechnicallinesandcontinuedalongthemtoengineeringandconstructionpractice.Asoftenhappens,thistechnicalworkledmeintoexecutivematters.ItwasinthemthatImissedsomeoftheadvantagesenjoyedbymenwhohavespecializedearlierincommercialandfinancialwork.
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"NaturallyIformedahabitofappropriatingtheneededknowledgewhereverImightfindit,andfoundmuchmorethanIcouldassimilate.Thelong-feltneed,therefore,wasforasourceofclassifiedinformationforreferenceandstudy,asourceoftrainingbytheuseofintelligentproblemsandasourceofadvicetowhichImightturnwhenindoubt.ThissourceIfoundinthevolumes,periodicalliteratureandserviceoftheAlexanderHamiltonInstitute."
Largerincomeandsuccess
Asthediagramonpage49indicates,thesevendirectaidswhichsubscribersobtainfromtheModernBusinessCourseandServiceare:
1.Betterunderstandingofbusinessprinciples
2.Abilitytoplanmoreeffectively
3.Increasedconfidenceinhandlingbigproblems
4.Quickerandmoreaccuratedecisions
5.Moretimeforconstructivethinking
6.Greaterabilitytohandlemen
7.Knowledgethatpreventsmistakes
Alloftheseaidstopersonalefficiencyareboundtoresultinincreasedincomeandgreatersuccess.Eventhoughamanshouldgainonlyslightlyinanyoneofthesevenqualitiesnamed,hewouldbecomeafarbetterbusinessman.Hewouldeitheradvanceinpositionorexpandhisbusiness--ineithercaseraisinghimselftoahigherlevelofincomeandsuccess.Theeffectisallthemorestrikingwhenamanincreaseshisefficiencyinrespecttoallsevenqualities.Tociteexamplesseems
almostunnecessary.Yetafewtypicalexpressionsfromsubscribersmaybeofinterest:
"ItisveryhardtoputintowordsjusthowmuchgoodIhavederivedfromtheAlexanderHamiltonInstituteCourse,butIdorealizethatasproblemspresentthemselves,theyaremucheasiertosolve,andIhaveabetterconceptionofthefutureoutlookofbusinesssincehavingthebenefitofyourCourse,andthereisscarcelyadaybutwhatsomemattercomesupforwhichIuseyourCourse."
Mr.W.C.ROOSE,_Sec'yandGen.Mgr.__BeaconShoeCompany_,_Manchester,NewHampshire_
"Duringthepasttwoyearsmysalaryhasincreasedmorethan400%.ThishasbeenduetotheratherremarkableincreasetheFullerBrushCompanyhashadinsales.ThesesalesareindirectlytheresultoftheideasIhavereceivedfromyourCourse."
S.L.METCALF,_FormerVice-PresidentandDirectorofSales,FullerBrushes,Inc.NowPresident,BetterBrushes,Inc.,Palmer,Mass._
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"TothemanwhohashadtheadvantageofacollegeeducationthisCourseopensupwhatmightbecalledavistaofthebusinessworldinaveryuniquemanner.Theinformationobtainedfromthiscourse,ifacquiredbytheordinarycollegemanbyactualexperience,wouldrequirenolessthanalifetimeanditispresentedinsuchamannerastobereadilyassimilatedintheshortspaceoftwoyears,devotingonlyoddhourstostudy."
Mr.E.J.BARTELLS,_Manager__WoodPipeExportCompany,Seattle,Washington_
AsubscriberfromaprosperouscityinIowarecentlycalledattheNewYorkofficesoftheAlexanderHamiltonInstitute,sayingthathewantedtomeetsomeofthemenwhohadgivenhimsuchvaluableassistance.Heisthecontrollerofalargemanufacturingcompanyandathoroughlytrainedandexpertaccountant.ThethingthatimpressedhimmostabouttheplanoftheModernBusinessCourseandServicewastheopportunityitofferedhimofincreasinghisalreadyextensiveknowledgeoftheprinciplesoffinance,management,advertising,sellingandorganization,aswellasaccounting.
"Letmetellyouwhathappenedtomeafewweeksago,"hesaid."Ifoundmyselfupagainstaproblemthatneverhadariseninmypreviousexperience.Iwassimplystumped.Isoughthelpfromvarioussourcesin
attemptingtofindasatisfactorysolution.Thenitoccurredtome--themostobviousthingsoftencometomindlast--tolookintheModernBusinesstextsforarayoflight.Tomygreatdelight,thereIfoundaclearanddefinitestatementoftheveryprinciplesthatshouldbeapplied.
"Iamfranktosaytoyou,"heconcluded,"thatthisonebitofinformationwasworthtomeatleastthreetimesthepriceofyourCourse."Alreadythissubscriberhadrealizeda300percentdividendonhisinvestment.Ofhissubsequentgainswehavenorecord.TothegreatmajorityofthosewhosubscribefortheCourseandServicethereturnsaresimplyincalculable.Thetraining,theinformationandtheideasthattheysecureareabig--oftenanessential--factorinmakingtheirbusiness
careershappierandmoresuccessful.Whocancalculatethemoneyvalueofareturnofthatkind?
ThemoderatefeewhichischargedfortheModernBusinessCourseandServiceisbaseddirectlyuponthecostofproducingtheliteratureincludedintheCourseandofmaintainingtheorganizationthatconductstheCourseandService.Thefeeissmallinitself;itshrinksintoinsignificancewhencomparedwiththereturns.Oneofoursubscriberswasspeakingonlytheliteraltruthwhenhesaid:
"Tothemanofabilityandbrains,yourCourseandServiceoffersa_priceless_meansofdevelopingthesequalitiestotheirhighestefficiency."
Forthewomaninbusiness
TheModernBusinessCourseandServicemakesthesameappealtothebusinesswomanasitdoestothebusinessman.Consequentlyanumberofwomenareenrolledforit.Amongthesewomenare:
Mrs.E.M.Simon,President,R.&H.SimonCompany,UnionHill,NewJersey
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MissSaraF.Jones,Mgr.Woman'sDept.,EquitableLifeAssuranceSociety,Chicago,IllinoisMrs.M.K.Alexander,Solicitor,EquitableLifeAssuranceSociety,Chicago,IllinoisMissMaryR.Cass,Manager,F.N.BurtCompany,Buffalo,NewYorkMissLouiseMessner,Accountant,PetermannStoresCompany,Kearsarge,MichiganMissS.F.Troutman,SecretaryandAssistanttoTreasurer,FirstPresbyterianChurch,Pittsburgh,PennsylvaniaMrs.N.M.Favor,AssistantCashier,TheTravelersInsuranceCompany,Manchester,NewHampshire
Todaywomenareengagedinallbranchesofbusiness.Agreatnumberofwomenoccupyexecutiveandotherimportantpositionsinsomeofthelargeconcernsofthecountry,andthenumberissteadilyincreasing.Fortheambitiouswomanacareerinbusiness,withitsgreatrewardsandthepossibilitiesofrenderingworthyservice,holdsforthattractiveopportunities.
ChapterV
THEQUESTIONBEFOREYOU
Aseriousbusinessquestionisnowconfrontingyou.Itisimportantthatyoushouldconsideritfairlyandcalmlyandthatyoushouldpromptlymakeupyourmindfororagainstit.Thefactsareallbeforeyou.
ThequestioniswhetherornotyoushouldenrolfortheModernBusinessCourseandService.Thinkovertheargumentsproandcon.
YouknowthattheCourseandServicewillbringyouabetterunderstandingofsoundbusinessprinciples;thatitwillgiveyouincreasedself-confidence;abilitytoplanmoreeffectivelyandtodecidebusiness
questionsmorequicklyandsurely.Youwillfindyourselfwithincreasedabilitytohandlemen.Youwillprobablyenjoymoreleisure;youwillcertainlyearnalargerincome.
YouarewellenoughacquaintedwiththestandingandreputationofthemenbehindtheAlexanderHamiltonInstitutetoknowthattheModernBusinessCourseandServicemustbeofthehighestquality.Andforthesamereasonyouknowthatitnaturallyisofferedtoyouataverymoderatefee.
ThefeefortheModernBusinessCourseandServiceis$136intheUnitedStates.Thiscovers,withoutanyadditionalexpense,theTexts,Talks,Lectures,ProblemsMonthlyLetters,FinancialandTradeReviews,Reports
andallnecessarypersonalhelp.Thecompletesetof24Textvolumescomesatonce,andtheotherliteratureatconvenientintervals.
IftheCourseisworthanythingatall,thefeeisslightincomparisonwiththeresultsthatwillfollow.Thefeemaybepaidinconvenientterms.
Makeyourdecision
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Certainobjectionsmayoccurtoyou:
_Youhaveotherusesforyourmoney--_
Nodoubt;yetnoneofthemisasnecessarytoyoursuccessfulbusinesscareerastheModernBusinessCourseandService.
_Youaretoobusy--_
Everybodywhoamountstoanythingisbusy;yetnever"toobusy"toacquireknowledgesoimportantasthis.
_Youhaveadebttopayoff,oratriptotake,oryouwouldrather"thinkitover--"_
Theseargumentsareunsoundfromeverypointofview.Noman,injusticetohimself,ortothosewhomaybedependentuponhim,shoulddenyhimselfthisopportunitytomakeaninvestmentthatwillyieldlargedividendsone,twoandthreeyearsfromtoday.
Inthecomingstruggleforworldmarkets,therewillbeagreatneedformenofbroad,executivetraining.Formenwhoareprepared,therewillbemoreopportunitiestosucceedinabigwaythaneverbefore.
Itisfalseeconomy,therefore,topostponeforasingledayadecisionthatwillenableyoutopushbeyondthehalf-waymarkandforgeaheadinbusiness.
Youareabusinessman,trainedtomakedecisions.Thesimplefactsarebeforeyounow.Weighthearguments;thenact.
ChapterVI
DESCRIPTIVEOUTLINEOFTHECOURSE
InlookingoverthefollowingdetailedoutlineoftheModernBusinessCourse,youwillseemoreclearlyhowcloselyeverysectionisrelatedtodailybusinesspractice.
Theitalicsaftereachtitlegivetheactualchapterheadings;thefollowingmattergivesabriefdiscussionofthepurposeandscopeofeachsectionoftheCourse.
BUSINESSANDTHEMAN
"_ScientificTrainingforBusiness_,"_anintroductiontotheModernBusinessCourseandService__Natureandaimofbusiness__Theprofitproblem__Economicsandsociology__Psychology__Ethicsofbusiness__Vision,ortheidea__Personalefficiency__Health_
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_Theefficientbusinessman__Theexecutive__Subordinateorjuniorofficers__Therank-and-fileworker__Personality__CharacterAnalysis__Opportunity_
Themostimportantthinginbusinessisthehumanelement--you.Everymanmusthaverealambition,highideals,andadefinitegoalinmindbeforeevenacorrectknowledgeofbusinessprincipleswillhelphimtomorethanahalf-waysuccess.
ThepurposeofthisfirstsectionoftheCourseistodiscusstheviewpointofthesuccessfulbusinessmaninaninspiringway,sothatyoumaybeinspiredyourselfandsothatyoumaybeabletoinspireothersaboutyou.
"Scientifictrainingforbusiness"isanintroductiontothewholeModernBusinessCourseandService.InitDeanJohnsontellsyouinwhatwayyoushouldreadtheCourse,howtogetthemostoutofit,andhowtousetheequipmentsoastobringresults.
TheCoursebeginswithananalysisofbusinessoperations.Itshows
brieflywhatarethedominantfeaturesofbusinesslifewhichnomancanaffordtoneglect.Itthentakesuptherelationofpersonalqualitiestobusinesssuccess;itshowswhatpersonalcharacteristicsarehelpfulandhowtheymaybecultivated;anditalsopointsoutthetraitsofmind,mannersandmoralswhichhindermenintheirbusinesscareer.Thefirstpointinunderstandingbusinessproblemsandbusinessprinciplesistoapproachthemwiththerightattitudeofmind.
ThissectionoftheCourseservestobringthereaderintopersonaltouchwiththebusinessproblemswhichwillengagehisattentionmoreindetailinthesubsequentsectionsandthusfurnishesausefulintroductiontotheentireCourse.
ECONOMICS--THESCIENCEOFBUSINESS
_Purposeandscopeofeconomics__Fundamentalconcepts__Landandcapital__Laborandenterprise__Threefundamentallaws__Consumptionofwealth__Valueandtheconsumer__Valueandtheproducer__Valueandthetrader__Money_
_Credit__Money,creditandprices__Foreigntrade__Rent__Interest__Wages__Profits_
Economicsisthefoundationstoneuponwhichthescienceofbusinessisbuilt.Itunderliesallbusinessjustasmathematicsunderliesall
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branchesofengineering.ItisthebasicsubjectoftheCourse,anditsgeneralprinciplesshouldbethoroughlyunderstoodbeforetakingupthesubjectstreatedlater.
Thebookiswrittenforthegeneralreader,whohaslittleornoknowledgeofeconomictheory.Itgivesaclearideaofthebusinessproblemsandforceswithwhichbusinessmendealandenablesthereadertoformintelligentjudgmentsofhisown.
ThissectionoftheModernBusinessCoursemakesclearthelawsgoverningthepricesofgoods,thewagesofemployes,theprofitsofemployers,theprocessesofexchange,thefunctionsofmoneyandcredit,andtherentofbuildingsandland.Ittakesupincomprehensivemannertheproblemsraisedbytradeunions,bytrusts,bygovernmentaltaxationandbythegrowingtendencytowardgovernmentalregulationofbusiness.
Anunderstandingofalltheselive,interestingbusinessproblemsisanessentialpartofthementalequipmentofabroad-gaugedbusinessman,workingunderpresent-dayconditions.
BUSINESSORGANIZATION
_Purposeandformsofbusinessorganizations_
_Soleproprietorship__Generalpartnerships__Limitedpartnerships__Syndicates__Businesstrusts__Corporationsasbusinessunits__Generalaspectsofcorporations__Incorporationofcompanies__Dissolutionofcorporations__Stockanddividends__Stockholders__Meetingsofstockholders__Directorsandofficers_
_Intercorporaterelations__Consolidations,salesandleasesofassets__Holdingcompanies__Illegalcombinations_
Ifyouareinbusinessforyourself,orinsomewaybecomeinterestedinagrowingbusiness,thereisnothingthatisofgreaterinterestthanyourrightsandtherightsofothermenwhoareintheconcern.
Theapplicationofthecorrectprinciplesofproduction,marketing,financingandaccountingarenecessarytoinsuresuccess,astheydeterminetheprofitsofthebusinessasawhole.Everymangoesintobusinesstosecuremoreincomeforhimself,andtheamountofhisown
incomewilldepend,notonlyontheamountoftheprofitsofthewholebusiness,butonhisownproportionateshareoftheseprofits.Thedivisionoftheprofitsintosharesdependalmostentirelyontheformoforganization.
Moreover,whenmenenterbusinesstheyhazardnotonlytheirtimeandadefiniteamountofwealthintheenterprise,butperhapsotherwealththatwasintendedtobekeptseparate.Indeed,embarkingonabusinessventuremaybebutthebeginningofthelossoftheincomeoffutureyearswhenallchanceofprofitshasceasedandthebusinessrepresentsnothingbuta
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lotofdebtsthatremaintobeliquidated.
Riskisanimportantelementthatisvariedbytheformoforganizationselected.Thissectiontracesbrieflytheriseofthecorporationthroughtheindividualenterprise,thepartnershipandthejointstockcompany,andstatestheadvantagesanddisadvantagesofeachoftheseformsofconductingbusiness,aswellasthoseofthecorporation.ThissectionoftheCourseconstitutesthefirststepinthestudyofcorporatefinance.
PLANTMANAGEMENT
_Thebasisofmodernindustry__Fundamentalindustrialprinciples__Characteristicsofmodernindustry__Methodsoforganizationandadministration__Coordinativeinfluences__Purchasing__Storingmaterial__Planningandproductiondepartments__Insuringresults--securingindustrialdata__Standards__Thecontrolofquality--inspection__Rewardinglabor--oldermethods_
_Rewardinglabor--newmethods__Comparisonofwagesystems--profitsharing__Statisticalrecordsandreports__Locationofindustrialplants__Arrangementofindustrialplants__Practicallimitationsinapplyingindustrialprinciples__Problemsofemployment__Employes'service__Scienceandmanagement_
Modernmanagementofindustrialplantsischaracterizedbyplanningandsystem.Oldprocessesandoldmethodsnolongercommandrespectbecausetheyareold.Theyhavebeensubjectedtosearchinganalysisinthehope
offindingbetterwaysofdoingthings.Welooktodaynotforthehistory,butforthereasonsofeveryphaseofplantmanagement.
Thisisouraspectofthegeneralindustrialchangeswhichhavetransformedmodernindustryandmadeitahigh-poweredproductiveinstrument.Itisnotanisolatedthing,butjustassignificantapartofmodernbusinessmethodsasareimprovedtransportation,increasedcreditandpresent-daybanking.
InthispartoftheCourse,therelationofplantmanagementtothecharacteristicdevelopmentofmodernlifeisfirsttraced,andthenthechangesdisplayedwhichscientificmethodshavemadeintheconductofmanufacturingprocesses.Theseaffectthestructuralorganizationof
business,therelationsofthedirectingandmanagingorganstooneanother.Theyalsoaffecttheoperationsofthesemanagingunits,thepurchaseandstorageofmaterials,theroutingandsequenceofwork,thebestutilizationofmachineryandthelike.
Thekeynoteofthevolumeisefficiencyinproductiveeffortandtheprincipleswhichunderlieit.
MARKETINGANDMERCHANDISING
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_Marketing:Moderndistribution__Thefieldofmarketing__Studyoftheproduct__Studyofthemarket__Tradechannels__Sellingtothejobber__Wholesalemiddlemen__Sellingtotheretailer__Sellingthroughexclusiveagencies__Influencingretailsales__Sellingtotheconsumer__Good-willandpricemaintenance__Reachingthemarketandthecompletecampaign__Merchandising:Thejobber__Modificationofthejobber'sservice__Problemsofthejobber__Retailcompetition__Retailtypes__Chainstores__Mail-orderselling__Trainingthesalesforce__Buying__Stockkeeping_
_Cooperationforservice_
Therearethreedifferentkindsofthingsthatmustbeconsideredbyeveryonewhohasanythingtosell.Onegroupofconsiderationshastodoonlywithpersonalsalesmanshipandsalesmanagement.Anotherhastodoonlywithadvertising.Stillathirdisconcernedsolelyneitherwithpersonalsalesmanshipnorwithadvertising,butiscommontoboth.Beforeaneffectiveforceofsalesmencanbeselectedandtrainedandanadvertisingcampaignmappedout,theplanbehindthepersonalsellingandadvertisingcampaignmustbedevised--themarketingmethodsmustbedetermined.
Theconsiderationsheremaybegroupedunderthreeheads:thegoodstobe
sold,themarketforthegoods,andthemethodsofreachingthatmarket.
Anumberofquestionsmustbeaskedandansweredaboutthethingstobesold.Forexample:Isthereareadydemandormustonebecreated?Isthecommodityanecessityoraluxury?Isitsubjecttoseasonalvariations?Isthetrade-markwellknown?Andsoon.
ThefirstpartoftheText,Marketing,concernstheproblemsofthemanufacturer;thesecondpart,Merchandising,treatsoftheproblemsofthedealer,bothwholesalerandretailer.Betweenthemtheypresentacompletepictureoftheprocessesbywhichgoodsreachtheconsumer,andrevealthetendenciesinmoderndistribution.
SALESMANSHIPANDSALESMANAGEMENT
_Salesmanship:Thepowerofpersonalsalesmanship__Staples,brandedstaplesandspecialties__Sellingprocess--preliminarytotheinterview__Sellingprocess--theinterview__Sellingprocess--theagreement__Sellingprocess--miscellaneous__Humanappealsthatsell_
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_Developmentofcharacterandcaliber__Thesalesman'sdutiesandresponsibilities__Cooperation,influenceandfriendship__Salesmanagement:Thesalesmanager--hisqualificationsandduties__Buildinganorganization--selectingmen__Buildinganorganization--trainingsalesmen__Sellingmethodsandthesellingequipment__Compensationandterritory__Salesrecords__Cooperationwithsalesmen__Salescontests__Salesconventions_
Thereisnosubjectwhichismoreuniversallyinterestingtoeveryoneinbusinessthanselling.
Salesmanshipinitsbroadestsenseisessentiallythesellingofone'spointofview,theabilitytostartwiththeotherfellow'spointofviewandleadhismindtoacceptyours.Whenanindividualendeavorstoinfluenceanother,heispractisingsalesmanship.Inthisbroadsense,everyonewillprofitbyaknowledgeoftheprinciplesofsalesmanshipandsellingmethods.
InthisportionoftheModernBusinessCourse,thesalesmanisshownthe
necessityoflearningsomethingofhisprospectprevioustotheinterview.Suggestionsarealsomadeforgettingtoseethebuyer.Thedevelopmentsinasalearediscussedinsuchawayastoenablethesalesmantobuildaneffective,man-to-mantransaction,andthehumanappealsthatsellareoutlined.
Afterdiscussingthequalificationsanddutiesofthesalesmanager,methodstobeemployedintheselecting,trainingandhandlingofmenaredetailed.Thetrainingofretailsalespeopleisdiscussed.Theplanningofthesalesman'sequipment,thebuildingofasalesmanual,theapportionmentofterritoryaregoneinto.Methodsofkeepingsalesrecordsandstatisticsareoutlined;directionsgivenforthehandlingofsalescontestsandconventions,theeditingofahouseorgan,andthe
apportioningofquotas.
ADVERTISINGPRINCIPLES
_Advertising--aconstructiveforceinbusiness__Fundamentalsofadvertising__Gettingtheadvertisementseen__Gettingtheadvertisementread__Makingtheadvertisementunderstood__Makingtheadvertisementproduceaction__Humanappealsinadvertising__Wordvaluesinadvertising_
_"Gettingtheorder"copy__"Gettingtheinquiry"copy__"Directingthereader"copy__"Moldingpublicopinion"copy__Preparingtheadvertisement__Layoutofadvertisements__Booklets,catalogsandfolders__Drawingsandreproductions__Printingartinadvertising__Trade-marks,slogansandcatchphrases_
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_Legallimitsandrestrictionsonadvertising_
Consideringthelargenumberofprogressiveconcernsenteringthefieldofadvertisingeachyear,andprofitingthereby,theaveragebusinessman'slackofknowledgeconcerningadvertisingprinciplesislamentable.
Fewhaveanyabilityeithertowriteortojudgecopy,andalmostallareatalosstodealintelligentlywiththeprinter.
ThissectionoftheCoursediscussesthevariousclassesofcopydividedaccordingtotheresultseachisdesignedtoaccomplish.Thevalueofwordtoneinwritingandhowtosecureitareindicated.Instructionsforpreparingandlayingouttheadvertisementaregiven.
Thetechniqueoftheprintingart--typefaces,paper,printingprocesses,half-tonesandline-cutillustrations--isdiscussed.
Theadvertisingslogan,thepackagedesignandthevariousconsiderationsinconnectionwiththetrade-markaretreated.
Thebusinessmanispreparedtocorrelatetheprinciplesofadvertisingwiththoseofmarketingmethods,andtobringanunderstandingofbothtohisstudyofadvertisingproblemsofwholesaleandretailmerchandising.
OFFICEADMINISTRATION
_Theofficeinmodernbusiness__Location,planningandlayoutoftheoffice__Officeequipmentandsupplies__Officeappliances__Selectionofemployes__Employmenttestsandrecords__Training__Stimulationofemployes__Filing__Interdepartmentalcommunications_
_Officemanuals__Theworker'scompensation__Welfare__Officeorganization__Planning__Officecontrol__Workreportsandtheiruse__Theartofmanagement_
Itisonlyinrecentyearsthatindividualbusinessenterprisesoutsideofthemanufacturingfieldhavegrowntosuchimportanceastobringalargenumberofemployesunderonemanagement.Todaytheproblemsoftheofficearenolessurgentthanthoseoftheshop.
Officeadministrationisinsomerespectslike,inotherrespectsunlike,plantmanagement.Itisalikeinthatitpursuesthesameidealsofefficiency.Itisunlikeinthatmachinesandequipmentfallintothebackgroundandthehumanelementloomslargeintheforegroundofofficework.
Methodsofconductingclericalworkhave,sincetheadventofthevariousofficemachines,ofwhichthetypewriterwasthepioneer,undergonerapidtransformation.Underlyingthesechangestherehavebeenprinciples,more
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orlessclearlyrecognized,whichitistheaimoftheTexttodiscoverandpresentinanorderlyandsystematicfashion.
Infewdepartmentsofofficeworkhavestandardizedprocessesbaseduponscientificprinciplesmadesuchheadwayasintheemploymentfield.Hiringemployesforofficework,trainingthemfortheirduties,stimulatingthemtotheirbesteffort,adjustingwagestoworkperformed,andprovidingfordeservedpromotions,arenolongercasualoccupationsofsomegeneraloffices,buttheworkandspecialconcernofthetrainedofficemanager.
Here,aselsewhere,concentrationandspecializationarebeginningtorevealtheprinciplesunderlyingsuccessfuleffort.Suchprinciplesconcernnotonlytheoperations,buttheorganizationoftheofficeanditsvariousparts.
ACCOUNTINGPRINCIPLES
_Developmentandscopeofaccountancy__Accountsandtheirpurpose__Classificationofaccounts__Doubleentrybookkeeping__Booksofaccount__Applyingaccountingprinciples--theoriginalentries_
_Applyingaccountingprinciples--theledgerrecords__Applyingaccountingprinciples--summarizingresults__Columnarbooks__Opening,operatingandclosingthebooks__Thetrialbalance__Economicsummary__Thebalancesheet__Singleentrybookkeeping__Continentalsystemofbookkeeping__Depreciation__Methodsofcomputingdepreciation__Labor-savingdevices__Internalchecks_
Asbusinessbecomesmorecomplexwearemoreandmoredependentuponaccountingmethodstoshowusthetrendoftheindividualbusinessinwhichweareinterested.
Henceaknowledgeofaccountingprinciplesisindispensable.Yet,evenamongexperiencedbookkeepers,comparativelyfewhaveaclearunderstandingoftheprincipleswhichunderlieallcorrectmethodsofkeepingfinancialrecords.
ThissectionoftheCourse,therefore,startswithaclearexplanationofthefundamentalprinciplesofbookkeeping,andprogressesstepbystepuntilitreachesthemostcomplicatedcasesofpartnershipandcorporation
accounting.
Withinrecentyearsthegreatimporta