Roadside MBA: Back Road Lessons for Entrepreneurs, Executives and Small Business Owners

Abstract

Roadside MBA: Back Road Lessons for Entrepreneurs, Executives and Small Business Owners Michael Mazzeo, Paul Oyer, and Scott Schaefer Business Plus, 2014 238 pages, $ 27 (Softcover)The first impression I got from both the cover and the title of the book was that this was not a serious publication. Well...as we have all heard before, never judge a book by its cover! Roadside MBA is an excellent book that was written by three very down-to-earth professors who share a passion for both business and road trips.Dr. Michael J. Mazzeo earned a Ph.D. in 1998 from Stanford University and has extensive experience researching and publishing in a wide area of business topics, which include Economics, Marketing, and Management. He is currently an Associate Professor of Management and Strategy, Kellogg School of Management, Northwestern University. Dr. Paul Oyer was awarded a Ph.D. in Economics from Princeton University in 1996. He has an extensive publishing record in the areas of Economics and Finance. Dr. Oyer is currently a Professor of Economics at Stanford's Graduate School of Business. Dr. Scott Schaefer earned a Ph.D. in Economics Analysis and Policy from Stanford University in 1995. He is currently Chair of Business Administration and Professor of Finance at the University of Utah's David Eccles School of Business.As many graduates of business schools have experienced, there is a deep tradition to teach business lessons and concepts through the use of iconic business cases such as Nike, IBM, and Johnson and Johnson. This book explores some of the many business concepts that can be taught to students utilizing everyday experiences in small businesses throughout the Unites States. The authors plan out a road trip that takes them to meet with a variety of small business owners and employees with the goal of learning how many of the concepts taught to MBA students are experienced and applied in everyday America.Roadside MBA is written in a relaxed tone and it is very hard to put down. The stories introduce us to the personalities of the authors as well as to business principles. It brings business out of the classroom and into the stores we frequent daily. The authors make a point to explain business concepts in everyday language and not use any intimidating jargon or more importantly MATH and GRAPHS!As the three authors travel the country, they share with us some of the challenges and opportunities faced by 43 businesses. Each chapter focuses on one lesson, which is explained through the use of examples from some of the 43 businesses they visit. The authors focus on 9 lessons or business concepts and they are outlined throughout the book as follows:Chapter 1- Scaling Business. For this chapter, the authors visited Braces by Burris in Jonesboro, Arkansas, Steele Rubber Products, Inc. in Denver, North Carolina, Silk Espresso in Gresham, Oregon, and Mugshots Grill and Bar in Hattiesburg, Mississippi. The lessons learned through the experiences in these establishments vary from expanding by centralizing common activities to lower costs, ensure that revenue opportunities exceed fixed costs, expand only when resources can be shared, and size growth opportunities you can monitor remotely. My favorite was reading about the expansion of Braces by Burris, and how a dentist has his own plane to take a team to work in a remote area as a way to expand the business!Chapter 2- Establishing Barriers to Entry. The concept of barriers to entry and economies of scale come to life in the examples used in this chapter. Be the first when the market isn't big enough for two was the main lesson learned at Wilcoxson's Kids Place in Jonesboro, Arkansas, where we learn about the idea of a natural monopoly through the sale of children furniture. In Dothan, Alabama, the owner of Key Fire Hose provides a good example for go all-in with irreversible investments. An important price element concept is taught when visiting Prodew Inc. …