Outline of Last Lecture Exam 1Outline of Today’s Lecture Guest Speaker: Rayburn from GeicoI. About GeicoII. Quotes on IntegrityIII. What’s So Hard About Right and Wrong?IV. Warren Buffett’s Moral CompassV. Rayburn’s Story and AdviceVI. Geico Career InfoToday’s Lecture-Geico likes technological advances-deal directly with customers to cut commissions (15%); Walmart does the same thing-Amazon doesn’t have to pay taxes yet-like the iphone, insurance companies can try to copy but it’s harder than it seems to “do it right”-Geico owned by Warren Buffet and Berkshire Hathaway, not shareholders-training lasts 2 months-3 years (managers)-schools don’t teach insurance so Geico has to teach employees-advertising is a competitive advantage – gecko is very well-knownQuotes on integrity:-Warren Buffett: “In looking for people to hire, look for three qualities: integrity, intelligence, and energy. And ifthey don’t have the first, the other two will kill you.”-“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” (Warren Buffett)-What’s so hard about right and wrong?-scenario: is it wrong for CEO’s to fly on private jets? These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. MGMT 202Melendez, Paul2013 SpringWeek 6Lecture 8February 14-don’t have time to go through security every time when they fly all the time-would be wrong for a CEO to use shareholders’ equity to take family on vacation on the jet-Chrysler, GM, Ford CEO’s all take their own private jets from the same city to the same city-at the end of 2012, there was talk of taxes going up, so companies wanted to give out early dividends so shareholders could pay less taxes on their dividends – sounds good except CEO’s and upper managers are oftenlarge shareholders-point of both: need to think carefully before they do things; consider what the worst thing that could happen is?-Geico auto repair express – meet at their body shop and take a rental car when you get in an accident-should Rayburn be allowed to use this service? What if the auto repair shop treats him specially? What if he goes somewhere else? -again, consider “What is the worst that could happen?”-Rayburn did go, but told his boss first, had someone check and make sure he paid the same as a regular customer and didn’t get any perks or treatment that anyone else wouldn’t, had witnesses-Geico pays ESPN to advertise for them; ESPN offered Rayburn tickets to a huge sports game; should he go?-he went, because he has nothing to do with the Geico marketing department; tickets were worth $300 so he donated $300 to a charity and had proof-Buffett’s rule of thumb: “I want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper – to be read by their spouses, children, and friends – with the reporting done by an informed and critical reporter.”(^moral compass)-Rayburn’s success: first job no one else wanted (including Rayburn) but a friend said it would be good and it was; others he wanted but no one else did; also got a competitive job-Rayburn raised to let his success speak for itself-found Geico in yellow pages, right out of college, called every company until he got an interview, didn’t even know what Geico did, went in for an interview that day, another interview the next dayThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-Geico gives no pressure to do unethical things- Geico will help you succeed and move up from an entry –level job-Rayburn’s current goal: be a better coach, move up to another job of managing his own region-have to make a brand for yourselfwww.geico.jobs/oncampusMelissa McRoberts, Regional College [email protected] 520-546-3317These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a