Back to School 1986 Thornton Talks Business Scene 4 12 Movieclips

All right, settle down, people. We've got lot to cover and time is short. There are two kinds of people in business today, the quick and the dead. So, rather than waste your time this semester with lot of useless theories, we're going to jump right in with both feet and create fictional company from the ground up. We'll construct our physical plant. We'll set up an efficient administrative and executive structure. Then we'll manufacture our product and market it. think you'll find it very interesting and lot of fun. So, let's start by looking at construction costs of our new factory. what's the product? That is immaterial for the purposes of our discussion here. But if it makes you happy, let's say we're making tape recorders. Tape recorders? Are you kidding? The chaps will kill us on labor course. Okay, fine. Then let's just say they're widgets. What's widget? It's fictional product. It doesn't matter. Doesn't matter. Tell that to the bank. You know, easy. Take it easy. It's the first day, you know. On the board, you will see cost analysis for construction of 30,000t facility, which will encompass both factory and office space, and is fully serviced by all utilities, railroad spur line, and 4 bay shipping dock. hold it. Why build? Hey, you're better off leasing at buck and quarter, buck and half square foot. Take your down payment and put it into CDs or something else you can roll over every couple of months. Thank you, Mr. Melon. But we'll be concentrating on finance little later in the term. For the time being, let's just concentrate on the construction figures, shall we? You will see the final bottom line requires the factoring in of not just the material and construction costs, but also the architect's fees and the costs of land servicing. you left out bunch of stuff. really? Like what, for instance? Well, first of all, you're going to have to grease the local politicians for the sudden zoning problems that always come up. Then there's the kickbacks to the carpenters. And if you plan on using any cement in this building, I'm sure the team should like to have little chat with you, and that'll cost you. and don't forget little something for the building inspectors. Then there's long-term cause such as waste disposal. don't know if you are familiar with who runs that business, but assure you it's not the Boy Scouts. That'll be quite enough, Mr. Melon. Maybe bribes and kickbacks and mafia payoffs are how you do business, but they are not part of the legitimate business world, and they're certainly not part of anything am teaching in this class. Do make myself clear? Sorry, just trying to help. That's all. Now, notwithstanding Mr. Melon's input, the next question for us is where to build our factory. How about fantasy land?