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Creating Michelin-star Quality for the Masses

Harvard Business Review

Since it's beginning in 2003, Davide Oldani's Ristorante D'O has managed to stay profitable in a sustained fashion. D'O has reduced its working capital needs by offering less than 150 wines and reduces wastage by designing glasses and plates that are built tough to withstand falls. Operating such restaurants is expensive.

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We Tracked Every Dollar 235 U.S. Households Spent for a Year, and Found Widespread Financial Vulnerability

Harvard Business Review

The cost of a bachelor’s degree from a public college has risen by one-third from 2003 to 2014. When a business, rather than a household, faces such volatility, it responds by building up working capital. It doesn’t have to be that way. Volatile income and spending needs are not problems in themselves.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. The trend is spreading.