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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. Ford CEO Alan Mulally tried to mitigate the impending bullwhip during the 2008 financial crisis by imploring the U.S. automobile industry. Lessons from the Past.

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Deliver Big Impact on a Small Budget

Harvard Business Review

In 2008, with just a few thousand dollars, Ben Munoz and I started Ben's Friends , a network of online support sites for people with rare diseases. Back in 2008, Ben and I knew three things. We didn't want to burden the organization with fixed costs. Software development" and "hardware" are bad words.

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When M&A Is Not the Best Option for Hospitals

Harvard Business Review

The advantages that hospital systems can derive from scale fall into four groups: Classic economies of scale focus on lowering the cost per unit of care delivered (e.g., Economies of scope can allow hospital systems to leverage their scale to develop new revenue streams. by acquiring physician practices or outpatient facilities).

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Tackling the “Hotspotter” Patient Challenge

Harvard Business Review

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.

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The Real Reason Superstar Firms Are Pulling Ahead

Harvard Business Review

Erik Brynjolfsson and Andrew McAfee reported a link between IT adoption and industry concentration in HBR in 2008 ; since then, multiple analyses have linked increased use of digital technology to higher profitability at both the industry and company level. Bessen’s findings are consistent with a lot of other data.

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The U.S. Media’s Problems Are Much Bigger than Fake News and Filter Bubbles

Harvard Business Review

But in the last two contests in which Hillary Clinton has participated, the 2008 primary and the 2016 election, she won on most of these metrics — and lost the elections. Two developments bear noting. The media’s bias toward big events stems from three features of its economics: Fixed costs.

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