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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Global capital balances more than doubled between 1990 and 2010 — from $220 trillion (about 6.5 Our models suggest that by 2025 global financial capital could easily surpass a quadrillion dollars, more than 10 times global GDP. times global GDP) to more than $600 trillion (9.5 times global GDP). And capital continues to expand.

ROE 14
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I Got My Strategy from Greenpeace

Harvard Business Review

But there our story deviates from the norm because our turnaround wasn't based on cost control, financial leverage, or manufacturing efficiencies. Our numbers seem to be moving that way: our annual earnings (EBIT on a normalized basis) increased from 1% of sales in 2007 to 9% in 2010 in our original carpet business. We did that.