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Are You Growing Too Fast?

Harvard Business Review

And when Allen Printing's bank, facing problems of its own in 2010, suddenly called in its loan, the company was so strapped for cash that it had to file for Chapter 11. Heffington, working with Steve Curnutte, a restructuring advisor, realized that as new orders poured in, it became difficult to establish the true cost of fulfilling them.

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Creating Michelin-star Quality for the Masses

Harvard Business Review

According to the 2010 Michelin Guide, there are 229 one-star, 37 two-star, and as many as six three-star restaurants in Italy. For example, Oldani located his eatery not in the centre of Milan but in his native village of Cornaredo, 20 kilometers from the city, greatly reducing his investment. Operating such restaurants is expensive.

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To Grow, Social Enterprises Must Play by Business Rules

Harvard Business Review

In Britain, for example, fewer than 10% of the tens of thousands of social enterprises generate more than £1 million in revenue. It's an example of an organization seeking to meet this challenge of scale by providing top-tier, in-kind expertise and working capital to promising social enterprises. Why is that?

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

A 2010 meta-analysis detailed many of the different issues that make divestiture so hard to evaluate consistently. For example, a divested business may inherit assets and capabilities that have been starved of investment by its former parent. The second category is legacy factors from whose impact the business can only escape slowly.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Skype , for example, competes with fixed-line carriers by offering free mobile Skype calls. For example, AT&T had to spend almost $18 billion in a single year to upgrade its wireless networks to handle the onslaught of new traffic. Its market cap has steadily grown over the same period and stood at around US$30 billion as of 2010.