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Business Model Generation : Blog | Executive Coaching | CO2 Partners

CO2

(It is useful to to distinguish between two broad classes of business models Cost Structures: cost cost-driven and value-driven from the following categories Cost-driven, Value-driven. His book Just Ask Leadership - Why Great Managers Always Ask The Right Questions (McGraw Hill 2009). John Sullivan FORA.tv

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

Harvard Business Review

The essence of the phenomenon is the fact that each stage in the supply chain plans its capital projects and operations, including inventory levels, based on its future expectations. Since 2000, the Chinese economy has been growing at an increasing rate — from 6% per year in 2000 to 12% per year in 2010. For example , U.S.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

Driven by economies of scale, container ship size has been increasing for decades, with the largest ships now costing roughly $200 million. The latest nuclear reactor designs, promising higher safety, longer operating life, and lower operating costs, cost up to $25 billion after factoring in the huge budget overruns.

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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. In parallel, it reduced its fixed costs by restructuring its industrial footprint and overhead structure; increasing sales, marketing, and R&D expenditures in targeted areas; and dramatically reducing working capital.

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What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

Among the 30 top companies in seven of the largest industries, almost half had a VC-fueled accelerator in 2015, up from just 2% in 2010. Third, corporate VCs and accelerators are costly and complex to operate, turning them into a slow and expensive innovation tool. And the fixed cost from “touchpoint-to-pilot” are immense.

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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

From my experience heading Scotland’s National Health Service from 2010 until last August (and before as its director of health care policy and strategy), I know that such constraints can unleash innovations that will lead to better care — and better health — for communities. Working under a fixed-cost ceiling was, of course, difficult.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Through the outsourcing arrangements, Bharti dramatically lowered its costs while ensuring high quality for customers, since vendors had world-class competencies in their domains.