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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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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.