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Creating Michelin-star Quality for the Masses

Harvard Business Review

It's a common assumption that offering more features or developing high-quality products and services is expensive, and that the products of these labors can command premiums. The higher the premium, the more consumers are likely to associate quality with the offering.

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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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To Grow, Social Enterprises Must Play by Business Rules

Harvard Business Review

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. Since it started its work in December 2010, SBT has invested in five social enterprises, which have since collectively increased their revenues by 77%.

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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. to $0.005 per minute, perhaps the lowest rates in the world.