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Performance Measurement

Strategy Driven

Performance measurement typically drives much of the way a large company works. Supplementing profits with ROIC and revenue growth is a step in the right direction to ensure that the profits a business earns are actually creating value, not simply over-consuming capital that another company could better deploy.

ROIC 62
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Resolution 2011: Make Your Strategy Coherent

Harvard Business Review

Companies that demonstrate strategic coherence — think Wal-Mart and Coca-Cola — earn a market premium in terms of higher earnings and greater shareholder value. The big question for many leaders as they look toward 2011 is: "How can my company be one of them?". There's no doubt about it; numbers don't lie.

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With Ron Johnson Out, What Should J.C. Penney Do Now?

Harvard Business Review

The news wasn''t terribly surprising as 2012 had been a challenging year: sales were down by $4.3B, the company lost close to $1B, and its stock price dropped by more than 50%. Just as important, Johnson was trying to significantly change the retailer''s merchandise offerings and hence, its customer base. So now what should J.C.

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Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

Troubles at Tesco, the UK’s leading retailer, are mounting. If round after round of profit warnings was not enough – group operating profits fell 20% between 2011 and 2013 and are likely to fall another 30% in 2014 — the company recently announced it had overstated its first-half profit by about $400 million.

Retail 11
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Know When to Kill Your Brand

Harvard Business Review

Some executives may be reluctant to admit – perhaps for sentimental or political reasons — that their brand is sucking out more value from the company than it creates. There may have been another business that they could have started, utilizing the company’s assets (real estate, technology, staff, etc.)

Brand 8
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What Ron Johnson Got Right

Harvard Business Review

Penney''s CEO was a catastrophe — an assessment captured in the coverage of his ouster this week: "Former Apple Retail Guru Dumped;" "How Ron Johnson Made JCPenney Even Worse;" and my favorite: "I Am Become Ron Johnson, Destroyer of Worlds." I want merchandise that people will desire. "I It''s true.

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Why Target’s Canadian Expansion Failed

Harvard Business Review

The market exit will stop Target’s continued losses in Canada and help the company focus on its strategic initiatives in the U.S. such as smaller stores in urban places, mobile and online, and its cheap chic merchandising focus—to “be cool again,” as Cornell told Target employees in the fall. Consider J.

Retail 8