Remove 2011 Remove Development Remove Fixed Costs Remove Strategy
article thumbnail

Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation. In the first quarter of 2011, Groupon posted a net loss of $113.9 Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low.

article thumbnail

The Company Outsmarting Big Pharma in Africa

Harvard Business Review

Cipla, an India-based producer of low cost antiretroviral drugs (ARVs) is one of the biggest success stories in the pharma industry. What's more, these are markets that traditional developed market firms are increasingly targeting for their own growth goals. and other traditionally developed markets.

Company 11
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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.

article thumbnail

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

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. This is exactly what happened during 2010 and 2011 as the global economy was bouncing back.) Strategies to Implement Now.

article thumbnail

How to Know If a Spin-Off Will Succeed

Harvard Business Review

The third category is of the most interest because it concerns factors that the divested business’s (new) management and new owners do control: the quality of the business strategy and operational decisions after divestment, as well as the capital made available for follow-on investments.

article thumbnail

Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

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. UK retail, like the rest of the developed world, is witnessing a few big long-term trends.

Retail 9