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Research Shows That Investing In Tech Matters

The Horizons Tracker

Efficiently managing the money a company needs to run its daily operations, known as working capital, is crucial for success. This connection between good working capital management and how well a company does can be complicated. The research looked at 1,054 American manufacturing companies from 2011 to 2013.

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Recommended Resources – An Interview with Paul Leinwand and Cesare Mainardi, authors of The Essential Advantage

Strategy Driven

Further, they need to limit their focus to, at most, six capabilities, and make those capabilities work together as a mutually reinforcing system that perpetuates competitive advantage. Coherent companies direct capital, time, and other resources with purpose to those activities, products, and businesses that will extend their lead.

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China's Stubbornly High Food Prices

Harvard Business Review

in September 2011, down slightly from the three-year peak of 6.5% in July 2011 — appears likely to remain a priority. in September 2011, the same as in August, though down from a July 2011 peak increase of 14.8% — staying so stubbornly high? For Beijing, tackling China's high inflation rate — 6.1%

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What Netflix and Starbucks Know About Cash Flow

Harvard Business Review

The success Netflix is enjoying was far from certain if you recall the summer of 2011. For that to happen, consumers must know their demand for a product or service is predictable and likely to go up. This allows you to better manage operating and capital expenses. It can also improve working capital.

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Some of the Most Successful Platforms Are Ones You’ve Never Heard Of

Harvard Business Review

These card networks were allowed to charge their members just enough to cover cost and provide working capital. That standard may then become a platform for many firms that produce complementary products and their customers. A recent study found that SSOs published more than 200,000 standards between 1975 and 2011.

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How Startups Overcome the Capital Gap

Harvard Business Review

He decided to go after Salesforce.com with a Software-as-a-Service Customer Relationship Management product at a price-point that was one sixth of what Salesforce.com, the market leader, charged. He offered the product to small businesses, and customers lapped it up. No venture capital. And play he did. Read their story.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

These preparatory steps are of particular importance for carve-outs that are not full-fledged business units with profit & loss responsibility, such as R&D centers or production units whose only customer is their parent. Does the business have an adequate financial structure?