HR Digest

OCTOBER 17, 2020

These key areas include: Manage operations with minimal loss and disruption to daily business flow. In worst hit parts of the world (especially Italy and China) many announcements have focused on compensation reduction for senior executives (especially in the hospitality, automobile and airline industries).

Short-term 52

Short-term Committee Incentives Long-term 52

Harvard Business Review

MARCH 20, 2014

In the case of Malaysia Airlines Flight 370, the most impressive fact few reporters choose to explore in any depth is that the Boeing 777’s engine was capable of communicating long after the pilots went silent. While many major industries have yet to create “IoT” products, that’s not the case with jet turbines.

Airlines 8

Airlines Supply Chain Management Engineering 8

Harvard Business Review

MARCH 17, 2016

Winning with low prices is not merely a game of math in which you stay one notch below the competition; it is far more a game of culture and attitude. It takes a special kind of company, from the CEO on down, to make a low-price position sustainable and profitable. The groundbreaking price war in the U.S. Don’t fight them.

Price 8

Price Airlines Govindarajan Advertising 8

Harvard Business Review

JUNE 2, 2016

Suppose you owned an airline and ordered an engine from Rolls-Royce or GE. A piece of machinery to meet a product need? This question has been top of mind lately among manufacturers aiming to drive profitable growth, triggering a fundamental shift to the way a business operates that increasingly focuses on outcomes.

Productivity 8

Productivity Products Company Engineering 8

LDRLB

MAY 26, 2014

Maybe it’s if you’re a book publisher, you know e-books are not ready for prime time, but you know they’re coming and eventually somebody is going to get it right, is going to get the right price and performance and battery life and all. If they wait too long, of course, it’s impossible price. You know it’s going to happen.

Early Adopters 60

Early Adopters Rogers Disruptive Innovation Innovation 60

Harvard Business Review

JANUARY 13, 2014

While analysts fear this will spark a margin-eroding price war, this concern is premature. Since early last year, T-Mobile has spearheaded what I call a value war — as opposed to a price war — in the wireless market. Consider the airline industry. But this has not provoked a price war. to 75 cents.

Price 8

Price Wireless Finance Airlines 8

Harvard Business Review

JULY 27, 2011

Credit cards are convenient, document purchases, include various types of insurances, allow up to 60 interest-free days of float, and provide miles on my favorite airline, JetBlue. Since I pay my bill in full each month, the price for these benefits is reasonable — an annual $40 fee. High Dollar Purchases.

Price 11

Price Discount Cost-Benefit Analysis Retail 11

Harvard Business Review

OCTOBER 21, 2015

Walmart recently lost $20 billion in market cap in one day, in part because its leadership admitted it needs to invest more into its e-commerce operations. When you think about it, internet retail today is similar to the airline market before frequent flyer programs were introduced. They were popularized by American Airlines in 1982).

Airlines 8

Airlines Retail Loyalty Price 8

Harvard Business Review

FEBRUARY 24, 2014

On Friday, Microsoft slashed the price of Windows 8.1 The magnitude of this price cut was surprising; all that was missing was a pitchman screaming “If you call now, we’ll throw in a free Tae Bo workout DVD — a $29.95 Instead of the regular $50 per unit license fee, if you act right now the price is $15.

Discount 8

Discount Airlines Price Licensing 8

Harvard Business Review

FEBRUARY 8, 2012

Walmart offers rock-bottom prices and fantastic product variety, but asks its customers to give up convenient locations and Zen-like ambience. One way Zappos funds its legendary service is by relying on a very lean operation. Use airline check-in kiosks for inspiration. What would your customers be willing to give up?

Airlines 14

Airlines Call Center Retail Bottom-up 14

Harvard Business Review

JANUARY 13, 2015

Singapore Airlines and Nordstrom)? But insurers pay this price because Soliris is the only safe and effective treatment for these diseases and that price is less than the total cost of alternative treatments. Unsustainable differentiation: the product or service features are imitated over time. billion in 2014.

Market Segmentation 8

Market Segmentation Mass Marketing Price Pharmaceuticals 8

Harvard Business Review

MAY 30, 2014

Southwest Airlines’ decades-long strategy of “short-haul, high-frequency, point-to-point, low-fare service” produced what was not only one of the best-performing airlines in the U.S. For over 50 years, Wal-Mart has pursued essentially the same strategy of “offering the lowest price so its customer can live better.”

Company 8

Company Supply Chain Airlines Health Care 8

Harvard Business Review

SEPTEMBER 10, 2014

Instead, smart organizations are driving analytics to an even deeper level within business processes— to make real-time operational decisions , on a daily basis. These operational analytics are embedded, prescriptive, automated, and run at scale to directly drive business decisions.

Hammer 8

Hammer Company Operations Information Technology 8

Harvard Business Review

APRIL 12, 2016

We see positioning in the airline industry. Australia, for instance, has three main domestic airlines: Qantas, Jetstar (Qantas’s no-frills line), and Virgin, which started out as no-frills and has since chased the business-class, high-margin segment. Store location became irrelevant — there are no stores.

Business Model 8

Business Model Airlines Retail Travel 8

Harvard Business Review

APRIL 9, 2013

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%. First, he tried to wean customers off of coupons and sales in favor of everyday low prices. Penney and its CEO Ron Johnson have parted ways. Here''s what J.C.

Merchandising 8

Merchandising Discount Retail Price 8

Harvard Business Review

OCTOBER 20, 2011

They include the biotech, semiconductor, personal computer, and airline industries. Over the years, the CEOs of these companies faced massive technology disruptions, deep industry recessions, sudden collapses in demand, price wars, oil shocks — you name it. Productive Paranoia. Fear should guide you," he said in 1994. "I

Skills 15

Skills Leadership Airlines Long-term 15

Harvard Business Review

APRIL 30, 2013

Between 2002 and 2012, the shareholder return of the average airline company rose an uninspiring 5.6% It was just lousy timing if you happened to be in one of these industries, which were all in the bottom quartile of total shareholder returns (share price change plus dividends paid) in the 10 years through 2012.

TSR 8

TSR Industry Company Airlines 8

Harvard Business Review

AUGUST 29, 2018

There’s still much to learn when it comes to digitizing business processes, and in particular using automation sprints—those smart, fast, and small efforts you use to boost productivity when a change to enterprise architecture isn’t the right step. Shift 1: Automate with a product mindset.

Strategy 8

Strategy Content Enterprise Architecture Agility 8

Strategy Driven

OCTOBER 21, 2011

Forced to do more with much less, the small businesses that have managed to survive and even thrive during these tough times have recognized one important factor: You can’t always compete on price, but you can compete on service. Many major companies, such as Southwest Airlines, UPS, Chick-fil-A, Best Buy, Yum!

Learning-by-Doing 62

Learning-by-Doing Price Bottom-up Finance 62

Harvard Business Review

AUGUST 7, 2018

It was a national distributor of milk and other dairy products and in it, farmers occupied two roles. Once it adopted the six-step method, these outcomes were identified as “reducing employee turnover and increasing productivity and innovation.” The same group of stakeholders can occupy more than one role. The reason?

Strategic Planning 15

Strategic Planning Planning Document Airlines 15

Harvard Business Review

SEPTEMBER 23, 2014

When you go to a department store, do you note which products should be added or removed? So it goes with airlines, telephone companies, banks, every organization you deal with — you’re continually redesigning strategic factors such as product range, presentation, and customer service. It’s an operational plan.

Management 13

Management Strategic Planning Competitive Advantage Airlines 13

Harvard Business Review

JUNE 12, 2018

This kind of competition often drives consolidation mergers, in which two firms combine their production and sales. The clearest example of this pattern is in airlines, where Star Alliance, Oneworld, and SkyTeam compete against each other as groups of allied firms.

Company 8

Company Supply Chain Cooper Airlines 8

Harvard Business Review

SEPTEMBER 10, 2014

Instead, smart organizations are driving analytics to an even deeper level within business processes— to make real-time operational decisions , on a daily basis. These operational analytics are embedded, prescriptive, automated, and run at scale to directly drive business decisions.

Hammer 8

Hammer Company Operations Process 8

Harvard Business Review

JUNE 12, 2012

In my work with companies on pricing strategies, it's common for executives to feel compelled to offer loyal customers something for free. Consider a company with a 10% operating margin: A typical $100 sale transaction breaks down to $90 in costs and $10 in profit. Can you imagine an airline abandoning its frequent flyer program?

Loyalty 12

Loyalty Discount Airlines Sample 12

Harvard Business Review

APRIL 3, 2014

From the moment Facebook announced in February 2014 that it had bought the mobile messaging service WhatsApp, everyone’s been talking about the price that CEO Mark Zuckenberg parted with for the acquisition. Consumers use the platform to find deals in shopping malls, buy airline tickets, and shop for financial products.

Norton 9

Norton Globalization Price Airlines 9

Harvard Business Review

APRIL 22, 2015

This was the original purpose of forming corporations — to facilitate the production of products and services with the least amount of wasted time, materials, and labor. Many companies still compete this way and there continue to be successors to Taylorism, including business process reengineering and lean production.

Six Sigma 8

Six Sigma Company Lean Production Taylorism 8

Harvard Business Review

DECEMBER 20, 2010

On-line exchanges for barters, swaps, and sharing of goods or services have made direct connections possible, sometimes without much money changing hands beyond a fee to the exchange-operator. Auto dealers have long taken trade-ins, reducing the purchase price for a new car by the value of the used car handover.

Finance 14

Finance Strategy Banking Retail 14

Harvard Business Review

FEBRUARY 13, 2015

Your employees may be operating under the “the customer is king” cliché, and may be trying endlessly to please every whim. When a Southwest airlines employee charged an obese passenger for two seats, customer advocates from around the world cried foul. He or she would ultimately be paying the price.

Reis 8

Reis Airlines Morale Hotels 8

Harvard Business Review

JUNE 27, 2012

A similar pattern hold for airlines. Of the 70,000 companies with market data available, more than 42,000 earned shareholder returns (dividends + stock price appreciation) below inflation. Stock markets might seem capricious, but in the long term, shareholder returns closely track operational performance. "We And for telecom.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

OCTOBER 30, 2014

But the real power of the partnership comes from their ability to bring the best of each of their departments—as well as pricing, operations, and other groups—to bear in exploiting those micromarket opportunities. A cargo airline provides another example. They really know what the customer wants.”. In some industries (e.g.

Marketing 12

Marketing Guidelines B2C Analysis 12

Harvard Business Review

MARCH 8, 2012

Air travel used to be inevitably expensive and cumbersome — until Southwest Airlines. In industries where disruption is common — think computing and communications — consumers enjoy falling prices and improving services. Remember flying in the old days?

Disruptive Innovation 13

Disruptive Innovation Health Care Innovation Business Model 13

Harvard Business Review

OCTOBER 26, 2012

She finds an electronics review site, clicks on a banner ad, reads about the product details, and decides to go into the store to see the model. She also uses her smartphone to do a quick price comparison, and scans the QR code to get additional product information. Fill in the data holes. Data you can partner for.

Retail 12

Retail Loyalty Customer Loyalty ROI 12

Harvard Business Review

JUNE 13, 2017

Because similar gaps exist between dozens of other hospital technologies, and clinicians are asked to perform hundreds of steps each day to deliver evidence-based care, unnecessary errors occur, and providers’ productivity has fallen , even while spending on technology has ballooned. Just as the U.S.

Technology 8

Technology Health Care Wireless System 8

Harvard Business Review

DECEMBER 9, 2015

We asked them to assess, based on their impressions of employee output, the relative productivity of dissatisfied, satisfied, engaged, and inspired employees. The results point to the productive power of an engaged and inspired workforce. Most employees are not coin-operated, and more money does not lead to more engagement.

360-Degree Feedback 8

360-Degree Feedback Maslow Mission Statement Bureaucracy 8

Harvard Business Review

NOVEMBER 24, 2015

But those numbers are the equivalent of the price of the car, not the added value that the new ownership will produce after the merger. The most common source of joint value is economies of scale , which allow for a reduction in the costs of either production or back-office operations.

Pharmaceuticals 8

Pharmaceuticals Cost Airlines Productivity 8

Harvard Business Review

AUGUST 27, 2015

Up until the late 1950’s, anyone interested in sending bulk product across the globe placed that product in 60-pound burlap sacks, sent those to the docks, and entrusted longshoremen to tuck them efficiently into nooks and crannies in the hulls of merchant vessels. Courtesy of Boston Public Library. Apple is a perfect example.

Automotive 8

Automotive Transportation Brand Efficiency 8

Harvard Business Review

JULY 22, 2015

Puzzling anecdotes abound: Microsoft has missed out on a series of new products in the past decade, yet as Don Sull points out , it continues to be highly profitable. The current investigation into airlines notwithstanding, the U.S. Overall productivity growth has actually been below historical levels for the last decade.

Sull 8

Sull Competitive Advantage Porter Industry 8