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Artisans Must Balance the Books

Harvard Business Review

The Conversation Blogs The Conversation Artisans Must Balance the Books 8:12 AM Tuesday November 23, 2010 by Ndubuisi Ekekwe | Comments () Email Tweet This Post to Facebook Share on LinkedIn Print The boy was 11 years old when his father took him to live with a kinsman, a businessman with many shops in Lagos, Nigeria.

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Artisans Must Balance the Books

Harvard Business Review

He started very well, but as soon as his cash flow improved, financial burdens from family systems stifled his operations. As more people depended on him, he spent his working capital, and the business failed. Most African artisans do not bank because of the fees associated with operating current accounts.

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

Strategy Driven

In The Essential Advantage : How to Win with a Capabilities-Driven Strategy , Booz & Company’s Paul Leinwand and Cesare Mainardi maintain that success in any market accrues to firms with a coherence premium – a tight match between their strategic direction and the capabilities that make them unique. Let’s go after it.”

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Creating Michelin-star Quality for the Masses

Harvard Business Review

But it's this set of beliefs that explains why Western companies fail to succeed in emerging markets where middle class consumers demand good quality at low prices, and why these companies struggle to develop value-for-money products for their home markets during slow growth times like these. Operating such restaurants is expensive.

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Are You Growing Too Fast?

Harvard Business Review

Heffington, working with Steve Curnutte, a restructuring advisor, realized that as new orders poured in, it became difficult to establish the true cost of fulfilling them. And, because credit was readily available to cover the growing need for working capital, it was easy to ignore the sizable number of unprofitable and late paying customers.

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Why Preventing Disruption in 2017 Is Harder Than It Was When Christensen Coined the Term

Harvard Business Review

They’ve read Christensen’s book The Innovator’s Dilemma. Over time, their products and services became better and better, and those innovative entrants moved up market, slowly increasing performance. For those companies with the skill to pull it off, it worked. Naturally, the question is why.

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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. For more on this, read Dee Hock’s book about starting up the Visa network.). Around the world, though, many countries still have domestic payment networks that operate as not-for-profit platforms.

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