Harvard Business Review

JUNE 22, 2015

Marketers often have to make the call on whether a certain marketing investment is worth the cost. Can you justify the price tag of the ad you want to buy or the marketing campaign you’re hoping to launch next quarter? Revenue is the unit quantity sold multiplied by the selling price per unit. First, look at fixed costs.

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

OCTOBER 29, 2015

On a search of EBSCO’s Business Source Complete , I counted no less than 1,890 articles published in marketing journals in the past 10 years about price, but only 22 addressing package or service size issues. How leading companies connect with customers. drink costs only $1 more than the “small” 30 oz.

Fixed Costs 8

Fixed Costs Price Constraint Cost 8

Harvard Business Review

MARCH 28, 2011

Companies are always shocked when low-probability events such as an earthquake or a tsunami disrupt their supply chains — as has happened after the tragic events in Japan two weeks ago — because of two fallacies. seems far-fetched, so most companies hadn't drawn up a suitable Plan B. Could anyone have anticipated a 9.0

Supply Chain 15

Supply Chain Fixed Costs Price Crisis 15

Harvard Business Review

AUGUST 17, 2012

You could argue that Cipla's formula is simply to piggyback on other companies' products, so it doesn't have to pay for R&D. In the US, Cipla sells its products generic pharmaceutical companies such as Teva and Eagle. and other traditionally developed markets. Cipla is not a stranger to M&A either.

Company 11

Company Pharmaceuticals Business Model Fixed Costs 11

Harvard Business Review

MAY 2, 2013

Last week over 100 leading cancer specialists signed their names to an op-ed in Blood , the journal of the American Society of Hematology, which lambasted the prices of cancer drugs that often exceed $100,000 annually. While pharma companies spend billions on research, the actual cost of manufacturing a treatment (such as a pill) is minimal.

Discount 8

Discount Price Fixed Costs Pharmaceuticals 8

Harvard Business Review

AUGUST 16, 2011

The metric was an attempt to put a thin veneer of respectability on what are extremely disconcerting profitability numbers for the company. Yet, the company reported ASCOI of positive $80.1 Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low.

Christensen 19

Christensen Fixed Costs Metrics Business Model 19

Strategy Driven

AUGUST 29, 2021

So, how can you ensure that your AdWords advertising meets the goals that are most important to your company? Revenue might be deceiving since it hides margins, fixed costs, payment fees, and shipping charges. Only then will they be able to discover the optimal balance of volume and efficiency.

Strategy 94

Strategy Budgeting Advertising Fixed Costs 94

Harvard Business Review

DECEMBER 17, 2014

A five-day work week consisting of eight-hour days happens to be the social norm in many of our societies at present, but I have long thought that a company that disrupts that kind of social norm in its industry could potentially build a momentous competitive advantage out of it. This allows the firm to hire good employees at a good price.

McCallum 12

McCallum Competitive Advantage McKinsey Consultative 12

Harvard Business Review

AUGUST 11, 2011

the prospects for company growth looked barren, which is what will happen after firms have locked their cash away. So we saw a wave of mergers and share repurchases as companies found they had few programs in-house that could profitably absorb all that cash quickly. The company has invested in this brand's innovation in many ways.

Innovation 15

Innovation Fixed Costs Airlines Business Model 15

Harvard Business Review

OCTOBER 6, 2014

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. Aldi offers not just low prices, but convenience. How did this happen?

Retail 11

Retail Merchandising Discount Price 11

Harvard Business Review

MAY 21, 2015

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. Consider how Uber opened up the transportation market.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

DECEMBER 21, 2011

Outside vendors are handling classic HR functions like payroll, staffing and recruiting, and even equal employment opportunities investigations, often at a lower price and higher quality than companies can manage for themselves. Not all fixed cost reductions were people.

Offshoring 15

Offshoring Fixed Costs Outsourcing Construction 15

Harvard Business Review

DECEMBER 10, 2012

Leverage went through a gilded period in the mid- to late-1980s when buyout king Mike Milken heralded the use of debt for companies trying to grow quickly. Unable to meet its interest payments, the company filed for bankruptcy in 1991. What could have saved these companies? What if a competitor slashes membership prices by 25%?

Financial Leverage 14

Financial Leverage Film Finance Class 14

Harvard Business Review

MARCH 22, 2013

Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset. Like any fixed-cost asset, such as the Interstate highway system in the U.S., a distributed computing company. it is cheap to operate and expensive to upgrade.

Fixed Costs 15

Fixed Costs Technology Efficiency Innovation 15

Harvard Business Review

MARCH 28, 2014

While Facebook is still working diligently on mobile applications, CEO Mark Zuckerberg went so far as to hint that the acquisition places the company on the cutting edge for the next pervasive platform: virtual reality. While Virtual Reality may one day be pervasive, the disruption of VR is nothing like disruption of mobility.

Disruptive Innovation 8

Disruptive Innovation Automotive Software Fixed Costs 8

Harvard Business Review

APRIL 5, 2017

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

JULY 27, 2017

At the time, BMW had no dedicated, company-spanning unit to leverage the creative power of startups. Among the 30 top companies in seven of the largest industries, almost half had a VC-fueled accelerator in 2015, up from just 2% in 2010. And the fixed cost from “touchpoint-to-pilot” are immense.

Venture Capitalist 8

Venture Capitalist Meyer Innovation Fixed Costs 8

Harvard Business Review

JUNE 24, 2013

Advocates of that second, get-big-fast approach inevitably point to companies like Tumblr (the company founded by a high school dropout that Yahoo! For every Tumblr there are dozens of companies that had some success but never broke through — and hundreds more that never really got out of the starting block.

Venture Capitalist 8

Venture Capitalist Supply Chain Long-term Christensen 8

Harvard Business Review

NOVEMBER 16, 2017

But CEO Randall Stephenson immediately denied both versions, and reiterated that the company will not let go of either CNN or the deal itself, pledging to fight the government if necessary. Video programming, after all, is produced at high fixed costs, with increasingly small marginal costs to duplicate and distribute widely.

Stephenson 9

Stephenson Guidelines Supply Chain Analysis 9

Harvard Business Review

FEBRUARY 24, 2015

There is little consensus as to whether firms that find themselves spun off from other companies – either as new, standalone companies, or under the stewardship of new parent companies – perform better or worse than they did before. Does the business have a complete, balanced, and cohesive management team?

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

AUGUST 12, 2015

In my experience from working at an advertising technology company, the reasons are clear: they are easy to install and immediately effective, they make the web look cleaner and load faster, and they prevent advertisers from tracking user activity online. With 200 million downloads and counting, ad blockers are quickly growing in popularity.

Advertising 8

Advertising Content Fixed Costs Software 8

Harvard Business Review

FEBRUARY 6, 2018

Proponents liberally term it “disruptive,” seeing a natural diversification opportunity for the company that has aspired to be “earth’s most customer-centric company.” This latest move has engendered robust debate. Passive data capture.

Health Care 10

Health Care Retail Operations Insurance 10

Harvard Business Review

SEPTEMBER 9, 2015

While the contractions in business activity along global supply chains will cause companies to cut capital investments and inventories, we should remember that this is only the first leg of the phenomenon. Consequently, although companies should cut costs now, they should be on the lookout for the quick rebound that is likely to follow.

Supply Chain 8

Supply Chain Retail Crisis Operations 8

Harvard Business Review

MARCH 22, 2013

Congestion, rather than raw usage, is the key driver of this phenomenon; given that the Internet Service Provider network is largely a fixed-cost asset. Like any fixed-cost asset, such as the Interstate highway system in the U.S., a distributing computing company. it is cheap to operate and expensive to upgrade.

Fixed Costs 8

Fixed Costs Technology Efficiency Innovation 8

Harvard Business Review

APRIL 6, 2016

But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now. To escape this quandary, a number of companies are considering alternative asset ownership and operation models, whose objective is to reduce capital outlays, investment risk, or both.

Co-Opetition 8

Co-Opetition Operations Cost Technology 8

Harvard Business Review

APRIL 19, 2011

Meanwhile, declines in revenue and escalating fixed costs for things like public employee pensions and health care are crippling our cities budgets. Similar congestion pricing plans instituted in Stockholm and London have decreased traffic and increased revenue via public transit.

Short-term 12

Short-term Budgeting Health Care Long-term 12

Harvard Business Review

FEBRUARY 11, 2016

Managers in these companies understand that agile, fast, and lean strategies require that they think in new ways about accessing and leveraging key strategic talent and filling critical gaps in strategic capabilities. As one logistics company executive told us when we interviewed him: “We know how to manage people in our company.

Agility 8

Agility Organization Resources Fixed Costs 8

Harvard Business Review

NOVEMBER 10, 2016

They’ll walk you through where to put the square footage and what kind of photos entice the most interest, and they use predictive modeling to show you the best and worst days of the year to get a booking at a particular price. Exploring cutting edge ways to lower costs and improve quality. Insight Center. Sponsored by Medtronic.

Health Care 9

Health Care Power Hotels Transportation 9

Strategy Driven

NOVEMBER 28, 2019

Companies are forced to offload employees, and this means that an increased number of people are without work and ultimately asking, “what’s next?” The same rules apply to employees, as both of these elements are fixed costs that are going to heap pressure onto your business. Watch the competition closely.

Tips 65

Tips Fixed Costs Marketing Cost 65