CoachStation

SEPTEMBER 16, 2015

Compare Michael Porter’s competitive advantage definition: “Competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital).” We make up (short) stories in our heads for every action and conversation. (2)

Storytelling 146

Storytelling Competitive Advantage Conference Cost of Capital 146

Harvard Business Review

JULY 25, 2017

While MROI is not usually public information, managers can use published financial statement data to estimate MROI for a competitor. In its simplest form, it looks like this: The goal, as with any ROI calculation, is to end up with a positive number, and ideally as high a number as possible. Holding themselves accountable.

ROI 8

ROI Marketing Marketing Mix Short-term 8

Harvard Business Review

OCTOBER 3, 2011

Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. But in the short run, cash flows and earnings can be very different.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

SEPTEMBER 13, 2017

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. We set about investigating the financial costs and benefits of the uptake of sustainable and deforestation-free beef by ranchers, slaughterhouses, and retailers in Brazil.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

NOVEMBER 25, 2013

To date, however, the reality of marketing analytics has fallen short of the promise. Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent).

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

OCTOBER 10, 2017

Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. Here are four things leaders can do. Don’t Get Trapped in Your P&L.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

MARCH 10, 2011

With a record $2 trillion in cash and short-term liquid assets on hand, U.S. Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. What's holding them back?

Cost of Capital 12

Cost of Capital CAPM Cost Discounted Cash Flow 12