Harvard Business Review

JUNE 26, 2015

Managing death more effectively can provide numerous benefits: It can boost profits significantly, lower the cost of capital, and reduce complexity in operations, which can improve the performance of concepts that are in the early and midlife stages. Deciding when to close a store.

Retail 8

Retail Cost of Capital Price Discount 8

Harvard Business Review

SEPTEMBER 13, 2017

For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% Nonetheless, the case study demonstrates that measuring the value of sustainable business can be done, and that sustainable business itself can be cost-effective. of revenues).

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

APRIL 23, 2015

The basic principles are: If you want to earn above the cost of capital (if you want to create value), you must get a higher return on your efforts than the average competitor. Your prices must be higher or your costs, including the cost of your balance sheet and the cost of taxes, must be lower. Insight Center.

Strategy 8

Strategy Porter Price Cost of Capital 8

Harvard Business Review

APRIL 16, 2012

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. How Should You Approach Strategic Cash?

Company 13

Company Cost of Capital Finance Long-term 13

Harvard Business Review

OCTOBER 10, 2017

Another pervasive reason is that senior executives are trained as operators, not innovators. And there’s a fundamental conflict between innovation and optimizing an existing operation. To close the gap, we need to treat innovation differently than we do normal operations. Here are four things leaders can do.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

APRIL 9, 2015

But before anyone writes a check, you need to calculate the return on investment (ROI) by comparing the expected benefits with the costs. It indicates what is left after all costs and expenses are subtracted from the company’s revenue. Some of those costs and expenses aren’t cash-based, either.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

JULY 31, 2017

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital. Accor, which is opening its online booking platform to independent hotels offers a good case.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

SEPTEMBER 4, 2017

In The Good Jobs Strategy , Zeynep Ton, a professor at the MIT Sloan School of Management, demonstrates how the best retail companies align their customer value proposition with their operations strategy and their approach to human capital. At the other end of the size spectrum, Walmart has committed to investing $2.7

Human Capital 12

Human Capital Kaizen Agility Energy 12

Harvard Business Review

JUNE 18, 2015

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

APRIL 26, 2017

In addition to improving the experience for business owners, digitization has the potential to substantially reduce the cost of lending at every stage of the process, making SME customers more profitable for lenders, and creating opportunities to serve a broader swath of SMEs. Banks’ cost of capital is typically 50 basis points or less.

Banking 9

Banking Stage-Gate Credit Scoring Competitive Advantage 9

Harvard Business Review

MARCH 31, 2015

While consumers are rightfully worried that their personal information may be compromised, shareholders and companies’ management have a wider set of concerns, including loss of intellectual property, operational disruption, decreased customer trust, tarnished brand, and loss of investor commitment. The stock price declined 0.3%

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 9

Industry Company GDP Bottom-up 9

Harvard Business Review

OCTOBER 21, 2016

Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. This can disrupt a firm’s ability to operate on schedule and budget. These require sophisticated, sustainability-based management.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

JUNE 27, 2012

real revenue and profit growth and earning their cost of capital has steadily declined. Stock markets might seem capricious, but in the long term, shareholder returns closely track operational performance. "We Only 9% of companies achieved even a modest level of sustained and profitable growth. Compete for the long term.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

NOVEMBER 25, 2013

Only when they began to really analyze their marketing costs did the company realize that it was spending three times the industry benchmark on coupons and 50 percent more on research. Marketing KPIs need to incorporate customer acquisition and retention targets and costs.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

NOVEMBER 20, 2013

Companies run by decisive CEOs rack up more economic profit — what’s left of operating profit after the cost of capital is subtracted – than competitors do. Whatever the degree of change required at your company, make it. Returns to shareholders of reallocating firms are strong.

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

MAY 14, 2013

In fact, they''re operating at such a comparatively low level that as things stand now, many of them, including utilities, will be able to emit as much carbon as they want for the next decade without hitting their limits. There''s no way to determine precisely how much effect the postponement would have had on carbon prices.

Price 8

Price Energy Politics Marketing 8

Harvard Business Review

MARCH 28, 2016

As a result, family equity can come at a very low cost of capital, where businesses can meet the annual needs of their shareholders without having to worry about paying back the principal. ” There is often a personal connection between the family and the communities in which it operates; reputations matter to families.

Long-term 8

Long-term Short-term Reputation Incentives 8

Harvard Business Review

FEBRUARY 7, 2011

We will define skill as "the ability to use one's knowledge effectively and readily in execution or performance" and luck as "events or circumstances that operate for or against an individual." Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). The first is to define the terms.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

OCTOBER 3, 2011

A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term. Value drivers include sales growth, operating profit margin, and investment requirements.)

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

MAY 24, 2017

As a result of capital superabundancy, global quantitative easing and relatively low demand for investments in R&D and capital projects, the after-tax cost of borrowing for many companies is at or near inflation, making the real cost of borrowing close to zero. One way to do this is to measure the cost of meetings.

Human Capital 15

Human Capital Management Company ROCE 15

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. In this case its capital charge is $800 times 8%, or $64.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

MAY 25, 2018

Discovery, the South African insurer, has formed strategic alliances with leading insurers around the world to license its Vitality platform—a quick, low-cost way to gain access to new markets. These new organizations are likely to operate quite differently from traditional corporations.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

SEPTEMBER 26, 2016

The oil refinery illustrates the general point that the way you create an environment in which those operating it can make coherent decisions is to choose a variable to optimize and set minimums (and maximums if you wish) for all the other relevant variables. This works regardless of which variable you choose to maximize.

Objective 8

Objective Cost of Capital Bottom-up Environment 8

Harvard Business Review

NOVEMBER 7, 2012

Rappaport showed that, in setting a price, the market offers a clear signal that can inform operational and financial decisions. Think of this step as determining where the bar is set for a high jumper; you simply want to understand what the market anticipates.

Price 8

Price Analysis Cost of Capital Disruptive Innovation 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. For instance, intelligent failures can add more value than predictable successes, and low-cost experimentation trumps analysis. Net present value [NPV] is a case in point. Take newspapers.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MARCH 1, 2017

But the system is rife with problems, adding cost through fees and delays, creating friction through redundant and onerous paperwork, and opening up opportunities for fraud and crime. It’s no small wonder that regulatory costs continue to climb and remain a top concern for bankers. Here, blockchain is a real game changer.

Finance 8

Finance IPO Banking Venture Capitalist 8