Remove Development Remove Fixed Costs Remove Operations Remove Report
article thumbnail

During this Crisis, Don’t Expect Business as Usual from the Family Enterprise

Strategy Driven

That uncertainty and inability to be in command of business operations makes us anxious. Rather than deal with these issues alone, the legacy owner is better off using this opportunity to bring others in and develop a shared response. Many have had to reduce operations, and some have been forced to let staff go.

Crisis 66
article thumbnail

Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

This is the essence of Groupon's declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The U.S. Media’s Problems Are Much Bigger than Fake News and Filter Bubbles

Harvard Business Review

Like marketers, politicians obsess over messaging (what journalists would call “content”) and a few key metrics that historically have determined success: amount of television advertising, number of “foot soldiers,” intensity of get-out-the-vote operations, and voter demographics. Two developments bear noting.

Media 9
article thumbnail

China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

The essence of the phenomenon is the fact that each stage in the supply chain plans its capital projects and operations, including inventory levels, based on its future expectations. Macroeconomic data during the 2008 financial crisis show the bullwhip effect operating on a much broader scale. For example , U.S.

article thumbnail

Who Rules the Web Now?

Harvard Business Review

Wired reported late last year, "The top 10 Web sites accounted for 31% of US page views in 2001, 40% in 2006, and 75% in 2010." As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero.

CPA 15
article thumbnail

The End of Traditional Ad Agencies

Harvard Business Review

Harley helped V&S launch Fan Machine by enlisting its fans to develop a new campaign. Meanwhile, V&S tracked the brief, moderated the entries, collected fan data, and reported it back to Harley. The app is one part ideation engine, one part social media platform, and one part ad agency. Advertising Innovation Marketing'

article thumbnail

Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

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. UK retail, like the rest of the developed world, is witnessing a few big long-term trends.

Retail 9