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Adapt Your Strategy to Higher Interest Rates

Harvard Business Review

To do that, executives need to rediscover the concept of economic profit (EP) — that is, revenue minus not just operating and administrative costs, but also the cost of the capital needed to produce that revenue.

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Business Needs to Do What Government Can't

Harvard Business Review

"We're moving towards innovation in technology, pricing, business models and partnerships," explains head of corporate responsibility management, Dorje Mundle, of the company's base-of-the-pyramid operations. Breakthrough Finance. Zeitz is also rolling out the EP&L across the holding group PPR.

EPS 8
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How Amazon Trained Its Investors to Behave

Harvard Business Review

In fact, Amazon was only operating at such a high burn rate because it could. Well, he's a hedge fund veteran who has always taken a skeptical view of Wall Street, treating it more as a loopy rich uncle than the efficient information processor of standard finance theory. With Amazon, though, nobody emphasizes EPS.

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You Can't Impress Stock Analysts.and Shouldn't Try

Harvard Business Review

Nobody writes a paean to the search for 9 percent EPS growth. It's a strategic and operational straight-jacket. If you believe the best-selling business books from the last 25 years, companies are "In Search of Excellence" or trying to go from "Good to Great." Moreover, pure growth targets are even wackier right now.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

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. The differences were dramatic.