Harvard Business Review

NOVEMBER 30, 2018

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral.

Restructuring 11

Restructuring Fixed Costs Consensus Operations 11

Harvard Business Review

DECEMBER 17, 2014

Do you work for a firm where managers think employees really have to work (what is called) “full time”? They now have 12 partners in the firm who manage customer relations and secure and define new client projects. Eden McCallum, thus, manages to keep its overhead and other fixed costs at a minimum.

McCallum 13

McCallum Competitive Advantage McKinsey Consultative 13

Strategy Driven

OCTOBER 24, 2019

We also use the latest technology to manage our platform which makes it reliable and easy to integrate into any ecommerce business. We help you to transform what would otherwise be a fixed cost (warehousing) into a variable cost of doing business. You can depend on our expertise because we do just this.

Fixed Costs 10

Fixed Costs Reputation Efficiency Bottom-up 10

Harvard Business Review

MAY 28, 2018

Nikon, the legendary Japanese camera maker, provides a textbook study in how smart managers can work with strategic investors to transform a struggling business. Then a new CFO joined the company: Masashi Oka, a financial industry veteran who had played a key role in transforming Mitsubishi UFJ Financial Group-owned Union Bank in the US.

Company 8

Company ROIC CFO Restructuring 8

Harvard Business Review

AUGUST 16, 2011

The best way to manage a fledgling business is for managers to be impatient for profit but patient for growth. First, when a business is impatient for profit, managers are forced to validate their assumptions and demonstrate that customers are fundamentally willing to pay an acceptable price for the company's offering.

Christensen 19

Christensen Fixed Costs Metrics Venture Funding 19

Harvard Business Review

MAY 8, 2012

The telecom industry has changed, and the industry dynamics will continue to shift under the pressure from social media and the power of the consumer. In a rapidly changing industry ecosystem, heavy investments in hard infrastructure can burden balance sheets and limit flexibility. In the U.S.,

Outsourcing 10

Outsourcing Wireless Telecommunications Core Competence 10

Harvard Business Review

OCTOBER 29, 2015

It seems that marketing managers seldom question the product sizes they’ve inherited. 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.

Fixed Costs 8

Fixed Costs Price Constraint Cost 8

Strategy Driven

JULY 31, 2019

This allows you to demonstrate gross margin: sales revenue less sales costs. Plus it’s a useful number for comparing with different standard industry ratios. Differentiate between fixed costs, such as rent and payroll, and variable costs, such as advertising and delivery. Create an expenses budget.

Finance 10

Finance Planning Development SWOT 10

Harvard Business Review

MAY 19, 2015

Hailed in the 1960s as bastions of sophisticated management, they used cheap financing to acquire, then rationalize, many family-owned firms. With 3D printing, however, industrial conglomerates are about to get a new lease on life. This is standard practice, after all, in the paper printing industry.

Engineering 8

Engineering Learning Curve Fixed Costs Competitive Advantage 8

Harvard Business Review

OCTOBER 7, 2015

The success of an activist strategy is contingent upon placing a management team in an extremely reactive, frenzied and compromising position. Because by the time the activist has engaged senior management, they have already performed extensive due diligence on the company and have a detailed strategy they intend to pursue.

How To 8

How To Due Diligence Strategy Proposal 8

Harvard Business Review

FEBRUARY 24, 2015

The first category is exogenous factors over which the business has little control: the growth of the markets into which it sells; the competitive intensity and thus the average profitability of the industry in which it operates; or the fragmentation of its industry and thus the scope for a growth-by-acquisition approach.

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

AUGUST 12, 2015

Placing ads next to content helps websites recover the sizeable fixed costs of creating content. But ad blockers cut off this revenue stream and make it difficult to offset even the running cost of storing and delivering content to visitors. This challenges the very notion of content democratization championed by the web.

Advertising 8

Advertising Content Fixed Costs Software 8

Harvard Business Review

JUNE 4, 2015

Since theme parks are high fixed cost/low variable cost entities, revenue from discount-enticed new customers is virtually all profit… free money. ” There are plenty of other industries–such as restaurants, barbershops, and health clubs–that can also benefit from surge pricing. Yup, I think so.

Price 8

Price Course Discount Fixed Costs 8

Harvard Business Review

APRIL 6, 2016

In many industries, the capital required to build an asset of minimum efficient scale is growing. For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. Model 3: Joint venture of similar assets.

Co-Opetition 8

Co-Opetition Operations Cost Technology 8

Harvard Business Review

APRIL 5, 2017

However, higher accruals can reflect either innocuous aspects of certain business models, such as in the construction industry, where the time lag between earning income and realizing cash is long, or that growing firms retain higher working capital to meet greater current and future customer demand. Are all share repurchases myopic?

EPS 8

EPS Metrics Depreciation Short-term 8

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. And SunPower, the second largest U.S. Meanwhile, utilities are not standing idle.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

JUNE 25, 2013

Digital technology unfolded on top of a second force that had been building for a few decades: a global movement in public policy towards economic liberalization which was systematically reducing barriers to the movement of goods, money, people, and ideas across the boundaries of nations and industries.

Drucker 9

Drucker Disruptive Innovation Uncertainty Globalization 9

Harvard Business Review

NOVEMBER 10, 2016

.” There, in the shadow of Google’s global headquarters, the audience laughed on cue, quickly grokking the embarrassing point: it’s 2016 and this $3 trillion industry that our lives depend upon still relies on faxes, clipboards, and isolated instances of legacy software locked away in hospital basements.

Health Care 9

Health Care Power Hotels Transportation 9

Harvard Business Review

AUGUST 8, 2014

My driver said he’d been with Uber ever since he’d graduated from his master’s program in IT project management last year. So to cover his monthly fixed costs of student loan payments (on more than $100k in debt), rent, and health care he was driving for Uber. Economy Tech industry Technology'

Long-term 10

Long-term Fixed Costs Short-term Technology 10

Harvard Business Review

JULY 27, 2017

To fill the void and build such a new BMW startup unit, Gimmy partnered with an experienced innovation manager from BMW, Matthias Meyer. 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.

Venture Capitalist 8

Venture Capitalist Meyer Innovation Fixed Costs 8

Harvard Business Review

MARCH 18, 2013

We didn't want to burden the organization with fixed costs. Almost everything had to be free, and the few things we paid for had to be scalable so that the unit costs would eventually approach zero. Second, we standardized all management coordination on a low-cost but elegantly simple project management software called Basecamp.

Budgeting 9

Budgeting Software Entrepreneur Fixed Costs 9

Harvard Business Review

NOVEMBER 18, 2013

For example, hospital systems’ ability to receive premium prices for higher quality and more consistent care in a market is now being limited by greater consumer and employer price sensitivity, increased scrutiny on industry profits, and regulatory concerns about hospital mergers. Affiliation models.

Health Care 8

Health Care System Cost Price 8

Harvard Business Review

MAY 9, 2013

In every part of the industry, the open innovation model is changing the economics of advertising by switching significant fixed costs to variable costs and sourcing creative from more relevant and, many times, lower cost sources.

Advertising 9

Advertising Brand Innovation Creativity 9

Harvard Business Review

OCTOBER 6, 2014

It provides consumers with a viable, lower cost alternative to the manufacturer branded products. Tesco came to the party much later in the 1980s but ended up winning with its “good-better-best” private label lines, setting the industry standard for how to play the private label game. The answer is simple – selling more.

Retail 11

Retail Merchandising Discount Price 11

Harvard Business Review

SEPTEMBER 9, 2015

This phenomenon has been documented in the consumer-packaged-goods , food , semiconductor-manufacturing , and other industries. During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. automobile industry.

Supply Chain 8

Supply Chain Retail Crisis Operations 8

Harvard Business Review

OCTOBER 5, 2017

Across industries and across countries, a small number of “superstar” firms are pulling away from the competition. He finds that the rise in industry concentration – the share of revenue captured by the top firms in a sector – is largely explained by the adoption of IT. But why are these companies doing so well?

Document 8

Document Industry Software Fixed Costs 8

Harvard Business Review

AUGUST 31, 2018

has slowed , and that in most industries the biggest firms have higher market share than they did a decade ago. Putting data “in the cloud” essentially means paying someone else to manage it, and then connecting to their servers via the internet to access your data when you need it.

Technology 10

Technology Agility Fixed Costs Software 10