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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Yet, the company reported ASCOI of positive $80.1 It was simply not enough for the firm to report earnings and explain that it was investing for growth. Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low. In the first quarter of 2011, Groupon posted a net loss of $113.9

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Business Plan Development: Know your Finances

Strategy Driven

Your marketing plan and SWOT analysis are interesting – but they don’t mean a thing if you don’t have realistic figures on your bottom line. You will need to make projections of the figures your business will achieve, rather than report on those you have. Create an expenses budget.

Finance 10
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties. McKinsey’s margin growth measure classified firms that report higher earnings growth than revenue growth as myopic. Are all share repurchases myopic?

EPS 8
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Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

In the last three years, these two companies have rapidly gained share and now account for more than 8% of the market, while Tesco has lost more than 2% share, down to 28%. The hard discount format accounts for as much as 40% of the German market, and for some good reasons. and spends it in international markets. billion to $8.6

Retail 9
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Who Wins in the Gig Economy, and Who Loses

Harvard Business Review

A full-time job provided the steady income needed to support our traditional version of the American Dream: the highly leveraged, high-fixed-cost house; the cars; the latest consumer goods. If you had a full-time job, you won. All of that is changing. The singular employee-in-a-job model isn’t the best option for everyone.

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Of Course Disney Should Use Surge Pricing at Its Theme Parks

Harvard Business Review

Since theme parks are high fixed cost/low variable cost entities, revenue from discount-enticed new customers is virtually all profit… free money. Restaurants, for example, often charge “market price” for seafood entrees to reflect varying supply conditions. This would result in growth. I think so.

Price 8
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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

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. It reached a peak on June 12 and then proceeded to lose over 40% of its value by the end of August despite efforts by the Chinese government to prop up the market.