Harvard Business Review

SEPTEMBER 15, 2017

But these claims are very rarely backed up by large-scale evidence, and often driven by a misunderstanding of how buybacks actually operate. Such a nefarious use of corporate funds makes for great headlines. The claim that the need to buy back stock forces firms to cut investment puts the cart before the horse.

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 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.

Company 13

Company Cost of Capital Finance Long-term 13

Harvard Business Review

MARCH 13, 2013

The MCC's approach is even more complex as it operates on a 20-year time horizon. These data were used to anticipate an economic rate of return, with the primary outcome metric being increases in farmer incomes, along with impact metrics such as a reduction in regional poverty rates.

Long-term 8

Long-term Due Diligence Metrics Cost-Benefit Analysis 8

Harvard Business Review

JUNE 21, 2012

We will pay far more for a medical operation that increases our chance of surviving from 0% to 1% than one that increases it from 10% to 11%. The difference between 0% and 1%, for example, is much more salient than that between 10% and 11%, and the difference between 99% and 100% looms much larger than that between 89% and 90%.

Tversky 11

Tversky Kahneman Rate of Return Sports 11

Harvard Business Review

OCTOBER 21, 2016

This can disrupt a firm’s ability to operate on schedule and budget. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. ” Improving risk management. billion from reduced energy and wastewater consumption in manufacturing.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

MAY 27, 2016

Starting in the early 1990s, Southwest stock delivered among the best rates of return in the history of American business. Today, air taxi companies operate in a similar fashion to the Southwest of yore. There are clearly still people who deliberately choose not to fly. Thus, disruption still ought to be possible.

Airlines 10

Airlines Travel Industry Disruptive Innovation 10

Harvard Business Review

OCTOBER 27, 2014

r>g: Economist Thomas Piketty’s formula for spiraling wealth inequality, in which the rate of return on capital is higher than economic growth, has its critics. stock markets over Icahn’s career, it’s a simple factual assertion — the total return on the S&P 500 has substantially outstripped economic growth.

Hedge 8

Hedge Venture Capitalist Letter Reputation 8

Harvard Business Review

APRIL 30, 2015

Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment,” he says. In many businesses, the cost of capital is lower than the discount rate or the required rate of return. or 11% as the discount rate. x 4.3%) + (0.7

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

SEPTEMBER 10, 2014

As more firms became multinationals, fewer showed loyalty to particular communities or any hesitation to migrate their operations to wherever costs were lowest. Employees were viewed more as fungible inputs to operations, and customers viewed more as targets within more and less lucrative segments.

Supply Chain 13

Supply Chain Bureaucracy Short-term Agility 13

Harvard Business Review

NOVEMBER 28, 2012

In 1998, Mo was running a highly profitable and stable engineering firm serving European mobile operators. He sold that company to do what no European operator would (though he begged them): Start an African cell phone company. He recently announced the next two growth markets for sizeable investment by his group are Iraq and Myanmar.

Uncertainty 8

Uncertainty CEO Chief Executive Officer Short-term 8

Harvard Business Review

FEBRUARY 8, 2018

They did not spend as much time thinking about local events that have implications for their emerging market operations. We believe that business-friendly candidates could win, but companies should make sure that their Mexico investments have an acceptable rate of return even under this populist scenario.

Market Risk 9

Market Risk Marketing Supply Chain Company 9