Harvard Business Review

DECEMBER 15, 2015

As a consequence, salespeople tend to sell to anyone they can, often at discounted prices to make a volume quota target. Because of this, selling cycles were lengthy, and, even when reps did close deals, they did so at highly discounted prices and were forced to include unwieldy service requirements. But hope is not a method.

Strategy 8

Strategy Team Discount ROIC 8

Harvard Business Review

JANUARY 22, 2015

That’s when the company suffered through the Quikster controversy and a protest over its price increase. I was in the minority when I wrote that the price increase was a good thing. This allows you to better manage operating and capital expenses. It can also improve working capital.

Business Model 8

Business Model Loyalty Brand Price 8

Strategy Driven

MARCH 18, 2011

Walmart wrings maximum efficiency from its supply chain by integrating four capabilities – aggressive vendor management, expert point-of-sale data analytics, superior logistics, and rigorous working-capital management – that together deliver ‘everyday low prices’ to consumers.

Resources 51

Resources Industry System Strategy 51

Harvard Business Review

SEPTEMBER 5, 2016

Cigna is the first insurance company to get pharmaceutical companies to agree to value pricing based on results for certain cholesterol-lowering drugs. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. Making PbR Work.

Incentives 8

Incentives Health Care Education Insurance 8

Harvard Business Review

JUNE 22, 2015

To our surprise, it sold in 20 minutes for 25% more than the asking price. Product overstocks result in discounted prices, which are usually about half to two-thirds of the gross margin. For instance, a 25% reduction in the time needed to deliver a product or service can double the productivity of labor and of working capital.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 8

Harvard Business Review

AUGUST 28, 2018

Meanwhile the merchant group developed Working Capital, an in-house experiment in small-business lending that PayPal had also started in 2013. Total payment volume across the company rose 25% in 2017 alone — causing the stock to double in price.

Productivity 8

Productivity Products Decentralization Resistance 8

Harvard Business Review

AUGUST 30, 2016

Brick-and-mortar retailers who found it hard to compete on price or variety highlighted that customers could immediately pick up products in their stores instead of waiting for days. Consider these three cases: Amazon’s Prime Now. In 2005 Amazon launched its Prime service, which offers members free two-day shipping.

Advertising 8

Advertising Retail Content Brand 8

Harvard Business Review

FEBRUARY 24, 2015

Since its spin-off in July 2014, the capitalization of Seventy Seven Energy, the former oilfield services business of Chesapeake Energy, has melted by more than 75%, at least partially reflecting continued dependence on its former parent for about 90% of its revenues. Does the business have an adequate financial structure?

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

JULY 10, 2013

He decided to go after Salesforce.com with a Software-as-a-Service Customer Relationship Management product at a price-point that was one sixth of what Salesforce.com, the market leader, charged. In the case of Cableorganizer, banks would be delighted to finance their inventory and working capital to help accelerate growth.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

SEPTEMBER 4, 2017

Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. Their creditors priced capital for the new efforts along with the core. In today’s world the most pointed disruptive threats look different. They are not asset-heavy.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

JANUARY 10, 2013

Many profit improvement opportunities are not novel--and thus are not entrepreneurial--for example, raising a product's price or, once a firm has a scalable sales strategy, hiring more reps. At a new venture's outset, its founders control only their own human, social, and financial capital.

Definition 11

Definition Entrepreneur Tactics Business Model 11

Harvard Business Review

MARCH 28, 2016

These card networks were allowed to charge their members just enough to cover cost and provide working capital. The Newbury Street League stimulates good externalities, prevents congestion, and works hard at preventing bad behavior by their members.

IPO 8

IPO Succession Technology Software 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. Compensation structure.

EPS 9

EPS Metrics Depreciation Short-term 9

Harvard Business Review

SEPTEMBER 8, 2014

Financing needs are in large part driven by the cash on hand and the working capital required to conduct and grow the business. Accounts payables accumulate during selling, and accounts receivables are largely determined by what’s sold, how fast, and at what price.

Debt to Equity Ratio 11

Debt to Equity Ratio Cost of Capital Strategy Incentives 11

Harvard Business Review

APRIL 12, 2017

In 2015 low- and middle-income families devoted about one-third of their earnings to housing, and they have seen housing prices rise 25%–50% since the mid-1990s. When a business, rather than a household, faces such volatility, it responds by building up working capital. It doesn’t have to be that way.

Health Care 14

Health Care Insurance Video Transportation 14

Harvard Business Review

FEBRUARY 7, 2017

” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). During the last financial crisis, for example, they saw their share prices take greater hits than their short-term counterparts.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

JANUARY 9, 2013

For example, Roberta has to decide whether to discount services to hospitals too poor to buy them at a profitable price. Should he plow cash into increasing the pay of the disadvantaged people he employs, or build his working capital? Should she influence the quality of care of more patients? Or keep margins healthy?

Entrepreneur 9

Entrepreneur Business Model Long-term Goal 9