Harvard Business Review

NOVEMBER 20, 2013

Even between 2007 and 10, when tough external conditions should have forced hard internal choices, leaders remained stuck in their tracks. Companies run by decisive CEOs rack up more economic profit — what’s left of operating profit after the cost of capital is subtracted – than competitors do. Inertia is expensive.

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

FEBRUARY 7, 2017

From 2007 to 2014, their R&D spending grew at an annualized rate of 8.5%, greater than the 3.7% ” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). rate for other companies.

Long-term 8

Long-term EPS Short-term Management 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Copyright 2007-2011 by StrategyDriven, Inc. Net present value [NPV] is a case in point. Consider leaving a comment! This content is intended for personal and non-commercial use only.

Innovation 50

Innovation NPV Business Model Constraint 50