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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

” A quarter century later, not much seems to have changed: fewer than five out of the 100 CEOs on HBR’s 2014 list of best-performing CEOs even mention “return on capital” on their official biography — and none of those five lead companies listed in the Dow Jones Industrial Average (DJIA) or in the EuroStoxx50.

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A Refresher on Marketing ROI

Harvard Business Review

trillion in 2014. Some companies establish a threshold for MROI that takes into account its risk tolerance and cost of capital, below which they are hesitant to make investments. Juan Díaz-Faes for HBR. Companies spend a lot on marketing communications. In fact, global spending on media is expected to reach $2.1

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Managing risks therefore requires making investment decisions today for longer-term capacity building and developing adaptive strategies. Recognizing the growing consumer interest in sustainable products and looking to solve consumer challenges such as high energy costs, CPG companies have developed new products to gain access to this market.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. It started with developing a proprietary Corporate Horizon Index. In this case its capital charge is $800 times 8%, or $64.