Terry Starbucker

AUGUST 29, 2010

And change it did, because the new CEO had a vision that went beyond product, and costs, and overhead, and costs of capital. It was about passion. And about people who have it. Thirteen years later, the stock price is now above $240, and it has a market cap bigger than Microsoft. That company is Apple.

Technology 282

Technology Price Video Cost of Capital 282

Harvard Business Review

OCTOBER 10, 2017

For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. It is through continuously making incremental progress in lowering costs and increasing revenues that firms achieve competitive advantage in their industry. Here are four things leaders can do.

Innovation 8

Innovation P&L ROI Long-term 8

Harvard Business Review

JULY 31, 2017

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital. Accor, which is opening its online booking platform to independent hotels offers a good case.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

JUNE 27, 2012

It is this complexity, my colleague James Allen and I report in our new book Repeatability , that is the "silent killer of profitable growth," and the greatest inhibitor of adaptability. real revenue and profit growth and earning their cost of capital has steadily declined. Yet almost every business aspires to do this.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

FEBRUARY 7, 2011

Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). If you follow that group over time, you would see their ROICs revert back toward the cost of capital. A decade ago, Nassim Taleb raised awareness about the role of luck through his best-selling book, Fooled by Randomness.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

OCTOBER 11, 2013

With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. she asked, implying that the books were somehow being cooked. As a result, it booked hefty royalty payments before the products were actually in consumers’ hands. Terranola had been moving forward with A.J.’s

Case Study 8

Case Study Hedge CFO PR 8

Harvard Business Review

NOVEMBER 7, 2012

You start by using analysts' reports and other sources to gauge the consensus expectations for value drivers — sales growth, operating profit margins, cost of capital and other factors that determine cash flows. Still, this powerful idea remains remarkably underutilized. _. HBR's 90th Anniversary: Why Management Matters.

Price 8

Price Analysis Cost of Capital Disruptive Innovation 8

Harvard Business Review

APRIL 2, 2014

The value factor means that cheap stocks, as measured by price-to-book, price-to-earnings, or some other such ratio, outperform expensive ones. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way. What Mark Carhart later did was add a momentum factor.

CAPM 8

CAPM Discount Price Finance 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. For instance, intelligent failures can add more value than predictable successes, and low-cost experimentation trumps analysis. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50