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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

These firms make up two thirds of global corporate pretax earnings (EBTDA) and revenues. To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To The bottom 10% destroy roughly as much economic value as the superstar firms create.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. The industry makes up approximately 6% of Brazil’s GDP. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector.

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The Three Decisions You Need to Own

Harvard Business Review

When resources are allocated from the bottom up instead of from the top down, they get out of sync with what the senior team is trying to accomplish. Resource allocation : These decisions are big because some competitive moves need disproportionate resources.

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6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

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. How the best companies get up to speed. Insight Center. Crossing the Digital Divide.

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A Refresher on Price Elasticity

Harvard Business Review

In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. Gasoline is a good example here because most people need it, so even when prices go up, demand doesn’t change greatly.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

In our experience, companies that adopt this marketing analytics approach can unlock 10–20 percent of their marketing budget to either reinvest in marketing or return to the bottom line. Financial metrics would typically include obvious numbers such as sales, return on investment, and cost per customer.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Hoping to alleviate their concerns, this article also provides concrete examples of how sustainability benefits the bottom line. of respondents view nonfinancial disclosures as “essential” or “important” to investment decisions, up from 34.8% In its survey of over 200 institutional investors, 59.1% Some 62.4%