Harvard Business Review

OCTOBER 25, 2018

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 To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.) and Chinese tech firms.

Industry 10

Industry Company GDP Bottom-up 10

Harvard Business Review

JULY 25, 2017

Track competitors’ MROI to gauge how your company is performing against others in the industry. 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. Comparing marketing efficiency with competitors.

ROI 8

ROI Marketing Marketing Mix Short-term 8

Harvard Business Review

FEBRUARY 1, 2018

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Working with its franchisees, Dunkin’ Brands is planning to remodel its stores and bring in new equipment.

Supply Chain 8

Supply Chain CEO Discount Retail 8

Harvard Business Review

SEPTEMBER 13, 2017

We chose Brazil’s beef industry as the location of our case study , both for the size and complexity of the industry and for its impact on the planet. We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain.

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 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. Insight Center. Crossing the Digital Divide. Sponsored by DXC Technology.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. Consider what’s happening among corporations.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

NOVEMBER 25, 2013

And at another — a consumer packaged goods company — a series of strong brands had evolved in separate silos. Only when they began to really analyze their marketing costs did the company realize that it was spending three times the industry benchmark on coupons and 50 percent more on research.

CFO 8

CFO Short-term Long-term Benchmarking 8