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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

They believe that their findings add additional nuance to the current narrative that suggests that the decline in entrepreneurship is largely a consequence of higher startup costs, labor constraints, or even the aging population. Opportunity costs.

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A Refresher on Marketing ROI

Harvard Business Review

It also informs future spending levels, allocation of the budget across programs and media, and which messages a marketer chooses. 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.

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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. For example, trade fair expenditure might fall into short-term spend in one market, but the long-term brand-building budget in another.

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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

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. Build for the Few, Not the Many.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

This can disrupt a firm’s ability to operate on schedule and budget. 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. ” Improving risk management.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. Many managers don’t even run an ROI because the costs of programs and the incremental demand can be hard to determine ahead of time. How do you calculate it?