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How to Prepare Your Supply Chain for the Unthinkable

Harvard Business Review

CEOs can take several measures to tackle the Black Swans that may affect their supply chains. Companies keep costs down by building supply chains that generate economies of scale. That was effective when companies made products in their home markets using locally produced components. Be Prepared to React. Invest in Flexibility.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

The latest nuclear reactor designs, promising higher safety, longer operating life, and lower operating costs, cost up to $25 billion after factoring in the huge budget overruns. This all presents CEOs with a tough dilemma. Model 3: Joint venture of similar assets.

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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. Ford CEO Alan Mulally tried to mitigate the impending bullwhip during the 2008 financial crisis by imploring the U.S.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Skype , for example, competes with fixed-line carriers by offering free mobile Skype calls. Google has its own contender in the market, Google Voice. The vendors for telecom network management were paid only for the capacity utilized by Bharti Airtel, not for the equipment. The trend is spreading.

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4 Types of Activist Investors and How to Spot Them

Harvard Business Review

market has witnessed a substantial rise of activist investors. The success of an activist strategy is contingent upon placing a management team in an extremely reactive, frenzied and compromising position. And they are usually not apprehensive about replacing the current management team to boost efficiency and performance.

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The End of Traditional Ad Agencies

Harvard Business Review

Victors and Spoils (V&S), where John is CEO, for example, wanted to land the Harley Davidson account after the motorcycle maker split with its long-time agency. As we''re still in the experimentation phase, we need fearless clients, managers, and organizations. Advertising Innovation Marketing'