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The Complexity of Business Communication

CoachStation

Compare Michael Porter’s competitive advantage definition: “Competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital).” Develop skills in story-telling and influence differently.

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Still Many Ways to Skin a Capital Cost

Harvard Business Review

It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?" The motivation behind it, as with many, many articles published over HBR's nearly 90-year history, was to take an effective practice developed in one corner of industry and spread it to managers everywhere. by James J.

CAPM 13
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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

In a recent survey from Javelin Research, 56% of SMEs indicated a desire for better digital banking tools. Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window.

Banking 11
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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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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM 8
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Get the Strategy You Need — Now

Harvard Business Review

Retool your strategy development process. The process of developing that strategy is critical. Unfortunately, nearly eight in ten executives surveyed by McKinsey describe the strategic-planning processes at their companies as more geared to confirming existing hypothesis than to testing new ones.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Managing risks therefore requires making investment decisions today for longer-term capacity building and developing adaptive strategies. 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.