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. This underinvestment has a real cost to U.S.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

JULY 25, 2017

In fact, global spending on media is expected to reach $2.1 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. Juan Díaz-Faes for HBR. Companies spend a lot on marketing communications. trillion in 2019, up from $1.6

ROI 8

ROI Marketing Marketing Mix Short-term 8

Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing. Finance Sustainability'

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing. Finance Sustainability'

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

OCTOBER 21, 2016

Flooding in 2011 in Thailand, harmed 160 companies in the textile industry and halted nearly a quarter of the country’s garment production, increasing global prices by 28%. Their innovative system has increased productivity and quality, reduced environmental impact and costs, and increased global competitiveness.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

MAY 14, 2013

Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital. But the worst effect of the vote is the uncertainty it injects into global carbon-reduction initiatives. Carbon prices in Europe may remain depressed for years.

Price 8

Price Energy Politics Marketing 8

Harvard Business Review

NOVEMBER 25, 2013

CMOs must demonstrate and track marketing’s impact by focusing on key performance indicators (KPIs) that are important for shareholder value such as strong cash flow, cost of capital, return on capital, and operating margin. The experience at one global insurance company is illustrative.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

MAY 24, 2017

Financial capital is relatively abundant and cheap. According to Bain’s Macro Trends Group, the global supply of capital stands at nearly 10 times global GDP. Invest human capital just like you invest financial capital. We run Monte Carlo simulations to evaluate various returns under uncertainty.

Human Capital 15

Human Capital Management Company ROCE 15

Harvard Business Review

OCTOBER 11, 2013

With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. But when his marketing chief got a tip that a global snack industry website was about to publish an interview with Hughes about Terranola, A.J. Terranola had been moving forward with A.J.’s

Case Study 8

Case Study CFO Hedge PR 8

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. In this case its capital charge is $800 times 8%, or $64.

Long-term 8

Long-term EPS Short-term Management 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Tools for each challenge are presented, backed by examples from companies – from small firms to global giants – that have successfully put these methods into practice.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MARCH 1, 2017

Our global financial system moves trillions of dollars a day and serves billions of people. But the system is rife with problems, adding cost through fees and delays, creating friction through redundant and onerous paperwork, and opening up opportunities for fraud and crime. But the genie has been unleashed from the bottle.

Finance 8

Finance IPO Banking Venture Capitalist 8