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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output.

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

Harvard Business Review

What have been less explored are the specific actions taken by private equity (PE) fund managers. 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.

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A Refresher on Price Elasticity

Harvard Business Review

This is one of the key metrics for marketing managers, says Avery. You’ll hear managers say, “my product is price sensitive” or “we’re lucky to have a product that’s not sensitive to price.” ” What are some of the common mistakes managers make with price elasticity?

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. Collectively, our sample accounts for about 60%–65% of total U.S. This has long seemed intuitively true to us.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

These require sophisticated, sustainability-based management. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. ” Improving risk management. billion in mining projects since 2010. Fostering innovation.