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A Refresher on Marketing ROI

Harvard Business Review

In fact, global spending on media is expected to reach $2.1 It also informs future spending levels, allocation of the budget across programs and media, and which messages a marketer chooses. For example, do you include just the cost of the media, or do you also include the investment of staff time to create the ad?

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Activist Hedge Funds Aren’t Good for Companies or Investors, So Why Do They Exist?

Harvard Business Review

Activist hedge funds have become capital market and financial media darlings. The Economist famously called them “capitalism’s unlikely heroes” in a cover story, and the FT published an article saying we “should welcome” them. akindo/Getty Images. But they are utterly reviled by CEOs.

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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

Our research has found that embedded sustainability drives financial performance through mediating factors such as innovation, operational efficiency, risk reduction, employee recruitment, engagement and retention, customer and supplier loyalty, competitive advantage, reduced cost of capital, and improved marketing and sales.

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How Passion Can Revolutionize Digital Technology, AND Change The.

Terry Starbucker

And change it did, because the new CEO had a vision that went beyond product, and costs, and overhead, and costs of capital. It was about passion. And about people who have it. Thirteen years later, the stock price is now above $240, and it has a market cap bigger than Microsoft. That company is Apple.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

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. Why is this so challenging? Get more for the money.

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What Shareholder Value is Really About

Harvard Business Review

A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term. This requires difficult trade-offs.