Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

Indeed, companies focusing on those 20% customer segments that generate 80% of sales and/or profitability and/or sustainable growth markets and innovate differently from those who seek to serve everyone well. The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise.

DCF 12

Still Many Ways to Skin a Capital Cost

Harvard Business Review

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. The very lack of consensus in CAPM interpretation, he thought, was consistent with the workings of healthy and efficient markets. "It How can that be when the same information about the stock's underlying company and markets are available to both?

DCF 14