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Love Them and Lead Them

The Practical Leader

Airline revenues collapsed while fixed costs stayed high. According to a documentary video we often use in our culture development planning sessions, Southwest Airlines is “the company that love built.” .” Companies decimated by the pandemic especially need to feel the love to bounce back.

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How Do I Start A Small Business?

Strategy Driven

Describing the offerings of your services, the product life cycles, intellectual properties as well as the research and development procedures of your business. Fixed Costs / (Average Price – Variable Costs) = Break-Even Point –. Growing and Developing an Effective Team. Choose Your Business Structure Wisely.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

Directly influenced by investor input, Nikon developed a restructuring plan that would carry a onetime cost of ¥48 billion ($460 million) but generate ¥20 billion ($190 million) in annual savings. Nikon could then follow up by asking what would persuade the investor to repurchase.

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The Real Reason Superstar Firms Are Pulling Ahead

Harvard Business Review

Are they out-competing their rivals, or are they using their size and influence to avoid competition altogether? It could be because “software development typically requires large upfront fixed costs,” meaning that firms that are already pretty large are the ones who can afford to invest in it.

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If Innovation Is Happening, Where Is The Creative Destruction?

The Horizons Tracker

Indeed, he worried that rising concentration was not so much a bug of industrial development but a key feature of it, as technological development increased the scale of both economies and the businesses within them. If we worry that large companies can influence politics, how do we improve democratic institutions?”

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Who Rules the Web Now?

Harvard Business Review

As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero. Adding a profile on Facebook has little to no impact on Facebook's operating costs. Greater scale bestows greater competitive advantage.

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The U.S. Media’s Problems Are Much Bigger than Fake News and Filter Bubbles

Harvard Business Review

Two developments bear noting. The second is influencing how your message gets amplified. The media’s bias toward big events stems from three features of its economics: Fixed costs. The cost of covering a golf tournament doesn’t depend on whether Tiger Woods plays. Where Does This Leave Us?

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