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Strong Dollar, Weak Thinking

Harvard Business Review

The standard concern is that the high US dollar hurts America’s manufacturing cost position because US production costs are inflated by the dollar’s appreciation. This puts downward pressure on stock prices because with lower EPS growth, shareholder expectations of future growth drop, lowering EPS multiples and hence stock prices.

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Five New Year’s Resolutions Every Leader Should Make

Harvard Business Review

Leaders have long recognized that an inherently diverse workforce – one that’s inclusive of women, people of color, and gay individuals – confers a competitive edge in selling products and services to diverse end users. Leadership roles are given to those who also look and act the part, who manifest “executive presence” (EP).

EPS 13
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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. Of these, the last indicator is perhaps the most likely to accurately capture a company’s short-termism.

EPS 8
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Business Needs to Do What Government Can't

Harvard Business Review

Levi Strauss, intriguingly, has used biomimetic techniques in developing new production techniques for jeans. PUMA has led the field; its then-CEO Jochen Zeitz conceived an Environmental Profit and Loss (EP&L) for the company with PwC and Trucost. Zeitz is also rolling out the EP&L across the holding group PPR.

EPS 8
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?Numbers Show Apple Shareholders Have Already Gotten Plenty

Harvard Business Review

Apple is a company with phenomenal products and profits. Whether done as a DOMR or ASR, the purpose of such buybacks is to give manipulative boosts to a company’s earnings per share (EPS) to help drive up its stock price. Massive buybacks rewards parties who have contributed the least to Apple’s products and profits.

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Yes, Short-Termism Really Is a Problem

Harvard Business Review

Some studies show that long CEO tenures produce better performance (though that appears to be limited to more stable industries) and lead to better product-safety results. The performance of companies delivering real products and services is. The current hue and cry from stock markets about organic growth is a product of this dynamic.

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How Incentives for Long-Term Management Backfire

Harvard Business Review

One milestone might include completion of prototype-level next-generation digital products. A subsequent milestone might be delivering $10 billion in sales of the new product or service. A third might be retrofitting a specified share of veteran customers with the new product.