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Status Quophiles and Quophobes

Mills Scofield

I : That would work, and we can diversify our coating suppliers to assure quality and price. SQ : Nice idea, but we have to recognize the sunk costs of our existing fixed assets. SQ : That could work, but we risk not being able to get the coating on a reliable and consistent basis if the world blows up.

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Say “No” to Innovation-in-General

Harvard Business Review

But I’d argue that the real problem with our innovation zeitgeist isn’t that the quality of ideas is diminishing, it’s that we’re talking about the bold audacious bets in the same way we’re talking about the unheralded incremental ones. It’s the continuous technological innovations that will exploit your fixed asset base.

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The Three Reforms China Must Enact: Land, Social Services, and Taxes

Harvard Business Review

Failure to present a groundbreaking new vision risks leaving in place old economic drivers, especially the over-reliance on fixed-asset investment, that have created serious challenges such as China’s “ghost cities” and high levels of local government debt.

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China’s Growth: A Brief History

Harvard Business Review

Some find evidence of a clear improvement of total factor productivity since market-oriented reforms began in 1979, estimating that the increase in TFP contributed about 40% to GDP growth, roughly the same as that contributed by fixed asset investment. There was also a slowdown in TFP after the mid 1990s. by the end of that period.

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What It Takes to Be a Great Employer

Harvard Business Review

How crazy is it that companies are willing to invest in preventative maintenance on fixed assets such as their machinery, but typically won't make a comparable investment to enhance and sustain the health and well-being of their employees? Think about how you feel when you're performing at your best.

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When a Country is Facing Political and Human Rights Issues, Should Businesses Leave or Stay?

Harvard Business Review

For a services firm, De Maeseneire said, the calculation is different than for a manufacturer: services firms have fewer fixed assets to look after, and their clients often are fellow multinationals. In other words, safety and quality is a red line for Nestle. .” The raison d’etre can also differ per industry.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Earnings quality: Accruals as a share of revenue. ” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). These indicators and hypotheses were: Investment: The ratio of capex to depreciation.