Remove Fixed Costs Remove Globalization Remove Leadership Remove Long-term
article thumbnail

The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

but in China as well, and there is too much global auto-assembly capacity chasing that demand. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. But they should ask themselves whether they are better off holding on to an unsustainable job as long as possible or trying to change now?

article thumbnail

How Companies Can Use Investors to Their Advantage

Harvard Business Review

” The reply he got was like a cold shower: “Management is delusional about their long-term prospects,” said the investor, adding, “Every time we meet … it truly shocks me how far behind it is and how slow they have been to grasp the trends of the industry.”

article thumbnail

Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

The “ accelerated recognition of commercial income and delayed accrual of costs” undoubtedly flatters short-term results, but it soon catches up with you, as four suspended senior executives have found out. UK retail, like the rest of the developed world, is witnessing a few big long-term trends.

Retail 9