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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?

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

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. Getting the measurement right is central to providing convincing evidence on the debate over short-termism.

EPS 8
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How Drucker Thought About Complexity

Harvard Business Review

I have long been influenced by Drucker''s work. They have systematically and significantly eroded barriers to entry and movement on a global scale. Thanks to the forces described above, we are more connected on a global scale than ever before. The result is relentlessly mounting performance pressure. But times have changed.

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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.”

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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 11
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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

For the last two months, global supply chains have been experiencing the first stage of a bullwhip effect triggered by uncertainties about the severity of China’s economic slowdown. This is exactly what happened during 2010 and 2011 as the global economy was bouncing back.) Senate Banking Committee to save his competitors.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

The model can be a win-win as long as the two companies address different customer segments. For example, Lycamobile, a big mobile VNO, focuses on expatriate communities looking for low-cost international pay-as-you-go calls in 19 countries. The integrated carrier gets incremental revenues from its excess capacity.