Remove Fixed Costs Remove Globalization Remove Long-term Remove Marketing
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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

And the same applies to the affected workers: The tight labor market means there are opportunities for those who go through retraining. 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.

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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 Companies Can Use Investors to Their Advantage

Harvard Business Review

He asked one former major investor for a reaction to the company’s prediction (accompanying poor quarterly results): “that the [current] market contraction will bottom out soon and our profits will improve.” I assumed you had some further cost reduction up your sleeve.”

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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. billion to $8.6

Retail 9
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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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How to Know If a Spin-Off Will Succeed

Harvard Business Review

But a study from 1999 found that long-run performance of both the former parent company and the divested unit is strongly positive, provided that the spin-off increases the company’s focus. A detailed roadmap should outline how it will become autonomous in terms of revenues and/or access to central services.

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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.