Remove Fixed Costs Remove Innovation Remove Long-term Remove Marketing
article thumbnail

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
article thumbnail

The Get-Big-Quick Fallacy

Harvard Business Review

If you are inside a big company, profit-draining ventures are typically early sacrifices in corporate cost-cutting exercises. There''s a term in the psychology literature for this — the availability heuristic. Growth is great, but profits are more convincing proof of long-term viability.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Uber Explains Our Economic Moment

Harvard Business Review

Because I’m interested in the peer economy I followed standard practice and asked the driver how long he’d been part of the Uber network and how he liked it. In the wake of the great recession steady jobs had been replaced by short-term contracts, and there weren’t even a lot of these to be had.

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. billion to $8.6

Retail 11
article thumbnail

When M&A Is Not the Best Option for Hospitals

Harvard Business Review

For instance, larger scale has enabled many hospital systems to lower their per-patient operating costs significantly. However, reform and other market changes are altering the scale equation for hospital systems, so some of the traditional advantages that larger scale has traditionally brought them may no longer apply.

article thumbnail

The New Psychology of Business Models

Ask Atma

What about doing market research?” process, some market research can still be done during the idea development stage. It is now possible to shift a large part of the market research into the product development phase. First, you would do market research to gain some insight into a potential market or an underserved market.

article thumbnail

What Could Amazon’s Approach to Health Care Look Like?

Harvard Business Review

Consider its decision to pursue the market for pharmaceutical distribution, or the recent announcement that it will be teaming up with Berkshire Hathaway and JP Morgan Chase to create joint solutions for reducing the health care spending of more than 1 million employees and their families. This latest move has engendered robust debate.