Remove Fixed Costs Remove Management Remove Operations Remove Working Capital
article thumbnail

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

Harvard Business Review

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic.

EPS 8
article thumbnail

How to Know If a Spin-Off Will Succeed

Harvard Business Review

The first category is exogenous factors over which the business has little control: the growth of the markets into which it sells; the competitive intensity and thus the average profitability of the industry in which it operates; or the fragmentation of its industry and thus the scope for a growth-by-acquisition approach.

article thumbnail

Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. The vendors for telecom network management were paid only for the capacity utilized by Bharti Airtel, not for the equipment. In the U.S., telecom providers should take notice.