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Business Model Generation : Blog | Executive Coaching | CO2 Partners

CO2

(It is useful to to distinguish between two broad classes of business models Cost Structures: cost cost-driven and value-driven from the following categories Cost-driven, Value-driven. Pulse Meme Feed What Is Your Brand Against?

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

Harvard Business Review

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral. That is what GM is trying to do.

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Why HR Really Does Add Value

Harvard Business Review

In many cases, this question is not asked politely. Within the first year of our effort net sales increased 27 percent while fixed costs were reduced by 40 percent. Not all fixed cost reductions were people. Throughout my career, I have consistently faced the question, "How does HR add value in a business?"

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

In larger facilities, there is often an astonishing proliferation of special care units, ICUs, and quasi-ICUs that are expensive to staff and have high fixed cost profiles. The growth of these costs rivals those of specialty pharmaceuticals and the maintenance and updating of electronic health record systems.

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The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

remains home to a considerable number of “climate skeptics,” who clearly impact the politics around the issue, as they are unlikely to support costly actions such as carbon taxes intended to mitigate the challenge of climate change. In other words, climate skeptics don’t just stymie progress on climate policy.

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How Drucker Thought About Complexity

Harvard Business Review

Witness the grassroots political movements that are increasingly shaking up "stable" political regimes around the world. Power laws with spiky heads and very long tails progressively crowd out the familiar bell curves that made life seem predictable.

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Does Your Startup Have a Spending Strategy?

Harvard Business Review

So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. To address those cost overruns, Colin subleased some space, cancelled a redundant and very expensive trading service, and let one person go.