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Winning Now, Winning Later: Playing the Infinite Game

Leading Blog

By taking the right actions to improve operations now, we could position ourselves to improve performance later, while the reverse would also hold true: short-term results would validate that we were on the right long-term path. Grow while keeping fixed costs constant. I realized we could do both at the same time.

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5 Effective Strategies for General Contractors to Cut Costs

Strategy Driven

In the former case, the owner of the project only has to pay a fixed cost that includes overhead and profit. This is not necessarily the most cost-effective approach. Compressing the schedule will allow you to squeeze cost advantages. You should prequalify all subcontractors to reduce the risk in case of cost escalation.

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Contribution Margin: What It Is, How to Calculate It, and Why You Need It

Harvard Business Review

. “Contribution margin shows you the aggregate amount of revenue available after variable costs to cover fixed expenses and provide profit to the company,” Knight says. You might think of this as the portion of sales that helps to offset fixed costs. In fact, COGS includes both variable and fixed costs.

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A Detailed Look at E-Commerce Fulfillment

Strategy Driven

With speedy deliveries, you can meet exceed your customer’s expectation and get positive reviews. Not to mention it could cost you a fortune to replace damaged goods. Being able to meet customer demands is positively rewarding for ecommerce and the failure to do so can irreversibly damage a brand’s reputation online and offline.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Yet, the company reported ASCOI of positive $80.1 Rather, Groupon felt the need to include a metric of profitability, no matter how contrived, that was actually positive. Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low.

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Why HR Really Does Add Value

Harvard Business Review

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. This is the real role of HR, and even though some people remain skeptical of its bottom-line importance, in fact its relevance cannot be underestimated.

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How Industry Giants Can Create Corporate Breakthroughs

Harvard Business Review

For example, a decade ago, it''s unlikely that small-business owners would have told you that they needed a flexible way to host data and applications, one that preferably turned the fixed cost of computer hardware into a variable cost of renting capacity. When the company rides an enabling trend.