HR Digest

MAY 11, 2022

Carvana aims to restructure its workforce and focus on growth in the coming year. This eventually led to higher fixed costs and lesser profits. It made for an extremely hassle-free purchase as the company reportedly runs around 150-point inspections and is very particular about the cars it allows on its platform. .

EBITDA 52

EBITDA Retail Fixed Costs Restructuring 52

Harvard Business Review

NOVEMBER 30, 2018

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.

Restructuring 10

Restructuring Fixed Costs Consensus Operations 10

Harvard Business Review

MAY 28, 2018

Directly influenced by investor input, Nikon developed a restructuring plan that would carry a onetime cost of ¥48 billion ($460 million) but generate ¥20 billion ($190 million) in annual savings. Not until the restructuring was completed would Nikon pursue a growth agenda. The response was disappointing.

Company 8

Company ROIC CFO Restructuring 8

Harvard Business Review

APRIL 5, 2017

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. Again, acknowledging reality might force hard, but timely, decisions on restructuring employee benefits. So this measure may mislabel efficient companies as myopic.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

SEPTEMBER 9, 2015

During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets. This phenomenon has been documented in the consumer-packaged-goods , food , semiconductor-manufacturing , and other industries.

Supply Chain 8

Supply Chain Retail Crisis Operations 8

Harvard Business Review

FEBRUARY 24, 2015

In parallel, it reduced its fixed costs by restructuring its industrial footprint and overhead structure; increasing sales, marketing, and R&D expenditures in targeted areas; and dramatically reducing working capital.

Chemicals 8

Chemicals How To Kahneman Reputation 8