Walmart Broadens ROI for Green Power

Harvard Business Review

In essence, Bedore was saying that Walmart recognizes that it can help take the solar market to scale, thus lowering its costs in the future. Of course, investing in projects with a hard-to-measure payback — such as a new marketing campaign or entry into new geographic or customer markets — is a normal part of business strategy. We worship internal rates of return (IRR) to our detriment. Corporate social responsibility Sustainability Wal-mart IRR

What If Companies Managed People as Carefully as They Manage Money?

Harvard Business

A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. In other words, they connected with people who could help them with customer issues, such as staff in finance, legal, pricing, or marketing. Vincent Tsui for HBR. Today’s executives spend a lot of time managing the balance sheet, despite the fact that it doesn’t represent their company’s scarcest resource.

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Three Headwinds for Facebook's IPO

Harvard Business Review

Private Market Valuations aren't Great Indicators of Public Returns The final reason for trepidation is probably the most important. Since his fund's investment, a series of very well publicized auctions on secondary markets have driven Facebook's private market valuation to over 85B. The problem for most Main Street investors is that they don't necessarily appreciate the dynamics of the private markets. I am not pessimistic about Facebook's future.

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Lafley’s P&G Brand Cull and the 80/20 Rule

Harvard Business Review

Indeed, companies focusing on those 20% customer segments that generate 80% of sales and/or profitability and/or sustainable growth markets and innovate differently from those who seek to serve everyone well. The demands of 80/20 criteria shifts the innovation emphasis away from more traditional financial metrics around DCF , IRR , and NPV and toward better understanding of how novelty preserves, protects, and extends the 80/20 franchise.

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Two Forces Moving Business Closer to Climate Action

Harvard Business Review

and an IRR of 27% for those companies with the most aggressive, science-based goals and actions on climate. Government doesn’t have a great track record of global negotiations on climate policy, but local and regional action is more robust , with 46 carbon markets globally covering a small but respectable 12% of emissions. This week, CEOs and world leaders met at the UN to talk climate.

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