Harvard Business Review

OCTOBER 6, 2023

Managers tend to think about liquidity as a finance issue, but in face the behaviors of the sales and operations team — and how they communicate and work together — can have a direct affect on a company’s cash position. Following these steps can reduce a company’s working capital needs and increase earnings and cash flow.

Supply Chain 23

Supply Chain Crisis Marketing Working Capital 23

HR Digest

APRIL 9, 2020

Tesla has decided to halt operations in all its U.S. billion capital raise. This included working capital for all regions and for the expansion of the Shanghai factory. “We Employees that have not been assigned any task for are not working from home have been furloughed off till May 4. billion before its recent $2.3

Crisis 98

Crisis Human Resources Working Capital Operations 98

N2Growth Blog

AUGUST 1, 2016

I started my career in purchasing; migrated to sales and marketing; moved to manufacturing, mining, and then general management in a business operating in 40 countries. I had joined the Rio Board in 2009, so I already had broad oversight of the company’s diverse operations. billion in the last 5 years).

Gordon 150

Gordon Restructuring Leadership CEO 150

Strategy Driven

AUGUST 4, 2016

They checked out the market, discussed the business idea with friends and family and feels they can come up with enough capital to set themselves up for success. Unfortunately, often the amount of working capital needed to fund the project is simply not enough to account for all the expenses that arise with a new business.

Due Diligence 50

Due Diligence Succession Real Estate Working Capital 50

Women on Business

AUGUST 24, 2011

For Harper, it was deciding to franchise her business as a practical way to expand, when she could not get working capital, plus be assured of an ownership base that would strictly follow her dictates. Be distinctive and come up with solutions that meet your needs and your principles.

Franchising 226

Franchising Succession Core Competence Follow-up 226

Harvard Business Review

JUNE 22, 2016

They enable both the buyer and supplier to improve their working capital by making it possible for the former to extend its payables and at the same time accelerate payment to the latter. Operations in a Connected World. The buying firm benefits through longer payables, which positively impact its working capital.

Supply Chain 11

Supply Chain Cost of Capital Transportation Finance 11

Strategy Driven

SEPTEMBER 18, 2019

If you are operating a start-up, you may face problems with managing the cash flow of your business efficiently and may have to rely on working capital loans. Working capital loans are not utilized for long periods or the purchase of noncurrent assets due to their short repayment period.

Working Capital 11

Working Capital Credit Scoring Long-term Short-term 11

Harvard Business Review

APRIL 9, 2015

Income statements almost always include an allowance for depreciation of capital assets. That statement records cash generated by a company’s operations and cash spent on those operations; cash spent on capital assets (and cash generated by the sale of capital assets); and cash received from, or paid to, lenders and shareholders.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

NOVEMBER 23, 2010

He started very well, but as soon as his cash flow improved, financial burdens from family systems stifled his operations. As more people depended on him, he spent his working capital, and the business failed. Most African artisans do not bank because of the fees associated with operating current accounts.

Books 14

Books Banking Working Capital Finance 14

Harvard Business Review

SEPTEMBER 7, 2012

Heffington, working with Steve Curnutte, a restructuring advisor, realized that as new orders poured in, it became difficult to establish the true cost of fulfilling them. And, because credit was readily available to cover the growing need for working capital, it was easy to ignore the sizable number of unprofitable and late paying customers.

Metrics 8

Metrics Working Capital Restructuring Banking 8

Harvard Business Review

NOVEMBER 23, 2010

He started very well, but as soon as his cash flow improved, financial burdens from family systems stifled his operations. As more people depended on him, he spent his working capital, and the business failed. Most African artisans do not bank because of the fees associated with operating current accounts.

Books 14

Books Guidelines Banking Telecommunications 14

Strategy Driven

MARCH 18, 2011

To demonstrate it, we’ve examined a number of industries and mapped the level of capabilities coherence in the portfolio of each of the major players against their operating margins over the past five years. Companies today operate in a business environment that encourages incoherence. We call this measure the ‘coherence premium.’

Resources 52

Resources Industry System Strategy 52

Harvard Business Review

DECEMBER 7, 2010

Unlike Ferran Adria's El Bulli in Catalonia, D'O doesn't operate at a loss. Operating such restaurants is expensive. D'O has reduced its working capital needs by offering less than 150 wines and reduces wastage by designing glasses and plates that are built tough to withstand falls.

Quality 13

Quality Working Capital Price Open-book 13

Harvard Business Review

AUGUST 28, 2018

They had to work in sequence, meaning they had to streamline the operation first — before they could launch their new growth effort. The underlying trouble had been McDonald’s working from an inside-out perspective: what fit with its current infrastructure and operations.

Productivity 8

Productivity Products Decentralization Resistance 8

Harvard Business Review

APRIL 5, 2017

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

EPS Metrics Depreciation Short-term 8

Harvard Business Review

JANUARY 22, 2015

This allows you to better manage operating and capital expenses. It can also improve working capital. If you can better predict consumer demand with more certainty, whether via subscription business models like Netflix or Amazon Prime, you can improve forecasting. In early 2014, Starbucks said consumers loaded $1.4

Business Model 8

Business Model Loyalty Brand Price 8

Harvard Business Review

MARCH 15, 2018

Using a bank overdraft reflects the need for working capital either because the rest of the capital is tied up in inventory, property, or stock-in-trade or because the company has financial constraints, thus reflecting risk taking. 3) Women do not have resources to engage in high growth whereas men do.

Venture Capitalist 11

Venture Capitalist Debt to Equity Ratio Real Estate Entrepreneur 11

Harvard Business Review

JUNE 3, 2016

It includes changes in how an organization interacts with its customers, citizens, or patients; in operational processes; in business models; in supply chain relationships; and in how employees use information to generate insight. Operations in a Connected World. Insight Center. Sponsored by Accenture.

Tools 8

Tools Supply Chain CRM Technology 8

Harvard Business Review

MARCH 21, 2011

But because we failed to hammer out exactly how we would operate (including our respective roles and responsibilities), infighting distracted from operating, cash became a concern, and the business slowly, then quickly, imploded. And because my husband and I were the providers of working capital, I had the luxury of being cavalier.

Due Diligence 14

Due Diligence Magazine SWOT Christensen 14

Harvard Business Review

JULY 24, 2013

Finally, working capital financing is one of the key requirements of all small startups. Note, scale is the operating word here. Without that, like venture capital, crowdfunding will remain a cottage industry, addressing less than 1% of the small businesses out there. Too much of that will kill the industry altogether.

Incubator 8

Incubator Finance Entrepreneur Industry 8

Harvard Business Review

FEBRUARY 24, 2015

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.

Chemicals 8

Chemicals How To Kahneman Reputation 8

Harvard Business Review

JUNE 22, 2015

The Future of Operations. For instance, a 25% reduction in the time needed to deliver a product or service can double the productivity of labor and of working capital. Insight Center. Sponsored by GE Corporate. The technologies and trends shaping tomorrow’s businesses. Highways can’t keep up with demand.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 8

Harvard Business Review

SEPTEMBER 4, 2017

Construction equipment and disk-drive manufacturing required heavy machinery, distribution facilities, and immense amounts of working capital. When Christensen conducted the research for The Innovator’s Dilemma , he looked at industries that were asset-heavy. They are not asset-heavy. They are asset-light.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

MARCH 28, 2016

These card networks were allowed to charge their members just enough to cover cost and provide working capital. Around the world, though, many countries still have domestic payment networks that operate as not-for-profit platforms. For more on this, read Dee Hock’s book about starting up the Visa network.).

IPO 8

IPO Succession Technology Software 8

Harvard Business Review

DECEMBER 10, 2012

That 5% margin might come not from scale, but from the absence of stores, retail employees, and reduced working capital requirements. It could even focus more of its operations on the last-minute needs customers have for which no delivery network is fast enough, growing its automatic kiosk network.

Price 9

Price Retail Business Model Christensen 9

Harvard Business Review

FEBRUARY 17, 2012

As product is sold, some of the initial working capital that SHE puts up is paid back, with the entrepreneurs eventually owning their local franchises. In turn, SHE reinvests its profits in new geographies or other disruptive enterprises. Emotion Inspires Ongoing Development and Builds Community.

Franchising 13

Franchising CEO GDP Entrepreneur 13

Harvard Business Review

JANUARY 9, 2013

It's an example of an organization seeking to meet this challenge of scale by providing top-tier, in-kind expertise and working capital to promising social enterprises. Hoping to fill this need, my firm, Bain & Company and six other partners founded Social Business Trust (SBT) in the U.K.

Finance 9

Finance Franchising Business Model Analysis 9

Harvard Business Review

MAY 27, 2015

The type of capital required and its source depends on the type of business, its stage of life, and its strategy for the future. A supplier might need a working capital loan to finance a big order. The types of capital generally split into two areas: Debt and Equity.

Entrepreneur 8

Entrepreneur Policies Banking Innovation 8

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. The differences were dramatic. .”

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

SEPTEMBER 12, 2011

Supermarket chains, with working capital, IT capabilities, and outlet networks are potentially far safer and more reliable retail financial service providers than any bank. Nor, on the report's terms, can you complain too much about it. Consider retail banking. And then there are the mobile telephone companies.

Banking 9

Banking Retail Competitive Advantage Report 9

Harvard Business Review

MAY 8, 2012

Due to huge capital requirements, these investments could exert considerable pressure on the working capital of the carrier company. Sprint Nextel recently inked a seven-year deal to outsource operation of its networks to Ericsson, a contract said to be worth $5 billion. telecom providers should take notice.

Outsourcing 10

Outsourcing Wireless Telecommunications Core Competence 10

Harvard Business Review

APRIL 20, 2015

The AIIB has working capital of $50 billion with potential to go as high as $100 billion – so it is, as yet, smaller than the U.S.-led billion of subscribed capital) or the Asian Development Bank ($162.8 billion of subscribed capital). and Japan are two of the most prominent players to decline membership.

Banking 8

Banking Development Policies Globalization 8