Harvard Business Review

AUGUST 28, 2018

Product expansion is often used as a path to growth, but it can have unintended consequences for other aspects of the business — including the customer experience central to the company’s value proposition. Each was set loose to develop or acquire products to satisfy those markets.

Productivity 8

Productivity Products Decentralization Resistance 8

Harvard Business Review

MAY 19, 2016

To them, the unit of differentiation is an individual product, service or brand. The heart of differentiation therefore is your company’s ability to develop and promote distinctive products, services, and branded experiences on a consistent basis. But it didn’t quite work out that way.

IAM 11

IAM Productivity Products Company 11

Strategy Driven

MARCH 18, 2011

Further, they need to limit their focus to, at most, six capabilities, and make those capabilities work together as a mutually reinforcing system that perpetuates competitive advantage. Coherent companies direct capital, time, and other resources with purpose to those activities, products, and businesses that will extend their lead.

Resources 52

Resources Industry System Strategy 52

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. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.).

Supply Chain 11

Supply Chain Cost of Capital Transportation Finance 11

Harvard Business Review

DECEMBER 7, 2010

It's a common assumption that offering more features or developing high-quality products and services is expensive, and that the products of these labors can command premiums. The higher the premium, the more consumers are likely to associate quality with the offering. Operating such restaurants is expensive.

Quality 13

Quality Working Capital Price Open-book 13

Harvard Business Review

APRIL 9, 2015

You might also find that your accounts receivable (A/R) — what customers owe you for services rendered or products delivered — rises by $1 million. Working capital requirements are typically built into an Excel model you’ll use to calculate ROI , so you don’t need to worry about them.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

AUGUST 30, 2016

Brick-and-mortar retailers who found it hard to compete on price or variety highlighted that customers could immediately pick up products in their stores instead of waiting for days. Soon it announced a new service, Prime Now , allowing its members to order from over 25,000 products that could be delivered to their doorsteps within two hours.

Advertising 8

Advertising Retail Content Brand 8

Harvard Business Review

OCTOBER 24, 2011

That was to let profitability outweigh passion: "My passion has been to build an enduring company where people were motivated to make great products. The products, not the profits, were the motivation. It had 90 days working capital on hand when he took over — in other words, Apple was only three months away from bankruptcy.

Innovation 15

Innovation Christensen CFO Productivity 15

Harvard Business Review

NOVEMBER 23, 2010

As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations. No ad hominem attacks.

Books 14

Books Guidelines Banking Telecommunications 14

Harvard Business Review

SEPTEMBER 4, 2017

Disruptive products and services were, by definition, cheaper, lower quality, and lower margin. If you were running a profitable business with growth opportunities from an existing customer base, it was unlikely that you’d prioritize building low-quality products for over-served customers at lower margins. They are asset-light.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

SEPTEMBER 5, 2016

Pearson, the educational publisher, measures the efficacy of its products to improve educational outcomes. Finally, some companies have struggled to finance their activities without payment while they work on delivering the results, limiting their ability to innovate too. Making PbR Work. ” Health care.

Incentives 8

Incentives Health Care Education Insurance 8

Harvard Business Review

JANUARY 10, 2013

The opportunity may entail: 1) pioneering a truly innovative product; 2) devising a new business model; 3) creating a better or cheaper version of an existing product; or 4) targeting an existing product to new sets of customers. For example, a new venture might employ a new business model for an innovative product.

Definition 10

Definition Entrepreneur Tactics Business Model 10

Harvard Business Review

JANUARY 22, 2015

For that to happen, consumers must know their demand for a product or service is predictable and likely to go up. This allows you to better manage operating and capital expenses. It can also improve working capital. Consider the Starbucks loyalty card, which consumers buy pre-loaded with cash.

Business Model 8

Business Model Loyalty Brand Price 8

Harvard Business Review

OCTOBER 28, 2011

Moreover, productivity in Chinese agriculture has risen very slowly over the years, so the pressure on food prices is likely to continue. hectares compared to, say, the US's 169 hectares — and they are unsuited to industrial-style food production. Most farms are small — the average farm size in China is 0.6

Price 8

Price Sharpe Banking Class 8

Harvard Business Review

APRIL 4, 2016

It had a shrinking labor force, low labor productivity, low technological competitiveness of Russian exports, and excessive government meddling that constrained investment. It’s time companies ask themselves: Who can actually afford our products now? This will guide how they align sales, marketing, and product strategies.

Depreciation 8

Depreciation B2B Price Crisis 8

Harvard Business Review

JUNE 22, 2015

Then, companies tend to overcompensate by stopping or increasing production lines, and inventory levels can fluctuate wildly. The associated costs can be significant: Lost profits from a stockout equal the gross margin of a product—generally in the range of 20% to 50%. to 2% of the shelf price of most products.

Supply Chain 8

Supply Chain Crisis Transportation Tactics 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. That standard may then become a platform for many firms that produce complementary products and their customers. For more on this, read Dee Hock’s book about starting up the Visa network.). Insight Center.

IPO 8

IPO Succession Technology Software 8

Harvard Business Review

DECEMBER 10, 2012

And pretty much every product you can buy at Best Buy, you can get at Amazon cheaper and with free delivery — so people do. That 5% margin might come not from scale, but from the absence of stores, retail employees, and reduced working capital requirements. It's just not a good decade to be Best Buy.

Price 9

Price Retail Business Model Christensen 9

Harvard Business Review

JULY 24, 2013

No matter what industry it''s in or what product it''s selling, the absolute best way for a startup to obtain the capital it needs to grow is to generate revenue and reinvest profits. Typically, incentives include discounted early access to products, or the opportunity to be a part of something significant.

Incubator 8

Incubator Finance Entrepreneur Industry 8

Harvard Business Review

JANUARY 22, 2013

As a result, charities and social enterprises do not have the cushion of external financing to manage their various capital requirements. Like any small business, they need working capital to balance out the peaks and troughs of their business cycle. As a result, reporting quality and skill levels often vary.

Banking 8

Banking Finance Due Diligence Short-term 8

Harvard Business Review

JULY 10, 2013

He decided to go after Salesforce.com with a Software-as-a-Service Customer Relationship Management product at a price-point that was one sixth of what Salesforce.com, the market leader, charged. He offered the product to small businesses, and customers lapped it up. And play he did. Acquisition offers started floating in.

Incubator 8

Incubator Finance Entrepreneur Case Study 8

Harvard Business Review

JUNE 3, 2016

To address this problem, this retailer planned to tag products at the item level. This would allow it to uniquely identify every product, even distinguishing fashion items by size and color, as well as proving information on its location.

Tools 8

Tools Supply Chain CRM Technology 8

Harvard Business Review

APRIL 5, 2017

For instance, McKinsey considered a smaller ratio of capital expenditure to depreciation to indicate short-term thinking, because it’s assumed that short-term companies will invest less, and less consistently, than other companies. Corporate culture. One way to gauge this is in how a firm treats its workforce in bad times.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

FEBRUARY 17, 2012

Scharpf found that absorbent wood pulp was the biggest raw material manufacturing expense for pads, and wondered if cheaper indigenous materials could be used for local production, and if also coupled with a more efficient distribution network, there might be a real business opportunity given the huge underserved populations.

Franchising 13

Franchising CEO GDP Entrepreneur 13

Harvard Business Review

MARCH 15, 2018

Typical statements portraying men as growth-ambitious and in need of financing include: “ His major problem is to find enough financial capital for the investments to grow. ” “ He owns a big share of the company, and of course he wants to increase the production volume to raise the profitability and expand.”

Venture Capitalist 11

Venture Capitalist Debt to Equity Ratio Real Estate Entrepreneur 11

Harvard Business Review

FEBRUARY 24, 2015

These preparatory steps are of particular importance for carve-outs that are not full-fledged business units with profit & loss responsibility, such as R&D centers or production units whose only customer is their parent. Does the business have an adequate financial structure?

Chemicals 8

Chemicals How To Kahneman Reputation 8

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

APRIL 12, 2017

When a business, rather than a household, faces such volatility, it responds by building up working capital. Financial services providers have the opportunity to innovate, shifting their product set to better enable households to create stability amid volatility. It doesn’t have to be that way.

Health Care 13

Health Care Insurance Video Transportation 13

Harvard Business Review

FEBRUARY 7, 2017

” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). Most important, what are the interventions that will prove most effective in shifting organizations onto a more productive long-term path?

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

JANUARY 9, 2013

He is now pursuing grant funding, which he believes will address these issues and will enable his business to expand its product lines. Should he plow cash into increasing the pay of the disadvantaged people he employs, or build his working capital? Why Has Roberta's Company Scaled While Adam's Hasn't? Or keep margins healthy?

Entrepreneur 9

Entrepreneur Business Model Long-term Goal 9

Harvard Business Review

APRIL 20, 2015

It’s stated mission is to “focus on the development of infrastructure and other productive sectors in Asia.” 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. ” It has attracted 57 founding member countries.

Banking 8

Banking Development Policies Globalization 8

Rajesh Setty

SEPTEMBER 27, 2011

Once the $1 million revenue milestone is crossed, entrepreneurs find it easier to find additional customers, manage working capital, and access funding, whether it is credit or equity. In my roundtables, the vast majority of entrepreneurs I work with are in this rather vulnerable pre $1 million revenue stage.

Entrepreneur 54

Entrepreneur Stage-Gate Finance Incubator 54