Harvard Business Review

APRIL 16, 2012

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. How Should You Approach Strategic Cash?

Company 15

Company Cost of Capital Finance Long-term 15

Harvard Business Review

APRIL 23, 2015

The basic principles are: If you want to earn above the cost of capital (if you want to create value), you must get a higher return on your efforts than the average competitor. To get a higher return than the average competitor, you must have an advantage or you must compete in an unusually attractive sector. Competition Strategy'

Strategy 8

Strategy Porter Price Cost of Capital 8

Harvard Business Review

MAY 25, 2018

Companies are seeking to be quicker on their feet and more innovative. Tencent has expanded its partnership with JD.com step by step, beginning with an equity investment, moving into data sharing for better customer insight, and then making joint investments totaling more than $6 billion in e-tailer Vipshop and mall operator Wanda Commercial.

Incubator 8

Incubator Insurance Cost of Capital Competitive Advantage 8

Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 13

Industry Company GDP Bottom-up 13

Harvard Business Review

NOVEMBER 7, 2012

Rappaport showed that, in setting a price, the market offers a clear signal that can inform operational and financial decisions. Disruptive Innovation Comes to Health Care. Think of this step as determining where the bar is set for a high jumper; you simply want to understand what the market anticipates. More >>.

Price 8

Price Analysis Cost of Capital Disruptive Innovation 8

Harvard Business Review

OCTOBER 21, 2016

This can disrupt a firm’s ability to operate on schedule and budget. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. Fostering innovation. Investing in sustainability is not only a risk management tool; it can also drive innovation.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

JULY 31, 2017

As incumbents fight back with their own digital strategies, our research shows that they often trigger a second wave of competition, closer to the notion of Schumpeterian imitation where incumbents start themselves to innovate, sometimes aggressively, against the threat of entrants slashing yet more revenue and profit growth.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

APRIL 26, 2017

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. This amounts to putting a toe in the water, while keeping current operations relatively separate and pristine.

Banking 12

Banking Stage-Gate Credit Scoring Competitive Advantage 12

Harvard Business Review

JUNE 27, 2012

We have been studying companies that seem to be able to endure and adapt for longer periods of time, and have come to the conclusion that the extinction of once-great innovators is less often caused by technological or market evolution, and more often by self-inflicted wounds and slow cycles of decision and adaptation.

Creativity 15

Creativity Long-term Kotter Cost of Capital 15

Harvard Business Review

MAY 14, 2013

Europe''s $100 billion carbon market, an innovative force in the powerful carbon-reduction approach known as cap and trade, has ceased to function the way it''s supposed to. Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital.

Price 9

Price Energy Politics Marketing 9

Strategy Driven

SEPTEMBER 9, 2011

Many people do not typically think of metrics and accounting as roadblocks to innovation, yet you call these out as potential problem areas. The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MARCH 1, 2017

But the solution to this innovation logjam has emerged: blockchain. Most firms cite opportunities to reduce friction and costs. After all, most financial intermediaries themselves rely on a dizzying, complex, and costly array of intermediaries to run their own operations. Distributed Database.

Finance 8

Finance IPO Banking Venture Capitalist 8