Harvard Business Review

OCTOBER 13, 2017

. “Contribution margin shows you the aggregate amount of revenue available after variable costs to cover fixed expenses and provide profit to the company,” Knight says. You might think of this as the portion of sales that helps to offset fixed costs. In fact, COGS includes both variable and fixed costs.

Fixed Costs 15

Fixed Costs How To Cost Price 15

Harvard Business Review

DECEMBER 10, 2012

"Leverage" is one of the more interesting and difficult concepts to fully grasp in all of finance, but it's important for anyone that borrows or plans to borrow money to understand. Regardless, a financing component adds another fixed cost. Merriam-Webster's dictionary includes two very different definitions.

Financial Leverage 15

Financial Leverage Film Finance Class 15

Harvard Business Review

JULY 20, 2011

Hence lots of the analytical, linear thinking at GM drove him to distraction; Product Planning analysts in particular: "a department composed of recycled finance types" as he calls them in the book. and those largely fixed costs were more painful and debilitating if GM shrank in the U.S. Outside the U.S.,

Company 14

Company Franchising Fixed Costs Banking 14

Harvard Business Review

JUNE 24, 2013

If you are a growth-obsessed startup and venture capital financing dries up and buyers grow scarce, you can run out of money. If you are inside a big company, profit-draining ventures are typically early sacrifices in corporate cost-cutting exercises. A pure focus on growth carries risks.

Venture Capitalist 11

Venture Capitalist Supply Chain Long-term Christensen 11

Harvard Business Review

MAY 21, 2015

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. This story of disruption should feel familiar.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

MAY 19, 2015

Hailed in the 1960s as bastions of sophisticated management, they used cheap financing to acquire, then rationalize, many family-owned firms. With GE’s recent announcement to split off its remaining finance operations , and Honeywell also considering divestment, the pressure on these groups remains in force.

Engineering 8

Engineering Learning Curve Fixed Costs Finance 8

Harvard Business Review

FEBRUARY 24, 2015

The outsiders provide new blood in support functions such as finance, legal, or administration. 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

Harvard Business Review

DECEMBER 1, 2017

So not only were the current fees too weak to support his fixed costs, but future clients were turned off by his apparently excessive tastes. To address those cost overruns, Colin subleased some space, cancelled a redundant and very expensive trading service, and let one person go.

Strategy 9

Strategy Budgeting Cost Price 9

Harvard Business Review

APRIL 6, 2016

Ageas contributes its expertise in insurance product design, marketing, finance, and risk management, while the partner, often a well-embedded local financial institution, contributes its customer portfolio, distribution channel, brand, and relationships.

Co-Opetition 8

Co-Opetition Operations Cost Technology 8

Harvard Business Review

SEPTEMBER 18, 2013

These businesses have powerful disruptive potential because they can provide consulting at a fraction of the cost of traditional models, largely because they do not need to carry expensive fixed costs like recruiting, training, consultant “beach” time, and expensive real estate. Consulting Disruptive innovation'

McCallum 12

McCallum Consultative Real Estate Disruptive Innovation 12