Strategy Driven

AUGUST 12, 2024

Initial Franchise Fees Initial fees are the one-time upfront costs that a business owner pays to gain the rights to operate under an established brand. This includes marketing efforts that help maintain brand recognition, operational support to ensure consistency across all locations, and product development to keep the business competitive.

Franchising 97

Franchising Cost Budgeting Advertising 97

Strategy Driven

AUGUST 29, 2024

Many businesses face challenges in managing their finances effectively, leading to cash flow problems and reduced profitability. Enhance Cash Flow Management Effective cash flow management is crucial for any organization striving for financial efficiency. Excess inventory ties up cash that could be better utilized elsewhere.

Efficiency 94

Efficiency Supply Chain Organization Finance 94

Strategy Driven

MARCH 5, 2024

Longer Repayment Terms : Some lenders offer extended repayment terms of up to 5 –7 years, providing businesses with manageable monthly payments and preserving cash flow for other operational needs.

Finance 101

Finance Insurance Working Capital Transportation 101

Strategy Driven

JANUARY 20, 2020

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 65

Due Diligence Real Estate Succession Working Capital 65

Innovation Excellence

JULY 16, 2020

Brick & Mortar operations will slim down, reducing the latitude for Marketing experimentation in B&M vs. today. On the other hand, the caveat is that Online will continue to operate with minimum working capital & continental reach, to maximize ROI. We need to be digital first, and especially mobile first.

Supply Chain 60

Supply Chain ROI Working Capital Media 60

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

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 28

Supply Chain Crisis Marketing Working Capital 28

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 51

Resources Industry System Strategy 51

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 15

Books Banking Working Capital Finance 15

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 14

Supply Chain Cost of Capital Transportation Finance 14

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 15

Books Guidelines Banking Telecommunications 15

Harvard Business Review

DECEMBER 7, 2010

Since it's beginning in 2003, Davide Oldani's Ristorante D'O has managed to stay profitable in a sustained fashion. Unlike Ferran Adria's El Bulli in Catalonia, D'O doesn't operate at a loss. Operating such restaurants is expensive. Oldani has created a Michelin restaurant for the masses by working on two fronts.

Quality 15

Quality Working Capital Price Open-book 15

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 9

Metrics Working Capital Restructuring Banking 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. The vendors for telecom network management were paid only for the capacity utilized by Bharti Airtel, not for the equipment. In the U.S., telecom providers should take notice.

Outsourcing 12

Outsourcing Wireless Telecommunications Core Competence 12

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 11

EPS Metrics Short-term Depreciation 11

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 10

Banking Retail Competitive Advantage Report 10

Harvard Business Review

FEBRUARY 7, 2017

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. This has long seemed intuitively true to us. The returns to society and the overall economy were equally impressive.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

APRIL 9, 2015

Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Income statements almost always include an allowance for depreciation of capital assets. Once the plant starts operating, for instance, you might need to spend an additional $2 million on inventory.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

DECEMBER 10, 2012

The article, " Surviving Disruption ," represents our first attempt in two decades to outline the other side of disruption — how to manage legacy businesses. To survive disruption, managers of legacy businesses need to change the game. For Best Buy, turning to fight their disruptor head on is asking for swift defeat.

Price 12

Price Retail Business Model Christensen 12

Harvard Business Review

MARCH 15, 2018

This notion is reflected by statements such as “We have seen similar examples of driven, competent men who take risks and manage to make it thrive,” and “He has proven to sustain his persistence all the way.” Operating margin: earnings per sales, which indicates the entrepreneur’s ability to earn revenue.

Venture Capitalist 14

Venture Capitalist Debt to Equity Ratio Real Estate Entrepreneur 14

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. Managing Emotion Effectively Keeps Business On Track. In turn, SHE reinvests its profits in new geographies or other disruptive enterprises.

Franchising 16

Franchising CEO GDP Entrepreneur 16

Harvard Business Review

JANUARY 9, 2013

They need new executive talent, infusions of capital, and systems capable of supporting an expanding organization. For-profit companies in the same situation can turn to a robust venture capital community that is focused on providing the management, financing and strategy that innovative companies need to scale up quickly.

Finance 11

Finance Franchising Business Model Analysis 11

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 3, 2016

We know that when IT projects fail, it is usually not because the technology didn’t work (although this can sometimes be the case), but because the changes required at an organizational and employee level weren’t managed effectively. Operations in a Connected World. Insight Center. Sponsored by Accenture.

Tools 8

Tools Supply Chain CRM Technology 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

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

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 15

Due Diligence Magazine SWOT Hammer 15

Harvard Business Review

SEPTEMBER 4, 2017

The answer may be that the innovator’s dilemma is no longer the only paradox at play in innovation management. For managers of industrial-era organizations, the economics of investing in disruptive opportunities were vexing. So naturally, as a manager, you left such innovations to new entrants. The Old Dilemma.

Christensen 8

Christensen Finance Innovation B2B 8

Harvard Business Review

MARCH 28, 2016

Both associations managed their brands and ran the clearing and settlement systems for banks that issued cards or helped merchants accept cards. These card networks were allowed to charge their members just enough to cover cost and provide working capital. MasterCard IPO’d in 2006, and Visa followed two years later.

IPO 8

IPO Succession Technology Software 8