Harvard Business Review

JUNE 8, 2018

The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time.

Report 11

Report GAAP Net Present Value CFO 11

Harvard Business Review

FEBRUARY 7, 2011

For decades multinational corporations have poured hundreds of billions of dollars of foreign investments into emerging markets , sometimes preferring the investment climate of "stable" authoritarian regimes over "messy" democracies. Certainly the money at stake is substantial.

NPV 15

NPV Short-term Discount Politics 15

Harvard Business Review

SEPTEMBER 13, 2017

We found that sustainable and deforestation-free practices created significant financial benefits for all players in the industry’s value chain. Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years.

Supply Chain 9

Supply Chain Net Present Value Retail Cost of Capital 9

Harvard Business Review

APRIL 27, 2017

But I long for actions that go beyond admonitions to managers and boards to do better, that give both parties a better chance to stand up to capital markets players, like activist hedge funds, pressuring them to become too short-term focused. The Refresher: Net Present Value. Related Video.

Hedge 12

Hedge Short-term Long-term NPV 12

Harvard Business Review

NOVEMBER 25, 2013

Marketing is in the midst of an ROI revolution. The arrival of advanced analytics and plentiful data have allowed marketers to demonstrate return on investment with a degree of precision that’s never been possible before. To date, however, the reality of marketing analytics has fallen short of the promise.

CFO 9

CFO Short-term Long-term Benchmarking 9

Harvard Business Review

OCTOBER 15, 2012

Applied to open innovation, it means framing conversations so decision-makers understand the future value ("the payoff"), how much investment is needed ("the exercise price"), and the associated risks of bringing an externally sourced technology or concept to market. Net Present Value ). You can invest iteratively.

Innovation 10

Innovation Execution Net Present Value Open-book 10

Harvard Business Review

FEBRUARY 24, 2014

While on the surface, the dirty business of fossil fuels is nothing like Silicon Valley, many in the oil business have moved beyond the standard net present value (NPV) model for assessing the merit of investments. Consider the rapid progress Facebook has made on mobile, not only domestically, but in emerging markets.

NPV 10

NPV Net Present Value Industry Video 10

Harvard Business Review

DECEMBER 2, 2013

Take the example of child sponsorships, highly popular as a marketing tool for many NGOs. This point has gone relatively unheeded in the US and Europe as the economic cycle’s impact on the job market has left people willing to accept any paid work.

Trends 9

Trends Development Net Present Value NGO 9

Harvard Business Review

AUGUST 21, 2015

In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. “The higher the absolute value of the number, the more sensitive customers are to price changes,” explains Avery. What is price elasticity?

Price 8

Price Debt to Equity Ratio Marketing Net Present Value 8

Harvard Business Review

SEPTEMBER 27, 2012

Employees frequently attribute breakdowns to incompetence or bad faith on the part of colleagues in other departments: "Those bozos in headquarters [or finance or marketing] screw everything up." Strategies often falter in execution because of insufficient coordination across the organization.

Strategy 9

Strategy Proposal Guidelines Net Present Value 9

Harvard Business Review

JUNE 22, 2015

Marketers often have to make the call on whether a certain marketing investment is worth the cost. Can you justify the price tag of the ad you want to buy or the marketing campaign you’re hoping to launch next quarter? What is breakeven quantity (BEQ)? ” The company sells each pair of flip flops for $24.00.

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

Harvard Business Review

JUNE 18, 2015

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. Such investments carry significant equity risk, suggesting that equity-based benchmarks like public market equivalents (PMEs) are appropriate.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. With Discovery-Driven Growth , Rita and Ian offer managers everywhere a time-tested blueprint for planning and executing a strategic growth agenda with confidence – in any market.

Innovation 50

Innovation NPV Business Model Constraint 50