Harvard Business Review

OCTOBER 6, 2014

If round after round of profit warnings was not enough – group operating profits fell 20% between 2011 and 2013 and are likely to fall another 30% in 2014 — the company recently announced it had overstated its first-half profit by about $400 million. Aldi UK sales grew from $6.3 billion to $8.6 The answer is simple – selling more.

Reorganization 15

Reorganization Fixed Costs Transportation Sales 15

Harvard Business Review

NOVEMBER 30, 2018

Car sales in the U.S. But car sales are now probably past a cyclical peak, not only in the U.S. For example, the Lordstown, Ohio, factory that makes the Chevy Cruze is running one shift a day, down from three a few years ago, and last year produced 180,000 vehicles, down from 248,000 in 2013.

Fixed Costs 14

Fixed Costs Assets Cash Flow Variable Costs 14

Harvard Business Review

OCTOBER 7, 2015

According to Schulte, Roth & Zabel’s Activist Investing 2015 Annual Review, a total of 344 companies worldwide were subjected to activist demands in 2014, up 18% from the 291 recorded in 2013. However, free cash flow per share remained impressive at both companies, and fixed cost ratios remained somewhat intact.

Balance Sheet 12

Balance Sheet Cash Flow Revenue Reorganization 12

Harvard Business Review

JANUARY 5, 2017

Once a “connected” product draws in users, those users effectively become the sales force. The media’s bias toward big events stems from three features of its economics: Fixed costs. The cost of covering a golf tournament doesn’t depend on whether Tiger Woods plays. Expectations matter.

Media 15

Media Advertising Fixed Costs Marketing 15