Harvard Business Review

APRIL 6, 2016

In many industries, the capital required to build an asset of minimum efficient scale is growing. For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. Model 2: Asset capacity pooling.

Assets 12

Assets Operations Insurance Telecommunications 12

Harvard Business Review

NOVEMBER 15, 2018

hospitals and health systems experienced an average 39% reduction in their operating margins from 2015 to 2017. This was because their expenses grew faster than their revenues, despite cost-cutting initiatives. Yet whether economies of scale truly exist in hospital operations remains questionable. PM Images/Getty Images.

Hospitality 14

Hospitality Manager Nonprofit Staffing 14

Harvard Business Review

OCTOBER 5, 2017

It could be because “software development typically requires large upfront fixed costs,” meaning that firms that are already pretty large are the ones who can afford to invest in it. Perhaps, as OECD economist Chiara Criscuolo wrote in 2015, “ Some firms clearly ‘get it’ and others don’t.”

Software 8

Software Fixed Costs Scaling Revenue 8

Harvard Business Review

JULY 27, 2017

From 2012 to 2015, the number of global corporate venture capital deals almost doubled, and their investments quadrupled, to $29.1 Among the 30 top companies in seven of the largest industries, almost half had a VC-fueled accelerator in 2015, up from just 2% in 2010. Could these experiences be replicated and scaled up at BMW?

Fixed Costs 8

Fixed Costs Variable Costs Administration Media 8

Harvard Business Review

MAY 13, 2016

Imagine eliminating all of the redundancies in fixed costs. The Kansas City Royals’ 2015 team payroll was over $110 million. The budget for any run-of-the-mill Hollywood action movie is three times the scale of what would be required. Consolidating databases and information and talent. ” people will say.

Nonprofit 13

Nonprofit Diversity Fixed Costs Operations 13

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