Remove Fixed Costs Remove Government Remove Sales
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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

Here’s a hypothetical illustration of the bullwhip effect: A retailer might experience an X% drop in sales owing to some external event. As a result, it might reason that future sales will be low, too, because most forecasts are based on past experience. Senate Banking Committee to save his competitors.

Sales 15
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When Cost-Plus Pricing Is a Good Idea

Harvard Business Review

The seller calculates all costs, fixed and variable, that have been or will be incurred in manufacturing the product, and then applies a markup percentage to these costs to estimate the asking price. The markup is stipulated by the buyer, as is often the case with government contracts, or it can be chosen by the manager. (I

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Recession-Proof Your L&D Strategies and Budget For Future Success

AIHR

Various models have emerged that calculates the impact of learning spend and equate it to productivity, customer satisfaction, increased sales or improvement in revenue. They also have a manufacturing plant in Indiana, a sales division spread across different regions and a head office in New York.

Sales 98
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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

government. Car sales in the U.S. Car sales in the U.S. But car sales are now probably past a cyclical peak, not only in the U.S. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. GM has good immediate reasons for its decisions.

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4 Types of Activist Investors and How to Spot Them

Harvard Business Review

However, free cash flow per share remained impressive at both companies, and fixed cost ratios remained somewhat intact. It displayed a 10% decrease in revenue growth while the other unit exhibited sales growth of 75%. In recent years, both companies exhibited compressed margins, flat revenue growth, and lagging returns.

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Why Mergers Like the At&T-Time Warner Deal Should Go Through

Harvard Business Review

Last Wednesday, government sources claimed the Department of Justice’s antitrust division was demanding that AT&T sell Turner Broadcasting channels, including CNN, as a condition for approving the deal — and that AT&T had refused, setting up a possible court challenge. Britta Knappmann/EyeEm/Getty Images.

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You Bought It. Does That Make it Yours to Sell?

Harvard Business Review

sale or other transfer of ownership." But since books have low marginal cost (printing and distribution) relative to fixed costs (research, writing, and editing), Wiley can profitably sell its textbooks there at lower prices. Originally a judge-made principle, "first sale" was codified in a 1909 revision of U.S.

Sales 19