Harvard Business Review

JUNE 22, 2015

.” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. The BEQ will be present on both sides of this equation because the number of units sold affects both the revenue the firm earns as well as the costs it must incur to earn it.

Variable Costs 15

Variable Costs Fixed Costs Advertising ROI 15

Harvard Business Review

MAY 2, 2013

for instance, even insured patients pay an average of 20% of drug prices out-of-pocket, meaning these drugs can cost a patient $20,000 a year. The key components that lead to a solution are as follows: Understand the dynamics of a high fixed cost/low variable cost industry.

Variable Costs 10

Variable Costs Fixed Costs Cash Flow Revenue 10

Harvard Business Review

APRIL 5, 2017

McKinsey’s margin growth measure classified firms that report higher earnings growth than revenue growth as myopic. However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output.

Metrics 11

Metrics Cash Flow Revenue Compensation 11

Harvard Business Review

FEBRUARY 6, 2018

While Amazon’s collaboration with Berkshire Hathaway and JP Morgan Chase would obviously leverage the purchasing power of three massive employers and could lead to innovative insurance models, it seems that the bigger opportunity would be in improving how care is delivered to patients.

Hospitality 15

Hospitality Operations Insurance Fixed Costs 15

Harvard Business Review

APRIL 6, 2016

The integrated carrier gets incremental revenues from its excess capacity. For example, Lycamobile, a big mobile VNO, focuses on expatriate communities looking for low-cost international pay-as-you-go calls in 19 countries. The model can be a win-win as long as the two companies address different customer segments.

Assets 12

Assets Operations Insurance Telecommunications 12

Harvard Business Review

MARCH 1, 2018

copays and coinsurance) that insurers require patients to pay. A growing body of research says that insurers raise out-of-pocket costs in part to avoid sick enrollees. Insurance markets are failing to deliver. This flies in the face of how insurance should work. Insurance exists primarily for large losses.

Insurance 8

Insurance Marketing Administration Fixed Costs 8

Harvard Business Review

NOVEMBER 6, 2013

According to data published by the Kaiser Family Foundation, workers’ earnings rose by 47% from 1999 to 2012, but their contribution to health insurance premiums during that time went up by 180%. Health insurance premiums rose four and half times faster than the rate of inflation over the same period. This trend is unsustainable.

Hospitality 8

Hospitality Insurance Fixed Costs Accounts 8