Remove Fixed Costs Remove Sales Remove Scaling
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Why HR Really Does Add Value

Harvard Business Review

By utilizing basic HR tools like business process redesign, organizational redesign, job redesign and competency model development, we were able to more effectively align our selling and support processes to the changing business realities of large-scale farming and construction. Not all fixed cost reductions were people.

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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. retail sales (representing consumer demand) declined by 12%; yet U.S.

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Telecom's Competitive Solution: Outsourcing?

Harvard Business Review

Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Through the outsourcing arrangements, Bharti dramatically lowered its costs while ensuring high quality for customers, since vendors had world-class competencies in their domains.

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The Company Outsmarting Big Pharma in Africa

Harvard Business Review

Cipla, an India-based producer of low cost antiretroviral drugs (ARVs) is one of the biggest success stories in the pharma industry. It has doubled its market cap in the five years and sales reached almost $1.5 billion in the year ended March 2012, up close to ten times since 2000.

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Who Rules the Web Now?

Harvard Business Review

A virtuous cycle is baked into their strategy: use these resources to achieve scale in ways that help achieve even more scale. Greater scale bestows greater competitive advantage. As they pursue their quest for greater scale, they are poised to bring the scale dynamics of digital businesses to offline activities.

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4 Types of Activist Investors and How to Spot Them

Harvard Business Review

Activists look to see if opponents could be combined to form a more productive single entity, one that can capitalize on economies of scale and monopolize a given sector. However, free cash flow per share remained impressive at both companies, and fixed cost ratios remained somewhat intact.

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21 Types of Employment: Your Hire-To-Retire Guide

AIHR

When to offer it: If your company has fluctuating workloads or seasonal needs or has to reduce fixed labor costs. Commission-based employment This arrangement bases a worker’s compensation primarily on the sales or revenue they generate. Cost management: You must carefully weigh the costs of different employment types.