Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. These costs are fixed because they will not change with the number of kites sold. Therefore, the unit variable costs to make a single kite is: $50 ($20 in materials and $30 in labor).

Variable Costs 10

Variable Costs Fixed Costs Sales Sales 10

Harvard Business Review

JUNE 14, 2016

As Kern put it, “We always manage costs so closely, but we weren’t really measuring energy — we didn’t know how much we spent! It’s time to move energy into the C-suite so executives can manage this critical component of operational performance in a more strategic way. Insight Center.

Energy 13

Energy Variable Costs Operations Metrics 13

Harvard Business Review

FEBRUARY 7, 2012

In essence, Bedore was saying that Walmart recognizes that it can help take the solar market to scale, thus lowering its costs in the future. It also recognizes that, in the meantime, operational managers will gain valuable experience and knowledge about how to optimize the new power systems.

ROI 15

ROI Variable Costs Energy Scaling 15

Harvard Business Review

MAY 8, 2012

In response, the management team made a counterintuitive move: It outsourced network installation, maintenance, and service to Ericsson, Nokia, and Siemens, and chose IBM to build and manage its IT systems. The vendors for telecom network management were paid only for the capacity utilized by Bharti Airtel, not for the equipment.

Balance Sheet 13

Balance Sheet Variable Costs Telecommunications Fixed Costs 13

Harvard Business Review

MAY 8, 2012

And this charge will, in theory, move managers to make greener choices. Cloud service providers are increasingly proxies for utilities — they require 100% uptime, significant quantities of their own power, and predictable variable cost (which for renewables is nearly zero). Accountability throughout the organization.

Energy 16

Energy Variable Costs Travel Operations 16

Harvard Business Review

JANUARY 27, 2015

The pattern continues today with start-ups that are in the early phases of this journey: Expensify is in the process of disrupting administrative assistants and office managers with an app-based expense reporting product. Amazon’s Jeff Bezos recommends looking for opportunities to convert capital and fixed expenses into variable costs.

Small Business 15

Small Business B2B Variable Costs Scaling 15

Harvard Business Review

MAY 14, 2012

In this modular era for workers, some principles of user design can be applied not only to building websites, but to each of us as managers, free agent workers, and freelancers. Because when everything spent on you is ultimately a variable cost, your ability (or not) to plug in and immediately play goes straight to the bottom line.

User Experience 16

User Experience Variable Costs Compensation Media 16

Harvard Business Review

OCTOBER 29, 2015

It seems that marketing managers seldom question the product sizes they’ve inherited. On a search of EBSCO’s Business Source Complete , I counted no less than 1,890 articles published in marketing journals in the past 10 years about price, but only 22 addressing package or service size issues.

Fixed Costs 14

Fixed Costs Variable Costs Marketing Sales 14

Harvard Business Review

MARCH 14, 2011

And without going into massive detail on economics, I've always liked the really simple logic around renewables — they have zero variable cost (wind, sunshine, and underground heat are free). In short, compared to focusing on energy efficiency, nuclear is really expensive.

Energy 17

Energy Transportation Variable Costs Insurance 17

Harvard Business Review

OCTOBER 11, 2017

In 2016 the Scottish National Health Service (NHS Scotland) piloted an approach to value improvement that took both cost and quality into account and turned the management of value into the basic task of the point-of-care manager. The following tools constitute the basic building blocks of the value-management system.

Manager 8

Manager Hospitality Variable Costs Implementation 8

Harvard Business Review

MAY 9, 2013

In every part of the industry, the open innovation model is changing the economics of advertising by switching significant fixed costs to variable costs and sourcing creative from more relevant and, many times, lower cost sources.

Advertising 14

Advertising Variable Costs Media Fixed Costs 14

Harvard Business Review

JUNE 4, 2015

Since theme parks are high fixed cost/low variable cost entities, revenue from discount-enticed new customers is virtually all profit… free money. Managers are often wary of raising prices during times of high demand because they fear a consumer backlash. This would result in growth. Yup, I think so.

Variable Costs 12

Variable Costs Fixed Costs Implementation Travel 12

Harvard Business Review

SEPTEMBER 4, 2013

But in reality most companies, particularly those that manage to last for any reasonable period of time, do day-to-day innovation extremely well. It''s not like large companies never manage to do it. Most large corporations will admit to struggling with innovation. Your television picture quality is significantly better.

Fixed Costs 8

Fixed Costs Variable Costs Assets Banking 8

Harvard Business Review

AUGUST 3, 2018

The company should separately present fixed and variable costs, and to the extent possible, detail the variable costs associated with a unit of activity. For example, Twitter provides “cost per ad engagement.” We must acknowledge at least four potential criticisms against our proposed blueprint.

Variable Costs 8

Variable Costs Revenue Assets Accounts 8

Harvard Business Review

APRIL 5, 2013

Dynamic pricing makes sense for baseball as it shares key qualities that have enabled other industries (airlines, hotels, and rental cars) to prosper from this strategy: fixed capacity, low variable costs, and a "product" that expires at a certain time. Just as important, revenue doesn''t solely come from ticket sales.

Variable Costs 8

Variable Costs Travel Revenue Sales 8

Harvard Business Review

OCTOBER 25, 2017

Projects were identified as the best management structure to break up silos and encourage teams to work transversally (end-to-end) in the organization. It is easier to price a product, for which most of the fixed and variable costs are known, than a project, which is influenced by many external factors. Pricing model.

Revenue 8

Revenue Variable Costs Sales Sales 8

Harvard Business Review

JULY 27, 2017

To fill the void and build such a new BMW startup unit, Gimmy partnered with an experienced innovation manager from BMW, Matthias Meyer. The two managers secured buy-in from top BMW R&D executives to launch such a unit, and they received top-management approval for the unit in July 2014.

Fixed Costs 8

Fixed Costs Variable Costs Administration Media 8

Harvard Business Review

MAY 7, 2015

“This is a key metric that all senior managers should be monitoring. “New product development teams also use EVC to make sure that they don’t load up new products with unnecessary features and benefits that add variable costs but little value to the customer,” says Avery. ” explains Avery.

Benefits 14

Benefits Variable Costs Hospitality Marketing 14

Harvard Business Review

NOVEMBER 30, 2018

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral.

Fixed Costs 14

Fixed Costs Assets Cash Flow Variable Costs 14

Harvard Business Review

SEPTEMBER 25, 2012

Upfront costs are falling, which makes the ongoing variable cost of renewables — that is, zero — even more attractive. Better yet, zero is a predictable cost, which CFOs love. This reality changes the calculus on green energy for homeowners, governments and corporations alike.

Energy 10

Energy Variable Costs Media Revenue 10

Harvard Business Review

OCTOBER 8, 2013

And because it focuses on acute episodes, REBP acts as a necessary complement to payment and care-delivery models designed to improve prevention and chronic-care management. In short, REBP can serve as a bridge to more comprehensive total-cost-of-care approaches. pharmaceuticals, physical therapy, skilled nursing facility care).

Hospitality 9

Hospitality Variable Costs Implementation Administration 9