article thumbnail

Walmart Broadens ROI for Green Power

Harvard Business Review

Second, Bedore spoke about how Walmart thinks about its investments in green power: "There is an ROI calculation on all sustainability investments like on all projects, but.we The company can also reap the immediate variable cost benefits of free power. EPA's latest list of the top 50 renewable energy buyers.

ROI 15
article thumbnail

An HBR Refresher on Breakeven Quantity

Harvard Business Review

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. The variable costs to make each pair of flip flops are $14.00.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

More CEOs Should Tell Anti-Environment Shareholders to Buzz Off

Harvard Business Review

As he put it, “If you only want me to make decisions that have a clear ROI, then you should get out of the stock.” ” Cook’s gut reaction to defend actions that don’t have a clear ROI is admirable — and he has the legal right to make strategic decisions and investments, as does every CEO.

ROI 10
article thumbnail

How Exactly Will We Move Away from Fossil Fuels?

Harvard Business Review

But it is tough for public companies in particular to spend money when they think it doesn’t pay back in traditional ROI terms. Ultimately, second path is clearly the most likely, and the clean economy will dominate over time on purely economic terms — a variable cost of basically zero for renewable energy will win out.

Assets 14
article thumbnail

Who Rules the Web Now?

Harvard Business Review

As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero. Adding a profile on Facebook has little to no impact on Facebook's operating costs. Greater scale bestows greater competitive advantage.