What would happen if a CEO publicly declared that he is against innovation and would never invest a dime on it again? He would probably be fired right away, while the company’s stock plunged! Not to mention, his statement would be quoted in B-schools for decades as an example of business myopia or, in more mundane terms, idiocy. Why? […]
008/366 – Einsichten / Insights, by Boris Thaser, under a CC-BY-2.0 licence
A famous philosopher once said that if you do not know who the patsy is at a poker table, you are the patsy. In card games, relying on maximising your winnings when you are dealt good hands and limiting your losses when you are dealt bad ones serves […]
When one company acquires or merges with another one in search of revenue synergies, they both face greater risks than if they were aiming at cost synergies: while cost synergies can be forced top-down, revenue synergies depend on customers’ reactions.
Business leaders often equate “risk” to “things can go wrong”. This notion is reinforced by stories of catastrophes (like the merger of AOL […]
Choosing which markets to compete in is one of the most critical decisions business leaders make. Several studies have demonstrated that more than half of a company’s long-term growth and value creation depend on being in the right markets. It is also a difficult decision and hence could well be a source of strategic advantage.
Committing to one market and […]
“Can constant drastic changes in strategy be compatible with sustained growth?” This was the question we put to a panel of founding CEOs of growth companies and a group of MBA students at Harvard Business School last month.
Growth is one of the main challenges faced by executives. “Today’s business environment requires managers to adapt their business models on an ongoing […]