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Economies of Scope - Tom Spencer consulting blog

Tom Spencer

Economies of scope exist where a firm can produce two products at a lower per unit cost than would be possible if it produced only the one. If properly understood, economies of scope could be used by SMEs to drive profit growth and reduce the risk associated with product failure. Importance. burgers, fries, sundaes and salads).

Cash Flow 117
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China Faces "Minsky Moment" on Ponzi Financing

MishTalk

Gross Domestic Product (GDP) growth to 5.0% China’s private sector debt has increased from 115% of GDP in 2007 to 193% at the end of 2013. There is evidence that this debt growth has become excessive and non-productive. Based on our analysis, our baseline case is that China may slow from the current level of 7.7% trillion GDP.

Finance 75
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Housing Starts in China Plunge 25%; Did China's Property Bubble Finally Burst?

MishTalk

Economic data released on Tuesday also included a deceleration in industrial production, with growth in steel and cement output slowing to a crawl. Property activity indicators have been trending lower since mid-2013, and the downturn in the sector now threatens to turn into a bust.

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The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business

For example, the Lordstown, Ohio, factory that makes the Chevy Cruze is running one shift a day, down from three a few years ago, and last year produced 180,000 vehicles, down from 248,000 in 2013. Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. When and how are the best ways to do it?

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2016 ECS Value Creators Report: Building Endurance

BCG

*Japanese companies’ average annual TSR of 14% in the five-year period from 2011 through 2015 is generated by extremely strong margin increases and cash flows. This performance has propelled Japanese companies’ ascent in the TSR ranking from no representation in the top quartile in 2013 to six companies in 2015.

Report 40
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What GE’s Board Could Have Done Differently

Harvard Business

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. in 2013 to 3.7 Because of these dubious decisions, GE’s ratio of debt to earnings has soared from 1.5

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5 Ways the Best Companies Close the Strategy-Execution Gap

Harvard Business

Following the company’s go-private transaction in October 2013 , Dell put in place new models for strategy development, resource allocation, and performance management. Management forecasts the future coupon payments (or cash flows) associated with various strategies and then selects the one that has the highest discounted value.