Thus Roger Martin in his classic article, The Age of Customer Capitalism, (HBR, Jan 2010), shows how a focus on maximizing profitability tends to lead companies to do things that actually undermine long-term profitability.
In the UK it fell 26%, and the US 18%, suggesting that the long-term profitability of both units is being squeezed.
It is regarded as one of the most benign employers in Germany, which has not seemed to affect its long-term profitability.
By compensating executives for the brilliance of their deals, rather than their long-term profitability, Enron created the corporate equivalent of a boiler-room scam shop.
Following that consultation, the FSA announced this week that bankers' pay deals were to be linked more closely with long-term profitability under new rules.
Even if steel companies succeed in passing on all these added costs to customers, they could face a bigger threat to their long-term profitability.
If management were to continue chasing subscribers by any means necessary, this could hurt long-term profitability, and cause a wide range of earnings estimates, says J.
First, this can considerably extend vehicle life and reduce maintenance costs, offering a major long-term profitability incentive for trucking operators to accept large upfront LNG vehicle premiums.
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Enron, for instance, sold a lot of those sorts of derivatives, booking profits on them straight away even though there was a huge question-mark over their long-term profitability.
The bull market of the Nineties was fueled by rising profits, but it's getting harder and harder to make a case for long-term profitability compounding at more than 4% per annum.
The LinkedIn IPO was followed by a public market launch for Pandora, the Internet radio pioneer, which, alas, quickly sank below its IPO price on concerns about the long-term profitability potential for its business model.
Mr Davies said the dairy industry needed "profitability and long-term stability".
Profits at the big banks fell last year, and, as the International Business Times reports, profitability is on a long-term downward trend.
Falling short may mean limiting profitability and could jeopardize the long-term health of the business.
So there would be some decline in current profitability with the aim of improving long term.
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However, the classic conundrum is how to properly balance the long-term potential of the company with near term profitability.
But at least one source who has seen the building's books says the buyers will be buying a small amount of negative cash flow while making a long-term bet on the building's eventual profitability as the most prominent and expensive asset in midtown Manhattan.
And, sometimes, a slump in profitability may not be representative of long-term potential.
Last year, SAB had said that consolidation in China was a long-term trend and would lead to "greater industry profitability".
We will continue to make investment decisions in light of long-term market leadership considerations rather than short-term profitability considerations or short-term Wall Street reactions.
As economic improvements start pushing interest rates higher in the long-term, Wells should be able to achieve some impressive profitability levels.
While our financial results were disappointing, the decisions we made position Take-Two for growth and profitability both this year and over the long-term.
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While this could be beneficial in the long run, it could delay Glu's ability to achieve profitability in the near term.
In the financial sector it is necessary to put an end to the short-term thinking that unduly focuses on hitting quarterly earnings targets instead of aiming for long-range profitability and growth.
For the Telecommunications Systems Business, sales and profitability improved year-on-year due to the expansion of its 4G Long-term Evolution (LTE) business and 3G network upgrade business.
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They realize that many players have a small window for NFL fame and fortune while incurring considerable risk of injury (short term and long term), whereas the seemingly never-ending flow of media revenue serves to risklessly preserve and protect the profitability and franchise values of NFL teams.
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