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A daily bite-size selection of top business content.
PM edition. Issue number 787
Latest 10 stories. Click the button for more.
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“Build a company that benefits from the model getting better and better ... I encourage people to be aligned with that.”
- Sam Altman

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Our Spotify podcast explores why most mergers and acquisitions fail to create value and provides a practical guide to performing a strategic due diligence process.
The hosts The hosts highlight common pitfalls like overpaying for acquisitions, failing to understand the true value of a deal, and neglecting to account for future uncertainties. They emphasize that a successful deal depends on a clear strategic rationale, a thorough understanding of the target's competitive position, and a comprehensive assessment of potential risks. They then present a four-stage approach to strategic due diligence that incorporates scenario planning and probabilistic simulations to quantify uncertainty and guide decision-making. Finally, they discuss how to navigate deal-making during economic downturns and stress the importance of securing existing businesses, revisiting return measures, prioritizing potential targets, and factoring in potential delays.
Read more from the original article.

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“Building a business - man that's the brass ring: the rules still apply. You can do it faster than ever before and better than ever before, but you still have to build a business.”
- Sam Altman
CEO, OpenAI

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"We're making this analogy that AI is the new electricity. Electricity transformed industries: agriculture, transportation, communication, manufacturing."
-Andrew Ng

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“Is it perfect? No. Is it as good as my executive team? No. Is it really, really valuable, so valuable that I talk to ChatGPT every single day? Yes.”
- Jeff Maggioncalda, CEO, Coursera

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Our Spotify podcast explores the relationship between Return on Net Assets (RONA) and growth, arguing that both are essential for shareholder value creation. The hosts contend that focusing solely on one metric can be detrimental, and propose a framework for evaluating business portfolios based on their RONA and growth profiles. This approach involves plotting business units on a "market-cap curve" to identify value-accretive and value-destructive segments.
The podcast also addresses the impact of economic downturns on portfolio management, suggesting strategies for both offensive and defensive approaches. The core argument is that companies should aim to achieve a balance between RONA and growth, acknowledging that both are essential for long-term shareholder value creation.
Read more from the original article - https://globaladvisors.biz/2020/08/04/strategy-tools-growth-profit-or-returns/

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"An organisation, no matter how well designed, is only as good as the people who live and work in it." - Dee Hock

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"The keystone of successful business is cooperation. Friction retards progress." - James Cash Penney

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"Communication - the human connection - is the key to personal and career success." - Paul J. Meyer

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"You may be disappointed if you fail, but you are doomed if you don't try". - Beverly Sills

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