Abstract
Marcel Proust became famous thanks to his monumental work In Search of Lost Time. In this chapter we set out in search of profits.
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Notes
- 1.
- 2.
- 3.
David Ogilvy [1].
- 4.
Study conducted by Simon-Kucher & Partners, Milan 2019.
- 5.
We note that the role of value-added taxes was not addressed in this study or the subsequent ones. That can lead to some skewing of results, but not at a magnitude that would fundamentally change the misconceotions and incorrect estimates.
- 6.
19.97%, to be exact.
- 7.
- 8.
We looked for similar studies in the following countries: UK, France, Spain, Japan, Netherlands, Belgium, Poland, Sweden, Denmark.
- 9.
See “Perils of Perception 2018,” IPSOS, https://www.ipsos.com/en-my/perils-perception-2018.
- 10.
See Hans Rosling [2].
- 11.
This data set is available for the years 2003 to 2010, after 2010 the publication was discontinued.
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R2 = 0.694, overall significance 99%.
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R2 = 0.718, overall significance 90%.
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- 15.
https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-KfW-Mittelstandspanel/Mittelstandspanel-2017-%E2%80%93-Tabellenband.pdf. The original numbers were pre-tax. They were adjusted using a tax rate of 30%.
- 16.
See “Top 500 F&E: Wer investiert am meisten in Innovationen,” EY, July 2019.
- 17.
Numbers are for 2017.
- 18.
- 19.
Fortune, August 10, 2020, 2020; https://fortune.com/global500/.
- 20.
Weighted Average Cost of Capital, see Chap. 1.
- 21.
- 22.
Fortune, July 1, 2019, p. F25, please observe that only the 455 companies with profits are shown.
- 23.
- 24.
See “Superstars—The Dynamics of Firms, Sectors, and Cities Leading the Global Economy,” Discussion Paper, McKinsey Global Institute, October 2018. See also the summary version at: https://www.mckinsey.com/featured-insights/innovation-and-growth/what-every-ceo-needs-to-know-about-superstar-companies.
- 25.
The arithmetic mean and the median are close to each other in this case, because limiting the interval ti between 0 and 5 excludes the possibility of outliers.
- 26.
- 27.
- 28.
Fortune, July 1, 2019 for American 500 and Fortune, August 26, 2019 for Global 500.
- 29.
See Hermann Simon [3]
- 30.
Hermann Simon, Hidden Champions—The New Game in the Chinese Century, New York: Springer 2021.
- 31.
Sources include reports in the Bundesanzeiger, various corporate reports, and the newspapers FAZ and Handelsblatt.
- 32.
The data for Chemetall are for the 2016 fiscal year. The company was acquired by BASF in 2017 and consolidated into BASF’s group results. The data for Eppendorf are from 2016. The data for Motel One and Weng Fine Art are from 2018.
- 33.
See “Erfolgskennziffern deutscher Unternehmen,” Deutsche Bundesbank.
- 34.
- 35.
There are numerous financial formulas for quantifying these risk costs, but they are inevitably based on averages and historical values and thus relatively useless when applied to an individual case.
References
Ogilvy, D. (1983). Ogilvy on Advertising, New York: Random House, 74.
Rosling, H. (2018). Factfulness—Wie wir lernen, die Welt so zu sehen, wie sie ist, Berlin: Ullstein.
Simon, H. (2009). Hidden Champions of the 21st Century, New York: Springer.
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Simon, H. (2021). In Search of Profit. In: True Profit!. Copernicus, Cham. https://doi.org/10.1007/978-3-030-76702-0_2
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