Thom Lutz started a retail clothing business two years ago. Lutz’s first year was very successful, but sales dropped 50 percent in the second year. A friend who is a business consultant analyzed Lutz’s business and came up with two basic reasons for the decline in sales: (1) Lutz has been placing orders late in each season, and (2) shipments of clothing have been arriving late and in poor condition. What measures can Lutz take to improve his business and persuade customers to return?

Thom Lutz started a retail clothing business two years ago. Lutz’s first year was very successful, but sales dropped 50 percent in the second year. A friend who is a business consultant analyzed Lutz’s business and came up with two basic reasons for the decline in sales: (1) Lutz has been placing orders late in each season, and (2) shipments of clothing have been arriving late and in poor condition. What measures can Lutz take to improve his business and persuade customers to return?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter24: Bankruptcy, Reorganization, And Liquidation

Section: Chapter Questions

Problem 2MC

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