Quote:
Originally Posted by calvin-c
Sounds to me like it's run by an MBA. (Management By A.....)
It's not the first company that's shut down profitable stores. MBA's think they're too important to look at details, and as the article said, the B Dalton line as a whole was losing money-so let's not look at individual stores, just shut them all down. (K-Mart did the same several years ago. Bank of America did it before them. And those are only the ones I know about.)
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Some MBAs are like that but not the good ones! I prefer to blame the employees of the stores for poor execution of the normally dazzling strategy of MBAs.
Also, I should point out that a business can make an accounting profit but an economic loss since accounting profit doesn't take into account the opportunity cost of the capital invested in the business...so for B&N that is probably high single digits. Thus if the store was only making back mid single digits or lower accounting return it was actually making an economic loss.