Mr. Blatt: Expert consultants are sought after by management because they help executives make better decisions. That...
brian.eugene.smith@gmail.comDecember 13, 2022
Answer E
Answer choice says new stores are 'only marginally profitable at first.' In today's business world with everything being about results right now and the stores only being marginally profitable the consultants hired could be blamed for the less than stellar performance upon opening. That too would solve the blame question. Can someone please address why that is not taken into account?
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Hi, I think you're inserting your own thinking here. I completely disagree that lack of immediate wild profitability is a failure, or less than stellar. The openings are still profitable, and the answer choice gives us no reason to think that is not a good thing.
That said, if we do want to bring in our own thinking, I could counter by saying that investors expect large capital outlays and potentially years of losses before seeing profitability (see the entire VC industry). The fact that this store is immediately turning a profit might be a wild success.
Ultimately, the fact that there is an answer that is guaranteed correct makes this wrong, but you would have to make assumptions that are not warranted by the argument.
