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In: Operations Management

"Bendel, which only started opening stores outside of New York City in 2008, announced plans to...

"Bendel, which only started opening stores outside of New York City in 2008, announced plans to stop selling clothes in 2009 to focus on accessories and gifts —a move that flummoxed many fashion designers." Why do you think this decision was made and do you think it was wise? Please explain your thoughts.

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Expert Solution

If we look at the decision made by the company to shut down all of its stores selling cloths in 2009 and to focus on accessories and gifts, the main focus behind this decision is that the management is looking to improve the profitability of the company and wants to focus on the larger brands which have greater potential for the business growth. By doing so, the company can narrow its offering and thus have greater focus on the customer requirements and trying to satisfy these needs of the customers.

\In my opinion, looking at the market segment in which the company is operating, it is a good decision as the customer's expectations are increasing every day and thus the company must focus on the resources utilization to the fullest and avoiding those streams of the business which have a greater probability of the profit and revenue generation. This will help the company to use its expertise and competence in a better manner.

keosha answered 1 year ago
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