Missing Data:
Based on the limited information provided, it is unknown if there’s any relation among the sales of the three major product lines for the ABC department store. For example, does a customer that frequents the store with the intention of purchasing clothes also purchase sporting goods because of the purchase of clothes? The synergy effects among three products in our company (clothing, sporting goods, & hardware) via manufacturing, marketing, and management, help realize the maximum profit. Dropping the clothing line might inhibit overall profit, especially if dropping the clothing line damages customer relations. One potential negative result is the decrease in profit for the other two products[2].
●Assumptions on dropping product
Based on the limited information provided, it is unknown if there’s any relation among the sales of the three major product lines for the ABC department store. For example, does a customer that frequents the store with the intention of purchasing clothes also purchase sporting goods because of the purchase of clothes? The synergy effects among three products in our company (clothing, sporting goods, & hardware) via manufacturing, marketing, and management, help realize the maximum profit. Dropping the clothing line might inhibit overall profit, especially if dropping the clothing line damages customer relations. One potential negative result is the decrease in profit for the other two products[2].
●Assumptions on dropping product