Aarti Sreenivas

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Thus, the first bar on the left represents the best outlet in the chain—its GTO was $1.05 million per year. The next bar represents the GTO of outlet 1 plus that of outlet 2, a total cumulative GTO of $1.05 + 0.63 = $1.68 million. The third best outlet earned $0.5 million, so the third bar shows the cumulative GTO of outlets 1, 2, and 3 (1.05 + 0.68 + 0.5 = $2.18 million). Outlets 4 through 14 added another $2.5 million to the cumulative total, bringing it up to $4.68 million. But, beginning with outlet 15, negative GTOs begin to drag down the cumulative total. In fact, the negative GTOs of ...more
Good Strategy/Bad Strategy: The difference and why it matters
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