Activity-Based Systems SE 1. Thom Lutz started a retail
clothing business two years ago. Lutzs first year was very successful, but
sales dropped 50 percent in the second year. A friend who is a business
consultant analyzed Lutzs business and came up with two basic reasons for the
decline in sales: (1) Lutz has been placing orders late in each season, and (2)
shipments of clothing have been arriving late and in poor condition. What
measures can Lutz take to improve his business and persuade customers to
return?
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