ALL retailers focus on the numbers: last year, this year, ADS, etc...they always miss what's right in front of them. To paraphrase your master, "That is why they fail."
Ok, getting those numbers by cutting costs in areas that are crucial to the development of a company is no better than cutting one's nose off to spite their face...
A lot of these corporate execs start cutting costs (only to line their own and their share holders' pockets) in the absolute wrong places...
This is what Circuit City (and is some fashion or another, ratshack did the same) did.. They got rid of all their decently paid employees who were trained and
knowledgeable, and replaced them with slacker highschool brats who are no more than cash register clerks that they barely had to pay.. They also saw that
they wouldn't have to pay out nearly as many commissions since they had dumber people who had no interesting in making anything more than minimum wage..
This is moronic because if you're not paying commissions, your not selling anything.. Philip Schoonover was a short sighted fool...
Len Roberts who was the CEO for ratshack did something similar: Getting rid of store managers and employees who'd been with the company for years
and knew the store, the operation and it's products like the back of their hand just because they think these employees made too much money for what they do...
How about cutting their multi-million dollar a year salaries to help save the company? Ever see any of those CEO's do that? How about the shareholders taking a lesser cut?
You know how many jobs you need to cut in order to reach that of a CEO's salary, bonuses, etc.?? A LOT.....
THIS is why companies fail.. Inept leadership, short sightedness and greed...