There is a argument from the owner of the movies Galore, a chain of video rental stories, that to refill saving or profit we have to make changes in all stores that is acquired by one store at downtown Marston. There are two way by which this essay analyse this argument.
Firstly, it is stated that there is a downward graph line for the profit of the stores and have to limit the operating cost at store. while shop is famous for the special bargains, hike in rental price is not appropriate way to get more profit. For improvement in income owner of the store must analyse all aspect of the decremental profit, owner claiming that one shop out of ten shop decreased it's running cost by closing store earlier and limiting the stock. So, that other nine have to follow the same but it is not proper conclusion for sample, profit of that shop may increase because of the vacation or any festival when people are more likely to enjoy the movies at home.
Secondly, the owner have to check all detailed report on, why there is a decline in profit .There may be chance that new competitors who offers the same movies video at low rental price , which is leads to decrement in sales of store. moreover, it is also the case that people are more likely to enjoy a movie which is not offered by Galore's store.
To concluding, it is more preferable to once check all previous data and record of stores to find optimal solution to the decline in shop's profit instead of only following the approach of one store by closing store earlier and eliminating old movies stock.