There could be several reasons why traditional business management techniques did not increase profit in this scenario. One reason could be that these techniques were not properly implemented or were not suitable for the specific context of the company. Another reason could be that these techniques did not address the root causes of the company's problems. Additionally, it's possible that the company's market conditions or competitive environment changed, rendering the traditional techniques ineffective. Finally, the employees might not have been adequately trained or motivated to execute these techniques effectively.
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The Goal uses simple reasoning as a tool to teach the Theory of Constraints (TOC) by presenting the theories in the form of a novel. The TOC, a method...
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The lessons here are woven into a story about a production-based company and the new manager. The main character, Alex, approaches his new position armed with all the conventional management techniques and gets to work. Readers will probably be familiar with this scenario. Alex's first goal is to improve efficiency. He works on cost-effective purchasing, quality control, customer satisfaction, and all those other things that traditional business management dictates. But all those theories and all that work didn't create any additional profit.
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