Originally Posted by thorr:
“I disagree.
The task was well defined and the teams judged accordingingly. It wasn't about how much cash the team had at the end, it was the total of cash and profits - with the underlying principle of speculate to accumulate. A team with just cash at the end would be playing a risk averse strategy - whereas a team with stock would be operating "at risk". Alan Sugar wanted the teams to speculate at risk, but educated risk based upon what they bought and sold. At least by buying more stock, they open up the potential for more sales. Sit on your cash, you may as well stick it in the bank and not go into business. I admired Jim in this task, still with an eye to adding more sales at the end of the day - and he lost nothing as a consequence. However, it could be argued he still gained, for although the umbrellas had a trade value equal to his cash outlay, they had a re-sale value far in excess of that. That's business.”
It doesn't make any difference whether their assets are in stock or money at the end of day two. They are not being counted on what the stock might make on day three.Even if day three mattered it doesn't matter whether you restock at the start of day three or the end of day two.
Its true that if you run out of stock on day two you can't maximise your sales. But there was no evidence that anyone was running out of stock, or that they could have sold more in the time with more stock,.
The trade off is that if you restock again on day two (if people are open still and you can) that takes task
time that you could have been selling more, at a markup. You transform cash into day three stock - which does you no good at all , but you make less profit and sell
less. f
Essentially, on what we saw , Natasha got it absolutely right. It could have gone wrong and they could have had nothing to sell - but they didn't.
Lord Sugar just heard the words didn't reinvest, jumped to a conclusion, and got it entirely wrong, again.
He was actually having a bad day too. If Helen had completed her trade deal they would have won with the fine in place, If she had found another shop nearby for the same deal they would have won anyway . At worst , as someone else posted, the return on the deal was at least as good as anyone elses return doing what Lord Sugar thought they should.