When I graduated from Penn State back in 1990, I went to work for an after martket suspension company that produced "lift kits" to raise the body of pick up trucks and jeeps as was very fashionable amoung the good rural folk in the 1980's. The company had made millions, and had been fairly carefree about managing the company. When I started to work for them, they had a new, hot shot management team and were tightening up all departments. Still, they lost money hand over fist and evenutally closed.
Moral of the story is that if your product is popular, you can be a terribly managed company and still get rich. When the fad is over, it doesn't matter how well managed a company you become, sales will still plummet.
I don't think LW's management skills, or lack thereof, are to blame for TSR's success or failures. Although, they certainly should have been able to remain a viable business, as WOTC has proven.
In my mind, the true downfall, of LW, and frankly Gygax lack of business savy for hiring her in the first place, is that she apparently knew nothing about, and had no respect for, the RPG's her company marketed.
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