Find all School-related info fast with the new School-Specific MBA Forum

It is currently 20 Oct 2014, 10:18

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Earn kudos, Rate my first ever AWA

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Manager
Manager
avatar
Joined: 15 Jun 2013
Posts: 98
GMAT Date: 12-05-2013
Followers: 2

Kudos [?]: 3 [0], given: 26

Earn kudos, Rate my first ever AWA [#permalink] New post 12 Nov 2013, 19:45
Read the statement(s) and the instructions that follow, and then make any notes that will help you plan your response. Begin typing your response in the box at the bottom of the screen.
The following appeared in a memo to executives at a company that manufactures industrial equipment:

"We are spending too much on free customer service after a sale has been made; we need to limit our warranty to two years in order to improve our profit margins. The current lifetime warranty can lead to costs decades into a product's life cycle. Also, we pay our customer service employees a premium because they must possess expert skills across the entirety of our very diverse product line, including products we no longer sell."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.



The argument is about a companies post sales strategy, initially the company used to give life time warranty to all its customers but sooner they felt that they need to curb few expenses inorder to make some profit.

The argument is very much in line with the reasons given by the author, in todays life the industrial sector has developed a lot and spend millions of dollars to get to best product that can make customers life convenient. The company does three things to ensure it is highly competitive.

1- Spend millions of dollars on Research and development.

2- Invest a huge amount on advertisement to generate awareness.

3- Producing the units on time to meet demand and supply.

4- Selling and make sure customers are happy by post sale services.

Its very important to understand that its very difficult for a company to generate profits after all the steps mentioned above.

Lets discuss these points in details..

1- A company spends a huge amount on research and development inorder to make sure that they are generating the best and the most innovative product in the market.

2- The work is still half done, unless consumers are aware of the product or know its uniqueness, they would not turn up and buy the product.

3- Now in the third stage the customers are showing interest, so its very important to spend another good chunk of money so that the supply can meet demand. These should not be any shortage.

4- Very important phase, a company always looks for loyal customers so that they believe in there product. A trust is very important.A significant way to gain trust is by assuring the customer after sale guaranty, by indirectly saying that a buyer seller relationship wont end because its based on trust and believe.

However, since we have discussed the 4 phases a company goes through, its very important that they get profit out of it. Ultimately, it’s a business and the prime goal of every business is to generate profit.

For instance, lets talk about ABN telecom limited, they are the top company and makes mobile phones.They spend 40% on the first phase research and development, 25% on phase 2 advertisement , 25% on phase 3 demand and supply, and finally 10% on phase 4 which is post sale service. According to there newest journal they now have made 20% profits which will ensure that there customers get more innovative products.

The argument is very well reasoned and I strongly believe that its best for the company to cut their life time warranty service to a limited time of 2 years.It will benefit the company in two ways, one they don’t have to pay extra cost on the defected units after 2 years and secondly they will save a huge amount on customer service.


---------------------------

Hi guys,

kindly rate my awa, this is my 1st awa so i am sure there will be a lot of mistakes. I have my gmat in 3 weeks and from now i have started taking AWA with each mock.

Total words= 473

Thanks
Kaplan Promo CodeKnewton GMAT Discount CodesManhattan GMAT Discount Codes
Earn kudos, Rate my first ever AWA   [#permalink] 12 Nov 2013, 19:45
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic Experts pls help in rating my first ever AWA bev 4 29 Sep 2013, 13:03
1 Experts publish their posts in the topic Please rate my AWA. Thanks! Kudos for reviews bermanator 3 30 Aug 2013, 12:46
1 Experts publish their posts in the topic Please rate my AWA! Kudos for reviews bermanator 1 19 Aug 2013, 13:47
3 Experts publish their posts in the topic Please rate my first AWA! Kudos for reviews :) pnf619 6 26 Jul 2013, 03:51
Please rate my first AWA cbaty 0 25 Mar 2013, 12:11
Display posts from previous: Sort by

Earn kudos, Rate my first ever AWA

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.