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GMAT Day after. Please rate my AWA. Final Attempt... [#permalink]
30 Sep 2013, 04:22
Please rate my AWA. This is my last attempt before the exam.
Thanks in advance
The following appeared as part of a campaign to sell advertising time on a local radio station to local businesses:
“The Cumquat Café began advertising on our local radio station this year and was delighted to see its business increase by 10 percent over last year’s totals. Their success shows you how you can use radio advertising to make your business more profitable.”
Discuss how well reasoned . . . etc.
The author of this argument claims that radio advertising can make a business more profitable. This claim is based on the fact that Cumquat Cafe's business increased by 10% over last year's totals after it began to advertise on the local radio station. However on a deeper analysis, it is evident that certain relevant aspects have not been taken into account, leading to a number of mistaken assumptions and logical flaws.
One such flaw is that the author mistakenly assumes that all the businesses will have the same effect from radio advertising as Cumquat Cafe had. This is a general connection made by the author without any substantial evidence to prove the claim. For example, businesses such as cafes, restaurants, shopping outlets perhaps benefit from radio advertising, but a research based business, or manufacturing plant will not benefit from radio advertising. It would be more beneficial if the manufacturing business concentrates on improving its machinery, or paying higher wages to its workers. In order to strengthen the argument, the author analyze such factors that increase profitability of a business on a case by case basis.
Another statement, significantly weakening the argument is that the author does not specify what does the increase in business over last year's totals means. The increase perhaps is an increase in popularity, profits, revenues, customers. The author assumes that an increase in any of such factors would lead to a more profitable business. For example, if the cafe had 100 customers who spent an average of $10 last year. The total revenue for the cafe would be $1000. An increase of 10% in customers would be 110 customers but if the average spending of the customer is $5 then the total revenue would be $550. This shows the revenue would be less than last year and perhaps the profits would also be less. To overcome this flaw, the author should provide more data on the increase and how it has affected the profits of Cumquat Cafe.
The author also wrongly assumes that radio advertising is the sole cause that has led to an increase in business. While radio advertising could be one of the factors but there could be other such factors such as better quality in food, more outlets opened in the city, better services, a competitor closed down its stores. For example, if a direct competitor closed down its store, which was more successful than Cumquat Cafe then the customers that went there before would now come to Cumquat Cafe. To make this argument more valid, the author should conduct an analysis on all the market factors that has led to the increase compared with last year.
After closer examination of the passage presented, it is apparent that there are several logical flaws in the author's attempt to show that radio advertising can make any business more profitable. The recommendations in the essay show how the argument may be strengthened and logically sound.