Pls rate my argument: Corporate Memorandum : Analytical Writing Assessment (AWA)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 17 Jan 2017, 14:00

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Pls rate my argument: Corporate Memorandum

Author Message
Director
Joined: 21 Dec 2009
Posts: 591
Concentration: Entrepreneurship, Finance
Followers: 18

Kudos [?]: 661 [0], given: 20

Pls rate my argument: Corporate Memorandum [#permalink]

### Show Tags

26 Jun 2011, 18:15
The following appeared in a corporate memorandum of a beverage manufacturer:

“Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company’s profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm.”

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.

MY RESPONSE:
The argument asserts that because the unit sales increased after a promotional price offer, the company should take similar step with a view to increasing it's profitability and enhancement in the eyes of it's customers. The argument is flawed for several reasons: The article needs to properly and crtically address issues that could reinforce the conclusion. The issues include, but not limited to: the correct variables to consider in arriving at true profitaility; the right class of people to address among others issues.

First, the article asumes that a mere increase in sales volume is a guarantee for a boom in profitability. This is not so. Profitability is a factor of two variables: income and expenses. If the arguemnt had shed light on how much was expended in the promotional price offer, we would have been able to better arrive at whether the price offer was in any case necessary or not. By keeping mum on the extent of expenses made, we cannot conveniently assume that the offer was indeed a good stragety for increase in profitability.

Second, the argument assumes that every person sample for an opinion will give the same response. This is not true. Consider a set of employees paid to give a planned response to a questionaire to another set of strange people who, perhaps had never got a taste nor known the drink before now. The result can easily be guessed. The class of employees will most likely give an opinion that falls within the expectations of the company inquiries whereas the strange people will likely differ in opinion for many reasons: maybe because they have never had of the name before; because they are not used to the taste; or even because they detest the apperance of the packaging. These reasons, among others, could be advanced for rejecting the product.

Finally, by concluding that because unit sales of this drink increased -for reaons not disclosed- the article position is premised on grounds not convincing. Various questions remain unanswered: Are the
products of the same packaging; the same taste, within the same location, or are they made from the same raw materials? All these were not addressed by the article. There is a possibility that the customers surveyed like the packaging of this product whereas other drinks have variant packaging that may not appeal to the customers. It is also possible that the drink in question is marketed within locations that people who patronize it most leave. Thus, applying the same strategy to other product may not work after all.

In sum, the argument is not sound for the reasons discussed above. To fuether reinforce it's possition, the article needs to consider various aspects, including the fact that an increase in unit sales does not necessarily equate to an increase in profitability; the sampled class needs be properly assessed to ensure that they are not simply people paid to answer in favor of the company product; also important is the need to analyse the qualities of the drink in question as it differs from other products from the company. Unless the issues above are carefully analyzed, the strength and convinction of the conclusion remians questionable and open to further criticism.
_________________

KUDOS me if you feel my contribution has helped you.

SVP
Joined: 16 Nov 2010
Posts: 1672
Location: United States (IN)
Concentration: Strategy, Technology
Followers: 33

Kudos [?]: 514 [0], given: 36

Re: Pls rate my argument: Corporate Memorandum [#permalink]

### Show Tags

26 Jun 2011, 18:51
gmatbull wrote:
The following appeared in a corporate memorandum of a beverage manufacturer:

“Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company’s profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm.”

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.

MY RESPONSE:
The argument asserts that because the unit sales increased after a promotional price offer, the company should [strike]take[/strike] initiate similar [strike]step[/strike]steps, it should be plural with a view [strike]to increasing[/strike] wrong grammar it's profitability and enhancement wrong grammar, not a parallel sentence in the eyes of it's customers. The argument is flawed for several reasons: [strike]The[/strike] the article needs to properly and [strike]crtically[/strike] critically address issues that [strike]could[/strike] would reinforce the conclusion. The issues include, but are not limited to: the correct variables to consider in arriving at true profitaility; the right class of people to address among others issues.

The last two sentences in 1st para are awkward, consider rewriting them.

First, the article asumes that a mere increase in sales volume is a guarantee for a boom in profitability. This is not so. Profitability is a factor of two variables: income and expenses. If the [strike]arguemnt[/strike] argument had shed light on how much was expended in the promotional price offer, we would have been able to better arrive at whether the price offer was in any case necessary or not. By keeping mum on the extent of expenses made, we cannot conveniently assume that the offer was indeed a good stragety for increase in profitability.

Second, the argument assumes that every person sample for an opinion will give the same response. This is not true. Consider a set of employees paid to give a planned response to a questionaire to another set of strange people who, perhaps had never got a taste nor known the drink before now. The result can easily be guessed. The class of employees will most likely give an opinion that falls within the expectations of the company inquiries whereas the strange people will likely differ in opinion for many reasons: maybe because they have never had of the name before; because they are not used to the taste; or even because they detest the apperance of the packaging. These reasons, among others, could be advanced for rejecting the product.

Finally, by concluding that because unit sales of this drink increased -for reaons not disclosed- the article position is premised on grounds not convincing. Various questions remain unanswered: Are the
products of the same packaging; the same taste, within the same location, or are they made from the same raw materials? All these were not addressed by the article. There is a possibility that the customers surveyed like the packaging of this product whereas other drinks have variant packaging that may not appeal to the customers. It is also possible that the drink in question is marketed within locations that people who patronize it most leave. Thus, applying the same strategy to other product may not work after all.

In sum, the argument is not sound for the reasons discussed above. To fuether reinforce it's possition, the article needs to consider various aspects, including the fact that an increase in unit sales does not necessarily equate to an increase in profitability; the sampled class needs be properly assessed to ensure that they are not simply people paid to answer in favor of the company product; also important is the need to analyse the qualities of the drink in question as it differs from other products from the company. Unless the issues above are carefully analyzed, the strength and convinction of the conclusion remians questionable and open to further criticism.

I checked more, but I think you need to re-post this essay after proofreading( and concentrate on grammar). Your content is OK, and the flow is not bad either.
_________________

Formula of Life -> Achievement/Potential = k * Happiness (where k is a constant)

GMAT Club Premium Membership - big benefits and savings

Director
Joined: 21 Dec 2009
Posts: 591
Concentration: Entrepreneurship, Finance
Followers: 18

Kudos [?]: 661 [0], given: 20

Re: Pls rate my argument: Corporate Memorandum [#permalink]

### Show Tags

28 Jun 2011, 23:28
Hi subhashghosh,
thanks for taking time to look into my essay.
I am however unable to rewrite part of the essay as advised as the entire thing was written
under timed condition.

Nonetheless, I appreciate your comments and it would be nice if only you could complete the review
of the entire passage. The idea is to learn from mistakes, especially under exam simulated conditions.
Thanks.
_________________

KUDOS me if you feel my contribution has helped you.

Re: Pls rate my argument: Corporate Memorandum   [#permalink] 28 Jun 2011, 23:28
Similar topics Replies Last post
Similar
Topics:
Pls rate my essay from GMAC argument pool 1 25 Dec 2015, 01:02
Rate my argument 0 19 May 2011, 06:46
Pls help rate this AWA (ARGUMENT)-Quite technical? 2 17 Jan 2011, 11:21
Pls rate - Argument essay 1 19 Oct 2010, 12:17
Pls. rate - Analysis of Argument 3 20 Apr 2010, 23:00
Display posts from previous: Sort by