The following appeared as part of an article in a magazine devoted to regional life.
“Corporations should look to the city of Helios when seeking new business opportunities or a new location. Even in the recent recession, Helios’s unemployment rate was lower than the regional average. It is the industrial center of the region, and historically it has provided more than its share of the region’s manufacturing jobs. In addition, Helios is attempting to expand its economic base by attracting companies that focus on research and development of innovative technologies.”
City Of Helios, where unemployment rate is lower than regional average, an industrial center of the region, providing jobs more than its share and expanding its economic base by attracting companies that focus on Research and development of innovative technologies, these variables, what author is considering for a company to expand its business for a future opportunities, I think author didn’t consider many other things such as production cost , labor cost and operating expense in city of Helios.
First, author has mentioned that city of Helios has lower than average unemployment rate, but he didn’t consider what population of the city is, it might be possible that city contains few youngsters who are demanding for the job and that matches the employers demand, e.g. there are many countries who has lower unemployment rate because that country has not that much opportunity for the graduates and those graduates migrates to other country this will show a lower unemployment rate.
Second, considering city of Helios that it is attracting companies of new technologies does not strengthen author’s statement, because author has not mentioned that what is its labor cost, it might be possible that it has high labor cost with lower output per employee will throw the company in negative profits, and another thing, it has not mentioned production cost, land cost and other operating expense because these are the variable company’s headlines to look in other cities or countries where it will operate , for instance, High land cost labor cost and other expansive utilities , and uncertain future profit might throw the company in crisis or negative profit, so many other variable should be taken in consideration before author conclude it statement.
Third , Many other manufacturing jobs provided by the city of Helios, this statement does not itself give evidence that opportunities will be available for the every company in the city of Helios, because if author has mentioned about the which segment will outperform in the City of Helios, if jobs are available in the city of Helios then what its cost per labor (cheap or expensive), if it’s cheap will its labor cost increase in future as it happened with china , cheap labor cost attracted many other companies but after few years many of the companies didn’t forecast for the future and throw themselves in crisis because labor cost increase and that decrease companies profits.
Statement contains many flaws, so Author should consider above mentioned factors before conclude its statements, and explain variables in more details and also forecast for other few years to strengthen its argument.
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