Preparation for AWA - Please provide inputs!
[#permalink]
07 Oct 2010, 21:24
Analysis of argument
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.”
The argument states that corporations looking at expanding their base should consider Helios as the place. This argument is flawed as it is based on certain premises and assumptions that if wrong can change the picture all together.
First, the premise is that the unemployment rate is Helios was lower than the regional average. The argument is trying to convey that the plants based out of Helios are efficent. This can hardly be true. It is possible that the unemployment rate is low because the population is low and hence the percentage is lower then the average. Also there is a possibility that the industries in Helios are recession proof. For example it might be a simple flour factory and even in recession people do buy flour. And even if the unemployment rate is lower this does not mean that the company should exist there. It depends on individual companies and their policies and practices.
The second premise is that it is an industrial hub and have provided large number of manufacturing jobs. Though the fact that a city is an industrial hub is always a better choice for a corporation to exist this doesnt mean that it is a best and suits all types of industries.For intance Detroit is a hub for automobiles company so any new company entering USA should consider having a plant there but if it is a software compnay Silicon Valley should be the first choice.
The other part where it says that Helios provide a large number of manufacturing jobs adds to the point made above, i.e. the city is suitable for a certain sectors and not all. But here again it is not mentioned what kind of manufacturing jobs.
There is also mention about that the city is looking at attracting companies with focus on research and development. Here the assumption is that Helios have a large skilled workforce. But what is not mentioned is what type of skills the workers possess. If they are mechanical engineers it make more sense for heavy engineering companies to set up their corporations there.
Thus to conclude, the argument to favor the city of Helios when seeking new business opportunities or a new location is flawed as the premises are vey genric. It should be specific as to what are the conditions in the city with respect to the different industries that exist in the area.