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AWA questions & can someone advise on my first essay?

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Intern
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Joined: 13 Oct 2018
Posts: 1
Location: United Kingdom
AWA questions & can someone advise on my first essay?  [#permalink]

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New post 17 Feb 2019, 17:32
1
Hey all - I'm close to taking the test and started on some AWA today. Would love it if someone could rate/provide thoughts on my first essay - while I've seen templates, just want to get a feel for whether my style is compatible with what the GMAT would be looking for. I've seen other answers (after writing the below) and I recognise there are some arguments I've missed, such as understanding the nominal value of consumption. To that point, can someone guide on how important the content is, and what is a "sufficient" quantity of writing for the exam?

Thanks in advance!

Q:
The following appeared as part of the business plan of an investment and financial consulting firm: "Studies suggest that an average coffee drinker's consumption of coffee increases with age, from age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola drinker's consumption of cola, however, declines with increasing age. Both of these trends have remained stable for the past 40 years. Given that the number of older adults will significantly increase as the population ages over the next 20 years, it follows that the demand for coffee will increase and the demand for cola will decrease during this period. We should, therefore, consider transferring our investments from Cola Loca to Early Bird Coffee."

A:
The author states that the investment and financial consulting firm should transfer its investments from Cola Loca to Early Bird Coffee. The author supports this argument by stating that the number of older adults is expected to significantly increase over the next 20 years, and while the average cola drinker’s consumption of cola declines with age, the average coffee drinker’s consumption of coffee increases with age and remains high. The author's reasoning has a number of flaws which make the stated conclusion weak and unconvincing.

Firstly, the author assumes that past trends are an accurate representation of the future. There is no evidence to support that the stated trends of cola and coffee consumption will continue for the next 20 years. For example, there could be an increasing awareness of the negative implications of caffeine, causing a decline in coffee consumption. In addition, there could be other factors that affect the popularity of Cola, such as marketing campaigns, which would cause the consumption of Cola to rise across age groups. By providing no evidence to suggest that past trends will continue, the author’s reasoning is flawed.

Secondly, the author assumes that the performance of Cola Loca and Early Bird Coffee will be reflective of cola and coffee consumption trends, without providing any evidence. For example, Cola Loca may produce other beverages such as fruit juices, which may have higher growth and better prospects than the coffee market for the next 20 years. Similarly, the author provides no information to prove that Early Bird Coffee is a good investment. Early Bird Coffee may be losing market share to competitors or have low revenue growth due to poor management, which would make it a poor investment, regardless of market trends.

The argument could be strengthened if the author can provide evidence that the coffee and cola trends over the last 40 years will continue for the next 20 years. This could be done through market research to understand the attitudes of consumers today. The author could also strengthen the argument by providing financial projections of Cola Loca and Early Bird coffee to evaluate the attractiveness of each investment decision. As the argument currently stands, the author’s reasoning is not sufficient to conclude that the firm should shift its investments.
Manager
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Joined: 14 May 2018
Posts: 96
Location: India
Concentration: Finance, Entrepreneurship
GMAT 1: 710 Q49 V38
GPA: 4
Re: AWA questions & can someone advise on my first essay?  [#permalink]

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New post 17 Feb 2019, 19:03
akashb wrote:
Hey all - I'm close to taking the test and started on some AWA today. Would love it if someone could rate/provide thoughts on my first essay - while I've seen templates, just want to get a feel for whether my style is compatible with what the GMAT would be looking for. I've seen other answers (after writing the below) and I recognise there are some arguments I've missed, such as understanding the nominal value of consumption. To that point, can someone guide on how important the content is, and what is a "sufficient" quantity of writing for the exam?

Thanks in advance!

Q:
The following appeared as part of the business plan of an investment and financial consulting firm: "Studies suggest that an average coffee drinker's consumption of coffee increases with age, from age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola drinker's consumption of cola, however, declines with increasing age. Both of these trends have remained stable for the past 40 years. Given that the number of older adults will significantly increase as the population ages over the next 20 years, it follows that the demand for coffee will increase and the demand for cola will decrease during this period. We should, therefore, consider transferring our investments from Cola Loca to Early Bird Coffee."

A:
The author states that the investment and financial consulting firm should transfer its investments from Cola Loca to Early Bird Coffee. The author supports this argument by stating that the number of older adults is expected to significantly increase over the next 20 years, and while the average cola drinker’s consumption of cola declines with age, the average coffee drinker’s consumption of coffee increases with age and remains high. The author's reasoning has a number of flaws which make the stated conclusion weak and unconvincing.

Firstly, the author assumes that past trends are an accurate representation of the future. There is no evidence to support that the stated trends of cola and coffee consumption will continue for the next 20 years. For example, there could be an increasing awareness of the negative implications of caffeine, causing a decline in coffee consumption. In addition, there could be other factors that affect the popularity of Cola, such as marketing campaigns, which would cause the consumption of Cola to rise across age groups. By providing no evidence to suggest that past trends will continue, the author’s reasoning is flawed.

Secondly, the author assumes that the performance of Cola Loca and Early Bird Coffee will be reflective of cola and coffee consumption trends, without providing any evidence. For example, Cola Loca may produce other beverages such as fruit juices, which may have higher growth and better prospects than the coffee market for the next 20 years. Similarly, the author provides no information to prove that Early Bird Coffee is a good investment. Early Bird Coffee may be losing market share to competitors or have low revenue growth due to poor management, which would make it a poor investment, regardless of market trends.

The argument could be strengthened if the author can provide evidence that the coffee and cola trends over the last 40 years will continue for the next 20 years. This could be done through market research to understand the attitudes of consumers today. The author could also strengthen the argument by providing financial projections of Cola Loca and Early Bird coffee to evaluate the attractiveness of each investment decision. As the argument currently stands, the author’s reasoning is not sufficient to conclude that the firm should shift its investments.


I don't think I qualify to evaluate since I myself got only 5 on AWA, but refer to this guide for help on AWA.
https://gmatclub.com/forum/how-to-get-6 ... 64327.html
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Please hit kudos if you like my answers.

GMAT:710 (Q49,V38,IR8,AWA5)
GMAT Club Bot
Re: AWA questions & can someone advise on my first essay?   [#permalink] 17 Feb 2019, 19:03
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