Here's another one. I've tried keeping the writing process to 30 minutes. Admittedly, I've been underestimating how mentally taxing writing an essay is right before the exam since I've only been doing the Quant/Verbal sections. Good thing I haven't booked my exam yet.
The following appeared in a memorandum from the president of Aurora, a company that sells organic milk (milk produced without the use of chemical additives):
“Sales of organic food products in this country have tripled over the past five years. If Aurora is to profit from this continuing trend, we must diversify and start selling products such as organic orange juice and organic eggs in addition to our regular product line. With the recent increase of articles in health magazines questioning the safety of milk and other food products, customers are even more likely to buy our line of organic products. And to help ensure our successful expansion, we should hire the founder of a chain of health-food stores to serve as our vice-president of marketing.”
Aurora is a company that sells organic food products. They forecasting that the demand for their products will increase as a result of market trends and magazine articles. In order to meet the supposed increase in the demand of Aurora’s food products, the company decided to include additional products to their retail line. The company has also suggested hiring the founder of a health food chain to serve as vice-president of marketing.
My response:
Aurora is a company that sells organic food products. They are forecasting that the demand for their products will increase as a result of market trends and magazine articles. In order to meet the supposed increase in the demand of Aurora’s food products, the company has decided to include additional products to their retail line. The company has also suggested hiring the founder of a health food chain to serve as vice-president of marketing.
The company has opted to make changes to their product line and their executive roster, based on various forecasts. First, this strategy fails to account for the possibility that the trend of increasing demand for health foods may cease, or even reverse. Should this happen, the inclusion of additional products to their retail line may very well prove to be a negative net income investment. There is also no promise that increasing demand for organic food products would correspond to an increase of demand for Aurora’s organic food products. Second, the increase in articles of a magazine would only reach a very limited number of readers. There is no evidence to suggest that consumers will perceive organic foods as safer alternatives, and some consumers may very well forgo purchasing those products altogether. Finally, the hiring of the founder of a chain of health-food store could possibly be a conflict of interest, as he likely has interest in the company he has founded. A chain of health-food stores would deal with many companies within the industry on a constant bases, and could also carry store brands that directly competes for sales against Aurora’s products.
Although the continuing trend for increasing demand of health food should certainly merit an appropriate strategy to ensure that the company maximizes its profits in such favorable market conditions, the proposed strategy is not appropriate given the lack of evidence that the expansion of the product line will yield a positive return on investment, and the adequacy of the proposed candidate for the vice-president of marketing position.