Hello friends -
I evaluated the same essay on MBACrystalBall's website and on gmatawa.com and received vastly different ratings i.e. 5.7/6 (CrystalBall) and 3.32/6 (gmatawa.com). [images below]
MBACrystalBall -
https://www.mbacrystalball.com/gre/gre-essay-grader/AWARatr -
https://www.gmatawa.com/Which of the two seems more correct to you?
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees.”
Discuss how well reasoned... etc.
Quote:
The argument states that the Apogee Company should close down its field offices and conduct all its operations from a single location. This conclusion is based on the premise that when the Apogee Company had all its operations in one location, it was more profitable that it is today. Also, one must look at the plausibility that the centralization of the Apogee Company’s operations would improve profitability by cutting costs and helping the company maintain better supervision of all employees.
Stated in this manner, the argument is weak and reveals examples of leap of faith and poor reasoning. The argument also fails to mention several key factors based on which it could be better evaluated. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is unconvincing and has several flaws.
The first issue to be addressed is whether the decentralization of the Apogee Company’s operations is responsible for the decreased profitability of the firm. This may not necessarily be true. One possibility is that an increase in competition in the industry, in which the Apogee Company operates, may have led to a decrease in profitability for the company. For example, in the early twenty-first century, Nokia, a mobile phone manufacturer, started to become increasingly unprofitable and to lose market share as the mobile phone market started to become crowded. Nokia’s decreased profitability was the result more of exogenic factors than of endogenic factors. Had the author mentioned that the business environment after the decentralization the same as it was before the decentralization process, then it would have been much easier to conclude that decentralization of the Apogee Company’s operation was responsible for its decreased profitability.
The argument also relies on the idea that centralization would improve profitability by cutting costs and helping the company maintain better supervision of all its employees. This may not always be the case. Closing of field offices and centralization of the company’s operations would mean increased travel time for the employees and customers. As a result, the Apogee Company would not only have to compensate its employees for the increased travel time by increasing employee’s wages, but also have to deal with a loss of customer base, as some customers would prefer to engage with those companies which have local presence. Had the author carried out a cost-benefit analysis and compared the potential savings due to centralization of operations to the increased revenue due to a larger customer base, then it would have been much easier to conclude that closing of the company’s field offices would be a move in the right direction.
In conclusion, while at first it may appear justified to conclude that the Apogee Company should close all its field offices and conduct its operations from a single location, a closer and more careful analysis reveals that this may not necessarily be the case. Before any decision is made, all the above factors must be considered.
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