The following appeared in a memorandum from the business department of the apogee company;
“when the apogee company had all its operations in one lacation, it was more profitable than it is today. Therefore the apogee company should close down its field offices and conduct all its operations from single location. Such centralisation would improve profitability by cutting costs and helping the company maintain better suprvision of all emloyees.”
Discuss how well reasoned……etc.
The argument above states that a company named apogee has its profits declined because of decentralisation of its operations and working field offices in diffferent locations.it further makes a claim that closing all these operations and recentralise its operations to one loacation which according to the argument will decrease costs and consequently help to increse profits of the company. These claims in the argument are seriously flawed and vague due to many reasons.
First the claim that centralised company made more profits than today when its decentralised is flawed because there is no proper timeline provided in the argument “today” is compared to a time in the past but not stated how much time has passed in between the time company was centralised and “today” and it is important to know the timeline because it would be really hard to interpret the claim of lesser profits because of decentralisation additionaly lack of propertimeline creates ambiguity. For example a firm operates in a centralised setup and tranforms to a decentralise and expanded one if the time passed between these steps is substantial as to evaluate its result or the time passed is very less for a proper sample size for evaluation.
Second the claim made in the argument that centralization would result in increased profits and incresed supervision and control over employees is baseless and and without any proper premises or evidence . reasoning that cetralisations would result in things stated above seems wrong because most of the multinational companies have decentralised model of operations for example amazon operates in more than 100 countries and have multilevel and expanded functions and operations everywhere and is a really successful organisation so the claim above seems made up fantical. And even if the argument is based on some premises they are not presented thereby making the argument seriously flawed
Argument can be improved by taking adding some important premises and evidences for example a proper timeline of the centralisation to decentralisation of the company should be attached and the lack of proper information regarding profits,revenue and costs should be included . a cost analysis chart can also be attached and statement profits and losses should be provided. Reasons other than decentralisation of organisation which could result in these problems should be analysed and sbsequently added to the argument. making these changes could improvre the argument prsented by business department of apogee company.