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Please help me evaluate this essay I wrote

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Please help me evaluate this essay I wrote [#permalink]

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New post 25 Mar 2017, 05:47
Evaluate the following:

"When the Apogee Company had all of its operations in one location, it was making more profits than it is today. Therefore, the Apogee Company should close down all its offices and conduct all its operations from a single location.Such centralization would improve profitability profitability by cutting costs and helping the company maintain better supervision of all employees. " Discuss how well reasoned is the above argument.

Ans:


The business department of Apogee Company made an argument that the company was more profitable when all its operations were at a single location and wasn’t spread across field offices like now. Hence, they should shift back to original model. This argument needs to be evaluated from several angles before making any valid conclusion.

Firstly, we need to understand the reason behind the opening of field offices in the first place. It definitely helps to have all the operations in a single place in terms of administrative costs, better planning across departments and supervision of employees but there may be several cons as well. The absence of field offices reduced direct client interaction which is essential for business development. The clients will also have increased confidence with the organization if the employees are from the same background and can address their problem at a more personal level.

Moreover, a setup across locations reduces the supply chain costs due to an intermediary setup to smoothen the process from manufacture to delivery. If the setup, however, is at a single location, there may be requirement of external help in the form of transportation agencies which may not be as efficient due to lack of direct supervision.

Finally, it also needs to be ascertained if there are any other reasons contributing to the reduced profits in the company. The company could be running into lower revenue as a result of the industry altogether performing badly due to global recession, there may be stiff competition from the competitors or new entrants into the market. Also, it is possible that the company may be performing badly due to poor managerial decisions and lack of employee motivation which could have led to reduced efficiency and higher costs.

The above arguments need to be evaluated and the firm may shift to a single location if there is enough evidence to suggest that the closing down of field offices will lead to higher profits. The decision to shut field offices is a critical one and can impact the overall company performance in the long run.

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New post 25 Mar 2017, 08:03
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Re: Please help me evaluate this essay I wrote [#permalink]

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New post 25 Mar 2017, 11:48
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Re: Please help me evaluate this essay I wrote   [#permalink] 25 Mar 2017, 11:48
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