Studies suggest that an average coffee drinker’s consumption of coffee

CAN ANYONE PLEASE RATE MY ESSAY




The argument concludes that investment should be transferred from Coca Loca to Early bird coffee . This claim is based on reasoning that in next 20 years the population of elderly will increase and they prefer to have coffee over cola loca . Stated this way the argument make assumptions for which clear evidence is not provided . Hence argument is weak ,unconvincing and have several fallacies .

Firstly , the argument readily assumes that the survey is cent percent accurate and is universally true across all geographies and cultures . This is statement is a stretch and not substantiated in any way . Their is no mentioning of relaible source which has conducted the survey . Plus argument makes a general statement without any specifics to where this given relation of cola with coffee apply .It might be true for a western society but not in eastern society . So in this case the conclusion of transferring assets might be a wrong decision . If argument were to mention more clearly the details of study or even have mentioned a trustworthy source from which the result of survey come from then the argument have been strengthened .

Secondly , the argument claims as these trends have remain stable from last 40 years it is going to be stable for upcoming generation also . This again is a very weak and unsupported claim which does not guarantee the transfer of investments will be optimum decision .As it is possible that the upcoming population of elderly might not be interested in coffee at all .As the trends towards healthy options is quite apparent in todays population .So it is possible that the coffee consumption might decrease instead of increasing .As for cola loca , its consumption might remain constant. Clearly the argument would have been more clearer if argument has addressed this issue while making the conclusion .

Finally , argument claims to transfer the investment from cola loca to early bird coffee . Even if we consider survey and assumption of 40 year trend to be consistent and true for predicting future outcome , the argument fails to take any evidence regarding the addition of new cola loca consumers into account . SO this claim seems to be more of wishful thinking rather than a claim backed by substantive evidence .

IN summary the argument suffers from lack of evidence discussed above and inconsistent assumption for which no clear data is mentioned .It could have been strengthened if all above mentioned fallacies were addressed by the argument .BUt for now conclusion has no legs to stand on .

Good Luck

Hi team,

Could you please provide feedback on my essay? thanks in advance!

Question:

"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."

Answer:

The argument claims that the investment firm should consider transferring their investments in Cola Loca to Early Bird Coffee. This is based on studies relating to consumer age and their respective tastes, in light of the fact that the population is aging. However, the argument fails to correctly consider all the aspects of this data, and as such makes several assumptions which are flawed.

Firstly, the argument presents the fact that as people age, their average coffee consumption increases, while their consumption of cola decreases. This evidence does not provide us with any absolute values of what exactly the amounts of coffee or cola actually are, and as such we cannot compare them fairly. For example, if an average coffee drinker's consumption went from 1 cup to 2 cups at the extremitey of the age range, whereas the average cola drinker's consumption went down from 7 cups to 5 cups per day, this would have been a useful metric to be able to compare. Without this further detail, this evidence has no bearing on the validity of the claim and cannot be considered.

Secondly, the argument readily assumes that past trends are an indicator of future trends. it assumes that the coffee and cola consumption trends as people age will remain the same for the next 20 years as the general population ages. This assumption is a stretch as it has not accounted for any new trends that could be affecting the market for these respective products? Are any new caffeine based beverages emerging on the market that could capture a sector of the coffee drinkers? Similarly what is happening in the cola market? Another useful metric would have been to know by what factor the population is aging. Is this expected to be to such a drastic level where there would be a major shift in general consumer tastes towards coffee and cola? Or would it merely be a statistically significant number that in economic terms would provide no real impact to the state of the market? Without an understanding of these points, the evidence presented is again more of an example of wishful thinking than actual examples of causality.

FInally, there are a number of points that the argument fails to consider. The argument presents supposed evidence alluding to market trends, and proceeds to reccomend switching investments from Cola Loca to Early Bird Coffee. However, we are not given any real understanding of what these companies do or how successful they are. Is Cola Loca a, large well established beverage company with large revenue growth and habitually providing good returns for investors, or is it a small to mid size company struggling to gain a foothold in the cola market? Similarly we would need to understand this for Early Bird coffee as well. Do both companies provide dividends yearly? What are the risk profiles associated with each company? Had the argument included this level of information it could have been considerably more pursuading.

In conclusion, the argument is flawed for the above stated reasons. The evidence presented is not detailed enough to be able to be used in evaluating the argument, and many pieces of key information that would have been usefull have been omitted. We are given no information as to the actual parameters of the companies the argument wants us to invest in, and the consumer and population trends that are put forward do not provide us with confidence in the made claims. Due to these issues, the argument is unsubstantiated and remains open to debate.

Good Luck

Hi, can someone please rate my essay on this topic?

The argument states that with age the average cola drinker's consumption of cola declines while an average coffee drinker's consumption of coffee increases and remains high even into older age, and that not only has this trend remained stable over the course of past 40 years, but also the number of older adults will significantly increase as the population ages over the next 20 years. Basis this, the argument claims that investment company should rightfully consider transferring its investments from Cola Loca to Early Bird Coffee. The argument suffers from poor reasoning and leap of faith, and relies on several key assumptions factored in without any material evidence, as we will discuss in the following paragraphs.

Firstly, we haven't been provided any data on the number of people in each segment. While the trends may be true, there may, for example, be a scenario wherein the cola drinkers far outnumber the coffee drinkers, and any decline in the former may still put the total number of cola drinkers at a greater number. Furthermore, we do not have any data on the per person consumption of the two beverages in each of the categories.

Secondly, we are basing our argument on a trend observance in the past 40 year period. There is nothing to indicate that this trend will persist. Over the next 20 years people's beverage preferences may undergo a dramatic reversal, making cola consumption significantly increasing with age. There may as well be a scenario where there is a third beverage that takes over the market making our two protagonists run out of business entirely. Unless we have something solid attached as a reasoning behind this trend, such as medical advisory, it appears as a giant leap of faith to assume that the same trend will continue.

Thirdly, we have no way to determine if Cola and Coffee are the sole products that Cola Loca and Early Bird Coffee sell. These may be one of their many products and any investment in a company based solely on one product category may backfire if the investment firm does not have a complete knowledge of the entire portfolio of the two companies. Furthermore, demand here has been taken as a proxy for sales and for revenues which is incorrect. Let us assume there are companies A and B. Taking everything else same, company A sells 10000 products in a given year and company B sells only 1000, but company A is a loss making company which is struggling to break-even and company B makes a healthy profit of $10 on every product it sells. Clearly, company B would yield better returns to the investors despite it having a low sale volume. Thus, consumer's demand cannot be equated to profitability without supplementary information on company's other key metrics.

In conclusion, there is considerable doubt on the overall credibility of the argument and unless it is backed by solid data points and comprehensive coverage of all pertinent factors, such as the ones that have been highlighted above, the argument remains shallow and poor-sounded.

Good Luck

Hi Sajjad1994

Please rate my Gmat official mock AWA.

Prompt- “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.”


The argument claims that the consulting firm should transfer its investments from Cola Loca to Early Bird coffee, using the support that as people's age in the population increases their cola consumption goes down but their coffee consumption goes up and remains so even after sixty years of age. Stated this way, the argument reveals example of poor reasoning and leap of faith. It also conveys a distorted view of the entire picture and fails to mention several key factors on the basis of which it could be evaluated. There are assumptions galore in this argument for which no clear evidence has been provided, hence the author's argument has very weak legs to stand upon.

First, the argument very conveniently looks over the other side of the coin while using the support that in the next twenty years, the number of older adults will rise. While this is absolutely true, there is no mention of what will happen to the number of children who are cola consumers in that time frame. As the number of adults in the population increase, it is not unreasonable to say that no of children born will increase too. So, then without the answer to what happens to the customer base of Cola Loca, the argument's suggestion of shifting all investments from Cola Loca to Early Bird Coffee falls flat.

Second, the argument also insinuates that profitability will be higher in the coffee market, hence the consulting firm should shift from Cola market to the Coffee market. This statement again is a stretch and an unsupported claim as there is no mention of the profit margins in both the firms. For example, Coffee drinkers might increase in number than the Cola drinkers but there might be very high production and distribution costs associated with Early Bird Coffee, making it a low profit margin business. On the other hand, the target audience of the Cola Loca which is primarily children might outdrink the amount consumed by coffee drinkers and thereby lead to very high sales for Cola Loca. Had the argument provided us with information to answer any of these questions, the argument would have been a much stronger one.

Clearly, there is much that has been left out by the argument and many questions have been left unanswered. The argument must procure evidence for the claims it uses to reach the conclusion. How can the reader be sure that past trends of coffee consumption increasing as adults age, will continue into the future? What if there is a global phenomenon whereby every adult ditches coffee for something healthier such as matcha or green tea? Or what if temperatures rise to such a level that hot beverages such as coffee go completely out of demand? Without convincing answers to these questions, the argument's conclusion seems to be more of wishful thinking rather than a by product of well thought out reasoning.

In conclusion, the argument is deeply flawed for all the above mentioned reasons. The holes in this argument's reasoning are many in number and massive in size. The author fails to support his argument with facts and necessary background information which would have helped the reader to soundly assess the merits and demerits of the said argument. Without all the above, the arguments leaves itself open to debate.

Good Luck

Hi there, can I please get graded?

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.”

As a part of a business plan, the argument suggests that the firm should consider transferring investments from a Cola company to a Coffee company. The argument comes to this conclusion by stating that generally, average coffee consumption increases directly with age and that average cola consumption decreases with age. Since the author reasons that the number of older adults are projected to increase in the 20 years, that increases in demand for coffee will increase accordingly as well. Stated this way, the argument is weak and unconvincing as it fails to take into consideration several key factors and relies on unsubstantiated assumptions.

First, the argument relies on the assumption that the distribution of investments should be based solely on demand for a particular product. This is clearly a stretch as the decision on where to invest funds is extremely nuanced and takes into consideration multiple key aspects of a business such as growth potential, historical revenue and profit, and the potential of its leadership. For example, if Early Bird coffee has been suffering under poor leadership and from poor sales, then maybe an investment into Early bird coffee is not a good decision. The argument needs to provide evidence on why this investment should be made on the basis of this demographic trend.

In addition, the argument takes a generalized, historical pattern and assumes that this pattern will affect two particular businesses in two different industries. There is no reason to believe that this demographic trend will continue in the future and that it will indeed increase demand for Early bird coffee. This argument leaves the reader with more questions than answers: What proof is there that this coffee and cola consumption trend will continue? What evidence does the author have that proves these two specific businesses will be affected as he has suggested? Without clear and logical answers to these questions, the reader is left with the impression that this argument is more wishful thinking than a logically reasoned argument.

Finally, the argument suggests that because the number of older adults will increase, the investment firm should transfer its investments from Cola Loca to Early Bird. However, the argument does not compare this increase in population with the demographic changes of the younger population. If the younger population increases even more than the older population does, then this would undermine the argument, suggesting that they should either keep their investments or even invest more into Cola Loca than into Early Bird coffee. The argument fails to make a logical comparison and overlooks the changes of the younger population in comparison to changes in the older population. This argument could be improved if it makes a more logical comparison that proves why the firm should transfer its investments in Cola Loca to Early Bird Coffee.

In conclusion, the argument is unsubstantiated and weak for the above-mentioned reasons. The argument fails to consider multiple important factors and makes weak, unfounded assumptions. This argument could be improved in many ways if it answers our questions clearly and logically.

Good Luck

Could someone please rate my response to the same question?

Will be very grateful!

Sajjad1994 / bb

My Answer:
The argument presented makes certain assumptions to arrive at a conclusion that the demand for coffee will increase and that for cola decrease, and therefore investments should be transferred from Cola Loca to Early Bird Coffee. This claim should be met with skepticism since there could various factors undermining the conclusions. Although the trend of decrease of cola consumption with age may support the argument, counter examples such as how the overall consumption of cola may still increase or how the market share of Cola Loca companies may improve have been ignored.

Firstly, even if the number of older individual increases over the next 20 years, the overall population may also rise, leading to a larger market overall. This would not cause a decrease in demand for cola. Thus, the shift in investments would be unwarranted.

Secondly, there is an assumption in the arguments that the current trends will continue. While currently the elder population may drink less cola and drink more coffee than the younger population, it is possible that the trends invert in the future. For example, if the current generation of people who are 20-30 years of age have a preference for cola, it is possible that as they grow they may retain their love for cola, not causing a decrease in demand. On the other hand, the young population may not prefer coffee as much, and even as they age they may carry forward their disdain for coffee, not causing any increase in demand.
Thirdly, even if it was to be assumed that the demand for cola in general decreases and the demand for coffee increases, there is no information available about the specifics of Cola Loca and Early bird coffee. It is possible that currently the Cola market is fragment and a reduction in demand would allow Cola Loca to gain market share and improve its financial performance. It may also be possible that Early bird coffee has a target market comprising young coffee drinkers. In such cases, the population aging would go against the conclusion of the transfer of investments.

Therefore, a further analysis needs to be done to understand whether there would be any shift in demand in the first place, and even if there is a probable shift in demand, whether the individual company characteristics support a shift in the investments.

Good Luck

Sajjad1994 Would appreciate if you could review my AWA as well!

In the business plan of an investment and financial consulting firm, the author argues that the firm should transfer their investments from Cola Loca to Early Bird Coffee due to recent studies that show that a cola drinker's consumption of cola declines with age whereas that of a coffee drinker's remains high even after age 60. While the argument is compelling at face-value, the conclusion is ultimately untenable because it rests on incomplete data, causing data bias error, and it lacks evidence backing the applicability of the study to the two specific brands that the firm currently has holdings in.

The author cites the study of an average coffee drinker's consumption to make his argument regarding the firm's investment decision. The study observes an age group from 10 through 60 of coffee drinkers and cola drinkers, and concludes that a cola drinker's consumption of cola declines with age. However, the study never specifically cites how much that consumption decreases. The decrease may be, for example, 1 ounce per year, and such a miniscule decrease will not change revenue of a cola brand significantly. Further, the author fails to provide information regarding the size of the trial, since if the trial were conducted with only a few participants, it was be quick to assume that the conclusion from the trial would be applicable for the greater population. Citing only the study, the author fails to recognize that while the aging population will increase over the next 20 years, there may be a younger population which has difference preferences and who can make up a greater total percentage of the target customers in the future. So, even if the older generation may decrease their consumption, a younger generation may increase their consumption so much as to offset that decrease.

Additionally, the author fails to prove the applicability of the study to the specific brands, Cola Loca and Early Bird Coffee. While overall trends may be drawn from the market, that is no indication that the trends hold for the two specific brands. Especially, if the brands are niche and appeal to a specific demographic, then the general trends of a wider population would not be applicable. Moreover, if there study were held in a different geography and thus applies to a different target market altogether, then the conclusions drawn from the study should not be utilized to make investment decisions for Cola Loca and Early Bird Coffee (i.e. if the study were conducted in Latin America, but Cola Loca and Early Bird Coffee are companies with target markets in the United States). Thus, the author provides no indication that the study holds true for those specific brands.

To improve the argument, the author should provide more comprehensive information regarding the trial such as information on trial size, the specific outcomes of the trial (i.e. how much decrease in cola was found in participants), the location of the trial (which country was the trial conducted), and the applicability of the trial to the specific brands. Further, the author must also investiage how the younger population will age into the target market, and how their preferences compare to the current demographics, as this information can be crucial to understanding future demand.

In summary, the argument remains invalid because of the hasty generalizations and the lack of evidence that the author provides. To strengthen the argument, the author must provide more comprehensive evidence that establishes a stronger basis for the claims put forth in the business plan. Without conclusive evidence, the argument rests on unsupported premises and unsubstantiated assumptions that render the conclusion invalid.

Good Luck

Hoping someone can give me feedback on my essay on this topic. Thanks in advance for any help!

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The argument suggests that the firm should move investments from Cola Loca to Early Bird Coffee because coffee consumption is going to increase relative to cola consumption in the coming years. This argument is flawed for several reasons. It utilizes vague language and misleading studies without clear supporting data. Additionally, it relies on assumptions that may not be true. Lastly, the argument is predicated on past trends being predictive of future trends.
The first main issue is the study the argument cites as support for coffee drinking increasing with age. Obviously, coffee consumption is going to increase from age 10 to age 60. Most children are not allowed to drink coffee and start in their late teens. This study gives us no real information that the normal person wouldn't already know. Also, the phrase "remains high" is vague and doesn't give the reader a clear understanding of exactly how coffee consumption trends in the elderly population.
The data the argument utilizes on cola drinking is also unhelpful. Cola consumption "decreasing with age" tells us very little about how much the level of consumption changes. Is it a one percent decrease or a fifty percent decrease? The lack of clarity weakens the argument and the credibility of the author.
The firm also relies on the fact that the adult population will increase over the next 20 years as a crux of its argument. This is a mistake because what really matters in the change in population of the elderly in the relation to the change in population of the youth if we assume everything else is true. If the elderly population is increasing, it is likely that the youth population is also increasing. But, no information is provided about what is expected to happen with the size of the youth population. The argument would be significantly strengthened if information on the relative change of the populations was given.
Another major flaw is the firm assumes that prior trends will continue into the future without any evidence as to why the trends will continue. The fact that something happened in the past doesn't mean it will occur in the future. A new drink could be created that completely dominates both the coffee and cola markets. The firm may be correct that prior trends with cola and coffee consumption will continue, but the entire argument rests on that point and most readers would want more supporting evidence for the trends continuing.
Lastly, if everything else in the argument turns out to be true, moving investments from Cola Loca to Early Bird Coffee may not be the right decision for the firm. There are numerous other factors outside of the levels of cola and coffee consumption that will affect how those companies perform. The firm would need to consider other parts of each business before making a well reasoned decision.
The reasons above illustrate the several flaws in this firms argument. As mentioned, using studies with more concise and clear data to support the argument would be helpful. It would also be beneficial to understand the exact relationship between the changes in cola and coffee consumption rather than just the direction each is expected to trend. Also, more information about how Cola Loca and Early Bird Coffee are each positioned for these market changes would be helpful to evaluate the argument. However, without additional information this argument currently leaves much up to question.

Good Luck

It would be helpful if anyone could rate my essay on this argument:


The business plan of the investment and financial consulting firm recommends transferring its investment from Cola Loca to Early Bird Coffee based on the estimated increase in population of older adults in the next two decades. This is in turn, based on the trend that coffee consumption increases with age of consumers. Though at first reading the plan seems to make perfect sense as an investment decision, on detailed analysis, it suffers from certain fallacies and seems to be based on incomplete data.

The plan states that since the number of older adults will rise, the demand for coffee will increase. It does not consider the proportion of such older adults who may not drink coffee at all, or may prefer tea or even cola. Though the trend has not changed for the past 40 years, it may change now as the population that will be above 60 years of age may have grown up drinking cola and may well continue through older ages. This population may have adopted vegan diets which exclude milk, which is a more recent trend, and this will have a big impact on the coffee demand in the coming years. It will also be helpful to know whether the current adult population is a regular consumer of "diet" cola variant and whether this consumption will remain steady or increase in the future. Adults who drink diet cola on a daily basis may well continue to do so in the future and this may affect the demand for coffee.

The plan has not provided any information on the birth rate and it is not possible to gauge the number of children and young adults that will comprise of the population in the coming years. If the birth rate is increasing, this may mean that demand for cola will be unprecedented in the coming decade.

The argument also provides no information on the effect of price of coffee vs that of cola on the demand and consumption. It is likely that retired adults may decrease coffee consumption due to reduced purchasing power, whether or not they take up cola.

Lastly, the decision to transfer the investment from Cola Loca to Early Bird Coffee must evaluate various factors of both these businesses. For example, assuming that demand for coffee will increase as indicated in the plan, whether Early Bird Coffee can serve this increased demand. It would be useful to know their current profits and expansion plans. Further, it would also be important to evaluate whether Cola Loca has estimated the effect of change in population on its sales and what solution it has considered to maintain the sales. The firm should also consider whether Cola Loca has any plan to attract the younger consumers through aggressive marketing and new SKUs and thus increase overall profits. After all, this will be the primary factor influencing the firms decision.

Thus, the firm's plan, though decent, could be made more logical based on the information sought above.

Sajjad1994 please review, thanks

In this argument, the author concludes that investments should be transferred from a cola company to a coffee company based on certain assumptions about consumptions patterns of the two beverages across different ages. There are many reasons due to which this argument is not very convincing.

Firstly, the credibility of the studies used to cite the data has not been established. The sample size of the studies is not provided, and different demographic factors can impact the result of such studies. In the absence of this information, it is not advisable to base an investment decision based solely on the information of these studies.

Secondly, the argument does not account for the possibility of a third beverage alternative that may become popular over the next 20 years amongst adults across different ages. Over the 20 years, the preferences may change based on availability of other options to consumers. For example, consumers may shift to healthy alternatives such as fresh juices.

Thirdly, it makes a very generic assumption that the investments’ returns would be driven mainly by the increased demand for coffee over cola. The stock prices of a company are impacted by various factors such as production capacity, distribution network, brand value, and so on. So to assume that the investment must be switched solely based on demand is far-fetched.

In conclusion, this is a weak argument. To strengthen the conclusion, the author could show reliable studies conducted with the same sample population, including major trends in demand and supply of the two beverages. Also, a market research report which covered potential competition over the next 20 years may make the argument more robust. Without this key information, the argument remains unsubstantiated.