The author argues that Apogee Company was more profitable when it operated from a single location than now when it is operating from many, therefore the author concludes that in order to boost profit the company should return to operate from one single location. This argument however has several flaws that weaken the author’s conclusion. The author assumes that single location operating is a better strategy. Furthermore, the author assumes that location is the only factor affecting proft.
First, the author assumes that operating from one location is a better strategy than operating from several locations. This assumption is flawed because there are many advantages of operating from several locations that the author fails to see or consider. In real life there are examples of companies that would certainly be less profitable if they were to operate from one single location such as Samsung. Samsung would certainly not be as profitable as it is now if they only operated from South Korea (Headquarters) simply because by operating from several locations Samsung was able to reach as many potential buyers as possible, increasing its market share and achieving market growth. Therefore, the company has to look carefully at all the reasons that are leading to less than expected performance rather than assuming that operating from several locations is the main and only reason.
Second, the author assumes that location is the factor the lead to a decrease in the company’s profitability. This assumptions is flawed because there are many factors that affect a company’s profitability such as management, marketing etc… that the author fails to consider. Therefore, the author has to consider many other factors before jumping to conclusions.
Finally, the argument is flawed due to the reason mentioned above. A careful consideration of the market overall condition and Apogee competitors’ performance will help the author to substantially improve the argument.