Please review my AWA essay
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31 Aug 2016, 08:59
Argument
In recent year, Braeburn Corporation has been lagging sales of its food products. Just a few of the many food products Braeburn sells are soy products. Soy products have been shown to reduce rates of cancer. Because people care about reducing their risk of cancer, Braeburn should increase manufacturing of soy products. This will help Braeburn Corporation improve sales and increase profits.
Essay
The argument highlights the sales reduction of Braeburn Corporation with the measures to increase the sales. It suggest to increase the manufacturing of soy products because it reduces the rates of cancer. The stated argument suffers from many flaws ranging from assuming increase in manufacturing qty. will lead to increase in sales and profits to assuming behavioural of the people at mass without proper studies.
To elaborate on the first major flaw, although the argument states benefits of soy products, but it does not state the sufficient demand of the product in the market. It may happen current production is more than sufficient to meet the demand the product, thus increase in the production may lead to high stock , cash flow block and in future the company may have to reduce prices to sale high stock thus affecting the margins. Nevertheless, if the argument assumes that it can sell all the increased qty. at full price then argument should state the additional efforts such as heavy advertising, promotion will be done to make the plan successful.
Furthermore, the argument also assumes that all because people care about reducing the risk of cancer, they will consume soy products it totally baseless without any detailed study. Even if we assume, people will consume soy products to reduce cancer risk, we cant simply assume they will consume only Braeburn Corporation food products. There are many ways in the world to consume soy products. For example to have pure soy directly instead of diluted soy.
The company should look for actual reason of decrease in sales as it deals in many food products. Reasons for the sales decrease may be recent increase in selling price, change of consumer taste etc. I also suggest the company to look at market share of the each food products and decline% with respect to last year and with respect to competitor. After the study The Company may target on the product which has lost its market share drastically or which has higher profit margin or which has great demand in the market based on the objective of the company. After detailed analysis the Company should decide on the corrective action to revive its products in the market.
The stated argument leaves out several important factors, the argument in not sound and convincing. If it based its decision on the market study then the argument would have more reliable. Simply, to increase the sales and profits, increase in production quantity is not at all behaviour of sound business. Thus I suggest the company to review its decision and take corrective action.