My first attempt at AWA. Can someone review and comment if possible ?
The argument states that the Apogee Company should close down its field offices and conduct all its operations from a single location. This conclusion is based on the reasoning that such centralization would improve the profitability of the company by cutting the costs and the centralization would also help the company maintain better supervision of all employees. Also, the argument tries to support its conclusion by stating that the Apogee Company was more profitable than it is today when it had all its operations in one location.
However, stated this way the argument fails to mention several key factors, on the basis of which it could be evaluated. Also, there is faulty assumption that since it was the more profitable in the past, the same will be the case even now. In addition to that it does not clearly explain how the better supervision of employees is beneficial.
First, while emphasizing on the cost reduction due to centralization, the argument overlooks other costs that may have been reduced due to de-centralization. For example, the centralization may reduce the operating costs of the field offices, but the field offices actually promoted better customer connect and reach, for which in the absence of such offices, employees would have to travel to customer locations This would incur additional travel expenses. Also, more than just being a cost factor, having multiple field offices helps to establish the company as having its footprint in various geo locations that would give the company a competitive advantage.
Secondly, it readily assumes that since operating with a single office was profitable in the past, the same would be the case now. This is a faulty assumption without any solid evidence or facts to substantiate this assumption. The argument here fails to consider the scale of operation and operating conditions in the past and now. For example, may be the company felt that expanding its offices may help attract more diverse talent and better cater to the local population, thereby expanding the geo locations it serves. Without answers to these questions, we cannot efficiently determine if it is beneficial to operate out of a single location.
Finally, it does not explain how better supervision is beneficial.
Does better supervision improve productivity?
Whether this may lead to micro-management thereby lowering the morale of the employees and reducing the motivation for creativity?
Without convincing answers to these questions, one is left with the impression that the claim is open for misinterpretation.
In conclusion, the argument is flawed for the above-mentioned reasons and is therefore unconvincing. It could have been better strengthened if the author clearly mentioned the relevant facts, and clearly backed the assumptions with substantial evidence. So, before concluding that centralization is more profitable, it would be better to consider the factors mentioned above.