Hi Brian, I doubt you are still around, but if you are I would appreciate to have an opinion on my essay as well.
Thanks alot
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By stating that because Apogee was more profitable when it had all its operations in one location the company should close down its field offices to improve profitability and better supervise its employees, the author fails to give supporting reasons for the judgment the argument reaches.
First, the argument infers that the lack of profitability is a sufficient reason for closing down field offices. However, it is difficult to assess the soundness of this claim without further evidence. For instance, how materially has profitability decreased and how much a lower profitability can Apogee stomach in its expansion venture? Case in point, if Apogee’s previous profit margin stood at 30% on revenues of €90m and that the current margin stands at 29% on revenues of €180m, profitability would have only decreased marginally while on the other hand, Apogee would have doubled its revenues and increased its market share. This is a dilution that is ultimately palatable.
Second, by stating that the company should close field Offices, the argument assumes that the opening of field offices caused the decrease in profitability and that no other alternative cause could have led to this effect, another assumption for which the author fails to provide evidence. The author could have indeed discussed the absence of such internal forces as poor products or cost management and external factors as seasonality effects on sales or macro related uncertainties on profitability. To bridge the gap, the argument could have also presented sustained profitability of competitors that stuck to a single location. Instead, the author chose to solely depend on assumptions broader in scope than warranted by the evidence presented. As such, a simple correlation, rather than a causal relationship, between lower profitability and the opening of additional field offices cannot be ruled out.
Additionally, the argument contends that centralization would improve profitability by cutting costs and maintaining a better supervision on employees. This statement assumes that, the profitability was cannibalized by a compound effect: higher employee costs from field offices and lower revenues– due to an inefficient work environment or worse, bad supervision of employees. While this might be true, the author did not provide evidence in support of the claim. Indeed, without knowing how long it actually takes a field office to operate effectively and turn into profit, it would be unfit to make a rush judgment on the efficiency or lack thereof of the multiple offices. Perhaps in a normal course of business, it takes a field office 2 years to absorb the costs related to new a opening and that the current field offices are only at their first year…
Again, without any information on Apogee’s employees the author takes another leap of faith, spouting that cutting off employees costs would result in higher profitability. However, various important elements remain unknown making the argument impossible to support: the number of employees to be laid off, the country or countries in which Apogee operates, company bylaws... Per se, increasing profitability would have to, among other things, depend on the cost of laying-off employees. For instance, protections for employees in a liberal country differ significantly from those in a social country where the cost of firing an important amount of workforce, and the possible class actions linked with it, is often quite dissuading.
In conclusion, the author has failed to present so many key elements—as stated above— that the argument, as is, can only be open to debate.