Quote:
The following appeared as part of a recommendation by one of the directors of the Beta Company:
“The Alpha Company has just reduced its workforce by laying off 15 percent of its employees in all divisions and at all levels, and it is encouraging early retirement for other employees. As you know, the Beta Company manufactures some products similar to Alpha’s, but our profits have fallen over the last few years. To improve Beta’s competitive position, we should try to hire a significant number of Alpha’s former workers, since these experienced workers can provide valuable information about Alpha’s successful methods, will require little training, and will be particularly motivated to compete against Alpha.”
Discuss how well reasoned . . . etc. The author recommends that the Beta Company, to improve its competitive position, should try to hire a significant number of employees whom were recently laid off by the Alpha Company. Stated in this way, the argument fails to mention several key factors, on the basis of which it could be evaluated. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is weak and convincing.
First, the argument readily assumes that the employees laid off by Alpha are high performers and can be of benefit to Beta. This statement is a stretch and does not take into consideration the possibility that Alpha laid off the employees because they were performing badly. Clearly, if this is indeed the reason, then it would not make any sense at all for Beta to try to hire these employees. The argument could have been much clearer if it explicitly stated the reason that these employees were laid off.
Second, the argument claims that Alpha’s methods are successful and that it would be beneficial for Beta to learn about them. This again is a very weak and unsupported claim as the author does not provide any evidence to support that methods are successful or that they can be used by Beta. If the author had provided evidence that Alpha was more profitable than Beta and that Beta can take the same approach as Alpha, then the argument would have been a lot more convincing.
Finally, the argument concludes with the recommendation to hire a significant number of Alpha’s former workers to improve Beta’s competitive position. The author does not account for the increased payroll costs that will result and their impact on Beta’s profitability. To illustrate, if Alpha’s employees hired by Beta will contribute to a $1 million increase in Beta’s annual profits, but will cost an additional $5 million dollars in payroll costs, then the conclusion would not make financial sense. If the author had provided figures for the estimated increases in profits and payroll costs, it would have been possible to better evaluate the argument.
In summary, the argument is flawed for the above-mentioned reasons and is therefore unconvincing. It could be considerable strengthened if the author clearly mentioned all the relevant facts. Without this information, the argument remains unsubstantiated and open to debate.