The following appeared in a memorandum from a member of a financial management and consulting firm:
“We have learned from an employee of Windfall, Ltd., that its accounting department, by checking about 10 percent of the last month’s purchasing invoices for errors and inconsistencies, saved the company some $10,000 in overpayments. In order to help our clients increase their net gains, we should advise each of them to institute a policy of checking all purchasing invoices for errors. Such a recommendation could also help us get the Windfall account by demonstrating to Windfall the rigorousness of our methods.”
Discuss how well-reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion.The author claims that in order to increase the client's net gains, the firm should advise them to institute a policy of regularly checking purchasing invoices. This will help land an account with Windfall as it demonstrates the rigorousness of the firm's methods. The conclusion is based on the premise that an employee of Windfall had saved around $10,000 of overpayments by checking previous invoices for errors. However, the argument lacks relevant and sufficient evidence, making several assumptions that could affect key factors of its conclusion. For example, the author generalizes the case to apply to other companies. Furthermore, the author fails to consider if this is as significant as the author assumes it is. Finally, recommending this to the client could result in them losing a potential job with them.
First, the argument assumes that checking invoices for errors will definitely increase their client's net gains. This assumption fails to consider whether firms know of this already, and only Windfall has failed to apply this method. If that is the case, then suggesting to clients that they must check their invoices for errors may come off as redundant and shows lack of experience. This would sacrifice the reputation of the firm and affect their chances of future projects. Therefore, vetting the use of this method before recommending to clients would be beneficial.
Secondly, the effect this had on Windfall may not be continued to be seen if they implemented this method so seriously. This may have been a one-off scenario. Instead, the firm should focus on ensuring methods are in place to prevent manually locating errors, therefore proving useful to the firm. For example, a local coffee shop finds out that they have been double counting last week's orders. This inflation in revenue results in incorrect books. One of their baristas had spotted the issue and solved it immediately. Once the team had learned about it, this issue did not take place again. A consulting firm telling the coffee shop not to do so at this point seems redundant and useless.
Lastly, recommending this information to the client will prove the account useless. Unless the firm offers other services, such as instituting methods to mediate the problem, they will not win the account. Windfall can just ensure the problem is taken care of on their own. Therefore, to ensure they secure the account, they should find other ways to help Windfall with the issue.
In conclusion, the author fails to consider several factors that could help improve their argument. Considering the points made above creates a more sound argument that properly communicates the argument's points. Though their generalization may be correct, without the right evidence to back it up, the argument seems weak.