Question:
The following appeared in a memorandum from the business department of the Apogee Company.
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees.”
Answer:
The argument claims that the Apogee company was more profitable when it had all its operations in one location, and concludes that it should go back to operating from a single location and close down its field offices in order to increase profitability and reduce costs. the argument proceeds by stating that this move would help the company maintain better supervision of all employees. Stated this way, the argument fails to mention several key factors on the basis of which it could be evaluated, and reveals examples of leap of faith and poor reasoning. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is severely flawed and unconvincing.
First, the argument readily assumes that the Apogee company was more profitable than it is today because it was operating in a single location rather than in several field offices. This claim is a stretch and not substantiated in any way. For example, there is no data or evidence backing this claim. For all we know, the decrease in profitability could be attributed to other factors. If the argument had provided a detailed report of all the costs incurred by the company and their increase as well as a comparison between profitability when the company operated in one location and when it began operating from multiple locations, the argument would have been much clearer.
Second, the argument claims that reverting to a single location and closing down the field offices would increase profitability and reduce costs. This claim is again very weak and unconvincing. For instance, the cost of moving back to a single location could be too high, a cost that the author may not have accounted for. Additionally, the author seems to discard the benefits provided by having multiple field offices, benefits which should be important enough for the company to choose to divide its operation location into several offices in the first place. The argument would be much more convincing had it provided the reason or benefits of having several field offices as opposed to a one location of operations.
Finally, the argument seems to take for granted the idea that moving all the employees into a single location will undoubtably make it easier for the company to supervise them. What if there was not enough managers or supervisor provided to supervise a large number of employees all at once? It is common knowledge that dividing people into groups and sections makes it easier for the supervisors to monitor them and follow up on the work. Additionally, what if putting all the employees in the same location would make them uncomfortable as the place becomes crowded and thus making them less productive? We would then expect a decline in efficiency and therefore in profitability. Without any convincing answers to these questions, one is left with the impression that the claim is more of a wishful thinking rather than substantive evidence.
To conclude, the argument is heavily erroneous and flawed for the above-mentioned reasons. It could be considerably strengthened had the author provided all the relevant facts. In order to access the merits of a certain situation, it is important to have full knowledge of all contributing factors.