Would you mind having a look at mine too please? Its my 2nd AWA attempt
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The argument presented by the Apogee Company, despite being in theory correct, lacks information that could strengthen the argument to make it consider. The idea that their decentralization was the cause of their reduced profit has an ocean of possible causes. Their proposal to go back to one central venue to operate has the following flaws:
Without a balance sheet or any other proof to compare profitability from years before opening more venues vs a single one is not provided, therefore it is not a valid argument to take, several questions would need to be answered in order to understand whats the biggest gap and if it correlates to the multiple venues, for example, what is the number of employees and related increased costs that the expansion incurred? Can the new venues sustain themselves or are they biting on other venues profits? How many more venues do they have and what are all the new costs?
The proposal to close down all of the filed venues has some serious implications that need to be considered, as there is no information about them, this is just an assumption of what needs to be done. This will require some answers for the following questions to better understand the ramifications, Are all the field staff expected to work from the central office now? Is there enough office space to hold the extra staff? If not, what infrastructure modifications are needed and how much would they cost? If there´s limit office capacity, what would happen to the extra staff? Will they be let go with economical compensations? Can the Apogee Company really aford this now?
The third key flaw in the argument is the idea that the single operating point will help cutting costs, there are no supporting argument that show what exactly where are the costs they are trying to cut down, is it by using lower quality materials? Having less staff? Paying less rent? Lowering salaries?, more clarification is needed on what exactly are the costs that will be impacted.
The last flaw refers to increased supervision as something that will impact profitability, without any supporting studies that the actual profit decline is somehow correlated to the way the staff do their work this statement is just an assumption. An evaluation of staff appraisals per venue compared to profitability would be needed to understand this better and if there are any other factors like where the venue is located, the economical capacity of the area and current economy.
While on the surface this argument might sounds like a good solution to increase profitability, without the answers to the questions mentioned above, the argument lacks solid proof to consider it true.