Vyom World.com  . Let's Touch the Sky Together!  
. . . . . . .
VyomWorld.com Home
Free Magazines!
VyomLinks.com Home
JobsAssist.com Home
Vyom Network
Contact Us
 Jobs & Careers
Resume Submitter
Placement Papers
IT Companies Directory
Computer Jobs
Interview Questions
Online Exams
Vyom Career eMag.
Screensavers New!
SMS Jokes
 Source Codes Library
Source Codes Home
ASP Source Codes
C Source Codes
C++ Source Codes
COBOL Source Codes
Java Source Codes
Pascal Source Codes
Submit Source Codes
GATE an Overview
GATE Preparation
Study Materal
GRE an Overview
GRE Questions
GRE Preparation
GRE Universities
 TOEFL Preparation
TOEFL Resources
 GMAT Preparation
GMAT Resources
 MBA Preparation
MBA Resources
 Networking Concepts
Networking Concepts
 Testing Preparation
Testing Resources
Free Traffic Builder
Webmaster Articles
Web Hosting
Hardware Tutorial
1500 Free eBooks New!
 FREE Publications
Vyom Career eMag.
Get 9,000+ Interview Questions & Answers in an eBook.

  • 9,000+ Interview Questions
  • All Questions Answered
  • 5 FREE Bonuses
  • Free Upgrades

    Get it now!

    Post your Resume to 5800+ Companies

    Reliable Web Hosting

    Get 9,000+ Interview Questions with Answers in an eBook

     Home >>GMAT >>Essays>>Essay - 2


    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 officesHidden text (n. Hidden text ) 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."

    Discuss how well reasoned... etc.

        In this argument the author concludes that the Apogee Company should close down field offices and conduct all its operations from a single, centralized location because the company had been more profitable in the past when all its operations were in one location. For a couple of reasons, this argument is not very convincing.

        First, the author assumes that centralization would improve profitability by cutting costs and streamlining supervision of employees. This assumption is never supported with any data or projections. Moreover, the assumption fails to take into account cost increases and inefficiency that could result from centralization. For instance, company representatives would have to travel to do business in areas formerly served by a field office, creating travel costs and loss of critical time. In short, this assumption must be supported with a thorough cost-benefit analysis of centralization versus other possible cost-cutting and/or profit-enhancing strategies.

        Second, the only reason offered by the author is the claim that Apogee was more profitable when it had operated from a single, centralized location. But is centralization the only difference relevant to greater past profitability? It is entirely possible that management has become lax regarding any number of factors that can affect the bottom lineHidden text ( ) such as inferior products, careless product pricing, inefficient production, poor employee expense account monitoring, ineffective advertising, sloppy buying policies and other wasteful spending. Unless the author can rule out other factors relevant to diminishing profits, this argument commits the fallacy of assuming that just because one event (decreasing profits) follows another (decentralization), the second event has been caused by the first.

        In conclusion, this is a weak argument. To strengthen the conclusion that Apogee should close field offices and centralize, this author must provide a thorough cost-benefit analysis of available alternatives and rule out factors other than decentralization that might be affecting current profits negatively.



    Recently Updated: New Placement Papers added.
    Vyom Network : Web Hosting | Dedicated Server | Free SMS, GRE, GMAT, MBA | Online Exams | Freshers Jobs | Software Downloads | Programming & Source Codes | GRE Preparation | Jobs, Discussions | Software Listing | Free eBooks | Free eBooks | Free Business Info | Interview Questions | Free Tutorials | International Business Information | IAS Preparation | Jokes, Songs, Fun | Free Classifieds | Free Recipes | FAQs | Free Downloads | Bangalore Info | Tech Solutions | Project Outsourcing, Web Hosting | GATE Preparation | MBA Preparation | SAP Info | Excellent Mobiles | Software Testing | Interview Questions | Freshers Jobs | Server Insiders | File Extension Directory

    Copyright ©2003-2019 Vyom Technosoft Pvt. Ltd., All Rights Reserved. Read our Privacy Policy