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michealchenchenUID: 2577667

TOPIC: ARGUMENT65 - The following appeared in a memo from the president of a chain of cheese stores located throughout the United States.

"For many years all the stores in our chain have stocked a wide variety of both domestic and imported cheeses. Last year, however, the five best-selling cheeses at our newest store were all domestic cheddar cheeses from Wisconsin. Furthermore, a recent survey by Cheeses of the World magazine indicates an increasing preference for domestic cheeses among its subscribers. Since our company can reduce expenses by limiting inventory, the best way to improve profits in all of our stores is to discontinue stocking many of our varieties of imported cheese and concentrate primarily on domestic cheeses."
WORDS: 484
TIME: 00:40:38
DATE: 2010/2/5 15:34:58

In this argument, based on the sales condition of newest store last year and a recent survey about the preference for different cheeses arranged by Cheeses of the World, the author concludes that to terminate stocking of imported cheeses and focus on the domestic cheeses would be the best way to elevate profit level. However, the hasty generalization from the newest store to all stores in the chain and the insufficient information for the causal relationship between the strategy and profit render this argument unconvincing.

First and foremost, the author unreasonably attributes the sales status in the newest store to the whole chain. There might exists various differences between the newest one and others: Such as the different location, different groups of consumer, the difference in management objectives, and all of which would lead to the different selling condition. Perhaps the newest store is located in the center of Wisconsin whose people prefer the local cheeses; or this store only offers domestic cheeses because of the chain' development strategy ------ to specialize every store's selling. If so, other stores in the chain may not enjoy the fine sales about domestic store, then the application for cheeses store may not appropriate to the whole chain.

In the following place, the survey indicate preference for domestic cheeses may not act as a strong evidence support the final conclusion. An increasing preference might not result in great demand for domestic cheeses. It is entirely possible that, in the past, people do not like domestic cheeses at all, they totally incline to imported ones. And recent preference would not be enough to come into being a adequate demand to promote domestic cheeses sale, let alone the revenue it would bring.

Last but not the least, although this company is capable to reduce cost by limiting inventory, the author could not guarantee that this strategy, discontinuing stocking imported cheese and concentrating on domestic ones, can increase the company's overall profit. Common sense and professional knowledge inform us that profit involves with revenue and expense, and this application for the stock stands a good chance to the falling of profit. Perhaps imported cheeses bring their majority of income, this stock arrangement serving primarily for the situation of less imported cheeses sold would pull down company's profit sharply; or ,the mounting demand for domestic cheese will make local manufacture rising their supply price which would increase the cost for purchase cheeses. These possibility would eventually decline the profit rather than improve.

In conclusion, this argument is ill-founded as it stands. To better illustrate that the newest store's sales status will properly apply to other in the chain, more information about every store should be offered. To validate the supporting from survey, more details should be listed. And much more factors should be taken into consideration if the author wants to demonstrate that mounting profit is feasible through the stock strategy.