ARGUMENT209 [Victors小组]7月4日作业 by H-Kevin

H-KevinUID: 2182070

TOPIC: ARGUMENT209 - The following recommendation was made by the Human Resources Manager to the board of directors of the Fancy Toy Company.

"In the last three quarters of this year, under the leadership of our president, Pat Salvo, our profits have fallen considerably. Thus, we should ask for her resignation in return for a generous severance package. In Pat's place, we should appoint Rosa Winnings. Rosa is currently president of Starlight Jewelry, a company whose profits have increased dramatically over the past several years. Although we will have to pay Rosa twice the salary that Pat has been receiving, it will be well worth it because we can soon expect our profits to increase considerably."
WORDS: 437          TIME: 0:30:00          DATE: 2007-7-8

The author recommend that the Fancy Toy Company should employ Rosa, a president form Starlight Jewelry, instead of their current president, Pat Salvo due to the three quarters’ profits fallen considerably. To support recommendation the author cites that the profits of Starlight Jewelry keep increase dramatically over the past several years. And the author also point out that even the company should pay for double salary that Pat has been receiving, the company still can gain the considerably increased profits soon. The memo is flawed in several aspects.

To begin with, the author show no evidence that the operation process between the Fancy Toy Company and Starlight Jewelry is the same or similar. Eventually, the two companies have a very different market and business field which would induce the difference operation decision and thought as the presidents. Rosa who is the president in the starlight Jewelry not means she has the capability of run a toy company. Thus I can not accept this recommendation on this unknown president.

The articles notes they could expect the great profits is also unfounded in two aspects. First, whether the company could gain the profits is depend on both the company intrinsic operation like the management and product design and extrinsic operation like market spread and service. So, even Rosa has a good management for this toy company, the bad products and services with the unsuitable market orientation would also cause profits in a unknown number. Second, the salary given to Rosa is twice that Pat received, as we know that the salary is much higher for the presidents, so whether this salary could increase the cost which is the main factor on the profits calculating.

Finally, the environment of this toy market is also unknown. From this point we perhaps can infer that the considerably profits fallen is not due to the capability of current president Pat Salvo but the stagnation of whole toy market. If this is true, who is the president is not as important as the market resuscitation. Thus, without the evidence that why this fallen happed we even could not let the Pat resignation at all.

In conclusion, the memo is poorly supported. To strengthen it the author must convince me that the president from a Jewelry company will have the skill on operating a toy company. And the author must provide sufficient evidence that this company would have a expected profits increasing like the starlight jewelry. Finally, to better assess this recommendation the author should give the reason why this considerably profits fallen happened, the widely market stagnation or the incapability of president, Pat Salvo.

[ 本帖最后由 H-Kevin 于 2007-7-9 16:40 编辑 ]