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TOPIC: ARGUMENT65 - The following appearedin a memo from the president of a chain of cheese stores located throughout theUnited States.
"For many years all the stores in ourchain 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 domesticcheddar cheeses from Wisconsin.Furthermore, a recent survey by Cheeses of the World magazine indicates anincreasing preference for domestic cheeses among its subscribers. Since ourcompany can reduce expenses by limiting inventory, the best way to improveprofits in all of our stores is to discontinue stocking many of our varietiesof imported cheese and concentrate primarily on domestic cheeses."
WORDS: 449 TIME: 45min DATE: 2008-2-16
In the memo, the president recommends thatdiscontinue stocking large parts of their imported cheese and concentratemainly on domestic cheeses. To support the recommendation, the presidentexplains that domestic cheeses are best sold in five newest stores; also thereis a survey to support the president's conclusion. However, the argument isbased on several substantial assumptions which make the recommendation unwarrantedas it stands.
The threshold problem of the argument is whetherthose five newest stores are representative. The president assumes that the situationsof the five stores can represent all stores in the chain. However, there is noevidence to prove this standpoint. Perhaps the five stores' locationenvironments are diverse from other stores, or perhaps among the consumers ofthe five stores, there exist a high proportion who selects domestic cheese astheir favorites, while the other stores in the chain have the opposite case.Without ruling out these probabilities, it is groundless to conclude just from theconditions of the five new stores.
Even assuming that the five stores arerepresentative, the president fails to take in account the validity of thesurvey. There is no detailed information to tell us who conduct the survey andwho are the respondents of the survey. It is entirely possible that the Cheesesof the World magazine is just a domestic magazine which serves to the domesticcheese industry. If it is the case, the survey might be designed on purpose todefeat imported cheese which has declined domestic cheese industry's profits.Therefore, the president cannot draw any firm conclusion without showing us thedetails of the survey.
Even assuming the survey is effective, thepresident fails to compare the two kinds of cheese carefully. Perhaps imported cheesebares more advantages than domestic cheese in aspects of cost or taste, whilethe propaganda on imported cheese are far from enough to make them popular. Orperhaps domestic cheese will increase the chain's cost and therefore decline profits.Therefore, the president makes a rash recommendation without making acomprehensive comparison of the two kinds of cheese.
In the final analysis, in order to promotethe profits of the chain, the president just take into account a seeming unimportantaspect, while overlooking other factors that could directly influence theprofits. For example, the service the chain provides, or the management of thechain, etc.
In conclusion, to make the recommendationmore convincing, the president should provide detailed information to prove therepresentation of the five newest stores and the validity of the survey.Moreover, there must be a comprehensive comparison between the two cheeses.Finally, the president has to consider other potential factors that serve toincrease the chain’s profits.
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