Argu 117 [jet]

jinluevaUID: 2390375

Argument 117

Date: 2008-2-19
Words: 472

Before adopt the suggestion to increasing at all Valu-Mart stores the stock of home office machines as well as office suppliers according to argument, there are certain vital points in the business manager's reasoning that need us to reexamine from other angles. In his memo, the manager cites the report to prove the trend of increasing amount of home work, thus he takes it for granted that needs for home office machines should increase, based on what he presents the suggestion.

Nevertheless, is the result of the survey so credible and strong here? For and survey to be accepted in its credibility, at least information must be given about how large is its sample, how the sample was selected (whether it is random or not), and how the survey was conducted. If, say, the report is only about a certain region, can it represent the overall market? If all the respondents are middle aged men who holds positions as CEO or middle level managers, is their complain about work burden at home the same with others such as part-time social workers? Does their home burden require help of any home office machines? Without details about the background of the survey, the merely 70 percent rate could hardly make any sense to the assumption that demand for home office machines increases.

Moreover, the manager of business fails to consider other possible alternatives to the change of market patterns. Under the circumstance of progressively rising competition in the market, even if the total needs for products for home work climbs significantly, the need for Valu-Mart stores' home office products may stay constant or even decline due to competition from other companies.

On the other hand, even if the demand for Valu-Mart' home office products increased, will the strategy of the manager really work? It is a common sense that stock and its storage costs money, only if the potential return is high enough is the increase of stock a sagacious investment. However, in cases of highly competition, which is usually the patterns of retail markets, rising stock is always a burden, rather than an engine, to net profit. Thus the memo is unfortunately a one-sided argument about the suggested market tactic.

We might further ask: Is the target of the manager’s suggestion really recommendable for the stores owners? Assume that the recommended strategy could effectively make the office-supply department the most profitable component, whether the whole earning of all the components in the store company will increase remains questionable. Probably the investment on stocks in office-supply department reduces opportunities for other departments to gain more profits since in that case, more resources and money will be taken by office-supply department. To further verify the practical value of this suggestion, a general evaluation of its total effects is indispensable.