0910G[North America Flying] Argument65 by haunteagle

haunteagleUID: 2609432

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: 325
TIME: 00:30:00
DATE: 2009/7/9 23:07:54

Through a sales report and a survey, the present of the stores conclude that if we discontinue stocking imported cheese and concentrate domestic cheeses we will earn more profit. However, the evidence of the present is not unconvincing.

Firstly, the sales report that the five best-selling cheeses are all domestic cheese presented by the newest store may not represent the whole situation of all the stores. Perhaps the customers of this newest store happen to have a common relish. Or perhaps local gourmets who like cheddar cheeses very much and buy a lot. The president should first provide some more convincing evidence that this store can represent the whole situation of the country.

Secondly, even the sales report shows that situation across the country, it is hastily to say it is profitable. As we know, the number we sold multiple the price of the cheese is the income. Maybe the cheese is cheap that we earn a little from it while imported cheeses, though we sell less, are more profitable.

Thirdly, the survey of the magazine is not convincing. Whether the subscribers are wealthy, whether they are professional gourmet or public buyer, whether the number of sample is large enough are not provided. It is difficult to judge the survey is reasonable or not. Maybe the subscribers are poor so they choose to buy comparatively cheap domestic cheese. Maybe they are professional tasters that their inclination cannot represent the whole trend of customers. Maybe only a dozens of subscribers respond the survey and they happen to be domestic cheese lovers.

Finally, even if domestic cheese is more profitable we have to think twice before adopt the president's advice. The storage of imported cheese and domestic cheese cannot be the same. The imported have been stored for a long time during transportation while the domestic experience a relatively short transportation time. Therefore we need to invest to the reconstruct of our storage and transportation system. We should first compare the cost and the profit.