TOPIC: ARGUMENT117 - The following is a memo from the business manager of Valu-Mart stores.
"Over 70 percent of the respondents to a recent survey reported that they are required to take more work home with them from the workplace than they were in the past. Since Valu-Mart has not seen impressive sales in its office-supply departments in the past, we should take advantage of this work-at-home trend by increasing at all Valu-Mart stores the stock of home office machines such as printers, small copy machines, paper shredders, and fax machines. We will also increase stock of office supplies such as paper, pens, and staplers. With these changes, our office-supply departments will become the most profitable component of our stores."
WORDS: 390 TIME: 00:28:43 DATE: 2007-8-3 16:19:18
In the memo the manager of Valu-Mart stores calls for increasing the stock of home office machines based on the result of a recent survey that over 70 percent of respondents are required to take more work home with them from the workplace than they were in the past. The manager's analysis are problematic, thus render the recomendation unconvincing as it stand at.
To begin with, the manager did not provide edivence that the repondents are reprensentitive engough to all the citizens of this area. If only a few people need to take more work home, it is highly unlikely that there will be increase need for ofice machines.
Additionaly, even assume the survey truly suggested that a majority of citizen will take more work home, that does not mean they will require more office machine. It is entirely possible they are using computers and other non-traditional tools, the office machines such as printers, smal copy machines, paper shredders and fax machines, which the manager referred may not be the majority people's choice.
Even assume the people will choose the office machine the manager suggested, there is clear evidence show the selling of Valu-Mart stores will increase. It is highly possible that there are already many stores began selling these office machine, and the quality and price were more competitive. It will be an unreasonable decision to Increase stock if it cannot bring better selling.
Finally, even the manager has substantiate the ongoing assumption that the selling will increase if increase the stock, it doesnot mean there will be more profits. If the office machines are the goods with little profits because of stock cost, the transfer cost and low price in this area, put the money on the stock of other goods may be a better choice, which goods have a smaller sellings but a with more profits.
In sum, to convice me that the recommendation is resonable, the manager need provide evidence that the survey is representitive and the citizens are using the office the manager reffered when they work home. And the manager also need present clear evidence, the office machine of Valu-Mart store will have a good selling if increase stock. To better assess the recommendation I need to know that the office machines stocked can help the store earn more profits than selling other goods.