• Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT

Apogee Company AWA (Please review!!)

This topic has 1 member reply

Rate the essay

1
 
0% (0 votes)
2
 
0% (0 votes)
3
 
0% (0 votes)
4
 
0% (0 votes)
5
 
100% (1 votes)
6
 
0% (0 votes)
PratikshaSuresh Newbie | Next Rank: 10 Posts
Joined
18 Aug 2016
Posted:
2 messages

Apogee Company AWA (Please review!!)

Post Wed Oct 05, 2016 11:07 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    The following appeared in a memorandum from the business department of the Apogee Company:
    "When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees."

    This argument is weak for several reasons, mainly because it makes several assumptions and provides no evidence in concluding that it will be more profitable for Apogee Company to close all its field offices and operate from a single, centralized location.
    Firstly, the argument assumes that operating from a single location will still be as profitable as it was in the past. What it does not consider is that the scene could have changed at the location. There may be more competition for Apogee Company than before in that location. The cost of production, operation and labour may have increased. If these changes have taken place, it may no longer be profitable for the company to set up its operations in only that location.
    Secondly, the argument assumes that operating at different locations is not profitable in the long run. Setting up field offices and operations at different locations initially incurs expenses from the company which may cut into the profits. However, as the company expands its operations in the new locations, it may also gain new clients and projects. This kind of expansion is important for the company and will increase its profitability in the long term. Projections of profits, client base and future costs are some of the facts that may have helped in analysing whether the shutting down of operations at a particular location may have increased the profitability of the company in the long term. Had the argument referred to any of these, it could have been strengthened.
    Thirdly, the argument fails to establish that operating from a single location is profitable for the company. It states that by operating from a single location the company can cut costs and supervise employees but assumes that the company does not have projects at different locations. If it does then it would still need to spend on travel expenses and third party vendors to supervise such projects. This may result in expenditure greater than what the company saves by operating from a single location. If the argument had stated that all the projects undertaken by the company were only in the current location then the company would definitely cut costs and effectively supervise employees and the argument would have been strengthened.
    Because the argument makes several unwarranted assumptions and does not back up its claims with proper evidence and facts, it is unreliable and should not be the basis for making the decision suggested in the argument.

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    Christian Krause Newbie | Next Rank: 10 Posts Default Avatar
    Joined
    11 Aug 2016
    Posted:
    4 messages
    Thanked:
    2 times
    Post Thu Oct 06, 2016 3:49 am
    Hi,

    I believe you adequately addressed the flaws in this argument. However, I believe you´re focusing a little bit too much on your own alternative scenario in paragraph 2. I think it would have been sufficient to state that the author fails to consider the revenue/income side of operating at several locations and that it might be favorable in terms of sales, cash flow etc. You´re painting your own picture a little too much at this point.
    Other than that, very well written. To get to a 6, I suggest focusing more on what the author did wrong/ didn´t do rather than focusing too much on what he could have done.

    Thanked by: PratikshaSuresh

    Best Conversation Starters

    1 lheiannie07 111 topics
    2 ardz24 64 topics
    3 LUANDATO 62 topics
    4 swerve 60 topics
    5 AAPL 57 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    160 posts
    2 image description EconomistGMATTutor

    The Economist GMAT Tutor

    130 posts
    3 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    122 posts
    4 image description GMATGuruNY

    The Princeton Review Teacher

    122 posts
    5 image description Scott@TargetTestPrep

    Target Test Prep

    118 posts
    See More Top Beat The GMAT Experts