GMAT Essays (AWA)

Argument -
The following appeared as a part of an article in a magazine devoted to regional life:
" Corporations should should look to the city of Helios when seeking new business opportunities or a new location. Even in the recent recession, Helio's unemployment rate was lower than the regional average. It is the industrial center of the region, and historically it has provided more than its share of the region's manufacturing jobs. In addition, Helios is attempting to expand its economic base by attracting companies that focus on research and development of innovative technologies."

Analysis -
The argument states that corporations should consider the city of Helios for new business opportunities or locations due to the following reasons - Helios's unemployment rate in the past has been lower than the regional average, It is the industrial center of the region and has provided a lot of manufacturing jobs, it is attempting to expand its base with companies that focus on R&D or innovative technologies. The argument states that corporations must choose Helios city only on these basis and fails to consider additional factors that may apply to corporations trying to choose a base for expanding.

Not all corporations may be manufacturing firms or firms that undertake R&D of innovative technologies. For example corporations like a new channel, or a cotton industry may not benefit from establishing themselves in Helios at all because of the kind of fields they are in. These companies may consider expanding in places where there is more demand for their products and services.

Another factor corporation may consider is availability or raw materials, other resources like price of land, taxes applicable and availability of cheap labour. The argument does not mention the importance of these factors which are crucial in determining the productivity of firms.
Companies may also consider competition in certain regions as a factor in choosing it as a base location. For example if Helios already has a lot of companies manufacturing heavy vehicles, another company may choose a different location which also may be a developing hub and a potential market of its products. That way companies can also benefit without a lot of challenge.

The argument also mentions that Helios's unemployment rate was lower than the regional average but fails to mention the field in which employment rate sustained. That particular field may not be what corporations are exactly looking for. For example if a large number of employees were able to retain their jobs in a manufacturing sector but corporations in the food processing sector were looking to establish base in Helios and were not able to hire employees with that particular skill set.

Since the argument fails to consider the above mentioned factors that corporation's must consider which choosing a base, it is not completely convincing and well reasoned. The argument is hence flawed.