Exam in 3 days - Please rate argument essay - The Beat The GMAT Forum

Argument:

The following is part of a business plan created by the management of the Megamart grocery store:

“Our total sales have increased this year by 20 percent since we added a pharmacy section to our grocery store. Clearly, the customer’s main concern is the convenience afforded by one-stop shopping. The surest way to increase our profits over the next couple of years, therefore, is to add a clothing department along with an automotive supplies and repair shop. We should also plan to continue adding new departments and services, such as a restaurant and a garden shop, in subsequent years. Being the only store in the area that offers such a range of services will give us a competitive advantage over other local stores.”

Discuss how well reasoned . . . etc.

Response:

The management of the Megamary grocery store, in its business plan, claims that providing a one stop shopping experience to the costumer, would increase the profits of the store. Hence it suggests that more departments and services should be gradually introduced at the store to achieve these profits. In order to justify its recommendation, the management cites the increase of sales in the past year since the opening of the pharmacy store. However this evidence does not substantiate the claims made by the management. Further the line of reasoning used in this argument is flawed and this renders the argument weak and unconvincing.

The author suggests that the rise in the sales over the past year were largely due to its new pharmacy department. However no evidence is presented to verify this. It could be the case that sales increased despite the lackluster performance of the pharmacy department, due to an increase in the population in the region. Also an increase in sales does not guarantee an increase in profits. It could well be the case that although sales have increased due to the introduction of the pharmacy store, the profits of the store have fallen. Thus the evidence presented does not support the managements’ recommendation.

Even if we assume that the profits at the store increased due to the introduction of the pharmacy store, there is no reason to attribute this increase to the customers appreciation of one-stop shopping experience. Perhaps the pharmacy department has been successful because of a lack of competition in the region.

Further the success of the pharmacy department, in no way gaurantees the success of other departments such as food and clothing. The competition in these segments could be extremely fierce and the grocery store may find it very difficult to be successful in these markets. Although the costumers might prefer to shop for groceries and medical supplies at the same store, they might not prefer to shop for clothes or have dinner at the grocery store. The costumers might prefer a traditional local restaurant to the grocery store. In such a scenario, the recommendation made by the management will not be successful.

In final analysis, the argument made by the management of the Megamart store is weak and unpersuasive. Further data should be gathered and evaluated to understand the market potential of each individual proposal made by the management in this business plan. A thorough analysis of the market environment in each segment, such as clothing and food, would help the management to design a more successful business plan for its store.

Exam in 3 days - Please rate argument essay

This topic has expert replies

Rate the essay