Hi all,
I'm writing my second essay today, and this time it's from MGMAT CAT 1. Please help to rate and provide feedback for improvement. Thank you very much!
The following appeared in a corporate memorandum of a beverage manufacturer:
"Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company's profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm."
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
The author states that after the promotional price reduction on its energy drinks, the company has seen a dramatic increase in the unit sales. Therefore, the author concludes that in order to improve company's profitability and enchance the company's image in the eyes of consumers, similar price reductions should be offered on all drinks that the company produces. Even though the argument has its merits, it is unconvincing and flawed for several reasons. It is obvious that the argument lacks convincing evidences to prove the claim and is based on unproven assumptions.
First, the author fails to explain whether the increase in unit sales of energy drinks after the promotional price reductions was introduced results in improved profitability of the company. It could be that even though the sales of energy sales increased, the company does not gain any profit because the reduced price only covers the costs. The author also doesn't show how dramatic is the unit sales increase. The author should have shown how much the profit margin of the energy drinks after the promotional price reductions is in order to prove that the company can still be profitable.
Second, even if the company can still can make profit for the energy drinks with the reduced price, the author applies logical fallacy and assumes that the success of the promotional price for the energy drinks will be replicated for the other drinks produced by the company. In reality, the strategy might only work for energy drinks, but might not work for other drinks that the company produces. It could be that of all the drinks produced by the company, the consumers only like its energy drinks. Even with reduced price, the consumers may not buy the other drinks from the firm. And so, the author's claim that the price reductions for all other drinks will improve the company's profitability may not be true. If the author provides more supports describing how the company's customers also like the other drinks produced by the company, the argument could be more strengthened.
Third, the author claims that the price reductions will enhance the consumer's perception of the company. However, the author fails to explain how the price reductions correlates positively with the company's image. Without strong support and evidence, the author only makes a baseless claim. It is possible that the price reduction could negatively affect company's image to the consumers, as the consumers think that the company is in trouble and that the company resorts to price reduction to attract consumers.
In sum, the author's argument is weak and unconvincing. In order to support the claim that the company will be more profitable by introducing price reductions on all its drinks, the author should provide more supports and evidences and explains how exactly the plan will work. If the author can fix the flaws of the reasonings and assumptions, the argument can be strengthened and become more convincing.
I'm writing my second essay today, and this time it's from MGMAT CAT 1. Please help to rate and provide feedback for improvement. Thank you very much!
The following appeared in a corporate memorandum of a beverage manufacturer:
"Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company's profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm."
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
The author states that after the promotional price reduction on its energy drinks, the company has seen a dramatic increase in the unit sales. Therefore, the author concludes that in order to improve company's profitability and enchance the company's image in the eyes of consumers, similar price reductions should be offered on all drinks that the company produces. Even though the argument has its merits, it is unconvincing and flawed for several reasons. It is obvious that the argument lacks convincing evidences to prove the claim and is based on unproven assumptions.
First, the author fails to explain whether the increase in unit sales of energy drinks after the promotional price reductions was introduced results in improved profitability of the company. It could be that even though the sales of energy sales increased, the company does not gain any profit because the reduced price only covers the costs. The author also doesn't show how dramatic is the unit sales increase. The author should have shown how much the profit margin of the energy drinks after the promotional price reductions is in order to prove that the company can still be profitable.
Second, even if the company can still can make profit for the energy drinks with the reduced price, the author applies logical fallacy and assumes that the success of the promotional price for the energy drinks will be replicated for the other drinks produced by the company. In reality, the strategy might only work for energy drinks, but might not work for other drinks that the company produces. It could be that of all the drinks produced by the company, the consumers only like its energy drinks. Even with reduced price, the consumers may not buy the other drinks from the firm. And so, the author's claim that the price reductions for all other drinks will improve the company's profitability may not be true. If the author provides more supports describing how the company's customers also like the other drinks produced by the company, the argument could be more strengthened.
Third, the author claims that the price reductions will enhance the consumer's perception of the company. However, the author fails to explain how the price reductions correlates positively with the company's image. Without strong support and evidence, the author only makes a baseless claim. It is possible that the price reduction could negatively affect company's image to the consumers, as the consumers think that the company is in trouble and that the company resorts to price reduction to attract consumers.
In sum, the author's argument is weak and unconvincing. In order to support the claim that the company will be more profitable by introducing price reductions on all its drinks, the author should provide more supports and evidences and explains how exactly the plan will work. If the author can fix the flaws of the reasonings and assumptions, the argument can be strengthened and become more convincing.
