GMAT Essays (AWA)

The following appeared in an article in a human resources magazine:
"Six months ago, in an experiment aimed at boosting worker productivity, Company Z started providing free gourmet lunches to its employees. The Company hoped that these office lunches would encourage employees to remain in the building during lunch-hour and motivate employees to work harder throughout the day. A survey found that soon after the lunch program was implemented, the average number of hours worked by most Company Z employees increased dramatically. During this same period, the Company's profits also increased substantially. Thus, it is safe to say that the lunch program was a huge success and that Company Z should make the program permanent."
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.



YOUR RESPONSE:
Tha author points out that the provision of free gourmet lunches to the employees has led to the average number of hours worked by most company z employees , leading to the increase in profits substantially.This is the causal effect relationship that has been made. However the author has failed to cite the examples and the data required for reaching such a conclusion.Since the assumptions made to reach the conclusion are unwarranted , hence we can say that the conclusion is flawed. This is flawed because of the reasons as mentioned.

Firstly , the author has failed to provide data suggesting that the increase in profits is because of the sole factor of provision of the free gourmet lunches alone. The author did not mention about the unchanged nature of the other factors. It is possible that some other factors have led to the increase in sales such as improvement in the economy , better quality product or that the competitor has failed in some context to capitalize on the gains.

Secondly , the author has not provided evidence that the average number of hours that the employees are now putting are for the betterment of the company or the employees are using the company resources for their own use. Also , the author has failed to consider the other reason for the employees to stay back ,which may be the lure of the free lunches alone.

Thirdly , the author has not considered that the free lunch may be motivating for the employees for time being. The gains that have been incurred , if any , because of this , may not last longer. It is human psychology that once the gains are permanent , one tends to assume these gains as one's right and then it is difficult to withdraw such benefits from the employees. It may be possible that the factor has motivated the employees but the employees tend to be motivated for the time being and it is possible that the employees again resort to the old habits of going on time after such gains have been made permanent.

Another reason to justify this is non availability of data which can be used to compare the productivity before and after the benefit .The author has failed to cite any data which can tell that the situation be attributed to this factor alone.

In conclusion , because the author has neither considered the other factors which can help the company increase its profits nor provided any evidence and data to support his assertion , I can say that the assumptions made by the author before reaching the conclusion are unwarranted and hence the conclusion is flawed.
ESSAY QUESTION:
"As technological development continues to intensify business competition, the quality of customer service is likely to become the only sustainable source of competitive advantage."

Explain what you think this quotation means and discuss the extent to which you agree or disagree with it. Develop your position with reasons and/or specific examples drawn from history, current events, or your own experience, observations, or reading.

YOUR RESPONSE:
Many will agree to it that given the same technological development prevalent in the industry , the only differentiating factor will be the quality of service. I agree to it partly too but it can't be accepted as universal because this may be one of the factors to differentiate but not the only one.

Firstly , the technological advancement in the product or service itself is continual process. This means that the innovation in technological advancement is never ending and should continue so as to differentiate the product or service in fiercely competitive world. To site such an example , I would like to quote the example of the Refrigeration industry . The ozone depletion caused the environmentalists and the manufactures a great worry about the future of Chloro-floro carbons used. Godrej is the one in India which brought the technology of 100% free chloro-fluoro carbons able to take care of the ozone depletion and the global warming potential .Other industries are still using the substances which have global warming potential but may not be causing ozone depletion.This factor has led to general acceptability of the product in the market.

Admittedly , the technological advancement is likely to be made in this competitive world by everyone but one who does it most efficiently and faster than the rest is likely to succeed. The timeliness and effectiveness of technological advancement makes itself one of the major factors to succeed in this competitive world.

Another reason to support the claim is that the customers want the product which can give value to their money.So , the another factor which comes into picture is the best price the company can offer to the customers.Consider the case that the company is able to provide the excellent service but the product of the company is expensive than the others.So , the excellent service cannot guarantee the increased sales alone.The price of the product too plays an important role. The need is to balance the product in both quality and price. Only then the product can succeed. The challenge for the companies today is to cut down the wastes and increase profits.

Lastly , I agree to it that if all other factors are the same , the excellent customer service will play as a deciding factor in getting the competitive edge in the market .Today the companies are talking of the customer delight . A delighted customer will recommend the product but that is possible only when the other factors such as the quality of the product and price are competitive and one of the best prevalent. We can have examples of many companies where the excellent service but with poor product at back have failed to even exist. e.g Samsung Electronics claims to close the customer problem within a day and one closed call. The team can guarantee this only if the company has the excellent product to back with.

In conclusion , because there are other factors too which are equally important for the company to gain competitive edge in the market such as the timeliness and efficiency of technological advancement , price and quality , I can conclude that though the excellent customer service may be one of the factors to have niche in the competitive world , it is not the only factor.