A memorandum from the owner of Movies Galore has stated that the movie-rental store has recently been facing a decline in their profits. In order to counter-act such a problem, the owner has suggested measures to reduce the operating costs, and has provided the example of a store in downtown Marston wherein the owner's suggested measures have been implemented. The owner is of the opinion that if such measures are implemented across all the Movies Galore stores, their profits will soon start to rise. The evidence provided by the owner seems legible at first glance, although a closer examination might unearth a few alternate possibilities, which might undermine the owner's position.
Firstly, the owner has suggested that operating cost of stores can be reduced by closing them at 6: 00 P. M. rather than at 9: 00 P. M. By closing the stores three hours earlier, thw owner thinks that the operating costs can be reduced without jeopardizing their position as a store which offers great movies at lower prices. Such a situation might hold true, but what if in other areas, where Movies Galore operates, people appraoch the store at later hours of the day? If such a measure is implemented, there will be a sense of resentment among it's customers as customers will not be able to buy the movies at time which is suitable for them. As a result, there is a likelihood that these people will approach another store to buy movies which would seriously hamper the profits of Movies Galore and undermine the owner's suugestion.
Secondly, the owner is of the opinion that stores should discard movies which have been released more than five years ago. The owner assumes that these movies will no longer be viewed by it's customers, and discarding these movies will help reduce operations cost. The owner has based such a suggestion on a wild assumption.
What if the people, in one of the areas where Movies Galore operates, have an inclination for old movies? If such a case appears, then it would be likely that these customers would be disappointed since Movies Galore does not have older movies anymore. As a result, the customers of Movies Galore will search for new stores where all sorts of movies are available. This situation would add to the woes, already faced by Movies Galore and it will call into question, the owner's suggested plan of action.
Lastly, the owner has failed to provide sufficient demographic data about the different areas where Movies Galore has it's movie rental stores. It could be possible that some areas where Movies Galore stores are situated do not bring any revenue to the company. It might be the case that the people in these areas prefer watching the movies on other online platforms. If such information is received from the demographic study, it would be ideal for the owner to shut down these stores. Such a situation might help the owner to direct resources to other stores which are doing better and it might be the case that the profits of Movies Galore returns, without having to cut operating costs.
In sum, the evidence provided by the arguer is incomplete and inconsequential. The evidence are dubious in nature and point towards various alternate possibilities. As a result, it cannot be categorically stated if the owner's new approach, to conter-act the declining profits will be successful.
A memorandum from the
owner
of
Movies
Galore has stated that the movie-rental
store
has recently been facing a decline in their
profits
. In order to counter-act such a problem, the
owner
has
suggested
measures
to
reduce
the
operating
costs
, and has provided the example of a
store
in downtown
Marston
wherein the
owner's
suggested
measures
have
been implemented
. The
owner
is of the opinion that if such
measures
are implemented
across all the
Movies
Galore
stores
, their
profits
will
soon
start
to rise. The evidence provided by the
owner
seems legible at
first
glance, although a closer examination
might
unearth a few alternate possibilities, which
might
undermine the
owner's
position.
Firstly
, the
owner
has
suggested
that
operating
cost
of
stores
can be
reduced
by closing them at 6: 00 P. M.
rather
than at 9: 00 P. M. By closing the
stores
three hours earlier,
thw
owner
thinks
that the
operating
costs
can be
reduced
without jeopardizing their position as a
store
which offers great
movies
at lower prices. Such a situation
might
hold true,
but
what if in other
areas
, where
Movies
Galore operates,
people
appraoch
the
store
at later hours of the day? If such a
measure
is implemented
, there will be a sense of resentment among it's
customers
as
customers
will not be able to
buy
the
movies
at time which is suitable for them.
As a result
, there is a likelihood that these
people
will approach another
store
to
buy
movies
which would
seriously
hamper the
profits
of
Movies
Galore and undermine the
owner's
suugestion
.
Secondly
, the
owner
is of the opinion that
stores
should discard
movies
which have
been released
more than five years ago. The
owner
assumes that these
movies
will no longer
be viewed
by it's
customers
, and discarding these
movies
will
help
reduce
operations
cost
. The
owner
has based such a suggestion on a wild assumption.
What if the
people
, in one of the
areas
where
Movies
Galore operates, have an inclination for
old
movies
? If such a case appears, then it would be likely that these
customers
would
be disappointed
since
Movies
Galore does not have older
movies
anymore.
As a result
, the
customers
of
Movies
Galore will search for new
stores
where all sorts of
movies
are available. This situation would
add
to the woes, already faced by
Movies
Galore and it will call into question, the
owner's
suggested
plan of action.
Lastly
, the
owner
has failed to provide sufficient demographic data about the
different
areas
where
Movies
Galore has
it's
movie
rental
stores
. It could be possible that
some
areas
where
Movies
Galore
stores
are situated
do not bring any revenue to the
company
. It
might
be the case that the
people
in these
areas
prefer watching the
movies
on other online platforms. If such information
is received
from the demographic study, it would be ideal for the
owner
to shut down these
stores
. Such a situation
might
help
the
owner
to direct resources to other
stores
which are doing better and it
might
be the case that the
profits
of
Movies
Galore returns, without having to
cut
operating
costs.
In sum, the evidence provided by the arguer is incomplete and inconsequential. The evidence
are
dubious in nature and point towards various alternate possibilities.
As a result
, it cannot be
categorically
stated if the
owner's
new approach, to
conter-act
the declining
profits
will be successful.