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Topic:
The following appeared in a memorandum from the owner of Movies Galore, a chain of movie-rental stores.
"In order to reverse the recent decline in our profits, we must reduce operating expenses at Movies Galore's ten movie-rental stores. Since we are famous for our special bargains, raising our rental prices is not a viable way to improve profits. Last month our store in downtown Marston significantly decreased its operating expenses by closing at 6:00 p.m. rather than 9:00 p.m. and by reducing its stock by eliminating all movies released more than five years ago. Therefore, in order to increase profits without jeopardizing our reputation for offering great movies at low prices, we recommend implementing similar changes in our other nine Movies Galore stores."
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation and the argument on which it is based are reasonable. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
موارد زیر در یادداشت مالک فیلم های Galore، زنجیره فروشگاه های اجاره فیلم، آورده شده است.
"برای جبران کاهش سود اخیر، باید هزینه های عملیاتی در ده فروشگاه اجاره فیلم Movies Galore را کاهش دهیم. از آنجایی که ما به خاطر تخفیفات ویژه خود مشهور هستیم، افزایش قیمت اجاره ما روش مناسبی برای بهبود سود نیست. ماه گذشته فروشگاه ما در مرکز شهر مارستون با بستن در ساعت 6:00 به جای ساعت 9:00 شب و با کاهش سهام خود با حذف همه فیلم های منتشر شده بیش از پنج سال پیش به طور قابل توجهی هزینه های عملیاتی خود را کاهش داد. بنابراین، برای افزایش سود بدون به خطر انداختن شهرت ما در ارائه فیلم های عالی با قیمت پایین، توصیه می کنیم تغییرات مشابه را در 9 فروشگاه فیلم Galore دیگر خود اعمال کنیم. "
پاسخی بنویسید که در آن درباره اینکه چه سوالاتی باید پاسخ داده شود تا تصمیم بگیرید که آیا پیش بینی و استدلالی که بر آن استوار است منطقی است یا نه بحث کنید. حتماً توضیح دهید که چگونه پاسخ این سوالات به ارزیابی پیش بینی کمک می کند.
NOTE: The above topic has wording similar to Argument Tasks 44 and 104 of this Website. However, if you read carefully you will notice that the topic and the task instructions are different. Hence, it is very important to read the topic as well as its instructions completely before you start to write your response.
Strategies
A good place to start your analysis is by creating a statement that reveals the main idea of the argument. Although the writer is creating an argument, he may ultimately be stating a position, making a recommendation, or making a prediction. It may be helpful for you to determine which of these formats is most evident in the argument.
The owner of Movies Galore is recommending the same changes in all of his stores that he made in his downtown Marston location as a means of reversing a decline in profits.
Assumptions:
a) Reducing expenses is the best way for Movies Galore to increase profits.
b) The changes made at the downtown Marston location will be successful at the other stores.
c) Low prices are the major reason people patronize Movies Galore.
d) Movies older than five years attract fewer customers than other genres or newer releases.
e) The downtown Marston location is busiest between opening and 6:00 pm.
f) The downtown Marston location is not busy enough between 6:00 and 9:00 pm to justify staying open during those hours.
Questions:
a) Have profits declined at all or just some of the stores?
b) Have profits increased at the downtown Marston store?
c) During which hours is each store busiest?
d) Has the owner tried other means of reducing expenses?
e) Why do customers choose Movies Galore?
f) Are older videos in high demand at any of the locations?
g) Has the owner made some recent changes that have had a negative impact on profits?
After completing these steps, you should have enough material to write your analysis. Remember that you are not creating a position of your own; you are evaluating the strengths and weaknesses of the existing argument. You do not have to include all of the points that you have created in your prewriting. In fact, during the process of drafting your analysis, other ideas may come to mind, and, if they strengthen your analysis, you should include them.
NOTE: The above topic has wording similar to Argument Tasks 44 and 104 of this Website. However, if you read carefully you will notice that the topic and the task instructions are different. Hence, it is very important to read the topic as well as its instructions completely before you start to write your response.
Sample 1:
The owner of Movies Galore has made a sweeping recommendation with a view to increasing profits for his business. Before adopting the recommendation at all of his locations, he or she needs to answer some pointed questions. One size may not fit all. Each location should be analyzed individually by examining the answers to the questions.
First, he should ask if each store is experiencing a decline in profitability. He may find that only one or two of the stores are creating the decline in profits. Those which are making money for the company should likely be left alone. Even though all of them may be losing money, each may need an individual, specific adjustment to reverse the trend. This owner should also ask what the successful stores may be doing that the others are not. The answer may lead him to make changes different from the ones in the argument.
Shortening the hours of operation and eliminating some inventory will certainly reduce expenses, but the tactic doesn't always contribute to greater profits. Has the downtown Marston store generated higher profits since the changes were made? If that store was not habitually busy between the hours of 6:00 and 9:00, then the relatively minor loss of revenue may be offset by a fairly significant decrease in operating expenses. Electricity, heat, and wages for three hours can be substantial and are aspects of a business operation that can be controlled. Was there very little demand for older videos in that location as well? If so, then money spent on inventory can be better used to stock videos in greater demand by customers in this particular store.
Assuming that the owner has made the correct business decisions for the downtown location, it might be logical to apply the same changes to the other Movies Galore stores. Do all of the other locations experience a lack of business after 6:00? Any stores located in or near a mall may be busiest during the evening hours. Malls are generally open until 9:00 at night, and a store that closes at 6:00 will not be able to take advantage of traffic generated by the other shops.
The owner of Movies Galore assumes that the low prices account for the stores' popularity, but is that really the reason that customers choose them? Movies Galore may have the best selection of the videos most in demand. The stores' locations may be convenient and have plenty of free parking. They may have a great selection of movie snacks. The staff may be friendly and helpful. Without surveying his customers, the owner could be holding onto an idea that has little to support it.
Has the owner attempted any other changes to improve profits? He could increase revenues by expanding the selection of movie snacks and training his associates to suggest patrons buy them with every rental. Customers may have abandoned Movies Galore because the videos are not organized logically, or the associates deliver poor service. Has the owner made some recent changes that have led to a temporary decline in profits? Upgrading heating systems or lighting fixtures, for example, can be costly one-time expenditures that can account for the current lack of profitability. The owner may have new employees or managers that are undercharging for rentals or who may be stealing from the company.
Are other, similar businesses in the area experiencing a similar decline in profits? If so, Movies Galore's owner may have to look at his problem in an entirely different light. The market may be over saturated with movie rental businesses. People's rental habits may have changed in recent years by using video-on-demand features through their television cable companies or by subscribing to services like Netflix. When he examines the answers to all of the questions, the owner of Movies Galore will make better-informed decisions about his business.
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