GRE Argument Topic 44

GRE Argument Topic 44

Topic:

The following appeared in a memorandum from the owner of Movies Galore, a chain of movie-rental stores.

"Because of declining profits, we must reduce operating expenses at Movies Galore's ten movie-rental stores. Raising prices is not a good option, since we are famous for our low prices. Instead, we should reduce our operating hours. Last month our store in downtown Marston reduced its hours by closing at 6:00 p.m. rather than 9:00 p.m. and reduced its overall inventory by no longer stocking any DVD released more than five years ago. Since we have received very few customer complaints about these new policies, we should now adopt them at all other Movies Galore stores as our best strategies for improving profits."

Write a response in which you discuss what specific evidence is needed to evaluate the argument and explain how the evidence would weaken or strengthen the argument.

موارد زیر در یادداشت مالک فیلم های Galore، فروشگاه های اجاره ای فیلم، آورده شده است.

به دلیل کاهش سود، ما باید هزینه های عملیاتی در ده فروشگاه اجاره فیلم Movies Galore را کاهش دهیم. افزایش قیمت گزینه خوبی نیست، زیرا ما به دلیل داشتن قیمت های پایین مشهور هستیم. در عوض، باید ساعت کاری خود را کاهش دهیم. "ماه گذشته فروشگاه ما در مرکز شهر مارستون ساعت خود را با بستن بین ساعات 6:00 بعد از ظهر به جای 9:00 شب کاهش داد و با ذخیره سازی دی وی دی های منتشر شده بیش از پنج سال پیش، موجودی کلی خود را کاهش داد. از آنجایی که شکایات مشتری بسیار کمی در مورد این سیاست های جدید دریافت کرده ایم، اکنون باید آنها را در سایر فروشگاههای Movies Galore بعنوان بهترین استراتژی خود برای بهبود سود استفاده کنیم.

پاسخی بنویسید و در آن توضیح دهید که چه مستندات خاصی برای ارزیابی بحث لازم است و شرح دهید که چگونه این مستندات می تواند بحث را تضعیف یا تقویت کند.

NOTE: The above topic has wording similar to Argument Tasks 104 and 105 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 predicts that cost-saving measures taken at the downtown Marston location will prove successful in his other stores and sees reducing hours as preferable to increasing their famously low prices.

Assumptions:
a) Reducing operating expenses will increase profits.
b) Raising prices will have a negative effect on Movie Galore's reputation.
c) What has worked for the downtown Marston store will work in the other locations.
d) Measures taken in the downtown Marston store have increased profits.
e) Customers have adapted to the changes in the downtown store.
f) Customers choose Movies Galore because of its low price.
g) The owner can make changes that will affect the stores' profitability.

Evidence needed to evaluate the argument:
a) How other operating expenses have increased or decreased in the years that Movies Galore has been in operation?
b) How Movie Galore's prices compare to those of other similar businesses?
c) Why people shop at Movies Galore?
d) How the changes at the downtown Marston store have affected its profitability?
e) Customer count before and after the changes in downtown Marston store.
f) What times of the day are busiest?
g) How services such as Netflix or Red Box and the availability of cable or satellite stations affect movies Galore?
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 104 and 105 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.

Samlple 1:

Declining profits are a concern for any business, and Movies Galore is no exception. The owner of this chain of stores has taken some steps in the downtown Marston location that he believes should be applied at the other locations to reduce expenses and increase profits. Before rushing to judgment, this owner should evaluate several factors. Without sufficient evidence, he or she may make a fatal mistake.

It may be that the type of inventory and length of the business day contribute to the lack of profitability, but other operating expenses must not be overlooked. The owner must examine fixed expenses such as utilities, insurance, rent, and contributions to retirement accounts and compare the cost of each to their cost in previous years. The fixed expenses may have increased. A business owner is powerless when it comes to electricity rates or the cost of heating fuel. He or she should also consider any unexpected, one-time cash outlays that have affected the bottom line. One of the stores may have needed a new heating system or a new roof. Perhaps the stores needed to build ramps to comply with the Americans with Disabilities Act. Without a comprehensive financial picture, the owner may make changes that could lead to further financial decline for Movies Galore.

The owner assumes that Movies Galore's low prices are a big draw for the business. That may be true, but it is just as likely that the convenient hours of operation make his business popular. It should be simple to determine which hours of operation are the busiest in each location. The downtown location in Marston may thrive by closing at six, but mall or suburban locations may benefit from staying open later. Keeping low prices and cutting back hours may be counterproductive. How do his prices compare with those of his competitors? He may be able to raise his prices and keep them lower than theirs. Without operating hours that are convenient for each location, this business may see a decline in patronage. In some cases, he may be able to open later rather than close earlier. In addition, the owner has changed the stores' inventory by eliminating DVDs that were released more than five years ago. Chances are that those older DVDs cost less to purchase than new releases, enabling the owner to charge less for them. In some of the chain's locations, older movies may be very popular, and, by eliminating them, the stores could lose customers.

There are several reasons for the owner of Movies Galore to re-evaluate his decision to limit stocked films and store hours. While a change in the company’s business model may be needed, this change should reflect the needs and desires of the local customers. By disregarding these needs, the owner risks sending his company into further financial ruin.


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