GRE Argument Topic 63

Sample 1:

A good business plan depends on sufficient detailed information. Its creator must have answers to a number of questions to prove the reliability of the plan. The purpose of a business plan is generally to obtain funding, in this case to make significant changes to the Rialto Movie Theater. Before a bank or other investors open their checkbooks, the manager must answer questions about the Rialto's situation rather than provide general information about the competition.

The manager cites a survey about the cost of attending new releases and how it discourages movie goers from seeing more than five of them per year. Before making expensive changes based on this survey, the manager should ask who responded to the survey. The sample may be limited to a specific age group, for example. If the respondents were young families or senior citizens, they would have less discretionary income than some other age groups. Regardless of who completed the survey, if money prevents them from attending, adding attractions or improving the interior of the theater won't make them attend the movies more frequently. In fact, movie attendees' spending money on other attractions at the theater like a video arcade may reduce the amount that they can spend to actually purchase tickets to the show. It's always important to know who requested the survey and for what purpose. Missing from the survey is information about the types of movies the respondents prefer, what times of the year and days of the week they choose to attend movies. This information could help the Rialto tailor its movie selection and on which days to open and the number of times to show a film each day.

This business plan does not mention attendance numbers. Has attendance at the Rialto declined, or have other events led to the dire prediction of the theater's closing? Other than a decline in attendance, a rise in expenses can contribute to lower profits. Steady attendance at traditional prices means little if other costs of operation have increased. The cost of heating and/or cooling may be higher than last year. The same number of ticket buyers at the same prices as last year cannot support any unexpected expenses.

It appears that the downtown location has served the Rialto well for several decades. Has the downtown undergone some changes? Unfortunately, downtowns across the country have faced many challenges from mall development and big box stores. Independently-owned small businesses have been forced to close or move to the malls where traffic is heavier. Without business to drive citizens to the downtown, the Rialto may be unable to attract crowds large enough to make it profitable. Another possibility is that a large business of some type, a call center, for example, may have filled the empty buildings in the downtown. Operating 24 hours a day, the center's employees may be using parking lots or spaces that movie goers previously used. Without sufficient parking, the Rialto cannot hope to fill its seats.

Although the argument reveals the added attractions at the Apex, it does not reveal whether or not the Apex is profitable. Despite the video arcade, plush seats and state-of-the-art sound system, the Apex's expenses may make it unprofitable. It would be helpful to know if the video arcade contributes to the bottom line in a significant way or if people's patronizing the arcade has a negative effect on theater attendance.

Making big changes will require the Rialto to spend big bucks. Before going to that extreme, the Rialto must analyze all the results of the survey and how conditions in the downtown have changed in recent years. If there are insurmountable obstacles, the manager’s recommendation may prove fruitless.

Sample 2:

The manager of Rialto Movie Theater expresses a mandatory need to either make big changes in the theater or to shut it down forever, as a part of a business plan. In addition, he strongly recommends bringing changes in the theater as is done by the newly opened Apex Theater in the mall outside the town.

The argument however appears to be full of flaws from start to end. First of all, there is no substantial reason given by the manager for either making changes or closing the theater for good. The reason for giving such a statement itself is not clear. The measures suggested can be taken up in case the business of Rialto Theatre is incurring financial loss as compared to the previous years or in comparison to other theaters. However, no such point is mentioned by the manager.

Further, there are no details of feedback from the common people over the preference of theater. No dissatisfaction over the present setup of Rialto Theater is expressed by the moviegoers. Not only this, but also there is no favoritism shown towards Apex Theater for its grand interiors and a state-of-the-art sound system. This rejects any need to imitate Apex Theater in terms of its video arcade, plush carpeting and seats etc.

Moreover, such changes made will only add up to the expense of the owners and will most likely end up burdening the movie goers by hike in ticket prices. This will lead to a decrease in the number of people going to Rialto Theater. Subsequently, instead of increasing the returns, these changes may result in financial loss. By raising the price of tickets and emulating the newly built Apex Theater, there is also a risk of Rialto Theater losing its popularity, earned in five decades.

Reports from the recent survey conducted suggest that eighty five percent of respondents are prevented from going frequently to the theaters due to high price of tickets of newly released movies. This indicates a general decline in the number of moviegoers. Moreover, one can not really point out if Apex Theater is running more successfully, as there is no information about the theater drawing more crowds. Similarly, the likelihood of Rialto Theater being visited more frequently can not be ruled out.

More significantly, Rialto Theater has the advantage of its location and a sound history. It is situated in the city center for almost about five decades. There is a strong probability of Apex Theater being at a disadvantage, as it is situated in a mall outside the town. This may be the reason behind its lavish interior decors in order to attract more crowds. Making the most of the privilege of its suitable location, Rialto Theater should lookout for other modes to attract moviegoers, instead of aping the other theaters and spending unnecessarily.

Conclusively, the argument given by the manager to bring about drastic changes in Rialto Theater is not acceptable due to lack of any sound reasoning.