Please advise on how I did? Thank you!

[yannikin]

Analysis of an Argument
ESSAY QUESTION:
"Since no business can be all things at once, companies that specialize in one product or service are more efficient than those that offer a diverse product mix."

From your perspective, how accurate is the above statement? Support your position with reasons and/or examples from your own experience, observations, or reading.

YOUR RESPONSE:
The quote states that companies that specialize in one product or service are more efficient than those that offer a diverse product mix. While some believe companies that specialize in one product or service are more efficient, I believe companies that offer a diverse product mix are more efficient. The most important aspects that lead to increased efficiency are shared innovation and shared branding.

One example of a company with great success while delivering a diverse product mix General Electric or GE. GE provides consumers with wildly diverse, yet superior products, including blenders, car accessories and jet engines. Through pooling resources and ideas, GE engineers can innovate technology on rotating jet turbines that leads to an improvement in motor of a blender. As a result, innovation in one of GE's products leads directly to improvements in others. Thus, through shared innovation, GE is able to provide a diverse product mix that does not compromise on quality.

Another example of a company that benefits from a diverse product mix is Maytag. Most people think of Maytag as a provider of elite washers and dryers, however, food enthusiasts know that Maytag supplies a delicious line of blue cheeses found everywhere, from supermarkets to Michelin rated restaurants. Since the Maytag brand achieved excellence through manufacturing the best washers and dryers, consumers also associate Maytag's blue cheeses with excellence as well. As a result, Maytag can successfully deliver blue cheese and washer and dryer sets with equal success by using shared branding.

Some companies find success through delivering one product or service, however these companies fail to take advantage of both shared innovation and shared branding. Companies such as GE and Maytag recognize these advantages and are able to increase income while keeping costs low. Thus, companies with a diverse product mix are more efficient than those who offer one product or service.


AWA ESSAYS: Analyze Argument
ESSAY QUESTION:
The following memo was circulated by the management team of a retail company:

"We are very pleased to announce that the relocation of our inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near Company headquarters in Boston. This consolidated location will cut the company’s expenses for warehouse rent in half. As a result we expect our monthly profitability to go up by this amount."

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:
In this statement, the company states that due to the relocation of their inventory from four different warehouses throughout the country to a single warehouse near the headquarters located in Boston, the rent for inventory will be cut in half, resulting in the same increase in monthly profits. Although the company will save money on rent, the management team neglects to address logical flaws that undermine the claim, most importantly how the new delivery costs associated with a central inventory location will impact costs and the how the susceptibility of Boston to extreme weather will effect delivery to consumers.

One fundamental flaw in the argument is that it fails to provide any detail of where the customers are located. If all of the inventory resides on the East coast but the company's consumers reside all over the country, shipping costs can easily compromise the savings associated with a centralized warehouse, leading to higher spending on shipping. To address this problem, management would have to perform a thorough analysis on the geographic layout of the company's customer base to ensure projected shipping costs are less than the mount of money saved on rent.

Another fundamental flaw in the argument is that it does not address how the company will deliver it's products when seasonal weather cripples the Northeast. Boston, an area in the United States northwest is often attacked by raging snowstorms during winters, crippling roads and forcing closures of airports, train stations and roads. If Boston weather shuts down all delivery methods for this company, they now will have no alternative warehouses to supply their consumers. Management should address this problem by providing a detailed report of both the client base and the products supplied, indicating clearly that the clients are forgiving of late delivery of the products.

Although the memo states a cost savings resulting from relocating all inventory to Boston, management fail to detail the evidence that this cost savings will result in the same increase in profits. New delivery charges associated with a centralized inventory warehouse can greatly increase costs while weather related delays in shipping time can cause costumers to find new suppliers. Without these important details, management fails to construct a credible argument in it's memo.

[StaceyKoprince]

Hi, thanks for posting your essays! Just an FYI that instructors don't grade or give feedback on essays (see the forum guidelines for details).

But I certainly hope other community members respond. Also, if you're in our class, you'll have an opportunity to get essays graded and get written feedback during the course (after class 6). Finally, you can get essays graded by GMAT Write (the official essay grading service from the makers of the exam) - they'll both grade the essays and provide feedback as to how to improve (for a fee). For details and pricing, go to www.mba.com and search for GMAT Write.