- UID
- 795500
- 在线时间
- 小时
- 注册时间
- 2012-8-17
- 最后登录
- 1970-1-1
- 主题
- 帖子
- 性别
- 保密
|
Arg02 Centralization and Profitability
The following appeared in a memorandum from the business department of the Apogee Company.
"When the Agogee Company had all its operations in one locationit was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting cost and helping the company maintain better supervision of all employees"
By citing the dubious fact that the Apogee Company was more profitable when it had all its operations in one location, the author of this memorandum generously concludes that centralized operating system would predict a improvement in profit by cutting costs and enabling better supervision of employees. And thus a recommendation is drawn that the company should alter its system into a centralized one. The argument is obviously unconvincing. Under circumspect inspection, the author’s line of reasoning suffers from at least three critical flaws.
First, the author assumes that the ampler profit in the past was because the company was centralized. This assumption suffers from what might be called causal oversimplification. The fact that these two events happened concurrently doesn’t pledge that one is the cause of the other. Just as likely, a more ample profit could come from a lower cost of production or a lower crew expense level or even a more prosperous market. Without evidence shown to rule out other related factors, it is suspicious to assert that centralization is the cause of a higher profit.
Second, an assertion is made by the author that centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees. I find this assertion refutable as it only focuses on the positive outcome of centralization. The cost, which may trigger a debase in profit, of moving office sites and personnel traveling, is obviously neglected from the argument. Even with these factors aside, there is simply no substantiation that centralization would guarantee a better supervision. If no further verification into the above perspectives is provided, the assertion is ungrounded.
Third, the author assumes that the company would amend its operating system primarily driven by the profit factor. This may sound reasonable, no prove or data, however, was provided to support this assumption in this case. It could be equally possible that, maintaining operation in one location has become a limitation for the company’s extension or its excavation of market. And therefore profit is outweighed by other attributes in deciding the company’s operating mode. Without more persuasive demonstration delivered, it is unconvincing to assume that profit is the driven force of a company’s remedy of its operating system.
To conclude, the author’s argument is not compelling as it stands. Evidence needs to be provided to support that centralization would boost a improvement in profit and that a growth in profit is dominant enough for the company to alter its current system into a centralized one.
|
|
京公网安备11010202008513号 京ICP证101109号 京ICP备12012021号
发表于 2012-8-24 17:19:46
收藏
收藏
楼主
