The following appeared in a memo to the board of directors of Bargain Brand Cereals.
"One year ago we introduced our first product, Bargain Brand breakfast cereal. Our very low prices quickly drew many customers away from the top-selling cereal companies. Although the companies producing the top brands have since tried to compete with us by lowering their prices and although several plan to introduce their own budget brands, not once have we needed to raise our prices to continue making a profit. Given our success in selling cereal, we recommend that Bargain Brand now expand its business and begin marketing other low-priced food products as quickly as possible."
Write a response in which you examine the stated and/or unstated assumptions of the argument. Be sure to explain how the argument depends on these assumptions and what the implications are for the argument if the assumptions prove unwarranted.
This memo was written by the board of directors of Bargain Brand Cereals, and that made some deduction and come out with a conclusion: remain the low-prices and introduce more new products. This conclusion, in my opinion, is insignificant because of the similar insignificant deduction.
Firstly, the memo referred to a record that the low prices of their first production: Bargain Brand breakfast cereal is the reason why they drew customers quickly from other companies. But, there are no evidence shows that this reason is the real and only one could cause the result. We do not know why some customers chose the new production, maybe they chose it only because they want to try something new, or the taste of this kind of cereal breakfast is better than other companies’. It is an insufficient assumption that customers bought the production was because of the low prices.
Secondly, with the competition from the top brands, the directors made a decision that their company has no need to raise the prize to make profit. It is a unfair assumption that the low-prize competition from other companies will have not influence to the Bargain Brand Company, and remain a low level of prize may not keep the company’s profit is positive. Other companies’ low prize may attract more customers and decrease the sales volume of the Bargain Brand breakfast cereal, the remaining low prize may cause the deficit, and bring out a bad ending.
Thirdly, with the above-mentioned points, we cannot make a decision so rashly to expand business and introduce more productions. Though these new productions are still in a low prize, but it does not indicate that customers will still want to choose them. –30min.We do not know the customers’ opinion to the newly productions, and maybe they want nothing but the breakfast cereal. New productions may have little sales volume and cause a huge deficit to the Bargain Brand Company. So this conclusion in some way is reckless.
In addition to sale more productions and gain more profit, Companies should make more survey to know what the real demand of the customers is. Prize, tastes, packages, and so on, these would be the reason why customers choose one kind of production sometimes. Companies must know that before a decision.—40min
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发表于 2012-4-17 00:29:19
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