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In this memorandum from the business department of the Apogee Company, the author suggests his company to close down its field offices and conduct all its operations from a single location in order to improve profitability by cutting costs and helping the company maintain better supervision of all employees. He uses a comparison to support his idea that his company was more profitable when it operations in one location than in several locations today. This assertion lacks visions about the importance between quantity and quality, the people who supervise employees and choice of location, etc. Thus, the author's suggestion is unfounded.
While search for information and resource to boost their industry, businessmen put their eyes onto profits but the profits can also be made by expand their industry in different regions. The forecast of result is based on assumption that more profitable equals to more profits; however, there is no evidence that the sum of profits remains the same compare to that of past. Today, the Apogee Company could maintain a large range of manufacture which makes its value of industry immense. The value and products of a company illustrate the competing power of the company.
For the other thing, the memorandum tells us that a company located in one place helps to maintain better supervision of all employees. As we all know, supervision is a flexible tool of management in a company, and it depends on the leader, the group of colleagues, the HR director and even the culture of company. If Apogee Company have already controlled a wrong person to lead the team, it would face a problem of management no matter how many locations it have.
People do the judgment, so does that location. The author set its past performance as an example but he ignores the analysis of this existed location: whether the resources that the company needed is exhausted or not, whether transportation cost remains stable or not, etc. A stupid decision would restrain a company's development and would hinder a company's expanding.
From the above, we can see that there are many other options dominate the descending of costs or better supervisions and controls within a company. The author’s opinion that his company to close down its field offices and conduct all its operations from a single location in order to improve profitability by cutting costs and helping the company maintain better supervision of all employees is totally wrong. This strategy without clear understanding should wreck the existed achievement of Apogee Company. I think the business department should do more research and present more statistics, only in this way we can judge the company's future responsibly. |
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