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69: In this memo, the president recommendsusing ZETA rather than ALPHA for new building project. To justify hisrecommendation, the president points out that Zeta’s building expense for maintenancelast year was lower than the Alpha’s. he also claims that energy consumption ofthe Zeta building has been lower than that of the Alpha building every year. Inaddition, he cites Zeta’s stable workforce. However, the president’srecommendation relies on several unproven assumptions, which render itunconvincing. Firstly: the president assumes that Zeta’sbuilding expense for maintenance was lower than the Alpha’s based on the lastyear’s data. But this is not necessarily the case. It is possible that Alpha’sbuilding ran more frequently than Zeta’s last year, and the earlier data showedAlpha’s building has kept a lower expense for maintenance than Zeta’s for manyyears. Secondly, the president claim the less energyconsumption of Zeta’s building than Alpha’s without justification to assure thesame usage condition of the two buildings. Perhaps employees from the regionwhere Zeta’s building locates pay more attention to energy saving, since theyhave accepted a better propagation for protecting environment. Thirdly, even if both expense for maintenanceand energy consumption of Zeta’s building is lower than Alpha’s, the entirecost of Zeta’s building can still be higher than the Alpha’s, since the formerone cost 30 percent more than the latter in construction. Fourthly, the author assumes a betterworkforce condition of Zeta compared with Alpha without providing Alpha’sworkforce condition. Perhaps Alpha keeps a more stable workforce or moreefficient workforce, both of which can benefit the new building construction. Finally, even if the advantages of Zeta areapproved, the presidents’ recommendation for new buildings can be problematic. Thetwo buildings were constructed ten years ago in two regions; things may changenow in another region. Perhaps Alpha has improved their technology to assure ahigher cost-effectiveness building than former while Zeta keeps the same withten years ago. In summary, unless the president provide acomprehensive survey report of the two companies’ all-round condition present,and reasonable cost evaluations according to the report and the location of newbuilding, the recommendation can be convinced for me. |
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