AA46
In this argument, the author concludes that the payment of advertising should be keep pace with the profit they make each year for purpose that such strategy can motivate their advertising agency to perform better. To support this argument the author cites the comparison of the two restaurants' total profits, showing that the author's restaurant has a lower total profit than those of Street Eats. To further drew his conclusion, the author use the facts that they spent almost as much on advertising as their main competitor, and their competitor has fewer restaurants than they do. A deeper view of this argument may lead to two fundamental fallacies.
What comes first is that, the more payment on advertising and the more number of restaurants do not have a positive connect with the profits of the rattans, a point the author assumes gratuitous in the argument. Although more advertising may make the restaurants well-know, and superficially more restaurants mean more total profit, it is not necessarily the restaurant will earn more unless other factor such as the better service, the location of the restaurants and the taste of the fast-food are concerned.
In addition, the author makes the casual oversimplication over the relationship between the motives of advertising agency and the amount they pay. In factor, it
is the case that when the profits reduce, and they cut the payment of advertising correspondingly, so the agency may perform worse for the lack of money to behavior better consequently.
In conclusion, the author neglects some essential elements to substantiate his argument. If the author take more things other than the amount of payment on advertising and the number of restaurant that could result in the increase of profit into account and design more efficient strategy to motive the performance of the agent, this argument may become more convincing.
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