The following appeared in a memorandum from the business department of the Apogee Company.
“When the Apogee Company had all its operations in one location, it 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 costs and helping the company maintains better supervision of all employees.”
The argument in the memorandum from the business department of the Apogee Company is unconvincing because its conclusion depends on several unsubstantiated assumptions of the benefits of centralized operation of business. Each of the following areas merit further explanation before it can be given any degree of credibility of its conclusion of the failure of having field offices for its operations as compared to a single point of operation.
Firstly, the business department is not clear of being profitable while operating from a single location as it lacks figures and facts to support of being profitable while having centralized operation. In such light, one cannot ignore the possibility that even though the field offices were able to increase the profits for its regions, the bad management would have been possible for gulping the profits. Additionally, we cannot rule out the possibility of the bad policies of the company that would have barred the field offices of taking important and vital decisions of its own depending on the demands in the region.
Secondly, while one cannot ignore the possibility of global economy slowdown, in which case the results would have been same in case of centralized operation too.
Lastly, one cannot ignore the possibility of the bad staff recruitment at the field offices that would have been responsible for not being efficient. Moreover, it would be foolish to ignore the choice of locations chosen by the company for its field offices as various external factors like government policies, social boundaries, etc also impact the daily operations in a particular region.
Due to the many holes in the reasoning in the arguments of the business department of Apogee, it is difficult to take the arguments seriously. Unless further evidence surface in each of the areas discussed above, the given premises are insufficient proof that the conclusion drawn is viable.