Argument Topic :“In order to reverse the recent decline in our profits, we must reduce operating expenses at Movies Galore’s ten video rental stores. Since we are famous for our special bargains, raising our rental prices is not a viable way to improve pr

The author of this argument has failed to convince us that by closing the stores three hours earlier and by reducing the stock by removing all movies released more than five years ago will reverse the recent decline in profits of Movies Galore. The argument is based on questionable assumptions and a faulty line of reasoning, a fact which renders it over-simplistic and unconvincing.

First of all, the author does not provide any actual data that can safely support the claim that an action should be taken at all just because there is a decline in profits. The author assumes that the decline is manageable and its up to the company's policy to restore it. However, Movies Galore could still be the most profitable company in the video rental industry since there are numerous other factors that could not be possibly reversed, such as a new legislation that increased the tax in the video production or rental industry, new competitors in the video rental industry and so on and so forth. In order for us to establish a better and more objective judgement, the author should have provided more numerical evidence that are closely related to the industry and the company itself.

Second, the main point of the argument, relating with the store in downtown Marston, is out of scope since it only refers to a reduction in operating expenses, not pointing out anything about actual revenues of the specific store. Specifically, no statistical or numerical information is provided on the actual reduction of the expenses or the revenues of the store. A small percentage drop in expenses could also mean a vast amount of income loss. In addition, the author does not justify in any way why the store should close three hours earlier and not the opposite, for example open three hours later in the morning, since there could be a significant difference in the revenues. Other stores in the chain may earn the majority of their revenues within the 6-9 time frame.

Finally, the author makes another questionable assumption that the same policy from the store in Marston can be applied to the other stores as well. However, this analogy assumption is a problematic one. The presumption required to substantiate this view is that all stores are exactly the same as the store in Marston downtown in both functional and economical terms. However, there is not any information about the other nine shops. Since the stores can vary in scale of available merchandise, profitability and expenses, it is not safe to assume that the same policy can be beneficial for all the other stores. For instance, there may be only one or two stores that could account for more that half of the total revenues, hence, it may not be necessary to adjust all shops.

To sum up, based on unsubstantiated assumptions and poor evidence, the author's reasoning does not provide concrete support for the stated conclusion. If the author had provided more information on the revenues and expenses for the company, especially for the store in downtown Marston, statistical data regarding video rental industry revenues and more information about the other shops in the Movies Galore chain, it would have been more thorough and convincing.