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

In the passage the author argues that if a company operates from a single location, its profits would increase as the cost of operating will go down. This is based on evidence regarding a company named Apogee whose profits have declined since it shifted its operations to various locations. However the argument has serious flaws in it.

Firstly, the author assumes that if a company is less profitable after expanding its business to various location then it should happen to ever other company also without considering any factors which could have led the company down that path. The profitability of the company will depend not only on the locations in which it is operating but also on the product which the company is selling, its marketing strategy to advertise these products, whether enough research has been done for the market in which it is selling these products. Any data regarding this trend could have made the authors argument much more logical.

Moreover, the author argues that better supervision of employees will lead to higher productivity and profits which is why the companies should centralize its operations at one location instead of many. Author doesn’t consider the diversity and knowledge of different markets which the employees from various locations will bring to the company apart from that increasing supervisions will have a direct impact on productivity and profits as it will seriously affect the morale of employees who will not be used to these kind of supervisions, so instead of having a positive impact it could be just opposite of what the company was thinking.

After close examination of the whole argument, it is apparent that there are several illogical assumptions and conclusions. The recommendations made above can be used to further strengthen the argument and made much more logical.