Because of declining profits, we must reduce operating expenses at Movies Galore's ten movie-rental stores. Raising prices is not a good option, since we are famous for our low prices. Instead, we should reduce our operating hours. Last month our store in downtown Marston reduced its hours by closing at 6:00 p.m. rather than 9:00 p.m. and reduced its overall inventory by no longer stocking any DVD released more than five years ago. Since we have received very few customer complaints about these new policies, we should now adopt them at all other Movies Galore stores as our best strategies for improving profits."
The argument implying a proposal to approach profit decline problem by reducing operating cost. While it may be effective to some extent, the basis of this proposal is not fault proof at all. Storeowners assuming this as panacea to their profit problem but it may not work according to their sanguine desire due to lack of pragmatic analysis and evidences.
To begin, their preference of reducing operating time over raising price is praiseworthy at some point whereas, reducing operating cost only will not regain the profit. They should take account to other possible source of their costing while minting the previous operating hour. If they close their store earlier, the number of people who visit at late hour may decline and will resulting further profit loss.
Additionally, the argument also stated that store-owner was not agreed to raise price because of their famousness of low price. However, they did not present any record of happening where raising price due to logical reason might harm the reputation and general people were showing rage to that kind of action. It may happen that raising price to a particular limit does not affect the number of client at the same time it may contribute to profit incensement.
To strengthen their logic on the behalf of reducing operating cost by reducing operating hour, the storeowner cited their downtown Mastron store as evidence where they reduced store’s operating time. It will be a foolhardy decision if they want to do same for rest of the stores. People, their preference, environment and lifestyle differ place to place. The people visiting Mastron store will differ from other people who are the visitor of the other store. One business policy appropriate for one locale may not be effective for other, furthermore it may bring out counterproductive result. Adoption of Mastron store strategies for other store may reduce the profit.
With all the assumption, the owner also made an extra faulty assumption that not maintain inventory and record will reduce their cost. As people were not complaining in a previous similar case, they were hopping that people will show the same kind of attitude in future also. So they were not going to keep record of any which is of more than five years back. This will not contribute greatly because people may search old record for keeping in their archive. If this is true, then keeping older record in the store would increase the profit.
Finally, the store owner decisions are right to some extent but they should evaluate above stated assumption and need to conduct a market analysis before imposing any policy to ensure their profit increment.
- It is better to work as a team than as an individual to succeed 73
- People who make decisions based on emotion and justify those decisions with logic afterwards are poor decision makers 50
- The best way for a society to prepare its young people for leadership in government industry or other fields is by instilling in them a sense of cooperation not competition 58
- Some people think men and women have different natural abilities that make them suitable for different types of work Others however believe that both men and women can be equally suited to do any type of work 66
- The best way to understand the character of a society is to examine the character of the men and women that the society chooses as its heroes or its role models 66
Comments
e-rater score report
Attribute Value Ideal
Final score: 4.5 out of 6
Category: Good Excellent
No. of Grammatical Errors: 0 2
No. of Spelling Errors: 0 2
No. of Sentences: 21 15
No. of Words: 440 350
No. of Characters: 2173 1500
No. of Different Words: 216 200
Fourth Root of Number of Words: 4.58 4.7
Average Word Length: 4.939 4.6
Word Length SD: 2.451 2.4
No. of Words greater than 5 chars: 160 100
No. of Words greater than 6 chars: 106 80
No. of Words greater than 7 chars: 71 40
No. of Words greater than 8 chars: 42 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 20.952 21.0
Sentence Length SD: 6.214 7.5
Use of Discourse Markers (%): 0.81 0.12
Sentence-Text Coherence: 0.302 0.35
Sentence-Para Coherence: 0.302 0.50
Sentence-Sentence Coherence: 0.066 0.07
Number of Paragraphs: 1 5
Grammar and spelling errors:
Line 2, column 379, Rule ID: DID_BASEFORM[1]
Message: The verb 'will' requires the base form of the verb: 'result'
Suggestion: result
...visit at late hour may decline and will resulting further profit loss. Additionally, th...
^^^^^^^^^
Line 5, column 270, Rule ID: ALSO_SENT_END[1]
Message: 'Also' is not used at the end of the sentence. Use 'as well' instead.
Suggestion: as well
...how the same kind of attitude in future also. So they were not going to keep record ...
^^^^
Transition Words or Phrases used:
also, but, finally, furthermore, however, if, may, so, then, whereas, while, kind of
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 14.0 19.6327345309 71% => OK
Auxiliary verbs: 21.0 12.9520958084 162% => OK
Conjunction : 8.0 11.1786427146 72% => OK
Relative clauses : 10.0 13.6137724551 73% => More relative clauses wanted.
Pronoun: 35.0 28.8173652695 121% => Less pronouns wanted
Preposition: 53.0 55.5748502994 95% => OK
Nominalization: 13.0 16.3942115768 79% => OK
Performance on vocabulary words:
No of characters: 2228.0 2260.96107784 99% => OK
No of words: 440.0 441.139720559 100% => OK
Chars per words: 5.06363636364 5.12650576532 99% => OK
Fourth root words length: 4.57997565096 4.56307096286 100% => OK
Word Length SD: 2.50715917074 2.78398813304 90% => OK
Unique words: 221.0 204.123752495 108% => OK
Unique words percentage: 0.502272727273 0.468620217663 107% => OK
syllable_count: 706.5 705.55239521 100% => OK
avg_syllables_per_word: 1.6 1.59920159681 100% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 8.0 4.96107784431 161% => OK
Article: 8.0 8.76447105788 91% => OK
Subordination: 4.0 2.70958083832 148% => OK
Conjunction: 0.0 1.67365269461 0% => OK
Preposition: 3.0 4.22255489022 71% => OK
Performance on sentences:
How many sentences: 21.0 19.7664670659 106% => OK
Sentence length: 20.0 22.8473053892 88% => OK
Sentence length SD: 40.3196974757 57.8364921388 70% => OK
Chars per sentence: 106.095238095 119.503703932 89% => OK
Words per sentence: 20.9523809524 23.324526521 90% => OK
Discourse Markers: 4.0 5.70786347227 70% => OK
Paragraphs: 6.0 5.15768463074 116% => OK
Language errors: 2.0 5.25449101796 38% => OK
Sentences with positive sentiment : 10.0 8.20758483034 122% => OK
Sentences with negative sentiment : 6.0 6.88822355289 87% => OK
Sentences with neutral sentiment: 5.0 4.67664670659 107% => OK
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.214635194821 0.218282227539 98% => OK
Sentence topic coherence: 0.0759059008505 0.0743258471296 102% => OK
Sentence topic coherence SD: 0.0709353264164 0.0701772020484 101% => OK
Paragraph topic coherence: 0.121228464887 0.128457276422 94% => OK
Paragraph topic coherence SD: 0.0638317638933 0.0628817314937 102% => OK
Essay readability:
automated_readability_index: 12.9 14.3799401198 90% => Automated_readability_index is low.
flesch_reading_ease: 51.18 48.3550499002 106% => OK
smog_index: 3.1 7.1628742515 43% => Smog_index is low.
flesch_kincaid_grade: 11.1 12.197005988 91% => OK
coleman_liau_index: 12.07 12.5979740519 96% => OK
dale_chall_readability_score: 8.25 8.32208582834 99% => OK
difficult_words: 101.0 98.500998004 103% => OK
linsear_write_formula: 11.5 12.3882235529 93% => OK
gunning_fog: 10.0 11.1389221557 90% => OK
text_standard: 12.0 11.9071856287 101% => OK
What are above readability scores?
---------------------
Rates: 83.33 out of 100
Scores by essay e-grader: 5.0 Out of 6
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Note: the e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.