The following appeared in a memo to the board of directors of Bargain Brand Cereals."One year ago we introduced our first product, Bargain Brand breakfast cereal. Our very low prices quickly drew many customers away from the top-selling cereal companies.

The memo cites that Bargain Brand Cereals attract customers successfully by the low-price feature. They still function well when other companies apply a low-price strategy for competition. The author assumes that Bargain Brand Cereals could be also successful to sell other low-priced food products. However, there are some issues rendering the assumption a little unconvincing.

First of all, the argument mentions that Bargain Brand Cereals appealed many consumers one year ago. Nevertheless, there is no causation between great amount consumers one year ago and now. It is possible that the same product sold very well in the beginning but not endurable. For instance, people might be interesting about new production and give it a try, but they do not like it at the end. As a result, after the first superb sale, the current sales do not maintain as same prosperous as one year ago.

Secondly, the memo indicates that although other companies adopt the same strategy, low price, Bargain Brand Cereals still earns profits without increasing the prices. Nonetheless, the profit from low-priced products might be lucrative. Probably, it earns a little profit which not as abundant as other regular price products. There is no direct relation between making a profit and making a great and sufficient profit. Thus, Bargain Brand Cereals might be not a lucrative business as the author implies.

Finally, according the outstanding outcome of Bargain Brand Cereals, the writer suggests that the company could enlarge their brands to other low-priced food. Notwithstanding, there is no obvious connection between an awesome selling in one product and another. Perhaps, Bargain Brand Cereals might have intricate knowledge about how to produce cheap but flavor cereals, but have no abilities to produce the other products as both the same delicious and the same low price. Hence, creating a new production might not be profitable as their original products.

In the conclusion, the author assumes that Bargain Brand Cereals have great selling now, have enough profit, and could succeed in another merchandise, are plausible and might not reach the result as the author desired.