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 profits

The author here claims that the ten video rental stores of Movies Galore are not generating the desired profit in recent times and suggests to reduce the operating expenses. He mentions the example of a rental store in downtown Marston and recommends the remaining nine stores to follow the same strategy. The argument might seem convincing and flawless at the first glance. However, a careful look into the matter exposes vital points or questions which have gone unanswered by the author.

The claim contains few misguiding terms. Firstly, the word ‘recent’ is an ambiguous one. A recent period can range from one year to five years depending upon the period to which it is refereed. Also the author states that there is a ‘decline’ in the profit. One would immediately cross question this comment by stating ‘by how much percent or amount has the profit gone down?’. Thus, the author has failed to mention accurate statistical date.

It is said that the store in downtown Marston significantly decreased its operating expenses by reducing the number of working hours and by eliminating movies released movies more than five years ago. The claim mentions no where about the increase in the profit of this store due to the above measure taken. There are high chances that the store had to take the following measures because they might have been lacking space and to create some vacancy, it was decided to discard the old released movies. Also, the idea behind the reduction in reducing the working hours might be that a fistful of people visited the store after six in the evening. As a result, the suggested measure to be taken cannot be trusted upon.

Also there is no specific reason given behind the recent decline in the profit of Movie Galore’s rental stores. Not only this, the idea reversing the decline seems in convincing and a passive one. By reducing the operating time, one is taking a step back and not trying to device various ways of bouncing back. The article also doesn't mention about the exact operating cost which might be saved by the suggested method. The reason behind the decline might be something else; for e:g the drop in profit might be because the genre of movies which the odience viewed had changed and it is not available with the organization any more.

Thus due to the over stated flaws, the argument seems to be ill-founded. However, had the author taken care of the above flaws, then the argument would have been infallible. But as of now, the authenticity of the argument falls flat due to insufficient data provide. Finally I would conclude by suggesting the organization to rather experiment by increasing the rental rate since they will have to at one point in future than devising ways which are baseless.