Waiting For Your Advice On My Essay In Gre

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TOPIC "For many years all the stores in our chain have stocked a wide variety of both domestic and imported cheeses. Last year, however, the five best-selling cheeses at our newest store were all domestic cheddar cheeses from Wisconsin. Furthermore, a recent survey by Cheeses of the World magazine indicates an increasing preference for domestic cheeses among its subscribers. Since our company can reduce expenses by limiting inventory, the best way to improve profits in all of our stores is to discontinue stocking many of our varieties of imported cheese and concentrate primarily on domestic cheeses."

WORDS: 502 TIME: 00:28:00

 

In the memo, he president recommends a cease of stocking many of the varieties of imported cheese and a concentration on domestic cheeses. To support his recommendation, he cites a survey led by Cheese of the World magazine among its subscribers which indicates an increasing trend of consumption on domestic cheeses. He also points out that all the stores in their chain have stocked plenty of both domestic and imported cheeses, thus deleting those imported cheeses from the inventory would benefit the company due to a decreased expense. To strengthen his conclusion, he claims that it would be the best way to implement the recommendation in all the chain stores. However, with further considerations into the problem, one can easily find this recommendation unconvincing as it stands in the following aspects.

 

First of all, whether the survey is statistically reliable is open to doubt. Lacking of detailed information of the survey about when the survey was made, how many respondents reacted, and whether those respondents can be regarded as the representative of the targeted customers for the cheese chain company. It is entirely possible that the subscribers are low-income family members so that they preferred to domestic cheeses for their relatively lower prices, and perhaps such a group of customers are not the targeted consumers for the company. Or perhaps the survey led by the magazine was sponsored by a domestic cheese retailing company which led the subscribers not to show their real preferences. Either of the reasons can diminish the reliability of the survey.

 

Further more, the president fails to take the cost of potential losses of sales in other districts out of the surveyed areas, merely based on the cut of expense by limiting inventory in the short run. Admittedly limiting inventory of imported cheeses will result in a cut on cost, however this might be just a small fraction of the potential profits from the increase of sales on imported cheeses. In this condition, the company would benefit more from the imported cheeses other than withdrawing from shelves.

 

In the final analysis, the president fails to explain why the solution is the best way to maximize the profits without comparing other alternatives. Lacking information about the company, we cannot rule out the possibility that the cease of profits in imported cheeses was conducted by poor management, limited advertisement campaign, or even wrong decisions from the board. Also the president fails to prove this solution to be the most profit plan without comparing the other strategies from other segments of the company.

 

To sum up, the recommendation is not so persuasive as it stands. To get it more convincing, the president should clearly announce the statistical reliability of the survey. Also he needs to precisely compare the potential losses of sales after deleting the imported cheeses from inventory with the extra savings by doing so. To better assess the recommendation, I must also know the alternative solutions and the accurate gains and losses to evaluate whether this solution the best one.