The following appeared in a memorandum from the owner of Movies Galore, a chain of video rental stores.
“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. Last month our store in downtown Marston significantly decreased its operating expenses by closing at 6:00 P.M. rather than 9:00 P.M. and by reducing its stock by eliminating all movies released more than five years ago. Therefore, in order to increase profits without jeopardizing our reputation for offering great movies at low prices, we recommend implementing similar changes in our other nine Movies Galore stores.”
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
The owner of Movies Galore presumes that they must reduce the operating expense in order to reverse their recent decline in the profits. The memorandum notes that as the company is famous for their special bargains, increase in the price will not improve their profits. The reasoning could be apt and probable but in order to determine whether the recommendation by the owner works, few questions nedd to be answered.
To begin with, will closing early not affect the sales of the videos? The owner, based on the evidence, assumes that customers tend to purchases videos less after 6:00 PM. However, the assumption is reached by only experimenting for a month with the new timings. It might be possible that the month was full of public holidays, like December, and people were free during the day time, which did not affect the sales in that month. Many people have 9 to 5 job and hence, might prefer to rent a video after 6 pm. Hence, if this is likely then the sales of the store gets lesser in current timings.
Additionally, do customers take full advantage of the special bargains? It may be possible that increasing the sales price in such conditions might not be helpful as the customer can always bargain for a lower price. However, the this statement is not backed up by any report or statistics. It could be possible that not all customers of the store are solid bargainers. So increasing the price will increase the profit of the company if the ratio who bargains fervidly is low. If this is true, then the company does not need to decrease their operating expense and instead should increase the price of the rentals.
Thus, if the questions can not be answered with proper evidence, then the recommendation might not increase the profit of the store. More concrete evidence which can answer these questions can help in deciding the right step for the rental stores.
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Comments
Essay evaluation report
Attribute Value Ideal
Final score: 2.5 out of 6
Category: Satisfactory Excellent
No. of Grammatical Errors: 0 2
No. of Spelling Errors: 0 2
No. of Sentences: 17 15
No. of Words: 328 350
No. of Characters: 1516 1500
No. of Different Words: 167 200
Fourth Root of Number of Words: 4.256 4.7
Average Word Length: 4.622 4.6
Word Length SD: 2.421 2.4
No. of Words greater than 5 chars: 99 100
No. of Words greater than 6 chars: 73 80
No. of Words greater than 7 chars: 48 40
No. of Words greater than 8 chars: 24 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 19.294 21.0
Sentence Length SD: 5.377 7.5
Use of Discourse Markers (%): 0.588 0.12
Sentence-Text Coherence: 0.313 0.35
Sentence-Para Coherence: 0.521 0.50
Sentence-Sentence Coherence: 0.06 0.07
Number of Paragraphs: 4 5
Grammar and spelling errors:
Line 1, column 271, Rule ID: ENGLISH_WORD_REPEAT_BEGINNING_RULE
Message: Three successive sentences begin with the same word. Reword the sentence or use a thesaurus to find a synonym.
...e price will not improve their profits. The reasoning could be apt and probable but...
^^^
Line 5, column 22, Rule ID: DID_BASEFORM[1]
Message: The verb 'will' requires the base form of the verb: 'close'
Suggestion: close
... be answered. To begin with, will closing early not affect the sales of the video...
^^^^^^^
Line 5, column 137, Rule ID: TO_NON_BASE[1]
Message: The verb after "to" should be in the base form: 'purchase'.
Suggestion: purchase
...vidence, assumes that customers tend to purchases videos less after 6:00 PM. However, the...
^^^^^^^^^
Line 5, column 457, Rule ID: CD_NN[1]
Message: Possible agreement error. The noun 'job' seems to be countable, so consider using: 'jobs'.
Suggestion: jobs
... in that month. Many people have 9 to 5 job and hence, might prefer to rent a video...
^^^
Line 9, column 228, Rule ID: DT_DT[2]
Message: Maybe you need to remove the second determiner so that only 'the' or 'this' is left.
Suggestion: the; this
...ays bargain for a lower price. However, the this statement is not backed up by any repor...
^^^^^^^^
Transition Words or Phrases used:
but, hence, however, if, may, so, then, thus, to begin with
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 16.0 19.6327345309 81% => OK
Auxiliary verbs: 17.0 12.9520958084 131% => OK
Conjunction : 6.0 11.1786427146 54% => More conjunction wanted.
Relative clauses : 10.0 13.6137724551 73% => More relative clauses wanted.
Pronoun: 19.0 28.8173652695 66% => OK
Preposition: 37.0 55.5748502994 67% => OK
Nominalization: 7.0 16.3942115768 43% => More nominalizations (nouns with a suffix like: tion ment ence ance) wanted.
Performance on vocabulary words:
No of characters: 1574.0 2260.96107784 70% => OK
No of words: 327.0 441.139720559 74% => More content wanted.
Chars per words: 4.81345565749 5.12650576532 94% => OK
Fourth root words length: 4.25242769721 4.56307096286 93% => OK
Word Length SD: 2.49825945451 2.78398813304 90% => OK
Unique words: 172.0 204.123752495 84% => More unique words wanted.
Unique words percentage: 0.525993883792 0.468620217663 112% => OK
syllable_count: 477.9 705.55239521 68% => OK
avg_syllables_per_word: 1.5 1.59920159681 94% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 3.0 4.96107784431 60% => OK
Article: 6.0 8.76447105788 68% => OK
Subordination: 3.0 2.70958083832 111% => OK
Conjunction: 1.0 1.67365269461 60% => OK
Preposition: 2.0 4.22255489022 47% => More preposition wanted as sentence beginning.
Performance on sentences:
How many sentences: 17.0 19.7664670659 86% => OK
Sentence length: 19.0 22.8473053892 83% => The Avg. Sentence Length is relatively short.
Sentence length SD: 30.5692248618 57.8364921388 53% => The essay contains lots of sentences with the similar length. More sentence varieties wanted.
Chars per sentence: 92.5882352941 119.503703932 77% => OK
Words per sentence: 19.2352941176 23.324526521 82% => OK
Discourse Markers: 3.47058823529 5.70786347227 61% => OK
Paragraphs: 4.0 5.15768463074 78% => More paragraphs wanted.
Language errors: 5.0 5.25449101796 95% => OK
Sentences with positive sentiment : 9.0 8.20758483034 110% => OK
Sentences with negative sentiment : 3.0 6.88822355289 44% => More negative sentences wanted.
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: 0.123204231293 0.218282227539 56% => OK
Sentence topic coherence: 0.0420800983022 0.0743258471296 57% => OK
Sentence topic coherence SD: 0.0818555222955 0.0701772020484 117% => OK
Paragraph topic coherence: 0.0794678808854 0.128457276422 62% => OK
Paragraph topic coherence SD: 0.0717958862216 0.0628817314937 114% => OK
Essay readability:
automated_readability_index: 10.8 14.3799401198 75% => Automated_readability_index is low.
flesch_reading_ease: 60.65 48.3550499002 125% => OK
smog_index: 3.1 7.1628742515 43% => Smog_index is low.
flesch_kincaid_grade: 9.5 12.197005988 78% => OK
coleman_liau_index: 10.62 12.5979740519 84% => OK
dale_chall_readability_score: 7.96 8.32208582834 96% => OK
difficult_words: 70.0 98.500998004 71% => More difficult words wanted.
linsear_write_formula: 10.5 12.3882235529 85% => OK
gunning_fog: 9.6 11.1389221557 86% => OK
text_standard: 11.0 11.9071856287 92% => OK
What are above readability scores?
---------------------
Rates: 50.0 out of 100
Scores by essay e-grader: 3.0 Out of 6
---------------------
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.