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.

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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. Although the companies producing the top brands have since tried to compete with us by lowering their prices and although several plan to introduce their own budget brands, not once have we needed to raise our prices to continue making a profit. Given our success in selling cereal, we recommend that Bargain Brand now expand its business and begin marketing other low-priced food products as quickly as possible."
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation and the argument on which it is based are reasonable. Be sure to explain how the answers to these questions would help to evaluate the recommendation.

In this memo the marketing director of Bargain Brand Cereal claims that the company will continue to make a profit from sales of its cereal, and therefore that the company should expand its bargain-priced product line to include other foods as well. To support these assertions, the memo points out that Bargain Brand is still earning a profit from its cereal sales, despite the fact that major competitors have lowered their cereal prices and plan to offer bargain-priced cereal brands. On several grounds, this evidence lends little credible support for the memo's conclusions.

First of all, the mere fact that Bargain Brand is still earning a profit from its cereal sales is not the key in determining whether its competitors are succeeding. The key instead is the extent to which Bargain Brand profits have diminished since other companies lowered their cereal prices. It is entirely possible that Bargain Brand has been less profitable since its competitors lowered their cereal prices, and that given a little more time these competitors will draw enough additional sales away from Bargain Brand to render it unprofitable. The fact that the other companies offer the "top brands" is strong evidence that these companies can survive a prolonged price war and ultimately prevail over Bargain Brand.

Secondly, the memo states that several major competitors plan to offer their own special bargain brands to compete directly with Bargain Brand. Yet the memo fails to account for this fact in concluding that Bargain Brand will continue to be profitable. In all likelihood, after the introduction of competing brands Bargain Brand's profits will diminish even further. Without providing evidence that this will not occur, the director cannot convincingly conclude that Bargain Brand will continue to profit from its cereal sales.

Thirdly, based on the fact that Bargain Brand continues to profit from cereal sales, the memo concludes that Bargain Brand should expand its product line to include other food products. Yet the memo provides no evidence that Bargain Brand is likely to be profitable in other markets. Common sense suggests the contrary-that Bargain Brand is unlikely to succeed in markets in which it has no previous experience or exposure. Without providing evidence as to how Bargain Brand would overcome natural barriers to entry into other markets, the director's conclusion is weak at best.

In conclusion, the memo is unpersuasive as it stands. To strengthen the argument, the director must show that Bargain Brand will continue to profit from cereal sales even after its major competitors introduce their own bargain brands. To better assess the director's conclusion that Bargain Brand should expand its line of bargain-priced foods, we would need more information about the extent of competition and other barriers to entry in those other markets.

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Comments

argument 1 -- OK

argument 2 -- not OK

argument 3 -- not exactly, perhaps other food products have already had low-priced items.
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Let's analyze the structure of the statement and argue accordingly:

condition 1:
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. //maybe there are other factors not the low prices made Bargain's success

condition 2:
Although the companies producing the top brands have since tried to compete with us by lowering their prices and although several plan to introduce their own budget brands, not once have we needed to raise our prices to continue making a profit. //maybe still the company need to rise the price, for example, the supplier of raw material may increase its cost;

conclusion:
Given our success in selling cereal, we recommend that Bargain Brand now expand its business and begin marketing other low-priced food products as quickly as possible. //your argument 3

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Attribute Value Ideal
Final score: 3.0 out of 6
Category: Satisfactory Excellent
No. of Grammatical Errors: 0 2
No. of Spelling Errors: 0 2
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No. of Words: 456 350
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Fourth Root of Number of Words: 4.621 4.7
Average Word Length: 5.217 4.6
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No. of Words greater than 6 chars: 133 80
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No. of Words greater than 8 chars: 47 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 25.333 21.0
Sentence Length SD: 9.025 7.5
Use of Discourse Markers (%): 0.389 0.12
Sentence-Text Coherence: 0.448 0.35
Sentence-Para Coherence: 0.612 0.50
Sentence-Sentence Coherence: 0.167 0.07
Number of Paragraphs: 5 5