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 recommends that in order to reverse the recent decline in profits, the best move is to reduce operating expenses by closing at 6 PM instead of 9 PM and by reducing the stock by eliminating all movies released more than five years ago. This is based on the implementation in a store in Marston which was successful in reducing operating costs. The owner believes that raising the rental prices is not a viable way to increase profits since it would jeopardize their reputation for their low price rentals. While the recommendation might seem logical at first glance, there are certain questions that need to be answered in order to decide if it is going to produce the intended result.
Firstly, it is required to know whether there aren’t significant rentals in the time window between 6 PM and 9 PM. If it is ascertained that there are indeed very few customers visiting the stores and renting movies across all its stores then the move seems likely to work well. However, it is quite possible that in the previous month, the store at Marston didn’t receive many customers because the weather was harsh and cold which resulted in many people preferring not to venture outside late in the evening after returning from work and instead spend their time inside their homes. While this is one explanation of why the store managed to cut costs by not operating in the time window, it could also be a trend only in Marston. Perhaps the people in Marston work till late in the night do not have sufficient time to visit the store before 9 PM. The same may not hold in areas where the other stores are located. There might be significant number of people who would visit the stores in the time period mentioned and by not operating in those times, the company is only going to hurt its profits further.
There is also a need to know if people are not interested in renting and watching movies older than 5 years. If the people in general are interested in classics or are interested in maybe re-watching their favourite movies, there would be significant rentals concerning older movies. Then, eliminating such movies from the stock would lead to many customers being unhappy that they are no longer able to watch such movies and thus the company would lose out on all the money that it could have made by keeping the movies in stock. The plan would work as expected only if it can be known with guarantee that there aren’t enough people who still buy movies that were released more than five years ago.
Also, is the popularity of the company only because of the low prices? It may be the case that it doesn’t have any serious contenders and enjoys a monopoly in video rental service. The owner believes that they wouldn’t increasing their prices would hurt their reputation. But if the answer to the question is a no, it would seriously undermine his argument. If there do not have a competing company, then even if they do increase the prices by a small amount, the people would still continue to rent movies from them since they wouldn’t have a choice. Perhaps their popularity is because of the good quality of movies and a large collection, catering to the interests of a wide audience. In such a scenario, the decision to not increase the prices would be unwise since it has the potential to help it regain profits.
From the detailed analysis of the owner’s memorandum it can be seen that his recommendation cannot be taken for granted. Instead, it can be adopted to increase profits only if can be determined with certainty that there aren’t significant number of customers between 6 PM and 9 PM, if the people in general do not rent older movies and if the popularity of its stores is only because of their cheaper prices. If any of these prove unfavourable, then the move is not likely to result in improvement of the profit numbers.
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2019-11-26 | NRS | 50 | view |
2019-11-15 | sinamalakouti | 55 | view |
2019-10-19 | suyash12mahar | 69 | view |
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Grammar and spelling errors:
Line 7, column 818, Rule ID: IT_VBZ[1]
Message: Did you mean 'regains'?
Suggestion: regains
...e since it has the potential to help it regain profits. From the detailed analysis ...
^^^^^^
Transition Words or Phrases used:
also, but, first, firstly, however, if, may, so, still, then, thus, well, while, in general
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 37.0 19.6327345309 188% => OK
Auxiliary verbs: 23.0 12.9520958084 178% => OK
Conjunction : 14.0 11.1786427146 125% => OK
Relative clauses : 18.0 13.6137724551 132% => OK
Pronoun: 51.0 28.8173652695 177% => OK
Preposition: 94.0 55.5748502994 169% => OK
Nominalization: 11.0 16.3942115768 67% => OK
Performance on vocabulary words:
No of characters: 3234.0 2260.96107784 143% => OK
No of words: 685.0 441.139720559 155% => Less content wanted.
Chars per words: 4.72116788321 5.12650576532 92% => OK
Fourth root words length: 5.11590702189 4.56307096286 112% => OK
Word Length SD: 2.59511953982 2.78398813304 93% => OK
Unique words: 287.0 204.123752495 141% => OK
Unique words percentage: 0.41897810219 0.468620217663 89% => More unique words wanted or less content wanted.
syllable_count: 1028.7 705.55239521 146% => OK
avg_syllables_per_word: 1.5 1.59920159681 94% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 7.0 4.96107784431 141% => OK
Interrogative: 0.0 0.471057884232 0% => OK
Article: 10.0 8.76447105788 114% => OK
Subordination: 7.0 2.70958083832 258% => Less adverbial clause wanted.
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: 25.0 19.7664670659 126% => OK
Sentence length: 27.0 22.8473053892 118% => OK
Sentence length SD: 64.4052668654 57.8364921388 111% => OK
Chars per sentence: 129.36 119.503703932 108% => OK
Words per sentence: 27.4 23.324526521 117% => OK
Discourse Markers: 3.64 5.70786347227 64% => OK
Paragraphs: 5.0 5.15768463074 97% => OK
Language errors: 1.0 5.25449101796 19% => OK
Sentences with positive sentiment : 17.0 8.20758483034 207% => Less positive sentences wanted.
Sentences with negative sentiment : 6.0 6.88822355289 87% => OK
Sentences with neutral sentiment: 2.0 4.67664670659 43% => OK
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.187788240579 0.218282227539 86% => OK
Sentence topic coherence: 0.0539157148365 0.0743258471296 73% => OK
Sentence topic coherence SD: 0.0526304251816 0.0701772020484 75% => OK
Paragraph topic coherence: 0.118701812329 0.128457276422 92% => OK
Paragraph topic coherence SD: 0.0552847624938 0.0628817314937 88% => OK
Essay readability:
automated_readability_index: 14.5 14.3799401198 101% => OK
flesch_reading_ease: 52.53 48.3550499002 109% => OK
smog_index: 8.8 7.1628742515 123% => OK
flesch_kincaid_grade: 12.6 12.197005988 103% => OK
coleman_liau_index: 10.39 12.5979740519 82% => OK
dale_chall_readability_score: 7.9 8.32208582834 95% => OK
difficult_words: 127.0 98.500998004 129% => OK
linsear_write_formula: 14.0 12.3882235529 113% => OK
gunning_fog: 12.8 11.1389221557 115% => OK
text_standard: 13.0 11.9071856287 109% => OK
What are above readability scores?
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Write the essay in 30 minutes.
Rates: 66.67 out of 100
Scores by essay e-grader: 4.0 Out of 6 -- The score is based on the average performance of 20,000 argument essays. This e-grader is not smart enough to check on arguments.
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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.