The Following Appeared in a Memorandum from the Business Department of the Apogee Company. “When the Apogee Company Had All Its Operations in One Location, It Was More Profitable Than It Is Today. Therefore, the Apogee

The following appeared in a memorandum from the business department of the Apogee Company.
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company
should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by
cutting costs and helping the company maintain better supervision of all employees.

The author mentions that apogee company was more profitable when it had all its operations in one location and hence it should close down all its field offices and centralizeits base to a single location in order to improve profitability. The conclusion drawn in the argument is too extreme and is not drawn   after consideration of all influential factors.

Firstly author states that apogee company was more succesful when it had operations in a single location, but it is nowhere mentioned that distribution of business in various location is the cause behind the less profitabilty and it is too early to jump to a conclusion that centalized struture decntalizing of business centre of apogee company will increase profits. Also it can be a possibilty that the decentralized model of apogee company is working up to the mark and some other factor is leading to decreased profits. And if this is the case, cetralizing the company business structure will still not increase profits.

Secondly if apogee company closes down all its field offices and and centralizes its work force at a single location then the company may lose all the money it invested in decentralizing and this would further decrease profits. Not to mention centralizing work force at a single location will be an overhead. Also in the world today, where business is globalizing at a rate faster than ever, and when other companies are investing money and efforts in expanding and distributing operations to different locations, conducting all operations from a...