Please Rate Essay - Memorandum from the Vice President of Gigantis...

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The following appeared in a memorandum from the Vice President of Gigantis, a development company that builds and leases retail store facilities:
“Nationwide over the past five years, sales have increased significantly at outlet stores that deal exclusively in reduced-price merchandise. Therefore, we should publicize the new mall that we are building at Pleasantville as a central location for outlet shopping and rent store space only to outlet companies. By taking advantage of the success of outlet stores, this plan should help ensure full occupancy of the mall and enable us to recover quickly the costs of building the mall.”

Discuss how well reasoned…..
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The Vice President of Gigantis introduces an argument that makes a conclusion based on faulty premises. Hence, I find that the argument is fundamentally flawed. I will provide details and suggestions on how the argument can be solidified.

Firstly, the argument states that sales have increased over the past five years at outlet stores and assumes that that same success will continue to occur. The author does not provide any proof as to how the company will continue to prosper or why the company was successful. Even though, those details were provided the author fails to consider changes that may happen in the future, such as strikes, inflation, a recession, Gigantis’s future prospects, etc…

Secondly, the author assumes that the new mall that is being built as a central location in Pleasantville is going to grow. But if this building is built in a place where people have low disposable incomes then the probability of success of this business is going to be low and, hence, top selling outlet stores will look for other buildings to rent. Moreover, the argument does not mention why renting space to outlet stores only is going to make this company successful. The author should provide reasons why outlet stores are a better investment than other stores.

Finally, the Vice President assumes that thriving outlet stores will as an advantage will ensure full occupancy of the mall and help them quickly recover the costs. The author again leaves out some key issues such as the exact area where mall is going to be opened, the consumer’s disposable income around that area, inflation, etc… The Vice President further assumes that the mall will be fully occupied. He did not consider whether all those business enterprises are willing to rent a space in the building to make such a statement. They may have other better opportunities that they would want to take advantage of that Gigantis doesn’t provide.

To conclude, the Vice President should provide further information on the future plans of the company and investigate how and why the company can thrive. Furthermore, more information should be provided about exactly where this mall is going to be opened, the target market of this company, the disposable income of the people around that area, more research must be done on the outlet stores’ and other companies that would provide better opportunities than Gigantis would. With these details included in the argument the statement will be strengthened and more compelling.