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Old 2009 October 6th, 01:31 PM   #1 (permalink)
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The following is a memorandum from the sales director to the president of the Healthy-and-Good food company. "A recent study indicates that Vandal, a new margarine currently produced only in the country of Alta, actually reduces cholesterol levels. Derived from the resin of pine trees, Venadial works by activating a metabolic response that is not yet well understood. However, cholesterol levels fell ten to fifteen percent among participants in the study who consumed Venadial daily, and the risk of heart attack by one-third. In addition, the new margarine is so popular that stores in Alta are unable to keep it on their shelves. Therefore, if our company obtains the exclusive right to sell Venadial internationally, our profits are sure to increase substantially within a very short time."

The evidence in support of the conclusion, that internationalisation of Venadil will substantially boost profit in short-time, is not cogent enough as it fails to take into account some crucial information. The information given is vague and broad which makes the argument highly questionable. Thus, this essay is going to analyse the evidence given from several other angles.

First of all, the the argument fails to give any information about the country of Alta, such as population, the general state of health , the lifestyle and diet of citizens, how many people suffer from high cholesterol. In addition, it does not give any real figure about the study such as: the number of sample population, which region of the Alta country has been taken into account. Different part of the country may have different lifestyles ones may eat more meat, dairy greasy product and ones may be vegetarian. Hence, the argument could have been strengthened if it would have consider the above issue

Secondly, it states that Venadial ‘’ works by activating a metabolic response that is not yet well understood’’. The phrase given is vague and confuses the reader. In addition , if they consider merging in other countries consumers may be interested of the effect and how does it works to reduce the cholesterol. Furthermore, as it does not give the sample population size one may ask: what does a 10,15 % mean? And what about 1 third? If it were a sample population of 500 would mean that only 50 peoples’ cholesterol level has decrease, which is quite a small number to consider and base the conclusion upon.

Moreover, one can not deny that the sales director conclusion is groundless. If he wants to sell Venadial in other countries he should conduct a market research in the location concerned. Maybe the Vendil would not have the same effect in other countries as in Alta. Maybe the margarine has a high price and the consumers are not ready to pay for it. He should take into account consumer preferences and most important that there are many brands of margarine. Hence, he should have a very persuasive marketing strategy that embodies clear indications on how the margarine helps to lower the cholesterol level.

In conclusion, it can be clearly seen that the argument is not sound enough. However, it would have been strengthened if it had given more information regarding population of Alta, consumer’s lifestyle, market research in other countries and the general health state of consumers. The sales director should definitely not base its conclusion of expanding, only on the Alta market of margarine.

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Old 2009 October 15th, 06:38 AM   #2 (permalink)
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I appreciate your essay, written nicely and perspicuous. But you have mistook some info.
1. produced only in the country of Alta -- does not mean that it is sold only in stores of ALTA
2. cholesterol levels fell ten to fifteen percent among participants - does not mean 50 out of 500 participants. it means for all 500, cholesterol levels fell at least 10 % and at most 15%
3. the new margarine is so popular that stores in Alta are unable to keep it on their shelves -- could be because there is a huge onrush to alta for this margarine even from far away.

Company will have to pay a huge sum for exclusive rights.
The pine trees ingredient may not be scalable for huge worldwide demand.
The original producer might not scale for worldwide demand, even if done so, quality might not be up to par.
Further research might prove that some other factor could be the actual reason.
Further research might prove the pine trees' ingredient could be harmful.

Thanks.
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Old 2009 October 15th, 09:15 PM   #3 (permalink)
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