The following appeared in a memorandum from the president of Aurora, a company that sells organic milk (milk produced without the use of chemical additives): “Sales of organic food products in this country have tripled over the past five years. If Aurora is to profit from this continuing trend, we must diversify and start selling products such as organic orange juice and organic eggs in
addition to our regular product line. With the recent increase of articles in health magazines questioning the safety of milk and other food products, customers are even more likely to buy our line of organic products. And to help ensure our successful expansion, we should hire the founder of a chain of health-food stores to serve as our vice president of marketing.”
The argument mentioned in memorandum from the president of Aurora doesn't address some vital concerns. The argument is based on several assumptions and henceforth is not completely persuasive.
First, As per the argument, Sales of organic food products have tripled over past five years but there is no information about the profit made by organic food companies. So one cannot assume that those organic food provider companies are making significant profit or not, as cost associated with producing and selling them is significantly higher than preservative food . Moreover one cannot assume that Aurora itself is making some profit with its product organic milk and if Aurora is not making any kind of profit now then will it be a wise decision to start selling new products.
Second, Argument doesn't provide any kind of information about the competitors of Aurora. And where does it stand among them. Before starting selling products such as organic juice and organic eggs, Aurora's management needs to study the market and accordingly the decision should be taken. But the argument fails to exhibit the same.
Thirdly, the argument assumes that the articles in health magazines questioning the safety of milk and other products will more likely to attract customers to Aurora's products. But there is no evidence provided in argument to claim so.
Finally the argument fails to convince that hiring a new vice president can ensure the successful expansion of Aurora's business. There is no information about the current vice-president of marketing in company. May be he is already performing well and given that scenario there is no need to hire a new vice-president .Moreover the president of marketing is the one who enforces all the marketing strategy. If new vice president will not be able to convince the president then his strategies won't be implemented and as a result hiring a new vice-president won't help in expanding the business of Aurora
Thus , the argument has numerous flaws and it is not convincing. The argument could have been more convincing If it would have stated that Aurora is a profit maker firm, and there is good chance for Aurora to perform well in new organic products because of its good brand name and quality , and Aurora is also planning to hire a more qualified marketing vice-president as current marketing Vice-president’s qualification and performance is not up to the mark.