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 addressed in order to decide whether implementing the recommendation is likely to have the predicted result and explain how the answers to those questions would help to evaluate the recommendation.
The memorandum aims to tackle the issue of recent reduction of profits in the Movie Galore’s video rental stores. The memo purports to cut back the operating expenses of all ten stores in order to improve profits by reducing its stock as well as closing the stores earlier. However, this strategy raises a few concerns that need to be addressed to fully evaluate if the proposed strategy will be as effective as envisioned by the owner of Movie Galore.
Firstly, do customers in all the areas of Movie Galore stores have the same taste in movies as the customers in downtown Marston? It is highly unlikely that the nature of people in all other localities is the same as Marston. Perhaps, customers in other regions are passionate about old classical movies, which were released more than five years ago. If such customers are not able to get their choice of movies to rent, then the business of Movie Galore may incur greater losses as compared to the current loss rate.
Secondly, will the profitability from the downtown Marston store remain steady after one month of operation? It is not logical to assume that the profits will remain steady because there could be several other reasons for the current observed profits in Marston’s store. There could have been a highly awaited movie released in the current month, which probably persuaded many people to rent from the Movie store. Thus, other possibilities that led to the current month’s increase in profits needs to be considered. If the main reason for profits was due to release of a new awaited movie, then the memo may not hold water.
Thirdly, are the working hours of people in other towns of stores the same as downtown Marston? Maybe majority of people in other areas where the store’s branches are located have more working hours that end at 6 pm. Therefore, if the stores close at 6 pm, majority of people would not be able to rent movies. As a result, profits as envisioned may not be attainable by closing the stores earlier.
The recommendation by the owner raises a few questions that need to be addressed to fully evaluate the strength of the plan to increase profits. Once the raised concerns are provided with satisfactory explanations or evidences, then the owner may safely proceed with the plan to reduce working hours as well as reducing stock.
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Comments
e-rater score report
Attribute Value Ideal
Final score: 3.5 out of 6
Category: Satisfactory Excellent
No. of Grammatical Errors: 0 2
No. of Spelling Errors: 0 2
No. of Sentences: 18 15
No. of Words: 401 350
No. of Characters: 1887 1500
No. of Different Words: 183 200
Fourth Root of Number of Words: 4.475 4.7
Average Word Length: 4.706 4.6
Word Length SD: 2.428 2.4
No. of Words greater than 5 chars: 138 100
No. of Words greater than 6 chars: 99 80
No. of Words greater than 7 chars: 58 40
No. of Words greater than 8 chars: 28 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 22.278 21.0
Sentence Length SD: 5.237 7.5
Use of Discourse Markers (%): 0.611 0.12
Sentence-Text Coherence: 0.334 0.35
Sentence-Para Coherence: 0.334 0.50
Sentence-Sentence Coherence: 0.107 0.07
Number of Paragraphs: 1 5
Transition Words or Phrases used:
first, firstly, however, if, may, second, secondly, so, then, therefore, third, thirdly, thus, well, as a result, as well as
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 18.0 19.6327345309 92% => OK
Auxiliary verbs: 12.0 12.9520958084 93% => OK
Conjunction : 1.0 11.1786427146 9% => More conjunction wanted.
Relative clauses : 9.0 13.6137724551 66% => More relative clauses wanted.
Pronoun: 11.0 28.8173652695 38% => OK
Preposition: 57.0 55.5748502994 103% => OK
Nominalization: 3.0 16.3942115768 18% => More nominalizations (nouns with a suffix like: tion ment ence ance) wanted.
Performance on vocabulary words:
No of characters: 1937.0 2260.96107784 86% => OK
No of words: 401.0 441.139720559 91% => More content wanted.
Chars per words: 4.83042394015 5.12650576532 94% => OK
Fourth root words length: 4.47492842339 4.56307096286 98% => OK
Word Length SD: 2.51817727404 2.78398813304 90% => OK
Unique words: 191.0 204.123752495 94% => More unique words wanted.
Unique words percentage: 0.476309226933 0.468620217663 102% => OK
syllable_count: 615.6 705.55239521 87% => OK
avg_syllables_per_word: 1.5 1.59920159681 94% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 3.0 4.96107784431 60% => OK
Article: 3.0 8.76447105788 34% => OK
Subordination: 4.0 2.70958083832 148% => OK
Conjunction: 0.0 1.67365269461 0% => OK
Preposition: 0.0 4.22255489022 0% => More preposition wanted as sentence beginning.
Performance on sentences:
How many sentences: 18.0 19.7664670659 91% => OK
Sentence length: 22.0 22.8473053892 96% => OK
Sentence length SD: 30.0296150121 57.8364921388 52% => The essay contains lots of sentences with the similar length. More sentence varieties wanted.
Chars per sentence: 107.611111111 119.503703932 90% => OK
Words per sentence: 22.2777777778 23.324526521 96% => OK
Discourse Markers: 6.88888888889 5.70786347227 121% => OK
Paragraphs: 5.0 5.15768463074 97% => OK
Language errors: 0.0 5.25449101796 0% => OK
Sentences with positive sentiment : 11.0 8.20758483034 134% => OK
Sentences with negative sentiment : 2.0 6.88822355289 29% => More negative sentences wanted.
Sentences with neutral sentiment: 5.0 4.67664670659 107% => OK
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.25877778795 0.218282227539 119% => OK
Sentence topic coherence: 0.0851862040987 0.0743258471296 115% => OK
Sentence topic coherence SD: 0.0779059513614 0.0701772020484 111% => OK
Paragraph topic coherence: 0.143291626583 0.128457276422 112% => OK
Paragraph topic coherence SD: 0.0890259991639 0.0628817314937 142% => OK
Essay readability:
automated_readability_index: 12.5 14.3799401198 87% => Automated_readability_index is low.
flesch_reading_ease: 57.61 48.3550499002 119% => OK
smog_index: 3.1 7.1628742515 43% => Smog_index is low.
flesch_kincaid_grade: 10.7 12.197005988 88% => OK
coleman_liau_index: 11.03 12.5979740519 88% => OK
dale_chall_readability_score: 8.15 8.32208582834 98% => OK
difficult_words: 87.0 98.500998004 88% => OK
linsear_write_formula: 13.5 12.3882235529 109% => OK
gunning_fog: 10.8 11.1389221557 97% => OK
text_standard: 11.0 11.9071856287 92% => OK
What are above readability scores?
---------------------
Rates: 50.0 out of 100
Scores by essay e-grader: 3.0 Out of 6
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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.