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ThefollowingappearedinamemorandumfromthebusinessdepartmentoftheApogeeCompany.

WhentheApogeeCompanyhadallitsoperationsinonelocation,itwasmoreprofitablethanitistoday.Therefore,theApogee
Companyshouldclosedownitsfieldofficesandconductallitsoperationsfromasinglelocation.Suchcentralizationwouldimprove
profitabilitybycuttingcostsandhelpingthecompanymaintainbettersupervisionofallemployees.

As the writer has metiond , previously, when Apogee Company


used to operate in one single location, it were more profitable; however
the author has not stated a solid evidence that the distribution of
operations to varied locations is the underlying reason for a less
lucrative business. Closing down field offices and operating from one
location is the suggested solution, but I disagree with this solution for
many reasons, such as not concidering other ways of improving
transactions.
Location is the primary key to a prosperous business. Any
company needs to consider its suppliers and customers when deciding
about and planing for the location. The statement that Apogee
Company would be more profitable if it was operating from a main
office and close down the rest of its field offices, is not backed up with
a well reasoned evidence, and therefore I would disagree with it. The
company must consider other elements that are influentia in the
market; meaning questio such as, how much the wages have
increased, or the changes in utility costs. However the author does not
display any sign of including these factors in their memorandum.
I believe the writer is wrong in thinking that the costs would be
cut down if the company was to operate from a single point. Any
business must plan for its facility locations and logistics, and their
costs, prior to their starting of operating, and after the business
confronts the requirement for expanding and distributing, it should do
so, Which is the case in Apogee Company as well. The author does not
mention what happens to transportation costs when the company
moves back to a single location. The logistics costs will definitely
increase and they might grow higher than the costs that the company
is trying to cut down.
Finally, In a crowded, centralized work place, keeping track of all
employees and how they are performing is tough. The Apogee
Company must not centeralize in order to supervise eployees better,
since that would do the excact opposite, and it will have a negative
effect on the whole business. By closing down field offices, the
company will have to let many of its labour force go, and the remaining
will have to start getting accumulated to the new work environment,
and that is highly time consuming for the company, since it will be hold
them back from focusing on main operations and daily transctions.
In conclution, I totally disagree with the author on changing the
companys structure to one centeralized office. It will block the
business from improving and keeping up with its competitors in the
market by consuming its precsious time. In order to cut down on

expenses, the company must look at other alteratives, such as its labor
or logistic strategies, and find a better, more rational and updated way
to cut costs and be more profitable.
477