GRE : Analyze An Argument - 8

The following is a recommendation from the Board of Directors of Monarch Books.
"We recommend that Monarch Books open a café in its store. Monarch, having been in business at the same location for more than twenty years, has a large customer base because it is known for its wide selection of books on all subjects. Clearly, opening the café would attract more customers. Space could be made for the café by discontinuing the children's book section, which will probably become less popular given that the most recent national census indicated a significant decline in the percentage of the population under age ten. Opening a café will allow Monarch to attract more customers and better compete with Regal Books, which recently opened its 
own café."

Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.


Response :

The recommendation made by the Board of Directors of Monarch Books of opening a cafe within the book store may be perceived as a good business opportunity, but more precise facts should be mentioned and scrutinized before arriving at the ultimate conclusion. There are many unsubstantial facts in the recommendation which cannot insinuate the conclusion without the use of assumptions.   
The board of director fails to mention any data about the structure and size of the bookstore, if the book store is small and over occupied by books, then accommodating some space for the cafe might not be good idea. As, this well reflect a bad reputation to the customers. The book store must be spacious first, so that the customers feel comfortable while sifting through books.   
The Director recommendation states a fact that according to a national census the population of children under the age of ten has decreased. This data is a matter of significance at country level, it cannot be inferred that the population residing in the locality of the book store will reflect a similar trend. Instead of national census, if the recommendation had included a city census, then it would have been clearer, whether the children section needs to be totally ousted from the book store. So that, a cafe can use the freed space.   
Recommendation should contain facts about the age groups of the book buyers and the number of books sold in different sections. Such statistics will show the actual picture about the customers and most sought book sections. These data are essential to decide, whether the children section or another section should be removed for accommodating a cafe, while considering the profitability of the book store. 
The director also needs to mention the statistical number of genuine book buyers compared with the actual customers who show up in the book store. It may be possible that opening of cafe, increases the number of customers who don't really want to buy books, rather than, they show up at the store for a sip of coffee.  
Recommendations states that Regal Books has also opened a cafe inside the book store vicinity, but no facts are mentioned about the effect of the cafe in his book business. It's plausible that there was no change in his revenue after the opening of the cafe.  
Conclusively, to portend the effectiveness of the recommendation, the board of director should collect more statistical information about the books sold and their customer base. In absence of concrete and precise facts, the recommendation fails to prove that opening of cafe will have a positive effect on the book store business of Monarch Books.