University: Shanghai University of Finance and Economics
September 16, 2020 at 6:49 am
First, the author misunderstands the relationship between the number of employees and the profitability of the company. Large quantity of employees does not necessarily represent the strong profitability of a company.The abundance of agents in a company that is newly established may press pressure on the vulnerable cash flow of this company because of their low productivity.In order to enhance the financial performance of a company it would be important to introduce certain high-tech appliances that improve productivity rather thanhiring more agents. The profitability of a company is also dominantly determined by management skills. For example, to achieve financial success the leadership of a companyshould unite subordinates for one paramount goal, if it fails to do that, the low efficiency and internal conflicts that exist among employees may arise to harm the company’s performance.
Unless the author detail the logics that number of employees is influential to the profitability of the company, the argument presented by author is not suffice to back his/her conclusion.
In addition, the author fails to convince me that the house that was sold ten years ago is comparable to the house that was sold last year.Over a decade, the various aspects of conditions with regard to house may not be the same as ten years ago.It is possible that the pine lines that coveys water to the house may deteriorate due to the lack of maintenance, which would heavily devalue the price of the house.It is also likely that, with the aging of population, the local government are unable to provide adequate public services like schools, public transports to its residents.It would further deprive the attractiveness of the house. Evidently,The author overlooks the differences of two houses that mentioned.Two houses might locate in separate locations, while one is in the vicinity of the lively center of downtown, another is probably near the district that is famous for murder, drug dealing or other criminality. The evaluation of these houses varies greatly that the potential buyers are more likely to satisfied with former one and therefore it would get significant price premium compare to the later one. If the author does not present clear similarities between two houses, it is vulnerable to persuade others to adapt Adams Realty.
In sum, the argument that proposed by author is specious.To strengthen it, the author needs to provide some evidences that Adam’s individual agents are more effective in selling houses than Fitch’s,and that the disparity in home sales and sales price is attribute to that difference.Then, to better value the author’s claim we should need more information about comparative attractiveness of the author’s two homes, and the extent to which residential real-estate market changed during the decade between the sales of two houses.
You must be logged in to reply to this topic.