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Nokia’s decreased profitability was the result more of exogenic factors than of endogenic factors. For example, in the early twenty-first century, Nokia, a mobile phone manufacturer, started to become increasingly unprofitable and to lose market share as the mobile phone market started to become crowded. One possibility is that an increase in competition in the industry, in which the Apogee Company operates, may have led to a decrease in profitability for the company.
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The first issue to be addressed is whether the decentralization of the Apogee Company’s operations is responsible for the decreased profitability of the firm. Hence, the argument is unconvincing and has several flaws. The conclusion of the argument relies on assumptions for which there is no clear evidence. The argument also fails to mention several key factors based on which it could be better evaluated. Stated in this manner, the argument is weak and reveals examples of leap of faith and poor reasoning. Also, one must look at the plausibility that the centralization of the Apogee Company’s operations would improve profitability by cutting costs and helping the company maintain better supervision of all employees. This conclusion is based on the premise that when the Apogee Company had all its operations in one location, it was more profitable that it is today. The argument states that the Apogee Company should close down its field offices and conduct all its operations from a single location.
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