First, the vice president assumes that the ad campaign caused the low profits. However, the vice president ignores many other factors that contribute to profitability. In particular, the fact that Road Food has been spending less advertising money per restaurant than Street Eats suggests that its unwillingness to spend more may be the main reason for disappointing profits.
Second, the author implies that the ad agency failed to implement Road Foods guidelines, and that this failure was the reason for disappointing profits. However, it is equally possible that the ad agency faithfully followed all suggestions from Road Food, and that those suggestions were the cause of the disappointing profits. In this respect, the author unfairly shifts blame from Road Food to the ad agency.
Third, the authors comparison between Road Food and Street Eats is less relevant than a comparison between Road Foods own profits prior to its latest ad campaign and its profits during this campaign. Comparing its own profits during these time periods would more accurately reflect the ad agencys effectiveness than comparing profits of two different companies.
Finally, the author assumes that the ad agency will be more motivated if its fee is based on Road Food profits. However, the author does not support this claim. In fact, given that Road Foods profits have been lower than expected, it is just as likely that the ad agency would be less motivated by the suggested fee structure than by some other fee structure.
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