In the second place, it is dangerous for Apogee Company to cut costs deeper and supervise employees better by resorting to centralization. The company may lose its market share because it concentrates its entire resource in one single location and has no direct access to some of those markets that it has offices at present. It will be difficult for the company to get first-hand information and make quick decisions to fight competitors. Moreover, Apogee Company may also lose its customers interest and trust. People always tend to conduct business with somebody who they can see whenever they want to see. Apogee Company may easily become another unfortunate company that is forgotten by its customers in a region where it does not have a permanent office。
In the third place, it is senseless to compare the present operations of Apogee Company with the operations in the past. The world is changing and the business environment is different. Competition is probably more severe than before, for example, so Apogee Company does not have the relative advantage it had. The only way for the company to keep competitive is to keep tighter relationships with its customers and provide better and quicker services to them, but this may require Apogee Company to open more offices rather than to close most of the current offices。
In sum, the authors conclusion is unfounded. To improve its profitability, Apogee Company should analyze its business environment carefully and, without losing its current business relationships, explore new opportunities. If it simply closed its current offices, the most possible result is that it loses its customers and therefore suffers even lower profitability。
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