A-CA-R
Argument
• Statements in support of
your position
Counter Argument
• Potential challenges to your
position
Rebuttal
• Supporting your original
statements – why the
challenges are not persuasive
The University of Sydney
Page 1
Critical Analysis Example : Supermarket Wars
You are a junior strategy analyst
at Coles. Given the continuous
controversy around food
discounting, you have been
asked by senior management to
provide a recommendation as to
whether Coles should continue
the discounting or not.
In your answer provide a clear
rationale for your
recommendation.
The University of Sydney
Page 2
Developing the rationale
Dealing with risks: rebuttal (dismissing) the counter-argument
Argument for
discounting
Issues/Risks – counter
arguments
Dealing with the risks
(Rebuttal)
Coles attracts
more customers
who buy more
items than just
food staples giving
Coles higher
market share.
Coles’ behaviour is unethical and
puts profits before the well-being of
farmers and growers, creating fears
that it will push the discounting
through to producers. This may
drive customers away and lower
profits.
Coles actually promised
NOT to force the
producers to sell at lower
prices, which makes the
first counter argument
speculative.
Coles creates an
image of caring
about the average
Australian by
offering cheaper
staple goods like
milk and bread.
Woolworths supports food
producers and depicts Coles as a
heartless corporate giant that
exploits its market bargaining
power over small producers by not
caring about the average
Australian.
By discounting food,
Coles is indeed
maximising the utility of a
larger number of people
– all Australians
compared to a small
number of producers.
The University of Sydney
Page 3
Rationale
Persuasive rationale: ARGUMENT FOR
There are two main reasons for Coles to continue discounting food items in their
stores. Firstly, by discounting milk Coles is ensuring that customers are
attracted by lower prices and will buy other products together with their milk
and fruit (Johnson 2012). This will have a positive impact on Coles’ market
share and profits.
The University of Sydney
Page 4
Rationale
Persuasive rationale: COUNTER-ARGUMENT
There are two main reasons for Coles to continue discounting food items in their
stores. Firstly, by discounting milk Coles is ensuring that customers are attracted
by lower prices and will buy other products together with their milk and fruit
(Johnson 2012). This will have a positive impact on Coles’ market share and
profits. Those who oppose this move might argue that discounting is
unethical as it exploits food producers and that Coles’ damaged reputation
will actually drive customers away to competition (Lee 2011).
The University of Sydney
Page 5
Rationale
Persuasive rationale: REBUTTAL
There are two main reasons for Coles to continue discounting food items in their
stores. Firstly, by discounting milk Coles is ensuring that customers are attracted
by lower prices and will buy other products together with their milk and fruit
(Johnson 2012). This will have a positive impact on Coles’ market share and
profits. Those who oppose this move might argue that discounting is unethical as
it exploits food producers and that Coles’ damaged reputation will actually
drive customers away to competition (Lee 2011). However, as Coles has
provided multiple public reassurances that it does not intend to pressure
producers to drop the price of produce, this viewpoint lacks sufficient
grounding to pose a credible threat at this point in time (Davis 2011) .
The University of Sydney
Page 6