GMAT Essays (AWA)

It was not so easy to think of the reasoning points..
Not so confident with this essay, but anyways please kindly review this one for me!
Thank you experts!



The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen foods.
"Over time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in 1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits."



The annual report of the Olympic Food, a frozen foods processing company, concludes that the company will be able to maximize the profits thanks to the minimized costs in the near future. However, the author's argument is relying on the assumptions that are inadequate to support his contention.
First of all, the writer quotes a color film processing company's case that the cost of 3-by-5-inch print fell by more than 50% of its original cost, because the company became more efficient by learning. However, even though it was the successful case for the film processing company, the author provides no evidence that it will be the same for the Olympic Foods. Since the Olympic Foods is a company that processes the frozen foods, it is very distinguished from the one that processes the films. The two companies are likely to differ from each other in logistics, material costs, delivery, and customer service, etc. Therefore, it is ill-conceived to assume that the Olympic Foods will also be able to cut the costs simply because a color film processing company could do it in the past.
In addition, even though it is supported that the Olympic Foods can also reduce the costs in the same sense as the color film processing company did, this does not guarantee that the profits would be maximized too. This might be the case that due to the investment in the company's infrastructure to cut the costs, the company cannot maximize its profits for some while.
In order to further strengthen his argument, the author should provide a research or statistics that can prove the correlation between the two companies. If he can show how similar the two companies are in operating, it will help strengthen his argument that the Olympic Foods will also be efficient soon due to its learning. Also, the author may provide the evidence that there will be no counterbalancing investment or other huge costs needed in order to reduce the operating cost of the company. If he adds up further evidence as recommended, he will be able to reinforce his argument making his argument sound better and clear.

Thank you so much again Katharine!
Your advice and review are of great help!
And I will have to apologize you for writing another essay.. haha I am also studying for the other parts as well, just that I want to feel more confident in myself by practicing as much as I can for AWA
Thanks a lot!