GMAT Essays (AWA)

Argument
Over time, the costs of processing go down because as organisations 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 in1970 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 25th birthday, we can expect that our long experience will enable us to minimise costs and thus maximise profits.

Analysis
The annual report articulated by the Olympic Foods does not sound very up to the mark. The report should have authentic numbers and news, on the contrary this reports has missed on the actual facts and gives vague comparison. The report seems to make promises of the future profits on the basis of no solid strategies.
The report looks flawed primarily because it claims that over time the organisations become more efficient and hence make more profits. This is not correct at all, since cost of processing going down is dependent on many other factors and not only just by being veteran in the industry. The factors like market trend, economy inflation etc. also play a part in gauging the efficiency in decrease of the processing cost. Secondly, the analogy with the film processing is incomplete with no authentic facts to substantiate the comparison. Only the analogy based on the time does not help us to conclude a solid claim. Moreover, the comparison does not look quite rational, as it takes into account two industries which are nowhere related to each other. One factor(time) playing a major part in the profits of an industry, may not be of the same help to some other industry. The vast experience of 25 years may definitely help them minimize cost but to a certain extent only. The natural calamities effecting the supply of foods may also have an impact on the cost of the processing. The article should have mentioned more about , what new strategies and innovations are being employed to cut the cost of processing. For example- Reducing manual work and implementing more machinery which will over a period of time saves money and time. A report with more figures and numbers will help to evaluate the success in reducing the cost.
If the above aspects are taken care off in the report, it will be more appealing to the stockholders and will help them getting a clear view on the promises and progress of Olympic Foods.