• PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors

Rate my Analysis of an Argument - 1st one!

This topic has 0 member replies

Rate my Analysis of an Argument

1
 
0% (0 votes)
2
 
0% (0 votes)
3
 
0% (0 votes)
4
 
0% (0 votes)
5
 
0% (0 votes)
6
 
0% (0 votes)
avyysavyy Newbie | Next Rank: 10 Posts Default Avatar
Joined
08 Dec 2016
Posted:
1 messages

Rate my Analysis of an Argument - 1st one!

Post Thu Dec 08, 2016 5:46 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    The argument states that Olympic Foods will minimize its costs and maximize its profits,because of its long experience of 25 years.This conclusion is made on the premise that the cost of processing decreases for organizations with long experience as they learn how to do things better and more efficiently.
    Although, there might be situations which may not necessarily apply to this argument.For example,the revenue generated by Olympic foods must outweigh the cost of processing to maximize its profits.Minimizing the processing costs does not necessarily means maximizing the profit .Also ,one must look at the plausibility of gaining long experience.As most companies learns to reduce its processing cost with over time experience,doesn’t mean that all companies with long experience will learn to do so.
    The first issue to be addressed is that whether the costs of processing for color flim processing justifies for food processing costs or not under different market conditions.As 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,doesn’t implies that the cost of food processing will also decrease or increase with the same percentage rate.The market conditions for both the processing may change every year with different scales of variation.A yearly cost benefit analysis has to be made in order to determine the decrease or increase of processing cost according to various market situations.A revenue model will justify the maximizing/minizing profit with increasing/decreasing processing costs.One should properly analyze the revenue model to understand the increased efficiency of the organization.
    This argument also relies on the idea that companies with long experience learn to do thing in a better way and more efficiently which minimizes the processing cost and maximizes the profit.But this is not the case always.Competion arises,with new technologies and strategies (seeks the market demands) which outweigh the companies long experience of doing things in a better way.For example ,nokia was left behind by the new android technologies as it could not view the futuristic android world.However nokia launched its own set of technologies with failed to regain its market.
    Ultimately one must understand, with experience organizations must develop adaptability with rapid change in market demands .Adaption to newer technologies can make the organizations productivity faster.
    In conclusion,at first it may seem fair enough to think that organizations with long experience will learn to do thing better and efficiently which will reduce down the procession cost and maximize the profit but there are other situations as well where this may not fit.Like,the revenue must outweigh the processing cost,competition analysis,yearly revenue model analysis,adaptation to new technologies and new market changes.More over the processing cost for film processing and food processing may not necessarily rise or fall simultaneously with the same rate.One must put all the points forward before analyzing,the efficiency of an organization which will minimize the processing cost and maximize the profit.One should not necessarily expect the Olympics food process to do the former as they 25 years of long experience.

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!

    Best Conversation Starters

    1 Vincen 180 topics
    2 lheiannie07 65 topics
    3 Roland2rule 49 topics
    4 ardz24 44 topics
    5 LUANDATO 23 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    147 posts
    2 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    103 posts
    3 image description GMATGuruNY

    The Princeton Review Teacher

    102 posts
    4 image description EconomistGMATTutor

    The Economist GMAT Tutor

    94 posts
    5 image description DavidG@VeritasPrep

    Veritas Prep

    76 posts
    See More Top Beat The GMAT Experts