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Rate my analysis of AWA

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darshita Newbie | Next Rank: 10 Posts Default Avatar
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22 Apr 2016
Posted:
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Rate my analysis of AWA

Post Sun Jun 12, 2016 8:20 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    Hi guys pls help me with the essay evaluation.. it will be of great help ,, thanks in advance Smile

    "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 25th birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits."

    The argument given by the author has several flaws. The underlying assumption is that with time due to practice the efficiency increases which results in lower costs of processing. Also the statement simply assumes that the results of color film industry are also applicable to food processing industry.
    Most importantly the argument doesn not address the cause of the fall in the processing costs. It assumes that the reduction is due to increase in efficiency,whereas it may be due to reduction in raw materials prices or the labour costs. Also it seems highly unlikely that due to increase in efficiency, there is a significant rise in the prices i.e. from 50 cents to 20 cents. Most commonly reduction as high as 250% of the original price will certainly have some other major factors involved to it as well.
    Secondly, considering the case study of color film processing industry the author simply assumes it’s a universal law and shall also be applicable to food industry which is objectionable. Both the industries are very different one is a market of electronics while the latter is perishable food products, both has different pricing factors. Also, the lesser costs of processing can be due to the technological developments in film industry which won’t be subsequenty reflected in the food industry.
    In the last line of the arguement the author also makes a strong statement that the profits will also increase, which is based on the fact that the the processing cost is responsible for the major profits, factors like the raw material cost, labour cost, electricity cost etc are not taken into consideration. It would have strengthened the arguement if the author would have given details of other costs and mentioned that the processing is governing factor for food processing industry and it’s higher efficiency results in huge profits.
    As the arguement leaves several key issues, it is not sound and persuasive. If some more details were provided on the production the arguement would have been more convincing.

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