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DBushkalov
- Senior | Next Rank: 100 Posts
- Posts: 49
- Joined: Wed Jan 16, 2013 6:06 am
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Dear BTGMAT Community,
i decided to create this post in order to post the different topics from the sample essays. Of course anyone can add his own flaws, ask questions or simply check and compare with his/ her own ideas.
The first topic I would like to post is actually the first one from the list: Enjoy .. I am looking forward to reading your feedback.
"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 flaws for me are:
Flaw 1: The author assumes that experience & hence efficiency the only factor that leads to a cost decrease?
Counterexamples: Market conditions, input prices, technology etc.
Possible fixes: if it can be asserted that the market conditions in 1974 were the same as in 1980
Flaw2: Are the print and food industry comparable
Counterexample: Even if the cost decrease has been due to higher experience, are there any similarities between the two industries that would allow us to make comparisons between them.
Possible fixes: if significant parallels between the processes or the value added chains could be drawn.
Flaw 3: Lower cost does not necessarily mean higher profits
Counterexmaples: the revenue also determines the profit. and revenue depends on produced and sold items as well as on the price at which they were sold.
Possible fixes: the conclusion can be better evaluated if there is information as to whether the cost decrease will occur at constant/ higher revenue
i decided to create this post in order to post the different topics from the sample essays. Of course anyone can add his own flaws, ask questions or simply check and compare with his/ her own ideas.
The first topic I would like to post is actually the first one from the list: Enjoy .. I am looking forward to reading your feedback.
"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 flaws for me are:
Flaw 1: The author assumes that experience & hence efficiency the only factor that leads to a cost decrease?
Counterexamples: Market conditions, input prices, technology etc.
Possible fixes: if it can be asserted that the market conditions in 1974 were the same as in 1980
Flaw2: Are the print and food industry comparable
Counterexample: Even if the cost decrease has been due to higher experience, are there any similarities between the two industries that would allow us to make comparisons between them.
Possible fixes: if significant parallels between the processes or the value added chains could be drawn.
Flaw 3: Lower cost does not necessarily mean higher profits
Counterexmaples: the revenue also determines the profit. and revenue depends on produced and sold items as well as on the price at which they were sold.
Possible fixes: the conclusion can be better evaluated if there is information as to whether the cost decrease will occur at constant/ higher revenue
