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 25th birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits."
The author here argues that a part of annual report sent to the stakeholders by Olympic food claims that the costs of food processing go down because
as organization learn how to do things better , they become more efficient and to support his argument the author cites an example
that In color film processing , the cost of a 3 by 5 in print fell from 50 cents for five day service in 1970 to 20 cents for one -day
service in 1984. Certainly its true that efficiency and perfection keeps on improving with the course of time, hence could be true in the case of Olympic food
processing unit as well and could be the one of the reason its cost cutting ,However the above argument suffers from severe flaws and has several setbacks.
The primary issue with the argument lies in the unsubstantiated premises of report that is basically based of gratuitous assumption.
Plausibly cost of food would have went down due to increasing efficiency of organization but We cannot ignore other factors such as the decrease in cost of
inflation rate ,replacement of human labour by advanced machinery and tools that not only have improved the food processing rate but also
also have abated human errors.
The secondary issue here can be found when author cites an example of color film processing to support his argument , it is basically irrelevant
to compare and color film processing unit to food processing unit , its cost might have reduced due to reduction in cost of paper,
or colour paints . hence framing color film processing analogy to food processing industry is highly doubtful.
In a nutshell , the author argument does not completely render ammunition to its conjuncture, it would have been more compelling if he would used the food processing industry data to support his argument and would have considered holistic factors to analyse the industry's expenditures and profit .
"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 author here argues that a part of annual report sent to the stakeholders by Olympic food claims that the costs of food processing go down because
as organization learn how to do things better , they become more efficient and to support his argument the author cites an example
that In color film processing , the cost of a 3 by 5 in print fell from 50 cents for five day service in 1970 to 20 cents for one -day
service in 1984. Certainly its true that efficiency and perfection keeps on improving with the course of time, hence could be true in the case of Olympic food
processing unit as well and could be the one of the reason its cost cutting ,However the above argument suffers from severe flaws and has several setbacks.
The primary issue with the argument lies in the unsubstantiated premises of report that is basically based of gratuitous assumption.
Plausibly cost of food would have went down due to increasing efficiency of organization but We cannot ignore other factors such as the decrease in cost of
inflation rate ,replacement of human labour by advanced machinery and tools that not only have improved the food processing rate but also
also have abated human errors.
The secondary issue here can be found when author cites an example of color film processing to support his argument , it is basically irrelevant
to compare and color film processing unit to food processing unit , its cost might have reduced due to reduction in cost of paper,
or colour paints . hence framing color film processing analogy to food processing industry is highly doubtful.
In a nutshell , the author argument does not completely render ammunition to its conjuncture, it would have been more compelling if he would used the food processing industry data to support his argument and would have considered holistic factors to analyse the industry's expenditures and profit .
