Hi Every body ,
This is the first time i attempted a essay for the gmat, took a random question i found on this forum , timed about 24 min. would be grateful if you could please rate my essay .
Thanks .
"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 states that over time the costs of processing for an organization goes down, as the organization continuously improves its operations and hence improves efficiency. The author cites the example of the colour-film processing industry where costs reduced dramatically by over 60% over a period of fourteen years. The author further states that since Olympic food will celebrate its 25th birthday, the company's long experience would enable them to minimize costs and maximize profits. The argument that the author provides is seriously flawed due to the reasons described below.
The primary analogy that the argument takes here is the comparison of the colour film processing industry to the food business of Olympic Foods. These are two different industries which operate under two different circumstances and hence should not be compared to one another. In this case the author casually links the premises. Also the author fails to realize that the reduction in costs is not attributed exclusively to the reduction of processing costs. The reduction in costs for an organization could be due to various other reasons such as decrease in labour costs, technological advances , lower raw material costs and also due to the fact that in 1984 the colour processing industry reached economies of scale while enabled the industry to produce at a substantially lower cost.
The author also assumes here that experience is only parameter that would lead to reduction in processing costs, but indeed other factors such as innovation, dedication by employees, lean manufacturing technologies etc. could all result in the reduction of costs for a company.
The author should provide some more information about Olympic foods so that the reader is able to fully comprehend why the analogy that the author provides will stand true. Also it is important to understand how Olympic foods would try to implement the systems to achieve a massive reduction in costs.
Finally I would like to state that the author incorporates a number of key assumptions and hence his argument is flawed and the conclusion invalid.
This is the first time i attempted a essay for the gmat, took a random question i found on this forum , timed about 24 min. would be grateful if you could please rate my essay .
Thanks .
"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 states that over time the costs of processing for an organization goes down, as the organization continuously improves its operations and hence improves efficiency. The author cites the example of the colour-film processing industry where costs reduced dramatically by over 60% over a period of fourteen years. The author further states that since Olympic food will celebrate its 25th birthday, the company's long experience would enable them to minimize costs and maximize profits. The argument that the author provides is seriously flawed due to the reasons described below.
The primary analogy that the argument takes here is the comparison of the colour film processing industry to the food business of Olympic Foods. These are two different industries which operate under two different circumstances and hence should not be compared to one another. In this case the author casually links the premises. Also the author fails to realize that the reduction in costs is not attributed exclusively to the reduction of processing costs. The reduction in costs for an organization could be due to various other reasons such as decrease in labour costs, technological advances , lower raw material costs and also due to the fact that in 1984 the colour processing industry reached economies of scale while enabled the industry to produce at a substantially lower cost.
The author also assumes here that experience is only parameter that would lead to reduction in processing costs, but indeed other factors such as innovation, dedication by employees, lean manufacturing technologies etc. could all result in the reduction of costs for a company.
The author should provide some more information about Olympic foods so that the reader is able to fully comprehend why the analogy that the author provides will stand true. Also it is important to understand how Olympic foods would try to implement the systems to achieve a massive reduction in costs.
Finally I would like to state that the author incorporates a number of key assumptions and hence his argument is flawed and the conclusion invalid.
