Topic:-
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 oneday
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."
This argument is substantially flawed. It has failed to convey any compelling reason that how olympic foods will minimize their costs and thus maxmize profits.The vague comparision was done between two different industries.
It is mentioned that cost of print fell down in 14 years, but there is no evidences are given to justify this statement. In 1970's it was may be the first time print was introduced, people who wants it's usage were less, cost of material and machinery was high which further recovered from high cost of print to obtain profit. 14 years is not a short time span, there were many development seen in education and the Indutries, so the demand of print has substantially increased and it clearly followed demand and supply mechanism, where demand was increased, so the cost was reduced to obtain more profit.
It is mentioned in the last lines that olympic food want to minimize cost and thus maximize profits. There is no data given for the company growth, analysis of products, customer satisfaction, what kind of products or if they going to launch some new product in market. How can someone minimize the cost with only few customers and how will it can be profitable with few purchases. How much will be the difference in cost price and selling price they will give is also not clear.
This argument is neither sound nor pursuaive.it's vague comparision between two different industries without any evidences.
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 oneday
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."
This argument is substantially flawed. It has failed to convey any compelling reason that how olympic foods will minimize their costs and thus maxmize profits.The vague comparision was done between two different industries.
It is mentioned that cost of print fell down in 14 years, but there is no evidences are given to justify this statement. In 1970's it was may be the first time print was introduced, people who wants it's usage were less, cost of material and machinery was high which further recovered from high cost of print to obtain profit. 14 years is not a short time span, there were many development seen in education and the Indutries, so the demand of print has substantially increased and it clearly followed demand and supply mechanism, where demand was increased, so the cost was reduced to obtain more profit.
It is mentioned in the last lines that olympic food want to minimize cost and thus maximize profits. There is no data given for the company growth, analysis of products, customer satisfaction, what kind of products or if they going to launch some new product in market. How can someone minimize the cost with only few customers and how will it can be profitable with few purchases. How much will be the difference in cost price and selling price they will give is also not clear.
This argument is neither sound nor pursuaive.it's vague comparision between two different industries without any evidences.
