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11 Apr 2016, 13:54
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I just started practising for the AWA section of the GMAT. Could anyone provide feedback on ways I could improve. Any help would be greatly appreciated, this is my first shot at the AWAs.
AWA Argument
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.”
Discuss how well reasoned . . . etc.
The author concludes that, since Olympic foods will be celebrating it 25th birthday, costs will be minimized and profits maximized due to the fact that costs had been reduced in the color film industry from its effectiveness obtained from experience in the industry. However the author fails to provide evidence to support this claim.
The author assumes that costs were reduced in the color film industry as a result of improved efficiency but provides no evidence for this claim. If for example the cost reductions were as a result of budgetary cuts in the color film industry, the claim that increased effectives gained over time would be entirely irrelevant to the reduced costs seen.
In addition, the author also assumes that the color film industry is very similar to the food industry without providing any example for this claim. Without providing any past trend from Olympic foods showing reduced costs from a longer time in the industry, it is highly unlikely that on their 25th birthday we might see a reduction in costs and increased profit. In fact, Olympic foods may not be similar to color film as out rightly stated
The author may strengthen his argument by providing a clearer correlation between the two industries. The author may provide examples showing costs from previous years with Olympic foods before forecasting what will happen on its 25th birthday. More evidence explaining why the cuts happened in the color film industry will help determine if these costs were as a result of improved efficiency. In its current state, the argument relies heavily on unsupported assumptions to be convincing.
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintains better supervision of all employees.”
The business department of the Apogee Company concludes that company profit will be increased if the company had one central location. This is as a result of decline in profit as of today from having multiple field offices and increased employee number. However, this conclusion relies on assumptions that we do have any evidence for.
The department assumes that the current profit state of the company is as a result of increased costs and increased supervision from having multiple offices. The number of offices that Apogee has may be entirely irrelevant to the profit seen today. In fact, if for example, the economic down times has reduced number of projects each company received, this may cause the reduced profit seen for various companies. If this is the case, having one central location with the economic situation would still cause a decline in company profit.
In addition, the department also fails to provide more information showing similar companies having decreased profit from having multiple offices. If similar companies have shown an increase in profit after opening several offices, having a centralized location will only cause more decline in profit within apogee. The proposed solution will then defeat its purpose.
The business department may strengthen their argument by providing more evidence to support this claim. More evidence should be provided showing that other factors may not have caused the decreased profit and the number of offices will be relevant to profit change. The business department may also make a stronger case by showing the financial trends from similar companies in the same situation. This may prove that Apogee will experience the same outcome. In its current state, the argument relies heavily on unsupported assumptions to be convincing.
AWA Argument
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.”
Discuss how well reasoned . . . etc.
The author concludes that, since Olympic foods will be celebrating it 25th birthday, costs will be minimized and profits maximized due to the fact that costs had been reduced in the color film industry from its effectiveness obtained from experience in the industry. However the author fails to provide evidence to support this claim.
The author assumes that costs were reduced in the color film industry as a result of improved efficiency but provides no evidence for this claim. If for example the cost reductions were as a result of budgetary cuts in the color film industry, the claim that increased effectives gained over time would be entirely irrelevant to the reduced costs seen.
In addition, the author also assumes that the color film industry is very similar to the food industry without providing any example for this claim. Without providing any past trend from Olympic foods showing reduced costs from a longer time in the industry, it is highly unlikely that on their 25th birthday we might see a reduction in costs and increased profit. In fact, Olympic foods may not be similar to color film as out rightly stated
The author may strengthen his argument by providing a clearer correlation between the two industries. The author may provide examples showing costs from previous years with Olympic foods before forecasting what will happen on its 25th birthday. More evidence explaining why the cuts happened in the color film industry will help determine if these costs were as a result of improved efficiency. In its current state, the argument relies heavily on unsupported assumptions to be convincing.
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintains better supervision of all employees.”
The business department of the Apogee Company concludes that company profit will be increased if the company had one central location. This is as a result of decline in profit as of today from having multiple field offices and increased employee number. However, this conclusion relies on assumptions that we do have any evidence for.
The department assumes that the current profit state of the company is as a result of increased costs and increased supervision from having multiple offices. The number of offices that Apogee has may be entirely irrelevant to the profit seen today. In fact, if for example, the economic down times has reduced number of projects each company received, this may cause the reduced profit seen for various companies. If this is the case, having one central location with the economic situation would still cause a decline in company profit.
In addition, the department also fails to provide more information showing similar companies having decreased profit from having multiple offices. If similar companies have shown an increase in profit after opening several offices, having a centralized location will only cause more decline in profit within apogee. The proposed solution will then defeat its purpose.
The business department may strengthen their argument by providing more evidence to support this claim. More evidence should be provided showing that other factors may not have caused the decreased profit and the number of offices will be relevant to profit change. The business department may also make a stronger case by showing the financial trends from similar companies in the same situation. This may prove that Apogee will experience the same outcome. In its current state, the argument relies heavily on unsupported assumptions to be convincing.
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