Dear
Sajjad1994 and Experts
Please rate my AWA and guidance for further improvement.
Prompt:“
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 passage states that the cost of production of a product goes down for an organization over a period of its existence as they learn to be more efficient, it also shares a limited one example about colour film processing has earned profit over a decade, with which it concludes as same principle apply to processing of food. This all information refers to upcoming 25th birthday of Olympic foods, by concluding its long experience has brought down its product processing cost and by selling its product at good same price will generate max profits.
but same passage fails to mention several key factors and limit itself to raise criticism and several questions to the argument, such as,
- can colour film processing be compared to food processing?
- does knowledge of a organization manpower play vital role?
- any competitor competition product factor?
- any geographic advantage or disadvantage and its selling network contribution?
- same product quality over a long duration existence has same impact on its customer? And lastly most important
- does quantity is the only way for organization for its profit generation?
It seems the argument is based on assumption, more quantity product at low cost will generate more profit, for which there is no clear evidence.
First, the argument readily assumes that "Olympic foods will generate more profit because of its experience". This statement is a stretch as number of factors not been considered as mentioned above, specifically just on Olympic food 25 years of experience, and not considering other factors as - has its product acceptance in market, its quality manpower skills, and its advertising quality and range to reach customer. For example, well know Nokia Mobile manufacturing organization failed just because not update itself with current condition, same flaw corrected by Samsung mobile manufacturing organization and today is one of the successful players in its segment. Clearly, this ignorance in passage, can lead to conflict for criticism. The argument could have been much clearer if it explicitly highlights Olympic food good past performance, its product acceptance in market, and competition over benefit rather than showing similarity with colour film processing. A ideal example would be coco cola kind of manufacture, which has good network, but same old unchanged product and is still certain level profitable.
Second, the argument claims that "once processing cost of product is reduced, then at same selling price, will generate more profit". This is again a very weak and unsupported claim as, it fails to consider the initial cost of involved, marketing expense done, its selling network profit, if any additional transportation cost and lastly the ingredient cost required to process its final product.
the argument does not demonstrate any correlation between the past expense involved, current required investment and future marketing to attract more customer. however simple words before to introduce Olympic foods as "one of the famous" or "most reputed: or "highest selling" etc would have let to build good reputation about Olympic foods.
In conclusion, the argument is flawed for the above-mentioned reasons and is therefore unconvincing that Olympic food will gain profit on its 25th birthday. However, with lot of scope of improvement indeed there is success can be gained provided other factors are considered well in advance and taken care. Such as marketing strategic, special discount to attract, special introduction of new product, launch by a celebrity etc. If the argument had provided evidence about other factors which will improve conclusion as good manpower, quality product acceptance, successful network available and less competition war, would have been really easy to conclude the passage, then the argument would have been a lot more convincing. In order to assess the merits of a certain factors, it is essential to have full knowledge of all contributing factors. In this particular case without this information, the argument remains unsubstantiated and open to debate.