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Olympic foods

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Olympic foods  [#permalink]

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New post 07 Mar 2018, 18:34
"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 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. 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 you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might you can also discuss what sort of evidence would encourage or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion

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Re: Olympic foods  [#permalink]

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New post 07 Mar 2018, 18:35
" A product is defined by mainly 2 things, its price and its usage, both being equally important as a customer will not buy a product until its use is necessary and it is economically viable. However, an organization is continuous work to optimize their cost by efficiently utilizing their resources and increase its product quality by taking regular customer feedback. Most people think that an older organization is able to reduce its cost to substantial amount and is more competitive to a newer organization which is not totally true since the older organizations has To control develop its products as per customer need, they have to regularly upgrade their technology with the newest available and as we all that capex cost contributes to 60% of the product cost.Thanks though older organization have an edge over how to improve the quality of products there nothing much they can do when it comes to cost competitiveness. Also as mentioned in the example the cost of color film processing reduce drastically over the years but then there lies an Assumption that no newer technology was available to people which would have cut short the demand of color processing demands. This is quite similar to our mobile phones, as soon you buy the latest featured phone, one month down the line a newer version of the same Thus the investment done on present technology might not harvest benefits if the whole technology is replaced by some newer technology. Also as an organization grew older and there is not much change done in its management, there is a lack of innovative ideas within the organization which lead to a stubborn kind of attitude thus phasing out the organization from the competition. In today's world where a customer is a king, organizations have to be dynamic in their operation and should cater to wide range of product portfolio so that as and when demand for some product is varied, a small change in the product can cater to the change. Their lies a minor difference between the operating capability of the successful organization and unsuccessful ones and this can be Harnessed by carefully monitoring the market scenario.



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Re: Olympic foods &nbs [#permalink] 07 Mar 2018, 18:35
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Olympic foods

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