Over time, the costs of processing go down because as organizations le

Hello, I did my first Analytical writing assessment exercise and I would appreciate if anyone can review it and let me know what he/she thinks.

“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 fi ve‐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 argument presented in the paragraph of the annual report is built on the learning adaptability principle, where performance increases with time as you learn. The argument is comparing the food processing industry with the color film processing industry. Although different industries, but the concept is the same, that after doing the same thing for long time, you learn how to enhance the performance, and to cut costs without putting your quality at risk.

While this is true, the argument fails to acknowledge three very important points. The first point is that, to be able to enhance the performance and to reduce costs, this requires investment in people in trainings and research. The second point is that, there is a missing technological advancement that supports industries in minimizing costs and maximizing profits. Technological advancements supports industries in finding better techniques, machines and processes to do the same job in lesser time, cost and effort. The third point is that companies learn to do things better with time, which means that after 25 years, Olympics Foods should have already minimized costs and maximized profits.

These points weren’t addressed by the argument. Instead the argument focused on experience and years of service as the main reason that the company will be able to minimize costs and maximize profits. The argument neglected the fact that in the color file processing industries, several technological advancement helped companies like Kodak for example to enhance their cost structure. It also neglected the fact that this kind of technological advancement needs funding for research and investment in their own people.

The argument would have sound better if it was structured on more concrete action steps to reach better efficiency instead of relying on experience only. A sound argument would be like this, “Overtime the costs of processing go down not only because as organizations learn how to do things better, they become more efficient, but also because organizations invest in research and technology to reach this kind of efficiency. In color film processing, the cost and time of service for film processing dropped due to technological advancements from research that enabled them to become more efficient. Our long experience has enabled us to minimize costs and maximize profits, but in order to sustain this achievement, we will need to invest more in research and technology”.