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Gmatn00b007
Joined: 25 May 2021
Last visit: 20 May 2022
Posts: 8
Own Kudos:
Given Kudos: 45
Location: Australia
Schools: INSEAD MiM "23
GMAT 1: 600 Q34 V37
11 Oct 2021, 10:25
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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.
In my opinion, The reasoning that Olympic foods will minimize its costs and maximize its profits as it is their 25th birthday is flawed and poorly reasoned. While it might be true that the processing cost goes down over time because the manufacturers become more efficient and learn to do things in a better way or maybe even because of technological advancements I believe that the argument is based on an example from in a different time period and a different industry.
Firstly, I would like to start by saying that color film processing and food processing industry are 2 totally different and unrelated industries and the advancements and improvements in one industry do not correlate to the other. It is quite possible that there were massive tech advancements in the film processing industry and operating costs in the industry was at an all-time low whereas, in the food industry, a shortage of some product, or a drought or bad crop produce, or the food industry was already operating at minimal costs. It does not provide any sustainable evidence for the same.
Secondly, it could very well be the demand for film processing cameras has grown in the period between 1970-1984 which could’ve led to massive growth in the industry overall for the companies to bring out new and advanced cameras which helped in improving the efficiency of the entire industry. Whereas, none of this could be true in the current scenario for Olympic Foods.
Finally, it is mentioned that only minimizing the costs can improve the profits for Olympic Foods, which could or could not be true in a monopolistic or oligopolistic market situation. As they are involved in an industry where their products can easily be copied by competitors, to maximize their profits, they will need to not only minimize their costs but also be better than their competition.
In conclusion, I believe that what I stated earlier in the first paragraph stands true till we can answer the above reasoning. Even if we can answer them all, it cannot be a conclusive yes or no answer to whether Olympic Foods will be able to maximize their profits.
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.
In my opinion, The reasoning that Olympic foods will minimize its costs and maximize its profits as it is their 25th birthday is flawed and poorly reasoned. While it might be true that the processing cost goes down over time because the manufacturers become more efficient and learn to do things in a better way or maybe even because of technological advancements I believe that the argument is based on an example from in a different time period and a different industry.
Firstly, I would like to start by saying that color film processing and food processing industry are 2 totally different and unrelated industries and the advancements and improvements in one industry do not correlate to the other. It is quite possible that there were massive tech advancements in the film processing industry and operating costs in the industry was at an all-time low whereas, in the food industry, a shortage of some product, or a drought or bad crop produce, or the food industry was already operating at minimal costs. It does not provide any sustainable evidence for the same.
Secondly, it could very well be the demand for film processing cameras has grown in the period between 1970-1984 which could’ve led to massive growth in the industry overall for the companies to bring out new and advanced cameras which helped in improving the efficiency of the entire industry. Whereas, none of this could be true in the current scenario for Olympic Foods.
Finally, it is mentioned that only minimizing the costs can improve the profits for Olympic Foods, which could or could not be true in a monopolistic or oligopolistic market situation. As they are involved in an industry where their products can easily be copied by competitors, to maximize their profits, they will need to not only minimize their costs but also be better than their competition.
In conclusion, I believe that what I stated earlier in the first paragraph stands true till we can answer the above reasoning. Even if we can answer them all, it cannot be a conclusive yes or no answer to whether Olympic Foods will be able to maximize their profits.
11 Oct 2021, 10:34
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AWA Score: 5.5 out of 6!
I have used a GMATAWA auto-grader to evaluate your essay.
Coherence and connectivity: 5/5
This rating corresponds to the flow of ideas and expressions from one paragraph to another. The effective use of connectives and coherence of assertive language in arguing for/against the argument is analyzed. This is deemed as one of the most important parameters.
Paragraph structure and formation: 4.5/5
The structure and division of the attempt into appropriate paragraphs are evaluated. To score well on this parameter, it is important to organize the attempt into paragraphs. Preferable to follow the convention of leaving a line blank at the end of each paragraph, to make the software aware of the structure of the essay.
Vocabulary and word expression: 4.5/5
This parameter rates the submitted essay on the range of relevant vocabulary possessed by the candidate basis the word and expression usage. There are no extra- points for bombastic word usage. Simple is the best form of suave!
I have used a GMATAWA auto-grader to evaluate your essay.
Coherence and connectivity: 5/5
This rating corresponds to the flow of ideas and expressions from one paragraph to another. The effective use of connectives and coherence of assertive language in arguing for/against the argument is analyzed. This is deemed as one of the most important parameters.
Paragraph structure and formation: 4.5/5
The structure and division of the attempt into appropriate paragraphs are evaluated. To score well on this parameter, it is important to organize the attempt into paragraphs. Preferable to follow the convention of leaving a line blank at the end of each paragraph, to make the software aware of the structure of the essay.
Vocabulary and word expression: 4.5/5
This parameter rates the submitted essay on the range of relevant vocabulary possessed by the candidate basis the word and expression usage. There are no extra- points for bombastic word usage. Simple is the best form of suave!
Good Luck
Gmatn00b007
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