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AashishGautam
Joined: 21 Apr 2018
Last visit: 09 Mar 2023
Posts: 41
Own Kudos:
Given Kudos: 14
Location: India
Schools: ISB '24 (A)
GMAT 1: 710 Q50 V36
GPA: 3.3
21 May 2021, 23:56
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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
Essay
The argument claims that the costs of processing go down over time since organizations learn how to do things better. A example of the color film processing industry is cited, saying that the cost of a 3 by 5 inch print fell from 50 cents in 1970 to 20 cents in 1984. The argument concludes that the above claim applies to the food processing industry and that since Olympic foods will soon celebrate its 25th birthday, it expects to lower its costs and maximize profits. Stated in this way the argument manipulates facts and conveys a distorted view of the situation. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is weak, unconvincing, and has several flaws.
First, the readily assumes that the color film processing industry is similar to the food processing way in every which way. This certainly includes the parameter of cost optimization and of maximizing profits. However, the statement is a stretch given the stark difference in the raw materials, production facilities ,and staff requirement for both the industries. For example the raw material handling department of the food processing industry is in itself a challenge, given the shelf life of the food being processed. On the other hand there is no significant challenge and hence cost involved in the handling of the raw materials in the color film processing industry. Clearly, the argument takes a leap of faith citing the above. The argument could have been much clearer if it explicitly stated that parameters involved in the cost optimization/profit maximization of the color film processing industry are similar to those in the food processing industry.
Second, the argument claims that the cost of a 3 by 5 inch color print fell from 50 cents for a five day job in 1970 to 20 cents for a day's job in 1984. This is a weak claim since if the costs are compared on a daily basis keeping all the factors alike, the cost would be 10 cents per print per day in 1970 and 20 cents per print per day in 1984. Hence, we can clearly see an increase in the costs associated with manufacturing the product on a day to day basis. In fact it is not clear whether all the other factors involved in the calculation of costs were equal or not. If the argument had provided evidence that the all other parameters in the calculation of costs and profits are same then the argument would have been a lot more convincing.
Finally, the argument fails to detail on the current cost versus earning status of Olympic foods and how it has fared over the years. Without the necessary data to substantiate on the situation of' Olympic foods', on what are the parameters involved in cost optimization in the color processing industry, or on how the food processing industry is similar to the color film processing industry, one is left with the impression that the claim is more of a wishful thinking than substantive evidence.
In conclusion the argument is flawed for the above mentioned reasons and is therefore unconvincing. It could be considerably strengthened if the author clearly mentioned the relevant facts such as the cost calculation in a color film processing industry and the how this calculation is similar in to that of the food processing industry. In order to assess the merit of a certain situation, it is necessary to have the full knowledge of all the contributing factors. Without this information the argument remains unsubstantiated and open to debate.
"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
Essay
The argument claims that the costs of processing go down over time since organizations learn how to do things better. A example of the color film processing industry is cited, saying that the cost of a 3 by 5 inch print fell from 50 cents in 1970 to 20 cents in 1984. The argument concludes that the above claim applies to the food processing industry and that since Olympic foods will soon celebrate its 25th birthday, it expects to lower its costs and maximize profits. Stated in this way the argument manipulates facts and conveys a distorted view of the situation. The conclusion of the argument relies on assumptions for which there is no clear evidence. Hence, the argument is weak, unconvincing, and has several flaws.
First, the readily assumes that the color film processing industry is similar to the food processing way in every which way. This certainly includes the parameter of cost optimization and of maximizing profits. However, the statement is a stretch given the stark difference in the raw materials, production facilities ,and staff requirement for both the industries. For example the raw material handling department of the food processing industry is in itself a challenge, given the shelf life of the food being processed. On the other hand there is no significant challenge and hence cost involved in the handling of the raw materials in the color film processing industry. Clearly, the argument takes a leap of faith citing the above. The argument could have been much clearer if it explicitly stated that parameters involved in the cost optimization/profit maximization of the color film processing industry are similar to those in the food processing industry.
Second, the argument claims that the cost of a 3 by 5 inch color print fell from 50 cents for a five day job in 1970 to 20 cents for a day's job in 1984. This is a weak claim since if the costs are compared on a daily basis keeping all the factors alike, the cost would be 10 cents per print per day in 1970 and 20 cents per print per day in 1984. Hence, we can clearly see an increase in the costs associated with manufacturing the product on a day to day basis. In fact it is not clear whether all the other factors involved in the calculation of costs were equal or not. If the argument had provided evidence that the all other parameters in the calculation of costs and profits are same then the argument would have been a lot more convincing.
Finally, the argument fails to detail on the current cost versus earning status of Olympic foods and how it has fared over the years. Without the necessary data to substantiate on the situation of' Olympic foods', on what are the parameters involved in cost optimization in the color processing industry, or on how the food processing industry is similar to the color film processing industry, one is left with the impression that the claim is more of a wishful thinking than substantive evidence.
In conclusion the argument is flawed for the above mentioned reasons and is therefore unconvincing. It could be considerably strengthened if the author clearly mentioned the relevant facts such as the cost calculation in a color film processing industry and the how this calculation is similar in to that of the food processing industry. In order to assess the merit of a certain situation, it is necessary to have the full knowledge of all the contributing factors. Without this information the argument remains unsubstantiated and open to debate.
22 May 2021, 13:17
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AWA Score: 4.5-5 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 idea and expression from one paragraph to another. The effective use of connectives and coherence of assertive language in arguing for/against the argument is analysed. 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 is 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: 3.5/5
This parameter rates the submitted essay on the range of relevant vocaubulary 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 idea and expression from one paragraph to another. The effective use of connectives and coherence of assertive language in arguing for/against the argument is analysed. 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 is 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: 3.5/5
This parameter rates the submitted essay on the range of relevant vocaubulary 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
AashishGautam
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