Hello All,
I have just started my preparation for GMAT and for the same i have written an easy on the following argument . It will be of great help if you could provide me your feedbac on the same based on GMAT's assement criteria. Please point out the positives and the mistakes on the essay.
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.
Essay
The argument states that Olymipic food will be able to minimize costs and thus maximise profits soon . The conclusion is based on the premises that as an organisation learns from it’s experience, they become more efficient . The following argument is flawed for numerous reasons.
Firstly, the argument’s conclusion is based on the assumption that as film processing company was able to reduces cost from 50 cents to 20 cents, a food processing company like Olympic food will also be able to replicate the same reduction in cost of processing. However, the requirements of raw materials for a food processing company are very different from the requirements of a film processing company. Had the argument provided information on the raw materials which are common in processing of food and films and had projected the decline in the prices of the same , it would have made it a more logical comparison.
The arguments also states in it’s conclusion that based on Olympic food’s long experience it will enable them to minimise the costs and maximise the profits. However, the information provided here is very vague and incomplete as it doesn’t quantify the number of years of experience of the employees of the company.
The argument also leaves many unanswered questions . As in the argument it is mentioned that the cost of processing a color film went down from 50 cents in 1970 to 20 cents in 1984 but it doesn’t shed any light the plausible reasons for the same as it could be due to the advancement in technology or the increase in the ease of doing work in those years. In order to strengthen the argument , the author should emphasize all the plausible reasons by which the cost of processing can be reduced.
In conclusion , because the argument makes several unwarranted assumptions , it fails to make a convincing case that with having experience of doing a certain job , it can reduce the the cost and maimize the profits.