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 twenty-fifth birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits.”
The argument claims that due to Olympic Food’s long experience, it will be able to successfully minimize costs and maximize profit, the claim of the argument is based on the premise that as time passes an organization becomes better at doing things and thus becomes efficient. The assumptions on which the argument is dependent have no clear evidence and are flawed.
First, the argument readily assumes that if a phenomenon is true for certain organizations it would be applicable to all the organizations, irrespective of its industry and scale of operations. However, the argument fails to consider other possibilities such as: during COVID-19 different sectors have faced a downfall but the revenue of organizations selling sanitizers, masks, and other COVID essential items increased.
Second, the argument has come to a conclusion considering the false example of color film processing, which shows from 1970 to 1984, the processing cost of the film processing industry decreased but actually increased, alongside the argument falsely comparing two different industries which are similar to comparing apples to oranges i.e. two industries following different standards, attracting different population, and operating differently.
In conclusion, the argument remains unsubstantiated and open to debate. In order to strengthen it, the author must provide evidence stating that due to Olympic food’s long experience, its efficiency will increase and also similarities between color film processing and the food industry that can show the possibility of intersection of trends and strategies of growth.