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21 Dec 2016, 03:53
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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 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.”
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 weaken the conclusion. You can also discuss what sort of evidence would strengthen 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.
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The given argument claims that the costs of processing go down as organizations learn to be efficient overtime. Thus Olympic Foods, which will complete its silver jubilee very soon, will be able to minimize costs and maximize profits. Stated this way, the given argument manipulates the facts and presents a distorted picture of the actual scenario. The argument fails to evaluate many significant aspects crucial for the overall evaluation of the argument. The conclusion, relying heavily on assumptions, is weak and hence the argument is weak and unconvincing.
For the beginning, the author must consider several other factors which determine the cost incurred and hence profits of an organization. It is true that as a company matures it gains experience, but so does the economy. There are several factors, such as inflation, labor costs, tax, export duty etc., that affect the cost incurred to a company and that vary over time. Consideration of such factors is crucial for the evaluation of the argument.
Moreover, the author argues that with prowess gained over several years in a particular field gives a company the efficiency. It is completely acceptable that with time comes experience. And with experience comes efficiency .But efficiency for a particular field doesn't necessarily guarantee economic advantage itself. One may gain efficiency to produce more units of a product in the same bucket of time. But that does not mean that the cost of a unit produced hence, would go down. The author should state any direct correlation between efficiency and economical perspective, if any.
Finally, the author substantiates the argument with example from the color film processing industry. But in doing so, the author forgets that there may be statistics to support his argument in some industry, may not be applicable to every industry .There is neither statistical nor direct correlation between the color film processing and the food industry for costs incurred and the profits hence accumulated. Thus the argument relies on assumptions heavily.
Thus, in the conclusion the argument is weak because of the stated reasons. The argument can be strengthened by analyzing carefully all the important aspects of the scenario. Without the information the argument is unsubstantiated and is open for a 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 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.”
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 weaken the conclusion. You can also discuss what sort of evidence would strengthen 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.
================================================================================
The given argument claims that the costs of processing go down as organizations learn to be efficient overtime. Thus Olympic Foods, which will complete its silver jubilee very soon, will be able to minimize costs and maximize profits. Stated this way, the given argument manipulates the facts and presents a distorted picture of the actual scenario. The argument fails to evaluate many significant aspects crucial for the overall evaluation of the argument. The conclusion, relying heavily on assumptions, is weak and hence the argument is weak and unconvincing.
For the beginning, the author must consider several other factors which determine the cost incurred and hence profits of an organization. It is true that as a company matures it gains experience, but so does the economy. There are several factors, such as inflation, labor costs, tax, export duty etc., that affect the cost incurred to a company and that vary over time. Consideration of such factors is crucial for the evaluation of the argument.
Moreover, the author argues that with prowess gained over several years in a particular field gives a company the efficiency. It is completely acceptable that with time comes experience. And with experience comes efficiency .But efficiency for a particular field doesn't necessarily guarantee economic advantage itself. One may gain efficiency to produce more units of a product in the same bucket of time. But that does not mean that the cost of a unit produced hence, would go down. The author should state any direct correlation between efficiency and economical perspective, if any.
Finally, the author substantiates the argument with example from the color film processing industry. But in doing so, the author forgets that there may be statistics to support his argument in some industry, may not be applicable to every industry .There is neither statistical nor direct correlation between the color film processing and the food industry for costs incurred and the profits hence accumulated. Thus the argument relies on assumptions heavily.
Thus, in the conclusion the argument is weak because of the stated reasons. The argument can be strengthened by analyzing carefully all the important aspects of the scenario. Without the information the argument is unsubstantiated and is open for a debate.
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