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Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
25 Sep 2016, 02:27
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Please someone help to rate my awa! thanks!
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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 25th birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits.” Discuss how well reasoned . . . etc.
My essay:
The author concludes that a long-term experienced company can minimise the cost and thus maximize the profit. His conclusion is supported by evidence of a color film company that low down its service price in fourteen years from 50cents for five days service to 20cents for one-day-service. However, his conclusion relies much on unclear evidence and unrelated industry.
Firstly, he assumes that over the time an organisation will know how to do things better. This assumption is no double as people keep doing same or similar things for long time, they will get used of it. Most manual jobs will be increased its efficiency. It means that labour unit cost will low down. However, other unit cost such as material or energy those cost is controlled by market. Thus, long-term experience does just little on other cost elements. For example, a 90 years old Maesrk shipping company had to make decision of splitting energy business because Maestro’s oil took major part in 90% lower profit in 2016. So a reason that a long-time experience company can reduce processing cost is not always convinced.
Finally, the author strengthens his conclusion with a case of color film. In fact, Characteristics of processing cost elements in a color film manufacturing and in a Frozen food processing are quite different. First, raw material of frozen food manufacturing is often fresh food which may be seasoning crops such as vegetables or fruit. The fresh food is more easily getting damaged and lost than the raw material of a color film producing is. Secondly, seasoning crop raw food needs a more warehousing cost. And those things are not related much to operator skills which would improve during time. In other words, the case of a color film production needs to be more precise in order to support the conclusion. For example, whether their operating skills improve, or whether they have been applied successfully LEAN management in their production to reduce processing cost.
In conclusion, at first it seems to make sense that over the time the processing cost goes down as organisation learn how to do things better. In fact, this statement need more detail to support it. First, the author needs to figure out which elements in processing cost will be improve obviously or by company's innovation over time. Secondly, company show how they could control these costs from increasing. If an example is in need, then the author should analyse in which way the similar case can applied to his company. For those reasons, the argument is unconvinced to me.
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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 25th birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits.” Discuss how well reasoned . . . etc.
My essay:
The author concludes that a long-term experienced company can minimise the cost and thus maximize the profit. His conclusion is supported by evidence of a color film company that low down its service price in fourteen years from 50cents for five days service to 20cents for one-day-service. However, his conclusion relies much on unclear evidence and unrelated industry.
Firstly, he assumes that over the time an organisation will know how to do things better. This assumption is no double as people keep doing same or similar things for long time, they will get used of it. Most manual jobs will be increased its efficiency. It means that labour unit cost will low down. However, other unit cost such as material or energy those cost is controlled by market. Thus, long-term experience does just little on other cost elements. For example, a 90 years old Maesrk shipping company had to make decision of splitting energy business because Maestro’s oil took major part in 90% lower profit in 2016. So a reason that a long-time experience company can reduce processing cost is not always convinced.
Finally, the author strengthens his conclusion with a case of color film. In fact, Characteristics of processing cost elements in a color film manufacturing and in a Frozen food processing are quite different. First, raw material of frozen food manufacturing is often fresh food which may be seasoning crops such as vegetables or fruit. The fresh food is more easily getting damaged and lost than the raw material of a color film producing is. Secondly, seasoning crop raw food needs a more warehousing cost. And those things are not related much to operator skills which would improve during time. In other words, the case of a color film production needs to be more precise in order to support the conclusion. For example, whether their operating skills improve, or whether they have been applied successfully LEAN management in their production to reduce processing cost.
In conclusion, at first it seems to make sense that over the time the processing cost goes down as organisation learn how to do things better. In fact, this statement need more detail to support it. First, the author needs to figure out which elements in processing cost will be improve obviously or by company's innovation over time. Secondly, company show how they could control these costs from increasing. If an example is in need, then the author should analyse in which way the similar case can applied to his company. For those reasons, the argument is unconvinced to me.
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