Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2601:30 AM EDT
-02:30 AM EDT
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
Apr 2912:30 AM EDT
-01:30 AM EDT
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
May 0111:00 AM PDT
-12:00 PM PDT
Free- full-length test + 15 concept videos + 150+ short videos + study plan!
May 0306:30 AM PDT
-08:30 AM PDT
Verbal trouble on GMAT? Fix it NOW! Join Sunita Singhvi for a focused webinar on actionable strategies to boost your Verbal score and take your performance to the next level.
11 Sep 2013, 10:46
Kudos
Bookmarks
This is my first essay. Would like to have your inputs.
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 howto 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 1970to 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 andthus maximize profits."
Discuss howwell reasoned you find this argument. In yourdiscussion be sure to analyze the line of reasoning and
the use of evidence inthe argument. For example, you may need to consider what questionable assumptions
underlie the thinking andwhat 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.
My analysis:
The argument that the company's 20 years of experience will help to minimize the costs and maximize the profits seems to omit some information which could have helped to substantiate the company's claim. The opening sentence of the argument which claims that the more experience gained in processing certain products, the lesser will be the cost is seriously flawed. Also the comparision of the color printing proces with the food processing is not clear. There is no logical explanation provided supporting the comparision. This doesnt constitute enough evidence to support this premise which inturn cannot strengthen the conclusion of the argument.
The argument doesnt provide any information regarding the industrial process involved which could have helped to evaluate the argument. This could easily be a human capital intensive industry as much as raw material. If the wages of the employees make up the majority of the costs, then the claim that the costs will go down with the experience gained will be weakened. Also if the company is operating in a market where the barriers to enter the market is much higher as compared to another industry, it will be easier for th existing operators to gain specific knowledge related to the industry without much competition. Also there is no hint at the kind of business environment the firm is operating right now in the argument. If the food processing industry is a lucrative segment with few to no barriers to entry, it would be to difficult for the company A to reap significant economic profits - Actual profits minus opportunity cost- while operating in a market with a lot of competition. Also its mentioned that with the experience gained, it will help in cutting down costs. What kind of advantage will be gained with experience as compared to a relatively new competitior. If the company A is assumed to hold significant number of patents in the food proccess, then it provide significant evidence which could strenghthen the authors conclusion. On the other hand, if from the experience gained the business helped the company to smoothen the other processes involved in the food proccessing, it can be emulated by the other companies which can inturn increase the competition and put downward pressure on the companies end products / services. All these statements prove that there are some gaps in the argument which, if filled, can further strenghten the companies claims.
With all the gaps in the premises based on which the conclusion is drawn makes the argument weak but with the help of additional information mentioned above, the argument can be evaluated and a sound conclusion can be drawn.
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 howto 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 1970to 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 andthus maximize profits."
Discuss howwell reasoned you find this argument. In yourdiscussion be sure to analyze the line of reasoning and
the use of evidence inthe argument. For example, you may need to consider what questionable assumptions
underlie the thinking andwhat 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.
My analysis:
The argument that the company's 20 years of experience will help to minimize the costs and maximize the profits seems to omit some information which could have helped to substantiate the company's claim. The opening sentence of the argument which claims that the more experience gained in processing certain products, the lesser will be the cost is seriously flawed. Also the comparision of the color printing proces with the food processing is not clear. There is no logical explanation provided supporting the comparision. This doesnt constitute enough evidence to support this premise which inturn cannot strengthen the conclusion of the argument.
The argument doesnt provide any information regarding the industrial process involved which could have helped to evaluate the argument. This could easily be a human capital intensive industry as much as raw material. If the wages of the employees make up the majority of the costs, then the claim that the costs will go down with the experience gained will be weakened. Also if the company is operating in a market where the barriers to enter the market is much higher as compared to another industry, it will be easier for th existing operators to gain specific knowledge related to the industry without much competition. Also there is no hint at the kind of business environment the firm is operating right now in the argument. If the food processing industry is a lucrative segment with few to no barriers to entry, it would be to difficult for the company A to reap significant economic profits - Actual profits minus opportunity cost- while operating in a market with a lot of competition. Also its mentioned that with the experience gained, it will help in cutting down costs. What kind of advantage will be gained with experience as compared to a relatively new competitior. If the company A is assumed to hold significant number of patents in the food proccess, then it provide significant evidence which could strenghthen the authors conclusion. On the other hand, if from the experience gained the business helped the company to smoothen the other processes involved in the food proccessing, it can be emulated by the other companies which can inturn increase the competition and put downward pressure on the companies end products / services. All these statements prove that there are some gaps in the argument which, if filled, can further strenghten the companies claims.
With all the gaps in the premises based on which the conclusion is drawn makes the argument weak but with the help of additional information mentioned above, the argument can be evaluated and a sound conclusion can be drawn.
13 Sep 2013, 15:47
Kudos
Bookmarks
This essay lays out many assumptions and does some analysis but the lack of organization and paragraph structure hurt the overall effect. I would give this essay a 2.5 or 3 as written.
your introduction does not need to list all of the points you are going to make in the article and doing so in this paragraph takes away from the point of the introduction, which is that the argument is logically unconvincing.
your body paragraph should be separated by ideas. ideally each paragraph should bring up one point and analyze it carefully.
your conclusion isn't quite on point as the argument can be evaluated whether or not it has the recommended items - it is just not logically cohesive.
your introduction does not need to list all of the points you are going to make in the article and doing so in this paragraph takes away from the point of the introduction, which is that the argument is logically unconvincing.
your body paragraph should be separated by ideas. ideally each paragraph should bring up one point and analyze it carefully.
your conclusion isn't quite on point as the argument can be evaluated whether or not it has the recommended items - it is just not logically cohesive.
Moderator:
