This is my first time ever trying my hands on AWA section. Please take some time in letting me know what are the thing I could possibly work on to improve here.
ArgumentThe 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 EssayThe passage establishes a relation between the success of the company in relation to a company's year of operations. The example of colour film processing that has been taken to establish this point also supports the argument well. But, one thing that passage misses on it that colour film processing has become obsolete in today’s day and age. Which is primarily due to the lack of innovation in the sector. Kotak, the biggest player of its time in the colour film industry has gone bankrupt.
While the fact that time teaches things and helps in improvement is true but if the decisions at the core are not right then they can lead to a decline in the overall firm, for example, India's 1Lakh rupee car Tata Nano has done more damage than profits to the tata motors group. The Food sector is a highly regulated sector as well and apart from the government interventions, there are other independent organizations that are encouraging people to eat healthy and fresh which directly affects the profits of the companies in this sector.
Instead of keeping time as the only scale for success or profits the company should also look into innovation with their products and should work to find ways to make frozen food healthier and market it that way. Keeping that kind of mindset with time will surely keep the boat sailing for longer.