AA 1 The argument reaches the conclusion that Olympic Foods would be likely to see its costs minimized and profits maximized based upon one example in color film processing and the fact that Olympic foods will soon celebrate its anniversary. Nevertheless, the author of the argument makes several logical fallacies in the formation of his/her conclusion. The applicability of examples in color film processing to the food processing industry , for instance, is questionable because the two industries share nothing in common both in the nature of the industry and the operation processes. Moreover, the argument assumes that since the birthday of the corporation is coming soon, the costs of processing could go down automatically. The first logical fallacy presented is the assumption that since color film processing industry learned how to cut down its costs, so too can food processing industry. This provision cannot hold any water on the grounds that film processing and food processing are completely two different industries. If not arguing on the industry level, two firms could still differ a lot in its managers, corporate structure or regulations. It could be well the case that the manager in the color processing industry is a very forward-looking and prominent pioneer who is willing to take lead in learning the most up-to-date knowledge, while the counterparts in the Olympic Foods are conservative and reluctant to accept any changes. Consequently, whether the cost reduction technique is accepted and implemented in Olympic Foods is strongly challenged and it makes no sense to simply conclude that the example is universally applicable in all the industries. This argument also asserts that because of the advent of the twenty-fifth birthday of Olympic Foods, costs minimization and profits maximization can be accomplished automatically. Clearly, the two phenomena have no relation both in statistics and in real life. A twenty-fifth birthday could only certify that Olympic Foods has had a long history of experience, while costs minimization and profits maximization are primarily related with management control, operating processes and other determinants. Also, the long existence can just have the very negative effect on the operations of a corporation. For example, the WorldCom Corporation, which used to dominate the telecommunication industry worldwide, fell bankruptcy because of the revelation of its accounting scandal after a long history of good performance comparing to other corporations in the same industry. To sum up, although long history of experience might render some benefit to Olympic Foods, it cannot be taken as granted. It is the management vision and up to the managers and other important factors that ultimately control how well Olympic Foods will do in its costs minimization and profits maximization. Furthermore, the example from color film processing industry is not relevant to the issue at hand, since the two industries share nothing in common. To apply the example to Olympic Foods is nothing more than overimplication and overgeneralization. Therefore, the argument needs to consider far more elements that could pose effects on costs and profits before hastily drawing the conclusion. |