- UID
- 791738
- 在线时间
- 小时
- 注册时间
- 2012-8-8
- 最后登录
- 1970-1-1
- 主题
- 帖子
- 性别
- 保密
|
题目 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.
The argument that Olympic Foods will enable to minimize cost by long operation experience and thus maximum the profits, pretermits some supportive reference that must be addressed to substantiate the argument. The statement fellows with the instance that color film processing minimize its cost from 50 cents for five-day service to 20 cents for one-day service. It does not constitute a logical argument in favor of the organization efficiency, and it certainly does not provide supportive proof of the main argument.
First, author cites a gratuitous instance of declining in color film processing indicates that Olympic Foods will minimize the cost as well, as the differences between the two processing industry is significantly outweigh the similarities, thus making the analogy highly less than valid. The main expenditure of food material, transportation and soring would take into consideration of the total cost of the food industry instead of worker salaries and equipment cost in the color film industry. These relevant problems might present insurmountable obstacles that prevent Olympic Foods lowering food-processing cost in the future.
Second, author's forecast of minimize cost and maximum profits rests on gratuitous assumption that Olympic Foods would operate efficiently due to its long experience. There is no guarantee that this is the case. Nor does author cites any evidence to support this assumption. Just as likely, Olympic Foods have learned nothing from its 25-year business. Even Olympic Foods know how to do things efficiently, there is also no guarantee that the efficient operations still play an important role in controlling the cost in the future, as the commercial strategy would transform and formal experience means nothing at all. For example, management knowledge is extremely varied from a restaurant model, such as a French restaurant, to a fast-food model, such as KFC or McDonald’s. Lacking these assumptions, the expectation of increased efficiency is entirely unfounded.
Finally, lowering cost does not contribute to a profits increase, as profits are composed of revenue which mines cost. If the amount of revenue decreasing is more than the amount which gains from the cost, the profits would also decline. Author state the conclusion that Olympic Foods minimize the cost and thus maximum the profits are essentially rootless. Because the argument leaves out several key issues, it is not sound or persuasive. If it demonstrates some examples with similar industry background and a specific financial details about the Olympic Foods the, the arguments would have been more thorough and convincing.` |
|