Analysis of Argument # 1: Olympia Foods

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 twenty-fifth birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits.”
Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what 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.



Answer
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The author argues, using facts from the color-film processing industry's downward trend in cost over 24 years, that Olympic Foods will be able to cut costs and thus maximize profits in the future. The author bases his conclusion on the generalization that organizations learn to reduce costs over time and, since Olympic Foods has 25 years experience in the food processing industry, its costs should have declined considerably. There are two serious flaws in the argument.

First, the argument uses a faulty analogy between the color-film processing industry and the food processing industry. Analogies drawn between the two fields are highly suspect because there are many serious differences. While the film processing industry faces a relatively simply processing challenge, food producers must contend with contamination, transportation and farm production (much more serious challenges). Thus, it is likely much more difficult to wring efficiency improvements in the food industry.

Second, the author uses a sweeping generalization. the author's prediction of margin improvements relies on the optimistic assumption that Olympic Foods' 25 years of experience will automatically result in operational efficiencies. The problem with this is that improvements in processes do not occur automatically over time, they require tremendous effort at continuous improvement and they require potential room for improvement. It is possible Olympic Food has limited room for improvement or lacks the managerial will to improve its operations. Thus, there is no guarantee of improved operational efficiency over time.

The author's argument has two seriously flawed assumptions. The author could strengthen his or her conclusion by providing examples of how the company has learned how to improve its operations over 25 years and implemented those changes.

A Sulky Start for my MBA dreams

its been 2 months since the mantra of GMAT started ringing. In the initial roar of enthusiasm i just fixed the day of my G day. The hope or excuse that... "i have still time" slowly dropped. Now is the time to deliver. Today is 28th Sept exactly 2 months to the G day. Last 2 months where more or less dry, slow and confused. The pressure on spending less money and the practicality of things

So i decided to list out the points today

CAT is also around the corner
XAT IIFT etc are in the queue

Which one should i target. When i fixed the date for GMAT,, i thought that i will be at the high level of confidence if i aim for CAT and then for GMAT
but now after two months
i finally able to point out what is the difference

CAT/XAT/IIFT an exam of resillience
GMAT is an exam of best practices

Let me try to put the pros and cons in line

CAT pros
- Lot of BSchools
- Less fees-3-6 lakhs
- guarenteed placements in India

CAT cons
- 3 lakh students competing for very limited seats
- Paper known to be tough in its nature
- Quota could in place which might decrease chances of normal guy
- Fees is expected to go high
- Chances to get in IIM Practicality for an average student is still very less
- The placement history of IIMs abroad is 10-20%(a restriction made out of
the best students in INDIA)
- Freshers get a better chance because of they are in more touch with concepts
- Less Salary except for the IIMs
- Even i know an IIM guy who earns 8 lakhs /annum in Tech Mahindra

GMAT pros
= Scores around 650+ is enough to get into a good B-School abroad which is
achievable probability far higher than CAT
= Better Exposure
= Better placement opportunities
= Better Salary
= Feel feasible factor
- a citizenship in a better country like Canada or Australia or even US/France
GMAT cons
= extremely high fees (i think as long as loans are available it might not be an issue)
= its a switch of mindset(yes i need to leave my country)
= risk involved is higher in the long run (the market conditions and return of investment not predictable beyond 3 years)
= Essays need attention(need to see the best ones in application)
= need an onsite offer before doing MBA(hopefully i might get soon + i can float that in the Indian share market or real estate for long term )


So What can i do finally
its only one choice prepare for GMAT and study the concepts from CAT books
CATS shall be tackled on the way
it doesnt matter if we cant bell the CAT ,,just make sure that
i am on the right path

I will be posting more regularly about my preparation from now onwards till the Gday
Lets see how it goes
luv you guys