Minimizing Costs
Merely based on a dubious assumption and a problematic evidence,the author concludes that Olympic Foods 25 year experience will ensure its success in minimizing costs and maximizing profits.To substantiate the conclusion,the author cites a popular saying that the enterprises become more efficient as time goes by.In addition,the author provides a example in color film processing which cost declined and become more efficient.At first glance,the argument seems to be plausible.However,as discussed below,close scrutiny of the argument reveals that it accomplishes little toward supporting the conclusion.
To begin with,the conclusion relies on a unconvincing assumption that experience made the enterprises more efficient and the costs of processing cheaper.The author cites example in color film processing to support it. However,the author does not provide evidence to illustrate it.It is possibly that the declined costs are attributed to the technologies.For instance,developments in computers promote mechanize manufacture,thus increasing the efficiency.However,even though the efficiency increased,the expenses on technology may be outweigh the profits ,then the authors conclusion is doubtful. It is also possibly that the manufacturers employ more employee to satisfy the demand of market,that is to say that the growth in efficiency results from the growth in the labour.Without consideration and ruling out these factors,the author concludes that experience will enable the companies success is premature.
Secondly,even if firms become more efficient as time goes by,It does not provide a guarantee that the food company is bound to success since the success was found in the color film company.the author commits a fallacy of false analogy.Food company is not analogy to color film company,since differences between them outweigh the similarities.Unlike color film company,food company must takes into account the issue of refresh and the