Citing facts drawn from the color-film processing industry that indicate a downward trend
in the costs of film processing over a 24-year period, the author argues that Olympic Foods
will likewise be able to minimize costs and thus maximize profits in the future. In support of
this conclusion the author cites the general principle that “as organizations learn how to do
things better, they become more efficient.” This principle, coupled with the fact that Olympic
Foods has had 25 years of experience in the food processing industry leads to the author’s
rosy prediction. This argument is unconvincing because it suffers from two critical flaws.
First, the author’s forecast of minimal costs and maximum profits rests on the gratuitous
assumption that Olympic Foods’ “long experience” has taught it how to do things better.
There is, however, no guarantee that this is the case. Nor does the author cite any evidence
to support this assumption. Just as likely, Olympic Foods has learned nothing from its 25 years
in the food-processing business. Lacking this assumption, the expectation of increased efficiency
is entirely unfounded.
Second, it is highly doubtful that the facts drawn from the color-film processing industry are
applicable to the food processing industry. Differences between the two industries clearly
outweigh the similarities, thus making the analogy highly less than valid. For example, problems
of spoilage,contamination, and timely transportation all affect the food industry but are
virtually absent in the film-processing industry. Problems such as these might present
insurmountable obstacles that prevent lowering food-processing costs in the future.
As it stands the author’s argument is not compelling. To strengthen the conclusion that Olympic
Foods will enjoy minimal costs and maximum profits in the future, the author would have to provide
evidence that the company has learned how to do things better as a result of its 25 years of
experience. Supporting examples drawn from industries more similar to the food-processing
industry would further substantiate the author’s view.