Firstly, the argument assumed that the color film industry is similar to food industry. One must not forget that an Olympic food is an industry for frozen foods or perishable products. These products require fast transportation and special equipments in order to keep fresh or the entire stock will get junked. These requirements can claim substantial costs and it is very likely that they can never be cut. One the other hand, color film is a consumer product which stays much longer and is not perishable. Therefore, it is possible that the cost-cutting approach is not applicable to the food industry。
Secondly, the author failed to address other factors that are important to a companys success. It is well known that in the long run maximization of profits occurs due to low cost of production. But its not the only factor they consider. Other factors such as demand for the product, selling price, and overall competition in the market should also be taken into consideration. Today, buyers become the king in the market. If other companies products are available at lower price with same quality or at similar price with higher quality, then people dont buy the Olympics product. Therefore, if most consumers choose other companies products, then the objects of higher profits and lower cost cant be attained。
Finally, the speaker did not include any information on Olympic management approach. Rather, it just mentioned the long experience of 25 years in food industry. While there is rough correlation between long experience and ability to maximize profit, it is not always the case. If the Olympic fails to accumulate valuable management experience, such as time-consuming strategic alliance, learning from failure, etc, then Olympic long experience will not enable it to minimize costs and thus maximize profits
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