The author assumes that since organizations engaged in color-film processing were able to increase efficiency and cut-down costs over a period of 25 years; same must be true of Olympic Foods, which is about to celebrate its 25th anniversary. The arguments is based on questionable assumptions and weak analogies and appears to be a result of a hasty generalization.
The main problem with the authors reasoning is the weak analogy he develops between the two processing industries. One fails to see any logical connection between the two and the author makes no effort to show the connection either. The two industries are too dissimilar to be compared. For example: frozen food industry faces problem of storage, transportation, contamination etc; no similar problems are observed in the film-processing industry. Even the markets for the two differ widely. The argument could have been strong if the author could show the missing connection or if he had compared the frozen-food industry with a similar industry.
Also the author fails to recognize that its not the number of years of experience that matters; what actually matters is what is learnt over all those years.
An industry may mature over a couple of years, yet another may remain stagnant even after 25 years. The color-film industry people may have tremendous learnings that may have contributed to the cost-reduction; but the report shows no evidence of Olympic Foods doing the same.
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