The statement presented in the annual reports has a conclusion drawn on baseless assumptions. It has been assumed that “costs of processing goes down because as organizations learn how to do things better, they become more efficient” which is not even close to the truth. The costs of processing do not automatically go down by itself which the author has carelessly assumed here. The costs have to be managed and kept under control, apart from this; there is no evidence what so ever that if a company is old enough then it must have its costs under control which itself is a bold assumption. Companies have cost control departments, cost control mangers and much more to keep everything profitable; one does not simply wait to let the costs go down automatically. There are many instances where the costs of processing has gone up over the period of time, take the automobile industry for example, their cost of processing did not go down over the years, in fact it increased due to rising steel prices and labor charges.
To support the absurd argument, the food processing sector is compared with the color film making sector, the two sectors massively differ from each other. In fact, they rarely possess anything similar to each other. Film making and food has nothing in common, the both sectors have different raw materials, workforce requiring totally separate types of skill and entirely different kind of target market. Entirely different kinds of methods apply to food processing industry as opposed to color film making. In order to make a fair comparison, some industry similar to food industry or even better, a company which is already present in the food industry ought to be compared with Olympic Foods rather than color film making. If a company in the similar field of business is used in comparison to support the given statement then it would carry a lot more weightage. Since there is no knowledge or evidence of such similar company or industry this given statement carry no more value than a personal opinion.
In a nutshell, in order to prove that Olympic Foods costs of processing will go down in the near future there need to be proper facts and figures to support the statement such as historical data of the company’s previous financial record or a detailed analysis of the cost projected for the future. Furthermore, a similar business sector should be compared to strengthen the argument rather than an unrelated random business sector.
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