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1、IncreasingefficiencyatOlympicFoodsCitingfactsdrawnfromthecolor-filmprcessingindustrythatindicateadownwardtrendinthecostsoffilmprocessingovera14-yearperiod,theauthorarguethatOlympicFoodwilllikewisebeabletominimizecostsandthusmaximizeprofitsinthefuture.Insupportofthisconcl
2、usiontheanthorcitesthegeneralprinciplethat”asorganizationslearnhowtodothingsbetter,theybecomemoreefficient”Theprinciple,coupledwiththefactthatOlympicFoodshashad25yearsofexperienceinthefoodprcessingindustryleadstotheauthor’srosyprediction.Thisargumentisunconvincingbecause
3、itsuffersfromtwocriticalflaws.First,theauthor’sforecastofminimalcostsandmaximumprofitsrestsonthegratuitousassumptionthatOlympicFoods’”longexperience”hastaughtithowtodothingsbetters.Thereis,however,noguaranteethatthisisthecase,nordoestheanthorciteanyevidencetosupportthisa
4、ssumptions.Justaslikely,OlympicFoodshaslearnednothingfromits25yearsinthefood-processingbusiness.Lackingthisassumption,theexpectationofincreasedefficiencyisentirelyunfounded,Second,itishighlydoubtfulthatthefactdrawnfromthecolor-filmprcessingindustyareapplicabletothefoodpr
5、ecessingindustry.Differencesbetweenthetwoindustriesclearlyoutweighthesimilarities,thusmakingtheanalogyhighlysuspect.Forexample,problemsofspoilage,contamination,andtimelytransportationallaffectthefoodindustrybutarevirtuallyabusentinthefilm-processingindustry.Problemssucha
6、sthesemightpresentinsurmountableobstaclesthatpreventloweingfood-precessingcostsinthefuture.Asitstandstheauthor’sargumentisnotcompelling.TostrengtherntheconclusionthatOlympicFoodwillenjoyminimalcostsandmaximumprofitsinthefuture,theauthorwouldhavetoprovideevidencethattheco
7、mpanyhaslearnedhowtodothingsbetterasaresultofits25yearsofexperience,Supportingexamplesdrawnfromindustiedmoresimilartothefood-processingindustrywouldfuthersubstantiatetheauthor’sview.CentralizationandprofitabilityInthisargumenttheautherconcludesthattheApogeeCompanyshouldc
8、losedownfieldofficesandconductallitsoperationsfromasingle,centralizedlocationbecausethecompanyhadbeenmo
