BUS casestudy

he following appeared as part of an annual report sent to stockholders by Olympic Foods, a
processor of frozen foods:

“Over time, the costs of processing go down because as organizations learn how to do things
better, they become more efficient. In color film processing, for example, the cost of a 3-by-5-
inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in 1984.
The same principle applies to the processing of food. And since Olympic Foods will soon
celebrate its 25th birthday, we can expect that our long experience will enable us to minimize
costs and thus maximize profits.”

Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line
of reasoning and the use of evidence in the argument. For example, you may need to consider
what questionable assumptions underlie the thinking and what alternative explanations or
counterexamples might weaken the conclusion. You can also discuss what sort of evidence
would strengthen or refute the argument, what changes in the argument would make it more
logically sound, and what, if anything, would help you better evaluate its conclusion.

You can also discuss what sort of evidence would strengthen or refute the argument, what
changes in the argument would make it more logically sound, and what, if anything, would help
you better evaluate its conclusion.

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