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citing a year-long downward trend in global sales of

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Manager
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citing a year-long downward trend in global sales of [#permalink] New post 07 Jan 2004, 06:17
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citing a year-long downward trend in global sales of personal computers, the ceo of farmer computer has announced that his company will shift much of its emphasis from pc production to corporate networking systems. personal computers are now much more able to adapt to new networking software, but the software itself must be updated frequently.

which of the following, if true, casts the most serious doubt onto this new strategy?

1. the farmer brand name is well respected in the computer industry, but few industry analysts believe that farmer will have the same success with networking.
2. sales of farmer pcs have increased dramatically over each of the past six quarters, and they show no signs of slowing down.
3. a slew new competitors in the pc production business wil inevitably result in widespread cost cutting to preserve market share.
4. sales of cellular phones and other mobile communications are expanding at three times the rate of networking companies.
5. two other companies have approached farmer with the prospect of a three-way merger to form a dominant company that would own market share in the pc business.
Senior Manager
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 [#permalink] New post 07 Jan 2004, 06:27
2

But I wonder if the question is this easy ... or am I just missing a point!

Can bring it down to 1 and 2 in the first run.
1 - says the analysts believe something ... who cares?
3 - cost cutting is not good.
4,5 - out of scope[/quote]
Director
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 [#permalink] New post 07 Jan 2004, 07:25
think it is 2.

ceo talks of the downward trend, but the statement says that sales are increasing and there is no sign of stopping.. opposite to ceo's statement.
Manager
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 [#permalink] New post 08 Jan 2004, 06:04
pitts20042006 wrote:
2
But I wonder if the question is this easy ... or am I just missing a point!
Can bring it down to 1 and 2 in the first run.
1 - says the analysts believe something ... who cares?
3 - cost cutting is not good.
4,5 - out of scope
[/quote]
you are absolutely right. i just had doubt why e can not be an answer.. if they form software giant, why farmer should swith to other field?
  [#permalink] 08 Jan 2004, 06:04
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