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Mr. Blatt: Expert consultants are sought after by management [#permalink]
16 Mar 2007, 06:03
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Mr. Blatt: Expert consultants are sought after by management because they help executives make better decisions. That is why they are worth the substantial fees they charge.
Ms. Fring: Nonsense. Expert consultants are hired in order to enable executives to avoid responsibility. The more the experts cost, the more they can be blamed when things go wrong.
Which one of the following, if it occurred, would be the strongest evidence favoring Ms. Fringâ€™s position over Mr. Blattâ€™s position?
(A) A company that is trying to decide whether to move its manufacturing plant hires an expensive expert to conduct a cost/benefit analysis.
(B) Two competing companies faced with very similar problems adopt different solutions.
(C) A successful firm of expert consultants seeks to increase its volume of business by reducing its fees, but its volume of business drops.
(D) An expert consultant builds up a successful business by charging clients a substantial percentage of the amount an independent assessor judges that the consultant saved the company.
(E) A company follows a consultantâ€™s advice to open two new stores, but both stores are only marginally profitable at first.
C seems to be the best answer considering the fact that they the more consultants cost, the more they can be blamed. But the converse is true to align with Ms. Fring's observation. The lower the cost, lower the blame which would mean that if the project failed the executives will be blamed more than the consultants, in which case the business of the consultants will go down because the executives think that the consultants are not worth their cost and they have done a shoddy job!!! That is what I took from the argument...
We are supposed to find the evidence that supports Mr.Flings argument that Consultants charge hefty money and the executives can blame them in case anything goes wrong.
In D, it is mentioned that the consultants charge hefty amount and build their own business and the independent accessors think they saved the company. This implies that the consultants just made their own pockets full.
In C, the successful consultant firm tries to increase volumes ..... why I am I concerned with the firm ?? Is'nt it out of scope ?