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The fact that superior service can generate a competitive [#permalink]
26 Nov 2003, 15:01
The fact that superior service can generate a competitive advantage for a company does not mean that every attempt at improving service will create such an advantage. Investment in service, like those in production and distribution, must be balanced against other types of investments on the basis of direct, tangible benefits such as cost reduction and increased revenues. ....
Qus: According to the passage, investments in service are comparable to investments in production and distribution in terms of the
A) tangibility of the benefits that they tend to confer. B) increased revenues that they ultimately produce C) basis on which they need to be weighed. D) insufficient analysis that managers devote to them E) degree of competitive advantage that they are likely to provide.
The examples in the second part of the sentence "tangible benefits such as cost reduction and increased revenues." clearly indicate that the "cost reduction" and the "increased revenues" are applicable to both kinds of investment.
I will go for C. passage says: ..balanced against other types of investments on the basis of direct, tangible benefits ..." defines the bases on which benefits should be measured.. C confers
Hi dj,All, I am facing hard time in justifying C as answer. Can you please state your reasons for conferring C as answer? What is wrong with A and B? I will appreciate any explanations from RC gmatclub gurus towards this RC. _________________
If you know what you're worth, then go out and get what you're worth. But you gotta be willing to take the hits, and not pointing fingers saying you ain't where you wanna be because of anybody! Cowards do that and You're better than that! The path is long, but self-surrender makes it short; the way is difficult, but perfect trust makes it easy. Fire the final bullet only when you are constantly hitting the Bull's eye, till then KEEP PRACTICING. Failure establishes only this, that our determination to succeed was not strong enough. Getting defeated is just a temporary notion, giving it up is what makes it permanent.