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# Companies often re-organize in order to adapt to changes in

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Senior Manager
Affiliations: Volunteer Operation Smile India, Creative Head of College IEEE branch (2009-10), Chief Editor College Magazine (2009), Finance Head College Magazine (2008)
Joined: 25 Jul 2010
Posts: 373
Location: India
WE2: Entrepreneur (E-commerce - The Laptop Skin Vault)
Concentration: Marketing, Entrepreneurship
GMAT 1: 710 Q49 V38
WE: Marketing (Other)

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09 Oct 2010, 11:35
5
9
00:00

Difficulty:

85% (hard)

Question Stats:

41% (01:40) correct 59% (01:46) wrong based on 716 sessions

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Companies often re-organize in order to adapt to changes in the world around them but the market place changes much faster than organizations can re-organize. If you choose a simple organization you can then spend your effort on teaching the people in the organization to be flexible and adapt to changes in the market place.

Which of the following conclusions can be most properly inferred from the premises above.

1. Companies should invest in staff training to increase their adaptability.
2. Companies should invest in research to keep abreast of changes in the market place.
3. Companies should choose a simple organizational structure and keep it that way.
4. Companies should continuously re-organize to keep up with changes in the market place.
5. Companies should choose a matrix structure which can be re-organized more rapidly than other organizational structures.

OE:

Investing in staff is implied by the second premise and so is very tempting to select but remember a conclusion has to tie all the premises together and this answer does does not relate to the first premise at all. This means it should be eliminated.

Investing in research may be advantageous for the company but it does not follow from either of the premises and can be eliminated.

Stick to on organizational structure. This fits with both premises the first says that companies cannot reorganize fast enough and the second which says effort that would have been spent re-organizing can be reinvested in more effective strategies. This looks like a good candidate.

This contradicts the first premise and so should be eliminated as a possible conclusion.

Again we have to assume that the premises are true and since the first premise says that companies cannot re-organize at a fast enough rate, this answer should be eliminated.

OA:
Senior Manager
Status: Time to step up the tempo
Joined: 24 Jun 2010
Posts: 365
Location: Milky way
Schools: ISB, Tepper - CMU, Chicago Booth, LSB

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09 Oct 2010, 12:50
1
Option C for me.

Reason:
1. Companies should invest in staff training to increase their adaptability.
Possible candidate.
2. Companies should invest in research to keep abreast of changes in the market place.
Out of scope.
3. Companies should choose a simple organizational structure and keep it that way.
Possible candidate.
4. Companies should continuously re-organize to keep up with changes in the market place.
Not a good option. This option is proposing a new conclusion.
5. Companies should choose a matrix structure which can be re-organized more rapidly than other organizational structures.
Not a good option. Again this option is proposing a new conclusion.

Between A and C, option A will only work out if the organizational structure is simple. Option C can be inferred from the above stimulus and hence it wins.

P.S -- Do not post the OA and the OE upfront. Post your questions and then let few discussions and points be brought to the table and then the OA and/or OE can be shared. Just my thoughts.
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Manager
Status: Keep fighting!
Joined: 31 Jul 2010
Posts: 196
WE 1: 2+ years - Programming
WE 2: 3+ years - Product developement,
WE 3: 2+ years - Program management

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22 Oct 2010, 16:24
went with A. stuck btw A and C. tricky question.
Manager
Joined: 26 Aug 2010
Posts: 58
Location: India

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24 Oct 2010, 20:01
Thanks for nice question and also for providing explanation along with it. It helps! +1
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Manager
Status: Can't give up
Joined: 20 Dec 2009
Posts: 240

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10 Nov 2010, 10:45
straight C.....keep it simple.
Manager
Joined: 08 Oct 2010
Posts: 201
Location: Uzbekistan
Schools: Johnson, Fuqua, Simon, Mendoza
WE 3: 10

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26 Jan 2011, 23:09
I agree with C.

But I have got few remarks: first of all, in the first premise it is left undefined what does mean the word "Companies" and should assume that that this word should be comprehended as companies with complex structure. On the other hand, what should one assume under the words "simple organization", again it is undefined whether it is a small company or it can include any kind of company.

This is why the ans choice C can be called into question.
Intern
Joined: 14 Dec 2010
Posts: 44

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05 Apr 2011, 08:17
I too agree with feruzz77, and that is the reason I eleminated C
Senior Manager
Status: Happy to join ROSS!
Joined: 29 Sep 2010
Posts: 264
Concentration: General Management, Strategy
Schools: Ross '14 (M)

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10 Apr 2011, 04:13
C
I took some time to decide between A and C. A is tempting but incorrect because it does not address the first part of the stimulus.
VP
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1041

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13 Jun 2011, 21:42
Its a C here tracking the simple keyword in the argument mentioned.
Manager
Joined: 12 Oct 2011
Posts: 199
Re: Companies often re-organize in order to adapt to changes in  [#permalink]

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26 Dec 2011, 01:23
C it is.

'A' is indeed a tough contender, but as others have already pointed out, A does not address the first premise and hence, C is a winner. C addresses both the premises and stays within the scope of the argument.
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Manager
Joined: 07 Aug 2011
Posts: 99
Location: United States
GMAT 1: 690 Q48 V37
Re: Companies often re-organize in order to adapt to changes in  [#permalink]

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26 Dec 2011, 10:40
ohh a good one .. had to read many time to figure out what it means
Manager
Joined: 24 Oct 2013
Posts: 145
Schools: LBS '18
GMAT 1: 720 Q49 V38
WE: Design (Transportation)

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12 Aug 2014, 21:46
'If you choose a simple organization you can then spend your effort on teaching the people in the organization to be flexible and adapt to changes in the market place.' It never says the organization has to be kept simple. Once they're trained they'e flexible, and the organization no longer has to be simple. The premise just says that you can spend effort IF you choose a simple organization!

And a hearty request to all those who flooded the page one of this question, it'd be really helpful if you posted the reasoning as well.
Intern
Joined: 17 Jul 2013
Posts: 13
GMAT 1: 710 Q49 V38
Re: Companies often re-organize in order to adapt to changes in  [#permalink]

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15 Aug 2014, 14:00
i think i will sound a bit foolish but anyway i will write what i felt

option A has "their" in the end which means its talking about a the employees' adaptability whereas C has an 'it' which obviously refers to the organization.

thank you
Intern
Joined: 05 Nov 2016
Posts: 28
Location: India
Concentration: Operations
GMAT 1: 610 Q48 V26
GMAT 2: 660 Q49 V31
GPA: 3.9
WE: Engineering (Consulting)
Re: Companies often re-organize in order to adapt to changes in  [#permalink]

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15 Nov 2017, 19:56
kidchaos wrote:
Companies often re-organize in order to adapt to changes in the world around them but the market place changes much faster than organizations can re-organize. If you choose a simple organization you can then spend your effort on teaching the people in the organization to be flexible and adapt to changes in the market place.

Which of the following conclusions can be most properly inferred from the premises above.

1. Companies should invest in staff training to increase their adaptability.
2. Companies should invest in research to keep abreast of changes in the market place.
3. Companies should choose a simple organizational structure and keep it that way.
4. Companies should continuously re-organize to keep up with changes in the market place.
5. Companies should choose a matrix structure which can be re-organized more rapidly than other organizational structures.

OE:

Investing in staff is implied by the second premise and so is very tempting to select but remember a conclusion has to tie all the premises together and this answer does does not relate to the first premise at all. This means it should be eliminated.

Investing in research may be advantageous for the company but it does not follow from either of the premises and can be eliminated.

Stick to on organizational structure. This fits with both premises the first says that companies cannot reorganize fast enough and the second which says effort that would have been spent re-organizing can be reinvested in more effective strategies. This looks like a good candidate.

This contradicts the first premise and so should be eliminated as a possible conclusion.

Again we have to assume that the premises are true and since the first premise says that companies cannot re-organize at a fast enough rate, this answer should be eliminated.

OA:

Can some experts share their views on "choose a simple organization" Vs "choose a simple organizational structure"? I don't think they mean the same.
Re: Companies often re-organize in order to adapt to changes in &nbs [#permalink] 15 Nov 2017, 19:56
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