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# Following several years of declining advertising sales, the

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Manager
Joined: 31 Dec 2016
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06 Aug 2017, 12:26
I definitely understand that: A)We know there was an increase just because other divisions did better doesn’t preclude the fact that advertising did better also. However, if I am an executive at the company I would first want to know how ADV has done compared to other divisions. For instance, if total revenue went up a lot more in other divisions maybe the adv was just brought up by better economic conditions.
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Concentration: Operations, Marketing
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07 Aug 2017, 08:15
Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most helpful to find out which of the following EXCEPT?

1) Two years ago, what proportion of the Greenville Time's total revenue was generated by advertising sales

2) Has the circulation of the Greenville Times increased substantially in the last two years

3) Has there been a substantial turnover in personnel in the advertising sales force over the last 2 years

4) Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?

5) Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?

All other options except A somehow help to evaluate the veracity of the argument

Let us analyse option A
No we dot need proportion of the advertising sales to Total revenue because even if the revenue by advertising sales increase we can be certain that the increase was because of reorganisation.

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Re: Following several years of declining advertising sales, the   [#permalink] 07 Aug 2017, 08:15

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