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Metropolis-area dry cleaners have had a steady increase in business

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New post 26 Dec 2017, 18:02
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A
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Metropolis-area dry cleaners have had a steady increase in business over the past year, and in order to take advantage of this trend and expand its market share, Neuman’s Dry Cleaning is planning to expand its facilities to enable it to handle a higher volume of garments. Neuman’s will maintain the same prices and weekly specials that it has employed for the past several years.

The potential success of Neuman’s plan to increase its market share is most called into question by which of the following, if true?

A. Neuman’s share of the local dry cleaning market has declined over the past year, but its dry cleaning facilities are always at maximum capacity.
B. The average turnaround time to get a garment dry cleaned at Neuman’s is slightly longer now than it was a year ago.
C. Most customers are not aware that Mr. Neuman sold his dry cleaning company to a franchise five years ago and no longer runs the facility himself.
D. Neuman’s is one of the two most popular dry cleaners in Metropolis.
E. Despite a recent increase in advertising, Neuman’s has been slightly less busy over the past six months than it was previously.

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New post Updated on: 26 Dec 2017, 20:42
DPANJA wrote:
Looks B

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I answered b but it is incorrect


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Originally posted by gmatFalcon on 26 Dec 2017, 20:39.
Last edited by gmatFalcon on 26 Dec 2017, 20:42, edited 1 time in total.
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New post 26 Dec 2017, 20:45
Sandeep AVK wrote:
Is nt it E?

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Yes it is E


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New post 26 Dec 2017, 21:00
Is it A
As shows that recent increase in business last year has not effected Neumans Dry Cleaning

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New post 26 Dec 2017, 21:05
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gmatFalcon wrote:
I don't get it

The initial statement tells us that market Situation for dry cleaners has been going up in the past year. Statement E gives us the Information that despite an increase in advertising Neuman was less busy. Combine that with the market uptrend and you can infer that the Business isn't going relatively well for this company.

Thus we can conclude that an expension of Neumann's facilities doesn't solve any problems and will most likely not lead to an increased market share.

Hope that helps :)
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New post 26 Dec 2017, 21:06
vishwajeet2015 wrote:
Is it A
As shows that recent increase in business last year has not effected Neumans Dry Cleaning

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A strengthen the argument
Facilities are always at high capacity


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New post 26 Dec 2017, 21:06
It cannot be A because, this is infact supporting it by stating that the facilities are at its maximum capacity

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New post 27 Dec 2017, 00:08
why answer is not B? it gives another reason that despite facility expansion, neuman would not be able to capture market share
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New post 17 Dec 2018, 09:46
broall, carcass. Please explain why option A is incorrect and option E is correct?
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New post 17 Dec 2018, 11:36
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Yeah, good question - note that the main fact we have that suggests that this is a good idea is about the industry/market as a whole, but not about Neuman's specifically:

Metropolis-area dry cleaners have had a steady increase in business over the past year,

So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).

With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.

With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.

So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.
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New post 17 Dec 2018, 19:11
VeritasPrepBrian wrote:
Yeah, good question - note that the main fact we have that suggests that this is a good idea is about the industry/market as a whole, but not about Neuman's specifically:

Metropolis-area dry cleaners have had a steady increase in business over the past year,

So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).

With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.

With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.

So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.
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New post 18 Dec 2018, 14:31
gmatFalcon wrote:
Metropolis-area dry cleaners have had a steady increase in business over the past year, and in order to take advantage of this trend and expand its market share, Neuman’s Dry Cleaning is planning to expand its facilities to enable it to handle a higher volume of garments. Neuman’s will maintain the same prices and weekly specials that it has employed for the past several years.

The potential success of Neuman’s plan to increase its market share is most called into question by which of the following, if true?

A. Neuman’s share of the local dry cleaning market has declined over the past year, but its dry cleaning facilities are always at maximum capacity.
B. The average turnaround time to get a garment dry cleaned at Neuman’s is slightly longer now than it was a year ago.
C. Most customers are not aware that Mr. Neuman sold his dry cleaning company to a franchise five years ago and no longer runs the facility himself.
D. Neuman’s is one of the two most popular dry cleaners in Metropolis.
E. Despite a recent increase in advertising, Neuman’s has been slightly less busy over the past six months than it was previously.


I answered A and my thought process is as follows (if someone could explain where I made a logical mistake please let me know):

In 2017, market share was at 100%.
In 2018, market share declined to 10%.

If in 2017 they can handle 50% of orders (hence being bottle necked), now in 2019 if they expand they can handle 100% of the orders, but because their market share declined to only 10%, there is no need to expand. Please let me know why this is wrong.
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New post 24 Dec 2018, 04:42
VeritasPrepBrian wrote:
Yeah, good question - note that the main fact we have that suggests that this is a good idea is about the industry/market as a whole, but not about Neuman's specifically:

Metropolis-area dry cleaners have had a steady increase in business over the past year,

So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).

With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.

With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.



So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.


I disagree with your explanation . This is not really a GMAT like question. In, E , key words are 'slightly less busy than previously' which means it may have been busy in the first 6 months of the year which in turn means that N's business was also going well. What is only says is that advertising has not made much of a difference. A looks the best option to me. Since facilities are at full capacity, further expansion will not make any difference and hence this weakens!
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New post 24 Dec 2018, 06:27
KS15 wrote:
VeritasPrepBrian wrote:
Yeah, good question - note that the main fact we have that suggests that this is a good idea is about the industry/market as a whole, but not about Neuman's specifically:

Metropolis-area dry cleaners have had a steady increase in business over the past year,

So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).

With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.

With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.



So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.


I disagree with your explanation . This is not really a GMAT like question. In, E , key words are 'slightly less busy than previously' which means it may have been busy in the first 6 months of the year which in turn means that N's business was also going well. What is only says is that advertising has not made much of a difference. A looks the best option to me. Since facilities are at full capacity, further expansion will not make any difference and hence this weakens!



Option A: states that Neuman is running full capacity at present and he is also not seeing much business; Therefore, if suppose Neuman increase its current capacity than it might be able to accomodate more clothes and hence increase its business. But there also, chances that after increase in capacity also the customers dont turn up to Neuman for service, than the plan will not work.
Therefore A gives an answer whose result is not clear as per the text in Option A.

Option E: it states that Neuman is seeing a fall in its market from last 6 months, BUT passage states IN general LAUNDY market is seeing a increase in Market, so there could be a case that the current market trend is not applicable to NEUMAN, and hence exactly same is stated in Option E: That Neuman saw a fall in last 6 months and therefore, even if it increase its current capacity it wont increase it business.

ALWYZ TRY TO GET THE QUESTION correct, irrespective of time.....TRUST ME .....your accuracy will improve,leading to answering in less time
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New post 24 Dec 2018, 10:33
Yash312 wrote:
KS15 wrote:
VeritasPrepBrian wrote:
Yeah, good question - note that the main fact we have that suggests that this is a good idea is about the industry/market as a whole, but not about Neuman's specifically:

Metropolis-area dry cleaners have had a steady increase in business over the past year,

So the real gap in the argument is whether Neuman's is a part of this steady increase or not (for example you could say that "sales of mobile devices has surged since 2006" but if it's mostly iPhones and Samsungs, then it doesn't mean that Nokia is doing better today than it was back then).

With (A), note that it specifically calls out that even though Neuman's market share (percentage of all the city's business) is down, its stores are always busy. This mean that there's sufficient demand for what it's doing. This is likely evidence that the plan will work (if you're maxed out on capacity today, then adding capacity tomorrow seems like a good idea), but at the very least it doesn't weaken the argument.

With (E), there's evidence that Neuman's is not part of this surge: business is booming everywhere but Neuman's is less busy than it used to be, showing that it's not a beneficiary of the surge. If it's not maxing out its current capacity, there's no reason to believe that adding more capacity - without any other changes, as the last sentence shows that it will not make - will lead to an increase in business.



So basically the difference: (A) shows that Neuman's is part of the trend or at least as busy as it can handle right now. (E) shows that it's not part of the trend, and therefore can't expect that more capacity will help it capitalize on that trend.


I disagree with your explanation . This is not really a GMAT like question. In, E , key words are 'slightly less busy than previously' which means it may have been busy in the first 6 months of the year which in turn means that N's business was also going well. What is only says is that advertising has not made much of a difference. A looks the best option to me. Since facilities are at full capacity, further expansion will not make any difference and hence this weakens!



Option A: states that Neuman is running full capacity at present and he is also not seeing much business; Therefore, if suppose Neuman increase its current capacity than it might be able to accomodate more clothes and hence increase its business. But there also, chances that after increase in capacity also the customers dont turn up to Neuman for service, than the plan will not work.
Therefore A gives an answer whose result is not clear as per the text in Option A.

Option E: it states that Neuman is seeing a fall in its market from last 6 months, BUT passage states IN general LAUNDY market is seeing a increase in Market, so there could be a case that the current market trend is not applicable to NEUMAN, and hence exactly same is stated in Option E: That Neuman saw a fall in last 6 months and therefore, even if it increase its current capacity it wont increase it business.

ALWYZ TRY TO GET THE QUESTION correct, irrespective of time.....TRUST ME .....your accuracy will improve,leading to answering in less time
thanks for the comment


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Re: Metropolis-area dry cleaners have had a steady increase in business   [#permalink] 24 Dec 2018, 10:33
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