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31 Aug 2022, 01:30
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Difficulty:
45%
(medium)
Question Stats:
64% (01:38) correct
36%
(01:50)
wrong
based on 276
sessions
History
Date
Time
Result
Not Attempted Yet
Telex Mobile Phone Corporation had experienced three straight years of declining market share before its CEO decided to restructure the company. The customer service department was reorganized and given a larger budget and a new management team was brought in to increase the customer experience. After a year under the new structure, Telex’s market share has begun to increase, vindicating the CEO’s decision.
In order to evaluate whether the increase in market share was due to the CEO’s decision, it would be most useful to know which of the following:
A. What portion of the mobile phone market is now controlled by Telex Corporation?
B. Have Telex’s competitors restructured their companies as well?
C. Was the decision to bring in a new management team part of the CEO’s plan?
D. Do surveys of Telex’s former customers show that most of them were dissatisfied with the service they received?
E. Has Telex launched an advertising campaign promoting its new customer service department?
In order to evaluate whether the increase in market share was due to the CEO’s decision, it would be most useful to know which of the following:
A. What portion of the mobile phone market is now controlled by Telex Corporation?
B. Have Telex’s competitors restructured their companies as well?
C. Was the decision to bring in a new management team part of the CEO’s plan?
D. Do surveys of Telex’s former customers show that most of them were dissatisfied with the service they received?
E. Has Telex launched an advertising campaign promoting its new customer service department?
wadhwakaran
Joined: 31 Mar 2022
Last visit: 27 Jun 2025
Posts: 262
Given Kudos: 19
Location: India
Concentration: General Management, International Business
Schools: INSEAD Aug'24 intake Oxford Said'25 Judge '25 Imperial'25 HEC Sep'24 Intake LBS '26 ISB '27
GMAT 1: 700 Q50 V35
GPA: 2.8
Products:
Schools: INSEAD Aug'24 intake Oxford Said'25 Judge '25 Imperial'25 HEC Sep'24 Intake LBS '26 ISB '27
GMAT 1: 700 Q50 V35
Posts: 262
31 Aug 2022, 02:27
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Premise: TMPC's market share was declining for 3 straight years and CEO decided to restructure the company. Service department was reorganized and a new management team was brought in to increase the customer experience.
Conclusion: TMPC's share has begun to increase
What if the previous customer base was not satisfied with the services they were getting. Then the reorganization of company will make their experience better as the services were improved. Thus, it accounts for increase in customer share. The argument stands
What if the previous customer base was satisfied with the services they were getting. Then the reorganization will not make the customer experience better and it does not account for increase in customer base. The argument breaks
A. What portion of the mobile phone market is now controlled by Telex Corporation? Incorrect it does not affect the argument
B. Have Telex’s competitors restructured their companies as well? Incorrect it does not affect the argument
C. Was the decision to bring in a new management team part of the CEO’s plan? Incorrect as answer to this does not affect the argument
D. Do surveys of Telex’s former customers show that most of them were dissatisfied with the service they received? Correct
E. Has Telex launched an advertising campaign promoting its new customer service department? Incorrect
Conclusion: TMPC's share has begun to increase
What if the previous customer base was not satisfied with the services they were getting. Then the reorganization of company will make their experience better as the services were improved. Thus, it accounts for increase in customer share. The argument stands
What if the previous customer base was satisfied with the services they were getting. Then the reorganization will not make the customer experience better and it does not account for increase in customer base. The argument breaks
A. What portion of the mobile phone market is now controlled by Telex Corporation? Incorrect it does not affect the argument
B. Have Telex’s competitors restructured their companies as well? Incorrect it does not affect the argument
C. Was the decision to bring in a new management team part of the CEO’s plan? Incorrect as answer to this does not affect the argument
D. Do surveys of Telex’s former customers show that most of them were dissatisfied with the service they received? Correct
E. Has Telex launched an advertising campaign promoting its new customer service department? Incorrect
01 Sep 2022, 08:26
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A. What portion of the mobile phone market is now controlled by Telex Corporation?
not helpful to identify how CEO's decision leads to increase market share
B. Have Telex’s competitors restructured their companies as well?
irrelevant
C. Was the decision to bring in a new management team part of the CEO’s plan?
already know about it from argument
D. Do surveys of Telex’s former customers show that most of them were dissatisfied with the service they received?
how past customers experience helpful to identify the increase of market share
E. Has Telex launched an advertising campaign promoting its new customer service department?
yes, if this is true we can say market share increase is not for restructure customer service department. it is for advertisement
not helpful to identify how CEO's decision leads to increase market share
B. Have Telex’s competitors restructured their companies as well?
irrelevant
C. Was the decision to bring in a new management team part of the CEO’s plan?
already know about it from argument
D. Do surveys of Telex’s former customers show that most of them were dissatisfied with the service they received?
how past customers experience helpful to identify the increase of market share
E. Has Telex launched an advertising campaign promoting its new customer service department?
yes, if this is true we can say market share increase is not for restructure customer service department. it is for advertisement
