Soft Drinks Manufacturer: Despite attractive offers, our company has

Question

Soft Drinks Manufacturer: Despite attractive offers, our company has rejected any plans to expand our market into the Czech Republic at this time. We simply have no data on how well received our products would be in the Czech Republic.

Industry Analyst: Your position is inconsistent. Last year, you expended into Bolivia, even after taste tests had definitely found that approximately 40% of the Bolivian population did not care for any of your products. Therefore, concerns about how well received your product will be cannot be motivating this position.

The industry analyst's argument is flawed because it fails to consider that:

(A) the company's most popular soft drink in Bolivia might be different from the company's most popular soft drink in the Czech Republic.

(B) coffee is more popular than most soft drinks in both Bolivia and in the Czech Republic

(C) the Czech currency is much stronger than the Boliviano, the national currency of Bolivia.

(D) the results of taste tests in a particularly country can change over the years as different beverages are sold in that country.

(E) known risks can be assessed, but unknown risks cannot.

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Matthyrou · Answer

Hi, we're looking for flawing the industry's arg: Because they knew that a part of pop in bolivia don't care about they product thaugh, they still implement the selling of the product, it's stupid to not implement the product in R. czech, where a part of pop might not pay attention to the product (but no data)
a)It's a fact thaugh it's not weakening the arg
b)It's a second fact, but doesn't help
c)May have more purchasing power, so strenght the arg 
d) It srenghten the fact that it might be a good idea to implement in bolivia, so in a way, it might counter the arg, but the main point of the arg is not about this
e)for me it fails to consider the fact (like d, but in my opinion, more this), ans
Let me know what you think, because i'm not sure

rosyln · Answer

Company's position: It rejected entering the Czech market because there is no data about how the products would be received.
Industry analyst's counterargument: The company's decision is inconsistent because it entered the Bolivian market despite data showing that 40% of Bolivians didn't like their products.
The goal is to find the option that best  weakens the analyst's claim  that the company is inconsistent.
A. Doesn't address the flaw in the analyst's reasoning;
B. Irrelevant;
C. Irrelevant;
D. Too vague and indirect;
E.  Correct . This directly weakens the analyst's argument. The company expanded into Bolivia despite negative data (a known risk), but avoided the Czech Republic due to lack of data (an unknown risk). Known risks can be evaluated, but unknown risks make the decision inherently different. This explains why the company's actions are not inconsistent.

Bunuel · Answer

Magoosh Official Explanation:

In the case of Bolivia, the soft drinks manufacturer had some data, and therefore was making the moving into that country with a certain amount of data already in hand. By contrasts, in the case of the Czech Republic, they say they have "no data", and that's a very different set of circumstances. It's one thing to go into a situation knowing there are some opportunities and some challenges, but it's very different to go into a situation totally blind ---- that's certainly not how any business would want to take risks with sizeable portions of capital.

(E) is the credited answer , because it precisely captures this very issue. In Bolivia, we have data, so we know the risks. In the Czech Republic, they have no data, so the risks are unknown and therefore cannot be assessed. That explains the difference in the soft drink manufacturer's approach, and this is precisely what the industry analyst overlooks.

(A) is irrelevant: the soft drinks manufacturer has several products, so it does matter if the single most popular product in one place is the same as it is in the other.

(B) is irrelevant: coffee may be a bigger market in both countries, but this manufacturer wants to tap the soft drink market.

(C) is ambiguous: it suggests that initial costs of moving into the Czech market might be higher, because the currency there is stronger, but later on, any profits would be more substantial. Because it's ambiguous, this doesn't clearly support a choice either way.

(D) is irrelevant: tastes can change over time, but this company wants to know what will sell right now. They don't have any data about that in the Czech Republic.

Soft Drinks Manufacturer: Despite attractive offers, our company has

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Soft Drinks Manufacturer: Despite attractive offers, our company has

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