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Corporate Strategist:

Expert replies
by gmatnmein2010 » Sat Feb 20, 2010 3:30 am
Corporate Strategist: It is generally true that a reduction in the price of a good results in an increase in the demand for this product, leading to higher sales. However, I believe that the management’s strategy of stimulating the sales of our luxury cars by implementing a series of aggressive price reductions is seriously flawed. Dramatic price reductions on our luxury cars will erode the image of exclusivity and premium quality associated with these vehicles. If our cars become substantially cheaper, they will no longer represent the symbol of status and financial success, thus losing their main appeal to our customers.

Which of the following statements best describes the role of each portion in boldface in the argument above?


1)The first represents the main position of the corporate strategist; the second acknowledges a consideration that weighs against that position.


2)The first is an assumption made by the corporate strategist about the efficacy of the management’s strategy; the second is evidence that supports the strategist’s reasoning.


3)The first is evidence supporting the main position of the corporate strategist; the second is that position.


4)The first is evidence supporting the position of the corporate strategist; the second is a generalization that will not hold in the case at issue.


5)The first is the main position of the corporate strategist; the second is evidence in support of that position.
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Source: — Critical Reasoning |

by fibbonnaci » Sat Feb 20, 2010 3:34 am
where are the bold face arguments?
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by paddle_sweep » Thu Apr 29, 2010 1:25 am
Bold statements pls
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by akhpad » Tue Jun 29, 2010 9:21 am
Source: MGMAT CAT

Corporate Strategist: It is generally true that a reduction in the price of a good results in an increase in the demand for this product, leading to higher sales. However, I believe that the management’s strategy of stimulating the sales of our luxury cars by implementing a series of aggressive price reductions is seriously flawed. Dramatic price reductions on our luxury cars will erode the image of exclusivity and premium quality associated with these vehicles. If our cars become substantially cheaper, they will no longer represent the symbol of status and financial success, thus losing their main appeal to our customers.

Which of the following statements best describes the role of each portion in boldface in the argument above?

A: The first represents the main position of the corporate strategist; the second acknowledges a consideration that weighs against that position.
B: The first is an assumption made by the corporate strategist about the efficacy of the management’s strategy; the second is evidence that supports the strategist’s reasoning.
C: The first is evidence supporting the main position of the corporate strategist; the second is that position.
D: The first is evidence supporting the position of the corporate strategist; the second is a generalization that will not hold in the case at issue.
E: The first is the main position of the corporate strategist; the second is evidence in support of that position.

OA: E
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by loveusonu » Tue Jun 29, 2010 9:57 am
Clearly E:

However I believe....is flawed : This is authors opinion(claim) and main point
If our cars become substantially cheaper.......thus losing their main appeal to our customers. : This is the reason why authors believes strategy is flawed(above statement) i.e supporting the above claim.

Thus, 1st Bold part is Claim and Second is fact supporting it.

E: The first is the main position of the corporate strategist; the second is evidence in support of that position.

Only E suits here..
Sonu
--------
When you want something desperately, the whole Universe conspires in helping to give it to you - The Alchemist
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by ru2008 » Tue Jun 29, 2010 10:02 am
E is the right answer.
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