Hallmark Executive: In order to stay lean and efficient given the decreasing margins on our greeting card business, we

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Hallmark Executive: In order to stay lean and efficient given the decreasing margins on our greeting card business, we should reduce our number of employees by 10 to 20% in each of our regional facilities. This way, each facility will be forced to work more efficiently and each remaining employee will have a greater incentive to work additional hours to keep her job. With a reduction in staffing we can not only restore our profits to what they were in previous years, we can take them higher.

Which of the following would most weaken the Hallmark executive’s strategy?

(A) Because of natural fatigue, the additional hours worked by each employee could not be as productive as their base hours.
(B) Greeting card sales tend to peak between November and February, and then remain comparatively low for the rest of the year other than a Mother’s Day spike in May.
(C) The predicted boom in e-cards has not made nearly the feared dent in sales of paper cards, at least not for Valentine’s Day and Mother’s Day.
(D) According to a report created by management consultants, even a marginal reduction in headcount would cripple most Hallmark facilities’ ability to function.
(E) Hallmark could also increase profits by making up a new romantic holiday; August seems open.



OA D

Source: Veritas Prep