TechGlobal Corporation implemented a new 'Operational Efficiency Program' in 2022 that relocated customer service operations from domestic facilities ...
GMAT Information and Ideas : (Ideas) Questions
TechGlobal Corporation implemented a new 'Operational Efficiency Program' in 2022 that relocated customer service operations from domestic facilities to overseas centers and reduced middle management positions by 30%. Company executives described the program as an effort to 'streamline processes and improve customer responsiveness through organizational optimization.' Industry analysts, however, contend that the program was primarily driven by cost reduction objectives.
Which quotation from an industry analysis best supports the analysts' contention about the company's motivation?
'Implementation of TechGlobal's Operational Efficiency Program led to a 15% reduction in customer satisfaction scores during the first quarter of 2023, primarily due to language barriers and extended wait times.'
'In early 2022, months prior to launching the Operational Efficiency Program, TechGlobal hired consulting firms to analyze operational workflows, focusing on process optimization methodologies and customer service delivery models.'
'The Operational Efficiency Program affected approximately 2,800 employees globally, with domestic workers offered either severance packages or internal transfers to other divisions within the company.'
'Despite TechGlobal's claims about improving responsiveness, internal financial reports revealed the program generated $47 million in annual savings while customer service response times increased by 40% and resolution rates declined significantly.'
Step 1: Decode and Map the Passage
Part A: Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| 'TechGlobal Corporation implemented a new 'Operational Efficiency Program' in 2022 that relocated customer service operations from domestic facilities to overseas centers and reduced middle management positions by 30%.' |
|
| 'Company executives described the program as an effort to 'streamline processes and improve customer responsiveness through organizational optimization.'' |
|
| 'Industry analysts, however, contend that the program was primarily driven by cost reduction objectives.' |
|
Part B: Provide Passage Architecture & Core Elements
Main Point: TechGlobal claims its 2022 operational changes were about efficiency and better service, but analysts believe the real motivation was cost reduction.
Argument Flow: The passage sets up a disagreement by first describing what TechGlobal did, then presenting the company's official reason (improvement), and finally contrasting that with analysts' belief that cost savings was the real driver.
Step 2: Interpret the Question Precisely
What's being asked? We need to find a quotation that would support the analysts' contention that the program was driven by cost reduction objectives.
What type of answer do we need? Evidence that would back up the analysts' position - something that shows cost reduction was indeed the primary motivation.
Any limiting keywords? Question Characterization:
- Content Genre: Business/Professional
- Content Format: Text-only
- Question Type: Strengthen / Weaken
- Language Complexity: Moderate
Step 3: Prethink the Answer
- The right answer should provide concrete evidence that TechGlobal prioritized saving money over improving customer service, contradicting their official explanation
- This could show actual cost savings or demonstrate that claimed improvements did not materialize
'Implementation of TechGlobal's Operational Efficiency Program led to a 15% reduction in customer satisfaction scores during the first quarter of 2023, primarily due to language barriers and extended wait times.'
✗ Incorrect
- Shows customer satisfaction dropped due to language barriers and wait times
- While this suggests problems, it doesn't directly prove cost reduction was the motivation
'In early 2022, months prior to launching the Operational Efficiency Program, TechGlobal hired consulting firms to analyze operational workflows, focusing on process optimization methodologies and customer service delivery models.'
✗ Incorrect
- Shows TechGlobal hired consulting firms to analyze workflows
- This actually supports the company's claim about process optimization rather than the analysts' view
'The Operational Efficiency Program affected approximately 2,800 employees globally, with domestic workers offered either severance packages or internal transfers to other divisions within the company.'
✗ Incorrect
- Gives details about affected employees
- While layoffs might suggest cost-cutting, this doesn't clearly establish that as the primary motivation
'Despite TechGlobal's claims about improving responsiveness, internal financial reports revealed the program generated $47 million in annual savings while customer service response times increased by 40% and resolution rates declined significantly.'
✓ Correct
- Shows the program generated substantial annual savings while customer service quality declined
- This directly contradicts TechGlobal's claims about improving service and provides concrete evidence supporting the analysts' contention about cost reduction being the real driver