Instructions

Read the following excerpt and answer the two questions that follow.
Para 1: We plan to right-size our manufacturing operations to align to the new strategy and take advantage of integration opportunities. We expect to focus phone production mainly in Hanoi, with some production to continue in Beijing and Dongguan. We plan to shift other Microsoft manufacturing and repair operations to Manaus and Reynosa respectively, and start a phased exit from Komaron, Hungary.
Para 2: In short, we will focus on driving Lumia volume in the areas where we are already successful today in order to make the market for Windows Phone. With more speed, we will build on our success in the affordable smart phone space with new products offering more differentiation. We’ll focus on acquiring new customers in the markets where Microsoft’s services and products are most concentrated. And, we will continue building momentum around applications.
Para 3: We plan that this would result in an estimated reduction of 12500 factory direct and professional employees over the next year. These decisions are difficult for the team, and we plan to support departing team members with severance benefits.

Question 15.

Which of the following can be BEST described as the core message of the excerpt?

A
Microsoft is reducing its cost of operations, marketing and human resources while staying the course on Lumia.
B
Microsoft is shifting its base of production for Lumia along with the places it is interested in selling them.
C
Microsoft is reducing its cost of operations and downsizing staff while staying optimistic about the future.
D
Microsoft is closing poorly performing factories and personnel though it thinks Lumia has a future.

Question Explanation

Text Explanation

Option A: This is a distorted version of the main point of the passage. Thus, this is not the correct option.

Option B: This option is incomplete and has no mention of the laying off part.

Option C: This option aptly captures the essence of the passage and hence is the correct choice.

Option D: This is a distorted inference and hence is not a correct option.

Option E: This option misses the future aspirations of the company and hence is not the correct option.

Thus, the correct option is C.

Video Explanation
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