Reading Comprehension – We plan to right-size our manufacturing operations


XAT 2021 Exam Paper – Reading Comprehension – We plan to right-size our manufacturing operations


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.

Q.1 Which of the following can be BEST described as the core message of the excerpt?

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

Q.2 In conveying the core message, the Para 2:

A. Assuages panic
B. Predicts a rosy picture
C. Reassures a promising future
D. Digresses from the line of thought
E. Elaborates the core message

Solution:
Q.1 D
Q.2 C


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