1.

The following appeared as part of an article in a weekly

newsmagazine:
The country of Sacchar can best solve its current trade deficit problem by
lowering the price of sugar, its primary export. Such an action would make
Sacchar better able to compete for markets with other sugar-exporting
countries. The sale of Sacchars sugar abroad would increase, and this
increase would substantially reduce Sacchars trade deficit.
Discuss how well reasoned . . . etc.
1

trade deficit

3)

A trade-deficit occurs when a country spends more on imports than

it earns from exports. The argument above depends on a
unconvincing assumption that the spend on imports will remain
same in future. If a increased in spend on imports, therefore,
decrease the price of sugar will not be a efficient solution.

2. The following is part of a business plan created by the management of

the Megamart grocery store.
Our total sales have increased this year by 20 percent since we added a
pharmacy section to our grocery store. Clearly, the customers main
concern is the convenience afforded by one-stop shopping. The surest way
to increase our profits over the next couple of years, therefore, is to add a
clothing department along with an automotive supplies and repair shop.
We should also plan to continue adding new departments and services,
such as a restaurant and a garden shop, in subsequent years. Being the
only store in the area that offers such a range of services will give us a
competitive advantage over other local stores.
1.
Added pharmacy ------increase sale
(price, quality of medicine )
2
Added pharmacy clothing department repair shop
3
Range of service---competitive advantage

SaludaeditorialSaluda Consolidated High School200

private high school80
higher proportion of graduates
Consolidated High School cut at least half the number of its
courses and focus on the routine curriculum, thereby improving student
performance and saving tax dollars.
1.higher proportion
Consolidated 2. better performancenumber of courses
3.

V2 80
200

The following appeared in an editorial from a newspaper serving the town

of Saluda:
The Saluda Consolidated High School offers more than 200 different
courses from which its students can choose. A much smaller private
school down the street offers a basic curriculum of only 80 different
courses, but it consistently sends a higher proportion of its graduating
seniors on to college than Consolidated does. By eliminating at least half
of the courses offered there and focusing on a basic curriculum, we could
improve student performance at Consolidated and also save many tax
dollars.
1
Gratuitous assumption
(number of courses better performance )
2.
False causal relationship
(the proportion of students is a overall measure of student performance)

1
()

4 : Afun toys company successfully use the module which that

senior employees take on an aprrence manager
GMAC

V1 Fun Toy Company program senior employees

volunteer to take an new employees as their apprentice, new
employees follow the pattern sets by the senior employees.
time-consuming

false analogy& gratuitous assumption

V2. a human resouce director in a tire manufacturing company.
The cost of training the new employee plays an important role in the overall
expense of a company. the Fun Toys Company Apprentice Training
Progam. senior empoloyee salary bounus
new employee can learn business patterns from the senior
employee so no more expensive and cost
programs are needed. FUN Toys Company

V6. Fun Toy Company program senior employees

volunteer to take an new employees as their apprentice, new
employees follow the pattern sets by the senior employees.
time-consuming

False Analogy. tire manufacturing company

Fun Toys Company

Decrease cost of training reduce overall cost

overall cost

3
Gratuitous assumption
New employee follow the pattern sets by the senior employees
learn business patterns from the senior employee Apprentice Training
Program

5 V1 motelmotel
Amotel
A
profit
V2 restaway motellux..INN
2flaw,
Restaway Motelcomplimentary local phone callsbreakfast
etcservicemany guests dont take advantageservice
more luxious Ambassadors hotel across the town does better business
servicebill seperately service guests
share the expenseAmbassadorprovide better
deal to guests by billing seperately forserviceRestawayfollow
policyattract more customersprofitable

1
A
motel

2
sale
A Innmotel
motel
motel
1

brand image

Over the past decade, the price per pound of citrus fruit has increased
substantially. Eleven years ago, Megamart charged 5 cents apiece for
lemons, but today it commonly charges over 30 cents apiece. In only one
of these last eleven years was the weather unfavorable for growing citrus
crops. Evidently, then, citrus growers have been responsible for the
excessive increase in the price of citrus fruit, and strict pricing regulations
are needed to prevent them from continuing to inflate prices.
1.
citrus growers
Monetary inflation,
increased distribution and labor costs, or alterations in supply and demand
conditions
the growers desire for increased profits.
2.
Only way to combat increased price is through government intervention.
3.

4.

7. stable office job soho

unsocial
professional advancement stable office job
work from home earnings greater
V1 Generally speaking, it is financially unwise for people quit
stable office job and start working from home. It is there are a lot of
distractions when people working from home. People working from home
tend to procrastinate because there is no discipline. Also, working from
home make people isolated. Therefore, it is financially more advantageous
for people working in the office. It is unwise to quit a stable office job in
order to be self-employed and work at home
V2 1
abstraction 2avoid
work3career advanceargument

1 false causal relationship:

Working at home caused the distractions
2 gratuitous assumption
Income of people working at home would be adversely affected due to
distractions at home

3 gratuitous assumption
career advancement career advancement
professional
4. Shirely 4flaw

8 AWA Cafe feedback page, receipt feedback

pagepagepage
complaintssuggestion
300000
Hot Cup Cafeonline feedback
feedback30000cafe
173complaints58suggestionsthere's no need
to evaluate and improve their procedure
V3the hot cup cafe has a website, containing a customer feedback
page, customers submit comments. the website address is clearly
printed on the each receipt, so it is not difficult for customer to access the
feedback page. the hot cup cafe300,000cups of coffees
customer feedback page179complaints87suggestions(
) almost all the customers are satisfied with our
current products and customer service department, so we don't have make
any improvement

1. Gratuitous assumption
feedback

2. Gratuitous assumption
100%

3. Gratuitous assumption
complaints

9.
36500
10
Two years ago Nova High School began to use interactive computer
instruction in three academic subjects. The school dropout rate declined
immediately, and last years graduates have reported some impressive
achievements in college. In future budgets the school board should use a
greater portion of the available funds to buy more computers, and all
schools in the district should adopt interactive computer instruction
throughout the curriculum.
1) False Casual relationship: ()
introduction of interactive computer, impressive achievements
decline in the dropout
policy stricter
discipline applied last year
2) All things equal

2

10. memorandum
hardware and software
efficiency
1

maintains fee
2.
technical hardware and software
update

To sum up

V1. improvements in
technology software and hardware

The following appeared in a memorandum from the information

technology department of a major advertising firm:
The more efficient a firms employees are, the more profitable that firm
will be. Improvements in a firms information technology hardware and
software are a proven way to increase the efficiency of employees who do
the majority of their work on computers. Therefore, if our firm invests in
the most powerful and advanced information technology available,
employee productivity will be maximized. This strategy ensures that every
dollar spent on enhanced information technology will help to increase our
firms profit margins
1
False causal relationship
information technology employee productivity

 training
3) Gratuitous assumption
( )

2
information technology
creative idea

11. campus housingoccupancy ratehousing revenues

campus housing available housingincrease occupancy rate,
rents attract more students.
V2 campus housing occupancy ratehousing revenue
campus housing officialsavailable campus housing
off-campus housing)campus housing officials

Because occupancy rates for campus housing fell during the last
academic year, so did housing revenues. To solve the problem, campus
housing officials should reduce the number of available housing units,
thereby increasing the occupancy rates. Also, to keep students from
choosing to live off-campus, housing officials should lower the rents,
thereby increasing demand.
1. Gratuitous assumption
occupancy rate revenue

2. False causal relationship

low demandlow demand
3
Price occupancy rate

1. available housing
housing revenueavailable housing
housing occupancy

2. price elasticity of
demandPEDcampus housingPED
i.e.

3.

12
12 shopping mall
shopping mall
7

The following editorial appeared in the Elm City paper:

The construction last year of a shopping mall in downtown Oak City was
a mistake. Since the mall has opened, a number of local businesses have
closed, and the downtown area suffers from an acute parking shortage,
and arrests for crime and vagrancy have increased in the nearby Oak City
Park. Elm City should pay attention to the example of the Oak City mall
and deny the application to build a shopping mall in Elm City.
Discuss how well reasoned . . . etc.

1)
The social problems are increased after the new shopping mall is open.

The construction of shopping mall caused the social problem

2)
shopping mall

1
The author only focus on negative effect,

13 West Cambria volunteer ambulance service accidents

patient service EAST Cambria commercial ambulance
patien care commercial ambulance
FEES renevue. WEST
should disband volunteer ambulance services and use commcercial ser
vices instead.
YY west Cambria EAST Cambria

7
The following appeared in the editorial section of a West Cambria
newspaper:
A recent review of the West Cambria volunteer ambulance service
revealed a longer average response time to accidents than was reported
by a commercial ambulance squad located in East Cambria. In order to
provide better patient care for accident victims and to raise revenue for
our town by collecting service fees for ambulance use, we should disband
our volunteer service and hire a commercial ambulance service.
1.

2.
Response time to accidents ambulance squad performance

3.
Commercial ambulance squad caused raise revenue

14. V1 profit
HR
V2 profitadd new employeesprofit
hireemployees motivation
7

Neclotric profit
Profit profit
profit
Eight years ago, our firms profits were increasing with each new
employee we added. We discovered that each employee had the skills and
motivation to generate more revenue for the firm than his or her salary
cost us. However, for the past two years, our profit margin has been
falling, even though we have continued to add employees. Thus, our
newer employees are not generating enough revenue to justify their
salaries. We must not be hiring new employees with the same level of
skills and motivation as those we used to attract. Clearly, then, failures in
the human resources department account for our falling profits.
8

1Gratuitous Assumption A B
1 unjustified salariesemployee revenue

2human resources departmentunjustified salaries

HRCEO
2falling profits

3. all things are equal

15 researchregularly exercisehospitalized
50% townwell-equipped gym insurancereach
balanced budget

Research 50%

The following appeared in a memo to the Saluda town council from the
towns business manager:
Research indicates that those who exercise regularly are hospitalized less
than half as often as those who dont exercise. By providing a wellequipped gym for Saludas municipal employees, we should be able to
reduce the cost of our group health insurance coverage by approximately
50 percent and thereby achieve a balanced town budget.
Discuss how well reasoned . . . etc.
1Gratuitous Assumption
(employees will exercise regularly if a well-equipped facility is provided for them )
2Gratuitous Assumption
(assumption that employee do not exercise regulary)
3)
( hospitalization rate and health insurance cost)

16

GrocersSalesProfit
to cut costscoffee shop
grocer storestore plans to
reduce costs by laying off 10 employees at each stores and eliminating
expensive products display and free samplescoffee cafe
coffee cafegrocer store
storesalesplansalesprofits.

1.
laying off 10 employees at each stores and eliminating expensive products
display and free samples profit

2. Gratuitous Assumption
profit Cost profit

3.

17. hospital universityhospitalcommunity or private

hospitaluniversity doctorteachingresearch
private hospitalfocusfundprivate hospital
orz
7
The following appeared in an article in the health section of a newspaper:
There is a common misconception that university hospitals are better
than community or private hospitals. This notion is unfounded, however:
the university hospitals in our region employ 15 percent fewer doctors,
have a 20 percent lower success rate in treating patients, make far less
overall profit, and pay their medical staff considerably less than do private
hospitals. Furthermore, many doctors at university hospitals typically
divide their time among teaching, conducting research, and treating
patients. From this it seems clear that the quality of care at university
hospitals is lower than that at other kinds of hospitals.
Discuss how well reasoned . . . etc.

-- 15%20%

1. Insufficient

2.

quality of hospital ,

3.

18 Dneighborhood real estate priceP

Dretail space priceP
Pretail space

7
The following appeared in a letter from a part-owner of a small retail
clothing chain to her business partner:
Commercial real estate prices have been rising steadily in the Sandida
Heights neighborhood for several years, while the prices in the adjacent
neighborhood of Palm Grove have remained the same. It seems obvious,
then, that a retail space in Sandida Heights must now be much more
expensive than a similar space in Palm Grove, which was not the case
several years ago. So, it appears that retail spaces in Sandida Heights are
now overpriced relative to those in Palm Grove. Therefore, it would be in
our financial interest to purchase a retail space in Palm Grove rather than
in Sandida Heights.
1. Gratuitous assumption
the real estate price in Sadida Heights have been ring while then prices
in Palm Grove have remained unchanged in not sufficient to reach the
conclusion that a retail space in Sandida Heights is not much more
expensive than a similar in Plam Grove
2)
more expensive, caused the retail spaces are now overpriced
P underpriced
3
Gratuitous assumption
P
P

19 78cereal
the last two years, the percentage of the
customers who are children increased, packaging
competite out of the crowds

V1 F cereal 65%
cereal

V2Fieflakecereal line.65%adult women

children increase16%to25%.children.
whole family. whole family.
children's line

1
sales
2

20. 4
Alpha
sales30%

V1 director CEO grooming product

but in the last two years
DC

V2 Company's cologne has experienced significant sales increase of 30%

annually in the first four years of its launch. The company uses advertising
campaign with professional sports stars and research found that most
customers are middle-aged men. Cologne sale slowed down in recent years
and CEO believes that they need to get younger people to use the cologne
and he will hire Justin Bieber as their new spokesperson to achieve this.
1.

2

2.

2
3last two years
4professional athlete pop music star music star

5 economic recession

21. Software

sophisticated advancd function

Software professional advancd
function
7
. SmartProaccounting softwareprofessional users
saleshome users
professional userssoftware
advancedSmartPro
home usershome users
advanced

The following appeared in a memorandum to a team developing

accounting software for SmartPro Software, Inc.:
Currently, more professional accountants use SmartPro accounting
software than any other brand. However, in the market for personal
accounting software for non-professionals to use in preparing their income
tax returns, many of our competitors are outselling us. In surveys, our
professional customers repeatedly say that they have chosen
SmartPro Software because our most sophisticated software products
include more advanced special features than competing brands. Therefore,
the most effective way for us to increase sales of our personal
accounting software for home users would clearly be to add the advanced
special features that our professional software products currently offer.
1) The statistically reliability of survey
(who conducted, who responder or how the survey were conducted)
2)
Professional consumers opinon represents that of

non-professional

customers.
3)
non-professional customers sophisticated software products
increase sale
friendly interface , manageability. Customer service

22. 8-10

7
The following appeared as part of a recommendation from the business
manager of a department store:
Local clothing stores reported that their profits decreased, on average,
for the three-month period between August 1 and October 31. Stores that
sell products for the home reported that, on average, their profits
increased during this same period. Clearly, consumers are choosing to buy
products for their homes instead of clothing. To take advantage
of this trend, we should reduce the size of our clothing departments and
enlarge our home furnishings and household products departments.
Discuss how well reasoned . . . etc.

1
The past three months trend does not guarantee the same in the future
2)
Sale situation in a local store, can not be representative the overall
consumer
3)
Consumers are choosing to buy products for their homes instead of
clothing and changed the shopping trend.

23 AWA80prep
luxury automobiles revenues
inexpensive models2salesrevenues
luxurycenter on luxury automobiles

7
V2 6
2

The business manager of a local auto dealership recommended the

following in a memo to the dealerships owners: During the month of
June, when we advertised our luxury automobile models in the local
newspapers and placed them in prominent positions on our lot and in
our showroom, combined sales for both luxury models and our more
inexpensive models reached the highest point for the year. In February,
when we focused our advertisements on our inexpensive models and
featured them on our lot and in our showroom, overall sales were lower.
Clearly, if we want to maximize our profits, we need to put our luxury line
front and center in a more prominent position, year-round. The luxury line
clearly attracts potential consumers who, once they set foot on our auto
lot, purchase a wide variety of automobiles that generate revenue for
this dealership.
1 either-or
The business manager simply focuses on the two extremesthat the
dealership should advertise luxury vehicles, or that the dealership should
advertise inexpensive vehicles. The manager fails to acknowlegde and
analyze the possibly of a mixed marketing campaign.

2
Advertisements on the luxury automobile clearly attracts potential
consumers
It should be better evaluated by analyzing the sales data and by
asking customers about their purchasing decisions
3
the author unfairly make the conclusion that advertisements only in
inexpensive models caused overall sales were lower. A simple example is
that February only has 28 days while June has 30. February also has more
holidays like Presidents Day on which car dealerships are likely closed,
and thus when no sales will take place.
24. GEORGE
towns and cities 3
triple
7

The argument was about a paragraph from a restaurant business

newsletter about small franchise restaurants.
A small restaurant owner, George, opened a pita restaurant in a college
town Sallon. His restaurant has been quite successful for the last 2 years.
So he decided to open another 3 restaurants in nearby cities and towns.
He also plans to promote his 3 employees who have been trained under
him to be the managers of the new restaurants. He expects his profits will
trip after all restaurants are opened.
1. False causal relationship :
2. all things are equal

3 .Gratuitous assumption
employees who have been trained under him to be the managers
of the new restaurants. Because the manger is require a high
competence. Such as sale strategy, supply chain management. And these
three employees who do not have these kinds of abilities.

25 Disc store radio advertisement campaign

dramastically improve
Disc store
blockCloth store
ClothProfits~Cloth Storenewspaper advertisement
switch radio advertisement
7
radio business
increasesales
radionewspaper

The following appeared in a memorandum from the owner of Carlos

Clothing to the staff:
Since Disc Depot, the music store on the next block, began a new radio
advertising campaign last year, its business has grown dramatically, as
evidenced by the large increase in foot traffic into the store. While the Disc
Depots owners have apparently become wealthy enough to retire, profits
at Carlos Clothing have remained stagnant for the past three years. In
order to boost our sales and profits, we should therefore switch from
newspaper advertising to frequent radio advertisements like those for Disc
Depot.
1

False analogy
DD music storeCC

Gratuitous assumption

False causal relationship

26. swimming pool, the use of members

The following appeared as part of a business plan created by the

management of the Take Heart Fitness Center:
After opening the new swimming pool early last summer, Take Heart saw
a 12 percent increase in the use of the center by its members. Therefore,
in order to increase membership in Take Heart, we should continue to add
new recreational facilities in subsequent years: for example, a
multipurpose game room, a tennis court, and a miniature golf course.
Being the only center in the area offering this range of activities would
give us a competitive advantage in the health and recreation market.
Discuss how well reasoned etc.
Take Heart
TH12%

1. Cause relationship
an increase in member usage portends and increase in membership.
100
2. All else equal
(
cost)
3.
idea

27 Park attendance focus on parents

parents majority
author automoblie industry research parents concern

author slogan attendance increase dramatically

nave

7
The managers argument Background XXX Amusement parks
attendance although the advertisement investment Assumption1
Parents make the decision whether a child should go an amusement park.
Assuption2: The research from an automobile industry shows 60% of the
parents put the safety as a priorty. Conclution The amusement park
should change its original slogan and show that their park is secure to
enhance its attendance.

marketing director of amusement park, amusement park

attendanceticket salepark
(park)directorautomotive industry
research60%safetytop priority
directoramusement parkslogan do all what you
want(do,)Thrill kids, safety.... campaign
increase attendanceticket sale
1)

2)

Safetyattendance

slogan attendance

28. demand for mining technology has dropped worldwide(

mining), the profits and stock price of the B company ,
renewable technology is booming, B
devote future research to renewable energy B profits and
stock price safe
LZ 1demandprofitmanagement

2renewable tech
3renewableinvestmentprofit safe
flaws
7
Due to the decline demand of the mining technology, all the related
corporations are suffering form decline of profit and sales this year, including
Blastcom Corporation. Blastcom Corporation is considering adopting one
growth strategy: to shift some of the researchers from mining technology to
the renewable energy technology, the demand for the renewable energy such
as solar energy. Some of the prominent companies which market the
renewable energy are successful in recent years. Therefore, it is guaranteed
that company Blastcom will also be successful in the future by providing
renewable energy

2.

all things are equal

( ;
)

3. Gratuitous Assumption A B(demand

focus on)
4. (
)

29. AA:

Now is the perfect time to buy a house in our city. Over the past five
years, average home prices in our region have nearly doubled. But
average stock prices in the national stock market have actually declined
over the same period. So homeowners have seen an increase in value for
their housing investment during the last five years that far exceeds what
they could have made by investing in the stock market. Our citys
residents can surely achieve a similar profit over the nest five years.
Futhermre, if residents invest in a home, they can enjoy the use of the
home while its value increases, whereas money invested in stocks would
not contribute to their quality of life in the same way that owning a home
would. Therefore, all the residents of our city should invest their money in
a home
1 All things equal

2
4

( rich and quality of life)

30. XXX Hill districtTheaterGolf clubbusiness

past two years you increase,prgramcustomer third program
discountdistrictbusinesses profitreturn
increase

The following appeared as part of the business plan of the Capital Idea
investment firm:
Across town in the Park Hill district, the Thespian Theater, Pizzazz Pizza,
and the Niblick Golf Club have all had business increases over the past
two years. Capital Idea should therefore invest in the Roxy Playhouse, the
Slice-o- Pizza, and the Divot Golf Club, three new businesses in the
Irongate district. As a condition, we should require them to participate in
a special program: Any customer who patronizes two of the businesses
will receive a substantial discount at the third. By motivating customers to
patronize all three, we will thus contribute to the profitability of each and
maximize our return.
Discuss how well reasoned . . . etc.

1
First of all, the success of the Thespian Theater, Pizzazz Pizza, and the
Niblick Golf Club in the Park Hill district does not gurantee the success
of the Roxy Playhouse,


2
Secondly, the fact that three business in the Park Hill district have all
had business increases within the past two years does not warrant they
will continue to be profitable in the coming year.

3
Finally, the author unfairly assumes that customers will take equal
interest in the three different new business, but the consumers may
patronize()only one or two of the new business.

31. drill productionefficient

advanced10
while the other competitors more than 610
reduce its drill production so as to reduce
goal

The following appeared in a presentation by the chief production manager

of a machine parts manufacturing company at a management meeting:
Our factory in Cookville is our most advanced and efficient. It is capable
of producing ten drill bits for each dollar of production costs, whereas
none of our other factories can produce more than seven drill bits per
dollar of production costs. Therefore, we can reduce our overall drill bit
production costs by devoting the Cookville factory entirely to drill bit
production. Since reducing the production costs of individual machine
parts is the only way to achieve our larger goal of reducing our overall
production costs, dedicating the Cookville factory entirely to drill bit
production and shifting all other machine part production to our other
factories will help us to attain that larger goal.
1. Gratuitous assumption
Coikville factory entirely to drill bit production will reduce our overall drill
bit production cost.
Perhaps, there are only one or several skilled workers who are can

product them drill bits for each dollar of production cost. And they have
already reached their full potential
2.
Reduce the production costs of individual machine parts in the only way to
achieve the decrease overall production costs,
train workers , new technologies, management
strategy
3. Gratuitous assumption

cargo and transporting fees would roarsporadically
shifting
cumbersome machine,huge
expense, may not weighover the elevation of the productivity

32 : Muscle Monthly equip new machines in local community

JJ 26
Muscle
Newsstand
propse fitness level

Muscle Monthly, a fitness magazine that regularly features pictures of

bodybuilders using state-of-the-art exercise machines, frequently sells
out, according to the owner of Skyview Newsstand. To help maximize
fitness levels in our towns residents, we should, therefore, equip our new
community fitness center with such machines.
1)
fitness
2

3
advertising from fitness magazine and effectiveness of machine

33. F National Bank should not approve the loan application for
the local group that wants to open the franchise outlet of Kool Kole(
ice-cream dealers( PLZ
parolor? Jusus...). Because the cold weather in the F city means the low sales
of the ice-cream. For example, the only ice-cream shop in the town( Frigid
Cow) shows a 10% decream in Net Revenue last summer even though the
Frigid Cow has no competition in the town.
7

The following appeared as part of a memorandum from the loan

department of the Frostbite National Bank:
We should not approve the business loan application of the local group
that wants to open a franchise outlet for the Kool Kone chain of ice cream
parlors. Frostbite is known for its cold winters, and cold weather can mean
slow ice cream sales. For example, even though Frostbite is a town of
10,000 people, it has only one ice cream spotthe Frigid Cow. Despite the
lack of competition, the Frigid Cows net revenues fell by 10 percent last
winter.
loanfranchisicecream
slow ice-cream sales.ice-cream
spot revenue10%

1. Gratuitous assumption

cold winters slow ice cream sales

2.
Weather ice cream sales
3.
ice cream spotthe Frigid Cow.

34. memo

revenue

7
AWA
organic
grocery store. gymcityorganic grocery store
gymorganic food sectionprofit
jj
V2Foster Health and Fitnessbusiness manager

organic
grocery storeManagerthe company ownergym
organic grocery store

1Gratuitous assumption
customers eating healthier organic
foodeating healthierdrink alcohol

2Gratuitous assumption

organic food storestore

food
3

profits
gyms.

35.

The profit of airline AA has fell dramatically last year. The increase of fuel
expenditure certainly was major problem. However, some other airlines
also had the situation and they were able to increase their profitablity. So
it is not the problem of oil price. The problem is the newly added 5 flights.
So, in order to return to profitablity, we should shrink the airline
operation.

1
flight expansion profit the air
crash influences people choose other vehicle for transportation
2)
increase their profitability number of flight ,

3)
decrease flight expansion. profit
overall cost revenue from these flights

36
AWA
credit cardenvironmental organization
logopoll
policy attract other customer and make the existing
customer use the credit cards more often.
1poll
2logorespond
3logouse more
@@
4

The following appeared as part of a plan proposed by an executive of the

Easy Credit Company to the president:
The Easy Credit Company would gain an advantage over competing credit
card services if we were to donate a portion of the proceeds from the use
of our cards to a well-known environmental organization in exchange for
the use of its symbol or logo on our card. Since a recent poll shows that a
large percentage of the public is concerned about environmental issues,
this policy would attract new customers, increase use among existing
customers, and enable us to charge interest rates that are higher than the
lowest ones available.

1.
enable us to charge interest rates that are higher than
the lowest ones available
2. Gratuitous assumption

3.

4.

37.

switch 20%labor force

will be benefited both in the short term and in the long
term.
software company auto industry strategy auto industry
permanent temporary profitSoftware company
temporary software company
stability

1. Gratuitous Assumption A B
1temporary worker

2long-term stability

2.

3. a false analogySoftware companyauto industry

38.

HonlerCEOA
Kirby DrugHonlerKirby
Kirby loyalKirbynational brands

V1pharmacy store K H
K national brand
supplier
V2Holner'sAllegardkirby drug
kirby drug
Holnerskirby drugkirby3 3
lower price on national brandskirbyHolners
Allegard

store K K local brand allegard

national brandslocal brands
2

PRICE

number of store market share

39. cell phone company

preciousexpensive metals metalscell phone
profit

V1cell phone manufacturing requires a large variety of precious and
expensive metasl, such like gold, silver and copper.
and we found the price of these metals
sometimes changed dramatically. forcast a growth of our cell phone
division and high-volume pruchasing looking strong. (?) a
large amount fo these metals, lock our costs. By doing so, we can lock
in our cost savings and guarantee a high-level profit.
V2cell phonedramatically
stockholderlock in the cost for those
materials(lock in)lock in savings
()
V3report

large quantity of metals lock

guarantee a high profit in the future.
V5

lock in the cost

?
3

forecast

..