The graph shows the Mayberry Utilities Commission's corporate strategy. The ovals represent changes that the commission could institute, and the...
GMAT Graphics Interpretation : (GI) Questions
The graph shows the Mayberry Utilities Commission's corporate strategy. The ovals represent changes that the commission could institute, and the arrows lead to the expected effect of instituting the specified change.
For each of the following, use the drop-down menu to create the most accurate statement on the basis of the corporate strategy map.
Owning the Dataset
Table 1: Text Analysis
| Text Component | Literal Content | Simple Interpretation |
|---|---|---|
| Graph Description | The graph shows the Mayberry Utilities Commission's corporate strategy | Graph displays the organization's plan to meet its objectives |
| Shapes/Ovals | The ovals represent changes that the commission could institute | Each oval stands for a strategic change the company might implement |
| Arrows | Arrows lead to the expected effect of instituting the specified change | Arrows indicate causal relationships between actions and their outcomes |
Table 2: Chart Analysis
| Chart Component | What's Shown | Explanation |
|---|---|---|
| Chart Type | Corporate strategy map with 4 horizontal layers (Customer, Financial, Internal Process, Learning) | Visualizes how goals at each level relate to each other |
| Number of Objectives | 15 oval-shaped objectives distributed across layers | Each oval represents a unique strategic objective |
| Arrow Connections | Arrows indicate that one objective leads to another | Shows how actions create outcomes in a logical, stepwise manner |
| Pathways | Multiple arrows for some objectives, especially toward 'Customer satisfaction' and 'Net income' | Demonstrates there are several ways to achieve key goals |
| Hierarchy | 'Learning & Growth' objectives feed into 'Internal Processes', then 'Financial', then 'Customer' | Lower tiers support higher tiers; knowledge and process drive results |
Key Insights
- Customer satisfaction can be improved directly by increasing rate competitiveness or by improving customer management processes, as both feed into this objective according to the chart.
- The strategy map includes alternate pathways to achieve critical goals (e.g., 'increase net income'), so progress is possible even if some initiatives are blocked.
- Learning and Growth objectives form the foundation of the strategy; all higher goals ultimately depend on these, as indicated by all upper levels being fed by arrows from this base.
Step-by-Step Solution
Question 1: Identifying an Alternative Method to Improve Customer Satisfaction
Complete Statement:
It is expected that, other than increasing the rate of competitiveness, another way to improve customer satisfaction would be to improve [BLANK 1].
Breaking Down the Statement
• Statement Breakdown 1:
- Key Phrase: other than increasing the rate of competitiveness
- Meaning: We are being asked to ignore the method of increasing rate competitiveness.
- Relation to Chart: In the strategy map, 'increase rate competitiveness' leads directly to 'improve customer satisfaction', but we are searching for another path.
- Important Implications: The answer must be a different contributing factor to customer satisfaction on the map.
• Statement Breakdown 2:
- Key Phrase: another way to improve customer satisfaction
- Meaning: We need to look for an additional method that supports this goal.
- Relation to Chart: On the chart, 'improve customer satisfaction' may have more than one incoming arrow; we must identify the alternative source.
- Important Implications: Our answer will be whatever else directly or indirectly supports customer satisfaction, apart from rate competitiveness.
• What is needed: A different strategic objective (apart from rate competitiveness) that leads to improved customer satisfaction.
Solution:
- Condensed Solution Implementation:
Trace the arrows feeding 'improve customer satisfaction' to find all inputs. Since we exclude 'increase rate competitiveness', we seek the other direct input. - Necessary Data points:
The map shows 'improve customer mgmt. processes' as another direct input to customer satisfaction. Tracing further back, this objective is supported by 'improve knowledge of customer relationship management'.- Calculations Estimations:
No calculations needed. Just follow arrows: 'improve knowledge of customer relationship management' → 'improve customer mgmt. processes' → 'improve customer satisfaction'. - Comparison to Answer Choices:
Among choices, only 'knowledge of customer relationship management' fits this causal path in the map.
- Calculations Estimations:
FINAL ANSWER Blank 1: Knowledge of customer relationship management
Question 2: Determining Alternate Knowledge to Impact Net Income
Complete Statement:
It is expected that, if neither marketing nor customer management processes could be improved, increasing or improving knowledge of [BLANK 2] would help increase net income.
Breaking Down the Statement
• Statement Breakdown 1:
- Key Phrase: if neither marketing nor customer management processes could be improved
- Meaning: We cannot select paths that are based on improving marketing or customer management.
- Relation to Chart: These are typically shown in the internal processes layer as input to higher goals and must be excluded from consideration.
• Statement Breakdown 2:
- Key Phrase: knowledge of [BLANK 2] would help increase net income
- Meaning: Find a knowledge attribute in the 'Learning and Growth' perspective that traces to net income, without passing through the excluded objectives.
- Relation to Chart: Trace any remaining knowledge area upwards to see if a path remains open to 'increase net income'.
• What is needed: A learning and growth knowledge area that leads to net income without relying on marketing or customer management processes.
Solution:
- Condensed Solution Implementation:
Trace impact paths from each knowledge area in the Learning and Growth section to 'increase net income', avoiding tracks that go to marketing/customer mgmt. - Necessary Data points:
'Increase knowledge of governance' supports 'improve budget efficiencies', which supports 'enhance cost control', feeding to 'increase net income'.- Calculations Estimations:
By following the arrows, only the governance path avoids the excluded processes and arrives at net income. - Comparison to Answer Choices:
Only 'governance' fits the required path per the strategy map; other choices would violate the exclusions.
- Calculations Estimations:
FINAL ANSWER Blank 2: Governance
Summary
Both blanks require tracing the arrows on the strategy map while respecting the specified exclusions. In each case, the answer is the knowledge or process that provides an alternative causal path to the desired outcome, emphasizing the interconnected structure of strategic objectives.
Question Independence Analysis
The two questions are independent: each concerns a different target outcome (customer satisfaction vs. net income) and applies separate exclusion criteria. Solving one does not depend on the answer to the other.