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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

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Graphics Interpretation
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Corporate strategy map showing Mayberry Utilities Commission's strategy with ovals representing changes and arrows showing expected effects

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.

1. It is expected that, other than increasing the rate of competitiveness, another way to improve customer satisfaction would be to improve.
2. It is expected that, if neither marketing nor customer management processes could be improved, increasing or improving knowledge ofwould help increase net income.
Solution

Owning The Dataset

Table 1: Text Analysis

Text Analysis Table:

ComponentDescription
SubjectThe graph shows the Mayberry Utilities Commission's corporate strategy.
Element: OvalsThe ovals represent changes that the commission could institute.
Element: ArrowsThe arrows lead to the expected effect of instituting the specified change.
Diagram InterpretationThe diagram visually maps out potential strategic initiatives and their expected cause-and-effect outcomes at the commission.

Table 2: Chart Analysis

Chart Analysis Table:

Chart AspectDescription
LayoutFour horizontal bands/perspectives: Learning and growth (bottom), Internal processes, Financial, Customer (top)
ObjectivesEach perspective contains several ovals (objectives) linked by arrows showing causal relationships
ConnectionsArrows connect objectives within and across perspectives, illustrating a complex network of cause-and-effect from bottom (learning) to top (customer) levels
Strategic FlowImprovements in foundational areas (e.g., knowledge, governance) enable process improvements, driving financial outcomes and enhanced customer satisfaction
PathwaysMultiple arrows lead to customer satisfaction; governance knowledge links to financial outcomes beyond traditional marketing/process improvements

Key Insights

  1. The strategy map presents a bottom-up framework: foundational learning and knowledge improvements propagate through internal processes and financials to enhance customer results.
  2. Customer satisfaction can be improved not only by increasing competitiveness, but also by building public confidence (an alternative causal pathway).
  3. If marketing or customer management can't be improved, increasing knowledge of governance provides another way to improve net income, demonstrating the importance of indirect and foundational levers in the organization.

Step-by-Step Solution

Question 1: Alternative Approaches to Improving 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 should look for a method besides increasing rate competitiveness.
      • Relation to Chart: On the strategy map, 'increase rate competitiveness' is one factor leading to 'improve customer satisfaction'.
      • Important Implications: We need to identify a different path (not rate competitiveness) that also leads to higher customer satisfaction.
  • Statement Breakdown 2:
    • Key Phrase: improve customer satisfaction
      • Meaning: The target objective is to improve how satisfied customers are.
      • Relation to Chart: This is a key outcome or objective indicated on the map.
      • Important Implications: All strategy map arrows pointing to 'improve customer satisfaction' are relevant paths.
  • What is needed: A way, other than rate competitiveness, to improve customer satisfaction according to the strategy map.
Solution:
  • Condensed Solution Implementation:
    Identify all arrows pointing to 'improve customer satisfaction' on the strategy map and eliminate the one specifically coming from 'increase rate competitiveness'.
  • Necessary Data points:
    According to the map, 'Knowledge of customer relationship management' provides a direct arrow to 'improve customer satisfaction' (apart from the path from 'increase rate competitiveness').
    • Calculations Estimations:
      No mathematical calculations are needed; it's a matter of tracing logical connections.
    • Comparison to Answer Choices:
      Among potential answers ('Budget efficiencies', 'Knowledge of customer relationship management', 'Marketing', 'Public Confidence'), only 'Knowledge of customer relationship management' is shown on the map as a direct alternative pathway.
FINAL ANSWER Blank 1: Knowledge of customer relationship management

Question 2: Alternate Knowledge Pathways to Increasing 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 need to find a path to net income that does not involve improving marketing or customer management.
      • Relation to Chart: The strategy map shows several ways knowledge can impact financial outcomes; some paths go through marketing or customer management, but others may not.
  • Statement Breakdown 2:
    • Key Phrase: increasing or improving knowledge of [BLANK 2]
      • Meaning: The answer must be a knowledge-related objective from the strategy map.
      • Relation to Chart: Relevant knowledge areas are typically found in the Learning and Growth perspective.
  • What is needed: A knowledge area that can ultimately lead to increased net income, but does not use the excluded improvements.
Solution:
  • Condensed Solution Implementation:
    Trace possible paths from each knowledge area toward 'increase net income', making sure no step includes marketing or customer management processes.
  • Necessary Data points:
    The map shows 'Governance' knowledge leading to 'improve interdepartmental relations', which in turn leads to 'improve budget efficiencies', then to 'enhance cost control', and finally to 'increase net income'. None of these steps involve marketing or customer management.
    • Calculations Estimations:
      No numeric estimations are necessary; it's a logical/structural analysis.
    • Comparison to Answer Choices:
      Of the options provided ('customer relationship management', 'Customers', 'Governance'), 'Governance' is the only knowledge area with a path to increasing net income that bypasses the excluded options.
FINAL ANSWER Blank 2: Governance

Summary

The solutions to both blanks require careful analysis of the arrows and paths in the strategy map, respecting the given exclusions. For customer satisfaction, 'Knowledge of customer relationship management' is a direct alternate pathway. For net income, if restricted from improving marketing or customer management processes, 'Governance' knowledge provides an indirect but viable route to enhancing net income.

Question Independence Analysis

The solution to each blank is independent. Blank 1 focuses on alternative routes to customer satisfaction, while Blank 2 restricts improvements and looks for different knowledge that affects net income. The correct path for one does not influence or provide information for the other.

Answer Choices Explained
1. It is expected that, other than increasing the rate of competitiveness, another way to improve customer satisfaction would be to improve
1A
Budget efficiencies
1B
Knowledge of customer relationship management
1C
Marketing
1D
Public Confidence
.
2. It is expected that, if neither marketing nor customer management processes could be improved, increasing or improving knowledge of
2A
customer relationship management
2B
Customers
2C
Governance
would help increase net income.
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