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thulsy
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CR Strategy Guide 5th Ed "Donut Chain"

by thulsy Fri Jun 08, 2012 6:53 pm

CR Strategy Guide (5th Ed)
Page 147, Chapter 5 (strengthen and weaken)

Perhaps my question is more SC-related... I have some trouble with the meaning of the conclusion. It says:

Donut Chain calculates that the cost of the advertisement and the free donuts will be more than recouped by the new business generated through the promotion.

when I read this for the first time, I mistakenly thought it says:
cost > recouped by new business
where "more" indicates "larger amount". So that means the plan is actually losing money.

However, when I re-read the question stem, I found it says:
the prediction that Donut Chain's promotion will increase the new store's profitability

Then I realized "more than" is bundled together, and it modifies the verb "recouped".

Realizing these two interpretations are polar opposite and the misinterpretation is unacceptable, I would like to ask:
What went wrong with me at first?
How could I, in my first read-through of future CR problems, avoid falling into this trap of misunderstanding?
Thanks for helping out.
jnelson0612
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Re: CR Strategy Guide 5th Ed "Donut Chain"

by jnelson0612 Sun Jun 10, 2012 11:02 pm

thulsy Wrote:CR Strategy Guide (5th Ed)
Page 147, Chapter 5 (strengthen and weaken)

Perhaps my question is more SC-related... I have some trouble with the meaning of the conclusion. It says:

Donut Chain calculates that the cost of the advertisement and the free donuts will be more than recouped by the new business generated through the promotion.

when I read this for the first time, I mistakenly thought it says:
cost > recouped by new business
where "more" indicates "larger amount". So that means the plan is actually losing money.

However, when I re-read the question stem, I found it says:
the prediction that Donut Chain's promotion will increase the new store's profitability

Then I realized "more than" is bundled together, and it modifies the verb "recouped".

Realizing these two interpretations are polar opposite and the misinterpretation is unacceptable, I would like to ask:
What went wrong with me at first?
How could I, in my first read-through of future CR problems, avoid falling into this trap of misunderstanding?
Thanks for helping out.


I'm really sorry, but I'm not sure how helpful I'm going to be. Do you commonly misread CR problems, or just this one? Any other examples you can provide?
Jamie Nelson
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thulsy
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Re: CR Strategy Guide 5th Ed "Donut Chain"

by thulsy Tue Jun 12, 2012 3:47 pm

Hi Jamie,
Thanks for your reply. Not usual. Specific to this one... So I need not to worry as far as I understand this one?
jlucero
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Re: CR Strategy Guide 5th Ed "Donut Chain"

by jlucero Wed Jun 20, 2012 3:04 pm

Correct. It's more of an idiom that you need to learn for future reference than anything else. One other point:

cost > recouped by new business

In this example cost is a noun and recouped is a verb. So that's a sign you're not comparing the right things.

The cost was $100 (thing)

This cost was recouped (action)
Joe Lucero
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thulsy
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Re: CR Strategy Guide 5th Ed "Donut Chain"

by thulsy Wed Jun 20, 2012 4:39 pm

Oh I see. Thank you, Joe :)
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Re: CR Strategy Guide 5th Ed "Donut Chain"

by jlucero Fri Jun 29, 2012 4:20 pm

You're welcome! :)
Joe Lucero
Manhattan GMAT Instructor