Comprehension
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.
Question: 1

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

Updated On: Aug 22, 2025
  • Microsoft is reducing its cost of operations, marketing and human resources while staying the course on Lumia.
  • Microsoft is shifting its base of production for Lumia along with the places it is interested in selling them.
  • Microsoft is reducing its cost of operations and downsizing staff while staying optimistic about the future.
  • Microsoft is closing poorly performing factories and personnel though it thinks Lumia has a future.
  • Microsoft is reducing cost of operations and the number of staff involved in operations.
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The Correct Option is C

Solution and Explanation

Upon analyzing the provided excerpt and the set of options, we need to determine the best description of the core message from the passage. Here's a breakdown based on each paragraph of the excerpt:
  • Paragraph 1 highlights Microsoft's operational restructuring, including shifting production locations and exiting a facility in Hungary, reflecting cost reduction and alignment with new strategies.
  • Paragraph 2 emphasizes Microsoft’s strategy to expand its market share with Lumia phones in successful areas and lower-cost smart phones, demonstrating optimism about future growth in specific markets.
  • Paragraph 3 states a significant reduction in staff, indicating downsizing while providing support to departing employees, showing a strong commitment to reducing operational costs.
From the options provided:
  • Option 1 discusses cost reduction but lacks emphasis on staff downsizing and optimism.
  • Option 2 suggests a shift in production base that isn't directly elaborated in the excerpt.
  • Option 4 mentions factory closures without highlighting staff reductions and future optimism.
  • Option 5 only focuses on cost and staff reduction without discussing Microsoft's future outlook.
  • The Correct Answer is: Microsoft is reducing its cost of operations and downsizing staff while staying optimistic about the future. This option best captures the core message, combining operational cost reduction, staff downsizing, and future optimism.
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Question: 2

In conveying the core message, the Para 2:

Updated On: Aug 22, 2025
  • Digresses from the line of thought
  • Elaborates the core message
  • Assuages panic
  • Reassures a promising future
  • Predicts a rosy picture
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The Correct Option is D

Solution and Explanation

Upon examining Para 2, it is clear that the focus is on reassuring readers about the company's strategic direction and efforts to secure a promising future. The paragraph discusses concentrating on areas of success, enhancing product differentiation, acquiring new customers, and building application momentum. These points collectively convey a confident stance towards future growth and success, hence "Reassures a promising future" is the correct choice for describing the core message of Para 2.

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