Chief Executive Officer: 'Our supply chain logistics network faces unprecedented competitive disruption. Either our company commits $80 million immedi

Question

Chief Executive Officer: 'Our supply chain logistics network faces unprecedented competitive disruption. Either our company commits $80 million immediately to build fully autonomous fulfillment centers, or our retail distribution speed will become uncompetitive, driving our e-commerce market share to zero within 24 months. Because preserving our enterprise viability is paramount, the board of directors must approve the $80 million capital expenditure at tomorrow's meeting.'

The CEO's argument is most vulnerable to criticism on the grounds that it:

Accepted Answer

Presupposes a false dilemma by arbitrarily restricting the strategic choices to two extreme outcomes while ignoring viable intermediary alternatives such as hybrid automation or third-party logistics partnerships.

Answer

Relies on emotional appeals to employee job security rather than quantitative financial projections.

Answer

Fails to establish that automated fulfillment centers are more expensive to construct than traditional manual warehouses.

Answer

Confuses a temporal sequence of business events with an inevitable causal progression.

Answer

Attacks the personal motives of board members rather than addressing the substance of their fiscal objections.

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More Critical Reasoning Questions in GMAT Focus