Candy bars may seem sweet to the average consumer, but the companies

Para 1: Description of one lesson from KP's new book. Candy companies need to be tougher to survive. Economic forces led Consolidation in candy industry and the way it is distributed. Once this industry was thriving and locals used to take pride in regional candy

Para 2: Process that led consolidation of candy industry is similar to that in manufacturing in past half century. Explains the process . Smaller companies stuck to their regional markets

Para 3: Strategy of sticking to regional market works when distributors play along. Explains why it is being difficult to smaller players and they are running out of options


1. According to the information given in the passage, which of the following candy bars is most likely to be found in a large regional grocery chain?
"These cost advantages resulted in the biggest companies having the financial resources to advertise nationally and to promote national brands such as Snickers, Three Musketeers, and the Mars Bar."
" Local consumers took pride in their regional candy bars, such as the Caravelle, Clark Bar, Goo Goo Cluster, and the Valomilk, "

Almost all large grocery chains charge “slotting fees” a payment, often as much as $25,000, to get a particular kind of candy placed on the store shelves. The smaller candy companies, unable to pay the slotting fees demanded by large chains. So answer should be a product of a large national company

A. Caravelle -- Regional product
B. Three Musketeers -- Product of large national company and is the answer
C. Charleston Chew -- Not mentioned
D. Clark Bar -- Regional product
E. Goo Goo Cluster -- Regional product


2. Which of the following business examples most closely parallels that of the candy industry in recent decades, as described in the passage?

A. Many formerly non-profit hospitals are bought and managed by large, for-profit health care consortiums that use their size to negotiate better rates from insurance companies and health care product suppliers.
-- non-profit hospitals are bought by for profit large consortiums. So though the option looks good, it talks about two different segments and hence out

B. A small number of very large agricultural companies purchase hundreds of thousands of acres of farmland from small farmers when a period of sustained drought makes most of these smaller farms nonviable as independent operations.
-- large agriculture companies are buying farms but there is no small agriculture companies which get diminished from this action. So the option is not in the same line as in example of candy industry

C. An online book retailer eats into the market share of both large and small traditional book retailers by opening up an entirely new bookbuying marketplace and offering free shipping.
--It talks about a new type of retailer that eats both large and small so not in the same line as in candy industry example

D. A small number of soft-drink conglomerates buy up smaller regional competitors and use economies of scale to negotiate preferential rates from both suppliers and distributors.
-- It is in line with what large companies in candy industry did. "The largest companies bought up smaller companies in order to grow larger and take advantage of economies of scale in production and distribution. "

This is the answer

E. A medium-sized regional telecom company uses an inflated stock price to purchase a string of smaller regional competitors and in the process becomes one of the largest companies in the telecom industry.
-- This option shows that medium size firm utilizes foul practises to purchase regional competitors to become one of the largest. While consolidation in candy industry happened and it preferred large companies as they were able to negotiate better

3. According to the information presented in the passage, which of the following presents an accurate statement about small and large candy companies?
"The larger companies could negotiate better rates on sugar, cocoa butter, peanut butter, coconut, and the other central ingredients of the candy industry. These cost advantages resulted in the biggest companies having the financial resources to advertise nationally and to promote national brands"

A. A large candy company can expect to pay less for a given amount of cocoa butter than a small candy company.
-- As a large company could negotiate better rates, they can expect to pay less

This is the answer

B. A small candy company can expect to pay a larger slotting fee for a given space in a retail outlet than a larger company.
-- Does not support as small candy company cannot pay hefty amounts ."Almost all large food retailers now charge “slotting fees” a payment, often as much as $25,000, to get a particular kind of candy placed on the store shelves. The smaller candy companies, unable to pay the slotting fees demanded by large chains, are relying increasingly on small independent groceries"

C. A small candy company may have one or two national brands, while a large candy company will usually have dozens of regional brands.
-- Not given int he passage

D. A large candy company has probably been in operation longer than a small candy company.
-- Not mentioned that large candy company is longer in the operation than small candy company

E. A small candy company probably offers its employees better employment benefits than does a large candy company.
-- Employment benefits are not discussed.


4. The final sentence of the first paragraph plays what role in the passage?
"But the economic forces at work over the last sixty years have led to substantial consolidation in the candy industry and, perhaps more importantly, in the way that candy is distributed."

A. It refutes the conclusions of the first paragraph.
-- It does not refute any conclusion of first paragraph rather concludes the first paragraph and provides context for following paragraphs

B. It suggests the subject matter for the second paragraph.
-- It does suggest subject matter for second paragraph but it also concludes on the what is the lesson from Paulson's new book.

C. It raises a question that is answered in the following paragraphs.
-- it does not raise any question rather explains conclusion of one of the lesson from Paulson's new book.

D. It suggests an alternative hypothesis to that proposed by Paulson in her book.
-- It does not provide any alternate hypothesis of Paulson's new book. infact his book is "Candynomics: The Death of the Small Candy Producer." and the last sentence just elaborates on that rather suggest any alternate hypothesis

E. It provides a conclusion to the premises of the first paragraph and outlines the subject matter of the following paragraphs.[/box_in][/box_out][/align]
-- It does provide a context to the new book, demise of small candy producer and also outlines subject matter for following paragraph

This is the answer