GMAT CLUB OLYMPICS: The Kale Chip Cooperative, a company based in the

Question

The Kale Chip Cooperative, a company based in the United States whose business model is centered on healthy living and eco-friendliness, is hoping to add a new flavor of kale chip to its offerings in each of four regional markets: in the northeast, a dessert chip made with maple sugar; in the south, a spicy Cajun chip; in the northwest, a teriyaki chip; and in the southwest, a cilantro and chili powder chip. After a trial period, the company will decide whether to bring the new flavors to market on a full scale.

Each of the following actions would help The Kale Chip Cooperative evaluate its business strategy EXCEPT:

Each of the following actions would help The Kale Chip Cooperative evaluate its business strategy EXCEPT:

(A) Differentiating the new flavors of kale chips from the company’s regular offerings by distributing the new products in biodegradable containers.
(B) Tracking sales of all of the company’s products, in addition to whether consumers in one region preferred the new flavors offered in other regions.
(C) Examining the sourcing of ingredients, including how the foods were farmed and transported to regional processing facilities.
(D) Ensuring that none of the new ingredients would alter the taste and texture of the kale chips for which the company is known.
(E) Monitoring social media feedback on all of the company’s products by employing an impartial third-party group.

V33-03

AndrewN · Accepted Answer

Tanco, anybody? The passage and question resemble  this  official  question  pretty well.  Except  questions are a lot of fun, since for once, you get four correct answers to look at and merely have to spot the outlier. Although business topics are my least favorite on the test, I do not let such feelings cloud my reasoning, and I approach the question the same way I would any other, looking for the logical thread that holds everything together.

The  business strategy  in question is the plan presented in the first line of the passage, namely whether  The Kale Chip Cooperative  should  add a new flavor of kale chip... in each of four regional markets . We just have to keep this plan in mind as we comb through the answer choices.

The type of container may draw more or less attention to the new products, but the same could be said of the packaging for  the company's regular offerings . This answer choice relies on what I call one-step-removed logic, which here might go along the lines of allowing people to tell, visually, which packages to buy to taste the new flavors. But we would have to assume that consumers would buy more of these  new products . The part about the  biodegradable containers  touches on the  eco-friendliness  mentioned in the passage, but what good is a container if people are not interested in the contents? On the whole, this looks like our exception.

Tracking sales  makes all the sense in the world, especially within the larger context of  all of the company's products . Perhaps if sales of its kale chips were down in general and the new products were not selling too well, the company could make a more informed decision whether to give the green light to the new flavors. The second part also checks out. If people in one region took to the new flavor offered in another, and that flavor was selling well in its designated region, the company might decide to go ahead with the more in-demand kale chip. Remember, we are looking for an exception, not for information that would logically allow the company to  evaluate its business strategy .

The sourcing of ingredients  may sound off the mark, but where foods come from and the logistics of how they go from farm to facility could very well affect the bottom line of the company. This makes sense, so keep looking (if you missed (A) or were unsure).

This answer choice reminds me of another  official  question, this one on  meat from chickens contaminated with salmonella . A company that sells foodstuffs on a broad scale is most certainly interested in product consistency. You want McDonald's to taste like McDonald's, end of story.

It may take ten more years or so for GMAC™ to write a question acknowledging  social media , but of course, the voice of the people matters when it comes to product development. If you were uncertain about whether the part about  an impartial third-party group  was relevant, that is fine. Rather than get caught up in the details of what seems a perfectly reasonable answer, see if there are easier targets. In this case, (A) seems much less relevant than this consideration.

In the end, (A) is the best—by which I mean  the worst —pick of the lot, so it is the answer we should get behind. I hope my analysis proves useful. Good luck with your studies.

- Andrew

gmatlover1010 · Answer

(A) Differentiating the new flavors of kale chips from the company’s regular offerings by distributing the new products in biodegradable containers.
(B) Tracking sales of all of the company’s products, in addition to whether consumers in one region preferred the new flavors offered in other regions.
(C) Examining the sourcing of ingredients, including how the foods were farmed and transported to regional processing facilities.
(D) Ensuring that none of the new ingredients would alter the taste and texture of the kale chips for which the company is known.
(E) Monitoring social media feedback on all of the company’s products by employing an impartial third-party group.

The company's ethos revolves around healthy living and eco friendliness. 
B,D,E all directly support the evaluation of the company's strategy by monitoring different aspects of the products. 
C- Also looks into whether the sourcing is in line with the company's ethos.

A - By differentiating new products from the old products in the way it looks, the company will not be able to assert whether the success of the new products is because of flavours themselves or the new packaging. 
 
Therefore A does not help evaluate the strategy.

SohGMAT2020 · Answer

Here we have to see which option does not help the company in evaluating its business strategy of bringing the new flavors into full scale.

(A) Differentiating the new flavors of kale chips from the company’s regular offerings by distributing the new products in biodegradable containers.  The products would anyway be differentiated from the original products the company sells and merely distributing the new products in biodegradable containers does not help the company evaluate its business. Correct

(B) Tracking sales of all of the company’s products, in addition to whether consumers in one region preferred the new flavors offered in other regions. : Yes tracking the sales will help the company see the demand of the new product and help in making a decision. Eliminate B

(C) Examining the sourcing of ingredients, including how the foods were farmed and transported to regional processing facilities. Yes since the company is centered on healthy living and eco-friendliness examining the sourcing will help to see how the process is aligned to the company's goal. Eliminate C

(D) Ensuring that none of the new ingredients would alter the taste and texture of the kale chips for which the company is known. Yes this will make sure that the new ingredients does not alter the taste and hence can cater to the current customer base of the product. Eliminate D

(E) Monitoring social media feedback on all of the company’s products by employing an impartial third-party group. Yes monitoring feedback would help see the user response and hence the popularity of the new products. Eliminate E

IMO A is correct

HDg · Answer

IMO: A

(A) Differentiating the new flavors of kale chips from the company’s regular offerings by distributing the new products in biodegradable containers. >>  I can't think of any implication of this action that can help the company evaluating its new strategy. The new container may reflect the company's biz model but its goal is to determine what is the most favorable flavor. Keep this option.  
(B) Tracking sales of all of the company’s products, in addition to whether consumers in one region preferred the new flavors offered in other regions. >>  Cross-checking can help the company defining whether consumers in one region preferred new flavors in their region or in another region.  
(C) Examining the sourcing of ingredients, including how the foods were farmed and transported to regional processing facilities. >>  To ensure that the taste of a new chip is true to the company's expectation/formula. 
(D) Ensuring that none of the new ingredients would alter the taste and texture of the kale chips for which the company is known. >>  To ensure that the newly added flavor doesn't entirely change the original taste of the chip. We need to distinguish between 02 reasons: "customers don't like the newly added taste of the kale chip" and "customers don't like the fact that overall taste was changed, abolishing the signature flavor of kale"  
(E) Monitoring social media feedback on all of the company’s products by employing an impartial third-party group. >>  To measure market sentiment of the new product.

cs15811581 · Answer

The Kale Chip Cooperative, a company based in the United States whose business model is centered on healthy living and eco-friendliness, is hoping to add a new flavor of kale chip to its offerings in each of four regional markets: in the northeast, a dessert chip made with maple sugar; in the south, a spicy Cajun chip; in the northwest, a teriyaki chip; and in the southwest, a cilantro and chili powder chip. After a trial period, the company will decide whether to bring the new flavors to market on a full scale.

Each of the following actions would help The Kale Chip Cooperative evaluate its business strategy EXCEPT:

Each of the following actions would help The Kale Chip Cooperative evaluate its business strategy EXCEPT:

(A) Differentiating the new flavors of kale chips from the company’s regular offerings by distributing the new products in biodegradable containers.
 The business strategy is related to flavor, so containers should not affect the strategy. KEEP

(B) Tracking sales of all of the company’s products, in addition to whether consumers in one region preferred the new flavors offered in other regions.
 Yes, this will affect the strategy if there is a high response for a particular flavour in other region. But we have to assume that the samples are not restricted to a certain region. If the option A was not there, this would also not affect the strategy if the samples are restricted to specific regions.

(C) Examining the sourcing of ingredients, including how the foods were farmed and transported to regional processing facilities.
 All the points mentioned will affect the strategy

(D) Ensuring that none of the new ingredients would alter the taste and texture of the kale chips for which the company is known.
 Again, would go for this option if A were not there. We are testing new flavours, so restricting it to existing taste and texture may not be the best idea. But if the company wants maintain a certain taste and texture, then it would affect the strategy.

(E) Monitoring social media feedback on all of the company’s products by employing an impartial third-party group.
 Surely, a good tool to evaluate the business strategy.

A

JonShukhrat · Answer

What the company is trying to uncover during the trial is whether consumers prefer the new flavors.
Interesting fact: taste and flavor are not the same thing.
Taste: refers to the senses inside our mouth including our tongue
Aroma: occurs inside our noses and relates specifically to our sense of smell
Flavor: is when taste and aroma converge

This means that we can keep the taste of the product unaltered but still add some flavor.

(A) Differentiating the new flavors of kale chips from the company’s regular offerings by distributing the new products in biodegradable containers.

Correct as far as I know. If we change the container of the product to a more eco-friendly one, then the company may have difficulty figuring out whether customers buy new flavors because they like them or whether they simply choose them because of their container. Consequently, the company has no answer to its question.

(B) Tracking sales of all of the company’s products, in addition to whether consumers in one region preferred the new flavors offered in other regions.

Incorrect because this choice helps. It’s through tracking company can decide whether new products are successful. Moreover, finding out which region likes which flavor leads to better decision making.

(C) Examining the sourcing of ingredients, including how the foods were farmed and transported to regional processing facilities.

Incorrect because this choice helps. We know that the business model of the company centered on healthy living and eco-friendliness. If its suppliers are delivering chemically modified products, then the reputation of the company is in danger.

(D) Ensuring that none of the new ingredients would alter the taste and texture of the kale chips for which the company is known.

Incorrect as far as I know. I found out that the flavor of a product can be changes without changing the taste. For example, if the original taste is salty (the five basic tastes such as sweet, sour, salt, bitter and umami), then we can keep it but add pepper and some odor, what eventually change the flavor but keep the taste.

Why keeping taste and structure is important? Because if we change them, then we won’t be sure about what may cause the following changes in purchase pattern of customers. Are they buying the new flavor because they like the flavor itself or whether they prefer new taste and structure? 
Therefore we need to keep the taste the same.

(E) Monitoring social media feedback on all of the company’s products by employing an impartial third-party group.

Another choice that will help company to read the opinions of customers about the new flavors. So incorrect.

So A

AndrewN · Answer

Hello,  VISHWARATH . Drawing on my McDonald's comparison, a consumer of, say, a McDonald's hamburger wants that piece of meat to taste like a McDonald's hamburger, not like any other hamburger. It is not as though such consumers would complain if McDonald's decided to roll out a new type of hamburger—the Big Mac in real life, for example—but those hamburger patties would still be expected to taste like  McDonald's  hamburger patties. That is what we are looking at in answer choice (D). If The Kale Chip Cooperative has established a customer base—and remember, the passage tells us that the company already has  offerings , so we can assume that more than one flavor of kale chip is probably being sold prior to the introduction of the test products—then those customers might reasonably expect a kale chip from the company to taste like and have the texture of the kale chip they know and love. Kale will taste like kale, regardless of the topping. But some kale chips can be flaky, others thicker and crunchier. The Kale Chip Cooperative would have an interest in rolling out a similar product to its current offerings so that consumers could associate those new flavors with the brand (and maybe buy more kale chips of both old and new varieties).

I hope that makes more sense now. Thank you for thinking to follow up.

- Andrew

VerbalBot · Answer

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GMAT CLUB OLYMPICS: The Kale Chip Cooperative, a company based in the

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