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# GMAT Prep RC: In recent years, Western business managers

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Current Student
Joined: 19 Mar 2012
Posts: 4264
Location: India
GMAT 1: 760 Q50 V42
GPA: 3.8
WE: Marketing (Non-Profit and Government)

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25 May 2016, 10:14
3
4
Question 1
00:00

based on 196 sessions

79% (02:24) correct 21% (02:45) wrong

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Question 2
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based on 194 sessions

70% (01:02) correct 30% (01:26) wrong

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Question 3
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based on 190 sessions

87% (00:54) correct 13% (01:29) wrong

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Question 4
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based on 182 sessions

90% (01:23) correct 10% (01:43) wrong

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New GMAT Prep RC Project: 1 RC Every day. Don't forget to time yourself with the stopwatch below to earn kudos.

In recent years, Western business managers have been heeding the exhortations of business journalists and academics to move their companies toward long term, collaborative “strategic partnerships” with their external business partners (e.g., suppliers). The experts’ advice comes as a natural reaction to numerous studies conducted during the past decade that compared Japanese production and supply practices with those of the rest of the world. The link between the success of a certain well-known Japanese automaker and its effective management of its suppliers, for example, has led to an unquestioning belief within Western management circles in the value of strategic partnerships. Indeed, in the automobile sector all three United States manufacturers and most of their European competitors have launched programs to reduce their total number of suppliers and move toward having strategic partnerships with a few.

However, new research concerning supplier relationships in various industries demonstrates that the widespread assumption of Western managers and business consultants that Japanese firms manage their suppliers primarily through strategic partnerships is unjustified. Not only do Japanese firms appear to conduct a far smaller proportion of their business through strategic partnerships than is commonly believed, but they also make extensive use of “market-exchange” relationships, in which either party can turn to the marketplace and shift to different business partners at will, a practice usually associated with Western manufacturers

1. The passage is primarily concerned with

A. examining economic factors that may have contributed to the success of certain Japanese companies
B. discussing the relative merits of strategic partnerships as compared with those of market-exchange relationship
C. challenging the validity of a widely held assumption about how Japanese firms operate
D. explaining why Western companies have been slow to adopt a particular practice favored by Japanese companies
E. pointing out certain differences between Japanese and Western supplier relationships

2. According to the passage, the advice referred to in the highlighted text was a response to which of the following?

A. A recent decrease in the number of available suppliers within the United States automobile industry
B. A debate within Western management circles during the past decade regarding the value of strategic partnerships
C. The success of certain European automobile manufacturers that have adopted strategic partnerships
D. An increase in demand over the past decade for automobiles made by Western manufacturers
E. Research comparing Japanese business practices with those of other nations

3. The author mentions “the success of a certain well known Japanese automaker” most probably in order to

A. demonstrate some of the possible reasons for the success of a certain business practice
B. cite a specific case that has convinced Western business experts of the value of a certain business practice
C. describe specific steps taken by Western automakers that have enabled them to compete more successfully in a global market
E. indicate the need for Western managers to change their relationships with their external business partners

4. Which of the following is most clearly an example of the practice referred to in the last sentence of the passage?

A. A department store chain that employs a single buyer to procure all the small appliances to be sold in its stores
B. An automobile manufacturer that has used the same supplier of a particular axle component for several years in a row
C. A hospital that contracts only with union personnel to staff its nonmedical positions
D. A municipal government that decides to cancel its contract with a waste disposal company and instead hire its own staff to perform that function
E. A corporation that changes the food-service supplier for its corporate headquarters several times over a five-year period as part of a cost-cutting campaign.

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Joined: 22 Jan 2015
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25 May 2016, 22:48
6.20 minute ,3 correct 1 wrong . Can anyone help me out with the last question. I always get these 'example' kind of questions wrong
Intern
Joined: 08 Jul 2015
Posts: 46
GPA: 3.8
WE: Project Management (Energy and Utilities)

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27 May 2016, 02:04
Took me 6'45'', got 1 wrong #2.

Was struggling between B&E in #2 - I overlooked the stem "advice referred to in the highlighted text was a response to" - on a re-read it's quite clear that the ans should be E. The experts’ advice comes as a natural reaction to numerous studies
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[4.33] In the end, what would you gain from everlasting remembrance? Absolutely nothing. So what is left worth living for?
This alone: justice in thought, goodness in action, speech that cannot deceive, and a disposition glad of whatever comes, welcoming it as necessary, as familiar, as flowing from the same source and fountain as yourself. (Marcus Aurelius)
Intern
Joined: 08 Jul 2015
Posts: 46
GPA: 3.8
WE: Project Management (Energy and Utilities)

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27 May 2016, 02:06
udbhav2412 wrote:
6.20 minute ,3 correct 1 wrong . Can anyone help me out with the last question. I always get these 'example' kind of questions wrong

Hi udbhav2412 - what was your selection in Q4? and the struggle?
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[4.33] In the end, what would you gain from everlasting remembrance? Absolutely nothing. So what is left worth living for?
This alone: justice in thought, goodness in action, speech that cannot deceive, and a disposition glad of whatever comes, welcoming it as necessary, as familiar, as flowing from the same source and fountain as yourself. (Marcus Aurelius)
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Status: One more try
Joined: 01 Feb 2015
Posts: 43
Location: India
Concentration: General Management, Economics
WE: Corporate Finance (Commercial Banking)

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21 Jun 2016, 06:50
souvik101990 wrote:
New GMAT Prep RC Project: 1 RC Every day. Don't forget to time yourself with the stopwatch below to earn kudos.

1) The passage is primarily concerned with
A. examining economic factors that may have
contributed to the success of certain Japanese
companies
B. discussing the relative merits of strategic
partnerships as compared with those of marketexchange
relationship
C. challenging the validity of a widely held assumption
D. explaining why Western companies have been slow
to adopt a particular practice favored by Japanese
companies
E. pointing out certain differences between Japanese
and Western supplier relationships

2) According to the passage, the advice referred to in the
highlighted text was a response to which of the
following?
A. A recent decrease in the number of available
suppliers within the United States automobile industry
B. A debate within Western management circles during
the past decade regarding the value of strategic
partnerships
C. The success of certain European automobile
partnerships
D. An increase in demand over the past decade for
E. Research comparing Japanese business practices
with those of other nations

3) The author mentions “the success of a certain wellknown
Japanese automaker” most probably in order to
A. demonstrate some of the possible reasons for the
success of a certain business practice
B. cite a specific case that has convinced Western
practice
C. describe specific steps taken by Western
automakers that have enabled them to compete more
successfully in a global market
E. indicate the need for Western managers to change
their relationships with their external business partners

4) Which of the following is most clearly an example of
the practice referred to in the last sentence of the
passage?
A. A department store chain that employs a single
buyer to procure all the small appliances to be sold in
its stores
B. An automobile manufacturer that has used the
same supplier of a particular axle component for
several years in a row
C. A hospital that contracts only with union personnel
to staff its nonmedical positions
D. A municipal government that decides to cancel its
contract with a waste disposal company and instead
hire its own staff to perform that function
E. A corporation that changes the food-service supplier
for its corporate headquarters several times over a
five-year period as part of a cost-cutting campaign.

3C 1W.
Not satisfied with the 4th Question ans .
Can anybody explain why it is E and not D.
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Believe you can and you are halfway there-Theodore Roosevelt
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Joined: 20 Feb 2016
Posts: 6

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27 Jun 2016, 09:38
1
guhabhishek wrote:
souvik101990 wrote:
New GMAT Prep RC Project: 1 RC Every day. Don't forget to time yourself with the stopwatch below to earn kudos.

1) The passage is primarily concerned with
A. examining economic factors that may have
contributed to the success of certain Japanese
companies
B. discussing the relative merits of strategic
partnerships as compared with those of marketexchange
relationship
C. challenging the validity of a widely held assumption
D. explaining why Western companies have been slow
to adopt a particular practice favored by Japanese
companies
E. pointing out certain differences between Japanese
and Western supplier relationships

2) According to the passage, the advice referred to in the
highlighted text was a response to which of the
following?
A. A recent decrease in the number of available
suppliers within the United States automobile industry
B. A debate within Western management circles during
the past decade regarding the value of strategic
partnerships
C. The success of certain European automobile
partnerships
D. An increase in demand over the past decade for
E. Research comparing Japanese business practices
with those of other nations

3) The author mentions “the success of a certain wellknown
Japanese automaker” most probably in order to
A. demonstrate some of the possible reasons for the
success of a certain business practice
B. cite a specific case that has convinced Western
practice
C. describe specific steps taken by Western
automakers that have enabled them to compete more
successfully in a global market
E. indicate the need for Western managers to change
their relationships with their external business partners

4) Which of the following is most clearly an example of
the practice referred to in the last sentence of the
passage?
A. A department store chain that employs a single
buyer to procure all the small appliances to be sold in
its stores
B. An automobile manufacturer that has used the
same supplier of a particular axle component for
several years in a row
C. A hospital that contracts only with union personnel
to staff its nonmedical positions
D. A municipal government that decides to cancel its
contract with a waste disposal company and instead
hire its own staff to perform that function
E. A corporation that changes the food-service supplier
for its corporate headquarters several times over a
five-year period as part of a cost-cutting campaign.

3C 1W.
Not satisfied with the 4th Question ans .
Can anybody explain why it is E and not D.

“marketexchange” relationships, in which either party can turn to the marketplace and shift to different business partners at will, a practice usually associated with Western manufacturers
this means nothing but being able to change the supplier at will at any point in time

A. A department store chain that employs a single buyer to procure all the small appliances to be sold in its stores - Incomplete- Single buyer but for how long?
B. An automobile manufacturer that has used the same supplier of a particular axle component for several years in a row -Contradicts- Single buyer for several years
C. A hospital that contracts only with union personnel to staff its nonmedical positions -Same as A
D. A municipal government that decides to cancel its contract with a waste disposal company and instead hire its own staff to perform that function- Out of scope- Nothing mentioned about intra organisatinal service
E. A corporation that changes the food-service supplier for its corporate headquarters several times over a five-year period as part of a cost-cutting campaign- Change multiple suppliers over a given span- says exactly what is highlighted in red

Hope this helps
GMAT Club Verbal Expert
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2762
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GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170

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12 Feb 2019, 14:18
1
AlN wrote:
Can some one please tell me the explanation of Qn 4. I picked D

Question 4 asks us to find an example of "the practice referred to in the last sentence of the passage," so let's take another look at that sentence:
Quote:
Not only do Japanese firms appear to conduct a far smaller proportion of their business through strategic partnerships than is commonly believed, but they also make extensive use of “market-exchange” relationships, in which either party can turn to the marketplace and shift to different business partners at will, a practice usually associated with Western manufacturers

In this sentence, the author contrasts strategic partnerships with the practice of "market-exchange" relationships. In this practice, "either party can turn to the marketplace and shift to different business partners at will."

Let's apply this information to each answer choice:
Quote:
A. A department store chain that employs a single buyer to procure all the small appliances to be sold in its stores

The department store chain is employing a single buyer rather than shifting to different business partners. This is clearly not an example of a market-exchange relationship, so (A) is out.

Quote:
B. An automobile manufacturer that has used the same supplier of a particular axle component for several years in a row

Again, this manufacturer is using one supplier rather than shifting to different business partners. Eliminate (B).

Quote:
C. A hospital that contracts only with union personnel to staff its nonmedical positions

Contracting only union personnel is not a clear example of turning to the marketplace or shifting business partners at will. (C) is out.

Quote:
D. A municipal government that decides to cancel its contract with a waste disposal company and instead hire its own staff to perform that function

In this statement the municipal government cancels its contract with a partner, but it does not "turn to the marketplace" or "shift to different business partners." Instead, it decides to "hire its own staff to perform that function." Because the municipal government finds an internal solution in this scenario, this is not a good example of a market-exchange relationship. Answer choice (D) is out.

Now take another look at answer choice (E):
Quote:
E. A corporation that changes the food-service supplier for its corporate headquarters several times over a five-year period as part of a cost-cutting campaign.

Here, the corporation changes one supplier for another several times in order to cut costs. This is a clear example of "turn[ing] to the marketplace and shift[ing] to different business partners at will." (E) is the correct choice for question 4.

I hope that helps!
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Re: GMAT Prep RC: In recent years, Western business managers   [#permalink] 12 Feb 2019, 14:18
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