In recent years, Western business managers have been heeding the

Question

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 
 RC00458-01 
 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 
 RC00458-02 
 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 
 RC00458-03 
 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
(D) introduce a paradox about the effect of a certain business practice in Japan
(E) indicate the need for Western managers to change their relationships with their external business partners

4 
 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.

5 
 RC00458-05 
 5. Which of the following is cited in the passage as evidence supporting the author's claim about what the  new research  referred to in line 20 demonstrates?

(A) The belief within Western management circles regarding the extent to which Japanese firms rely on strategic partnerships
(B) The surprising number of European and United States businesses that have strategic partnerships with their suppliers
(C) The response of Western automobile manufacturers to the advice that they adopt strategic partnerships with their suppliers
(D) The prevalence of “market-exchange” relationships between Japanese firms and their suppliers
(E) The success of a particular Japanese automobile manufacturer that favors strategic partnerships with its suppliers

GMATNinja · Accepted Answer

As discussed in the  Ultimate RC Guide for Beginners , your first job when you read an RC passage is to understand the structure of the author’s overall argument and WHY the author has written each part of the passage.

After reading the first paragraph, stop and ask yourself WHY the author has written the paragraph. In this case, the author wants us to know that Western management circles (WMCs) have recently embraced strategic partnerships because of  recent  studies of Japanese production and supply practices.

After reading the second paragraph, again, stop and ask yourself WHY the author has written the paragraph. Here, the author tells us that  new  research (i.e. newer than the studies referred to in the first paragraph) suggests that WMCs have made an unjustified assumption.

So the first paragraph tells us how recent studies affected the thinking of WMCs, and the second paragraph tells us how their thinking may have been flawed.

Was the purpose of the passage simply to tell us about the recent studies and how they impacted WMCs? No... if that were the case, the second paragraph would not be there. Even though the unjustified assumption is only explained in the second paragraph, the first paragraph sets us up for the second paragraph. We need the first paragraph to explain the reasoning of the WMCs before we can be told why their reasoning is flawed (because of the unjustified assumption).

More importantly, if you can confidently eliminate four choices on a GMAT question, then you've found your answer!

salonipatil · Answer

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

“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

SR23 · Answer

In the main idea question, the validity of the assumption is challenged only in the last paragraph. Although other options are not even related, I am not understanding how to tackle such type of questions. I had crossed this option as it only pertained to the 2nd paragraph.

Rebekah · Answer

I got the idea that the most important step of nailing RC is to understand the structure and the main idea(the author's attitude) of the whole passage.
During the first reading, read ONLY views instead of examples.
However, as gmat RC is getting harder, sometimes it is really difficult for me to make a decision about which sentence to read, which not! Since the description has to be understood in order to understand somebody's views.
 
I'd make a examples:
 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.

Which of the following is cited in the passage as evidence supporting the author`s claim about what the new research referred to in line 20(see highlighted text) demonstrates?(first reading this question, what the hell is ABCDE talking about...none of them is similar to what I understand..)
A The belief within Western management circles regarding the extent to which Japanese firms rely on strategic partnerships
B The surprising number of European and United States businesses that have strategic partnerships with their suppliers
C The response of Western automobile manufacturers to the advice that they adopt strategic partnerships with their suppliers
D The prevalence of "market‐exchange" relationships between Japanese firms and their suppliers
E The success of a particular Japanese automobile manufacturer that favors strategic partnerships with its suppliers

Although it is clear that a view has been questioned from the big "HOWEVER", it is still difficult for me to choose what to read for the first time. Also, some description is vague and indirect, it takes me a lot of time to understand what the author is trying to talk about.

So, I guess I really should understand each views presented in the article during my first time reading! Even if I couldn't understand the sentence for the first time, I should repeat reading it until I get it and move on to next...
(I realized just moving my eyes from line to line and getting nothing in my mind are really annoying, I couldn't barely understand the DETAILED QUESTIONS)

Also, I really have a Nemo's memory, 
For some really clarified structure, such as:
paragraph1
A view, why the view is held by many people, however, the view has two limitations.. There are two opposing views about how to solve the limitations
paragraph2
A new research justifies that one of the opposing view is correct.. how the study is conducted...

OK, I got the structure, and I understand all the first paragraph is talking about(everything!!)
but I could not remember which two limitations are...When I saw a question about it...I have to go back and find and read again..
However, if I DO NOT understand what the two opposing views are talking about, I could not understand the next paragraph is talking about right??
So... I really do not know how to solve it
 
For a non-native speaker like me, it is already difficult to understand the passage(so many long and complex sentences) in a short time, there is a huge GAP between understanding the passage and getting right on questions!!!

Sometimes I wonder, what the hell is the question talking about? or what the hell do those ABCDE mean(sometimes they look long and complex)...

ScottTargetTestPrep · Answer

Hi Rebekah,

I’m glad you reached out, and I’m happy to help. So, you actually answered your own question when you said, “So, I guess I really should understand each view presented in the article during my first time reading! Even if I couldn't understand the sentence for the first time, I should repeat reading it until I get it and move on to next…” Although it may seem obvious, you are 100% correct in saying that you must understand what you are reading in one sentence prior to moving to the next. After all, if you rushed through a passage without fully (or even partially) understanding what you read, then how could you be expected to correctly answer questions based on the passage, right?

When reading an RC passage, take your time and learn to understand exactly what is being said, reading one sentence at a time or even one word at a time, if necessary. There is no way around this work. You have to learn to comprehend what you are reading. Your goal should be to take all the time you need to understand exactly what is being said and arrive at the correct answer. If you can learn to get correct answers taking your time, you can learn to speed up. Answering questions is like any task: The more times you do it carefully and successfully, the faster you become at doing it carefully and successfully.

Regarding what you remember from the passage after reading, you are not expected to have the minute details memorized, but rather you simply need to have enough of an understanding of the passage to know where to find those details. Thus, I don’t think there is anything wrong with referring back to the passage to pull out key details and answer questions. For now, make it your goal to understand what a passage is about, and as you get better at that, you can then start working on speed.

If you have any further questions, please reach out.

Good luck!

AlN · Answer

Can some one please tell me the explanation of Qn 4. I picked D

GMATNinja · Answer

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:
 
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:
 
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.

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

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

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

I hope that helps!

Sajjad1994 · Answer

Official Explanation

1) The passage is primarily concerned with

Difficulty Level:   Medium

Main idea question

Explanation

This question asks fr an assessment of what the passage as a whole is doing. The passage discusses how Western business managers have been following the advice of academics and journalists to pursue strategic partnerships with their suppliers. The advice is based on studies comparing Japanese production and supply practices with those of the rest of the world. Newer research, however, indicates that Japanese practices actually differ from those indicated in the earlier studies and are not significantly different from practices associated with Western manufacturers.

A.  The passage is not primarily concerned with economic factors contributing to the success of Japanese companies, but rather with whether Japanese relationships with suppliers confirm to the practices recently adopted by Western business manufacturers.

B.  Although the passage discusses strategic partnerships and market-exchange relationships, it does not discuss their relative merits.

C Correct.  The passage does question the view promoted by several studies regarding the relationship Japanese firms have with their suppliers.

D.  The passage does not indicate that Western companies have been slow to adopt any particular practice favored by Japanese companies.

E.  Rather than pointing out differences between Japanese and Western supplier relationships, it actually suggests that they are more similar than generally realized.

The correct answer is C

Hope it helps

jaisonsunny77 · Answer

1) The passage is primarily concerned with  
 
(A) examining economic factors that may have contributed to the success of certain Japanese companies  -  the passage is not concerned about the 'factors' that 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  -  not implied or stated in the passage . 
 (C) challenging the validity of a widely held assumption about how Japanese firms operate - In paragraph one, it is assumed that all Japanese firms operate using Strategic partnerships. But the second passage is constructed to challenge this very assumption. Hence,  (C) is the right answer choice.  
  
(D) explaining why Western companies have been slow to adopt a particular practice favored by Japanese companies  -  the passage does not mention this . 
 (E) pointing out certain differences between Japanese and Western supplier relationships  -  the passage is only concerned with ''Strategic partnerships'', not any other ''differences''.  
 
 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  -  the passage does not mention this.   
(B) A debate within Western management circles during the past decade regarding the value of strategic partnerships  -  the ''value'' of strategic partnerships is not at all debated within western management circles. In fact, towards the end of the first paragraph, we have ''....has led to an unquestioning belief within Western management circles''  
(C) The success of certain European automobile manufacturers that have adopted strategic partnerships  -  the passage does not cite the success of any European automobile manufacturer.   
(D) An increase in demand over the past decade for automobiles made by Western manufacturers  -  we do not have any information in the passage that suggests this 
 (E) Research comparing Japanese business practices with those of other nations - in the second sentence of the first paragraph, we have "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." This is exactly what (E) mentions. Hence,  (E) is the right answer to this question.

3) The author mentions "the success of a certain well-known Japanese automaker" most probably in order to

Towards the middle of the first paragraph, we have ''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.''.

This is what (B) implies.

(B) cite a specific case that has convinced Western business experts of the value of a certain business practice

hence,   (B) is the right answer choice.

4) Which of the following is most clearly an example of the practice referred to in the last sentence of the passage? 
 
In the last sentence of the passage, we have ''"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." (E) resonates with this thought most closely

(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.

Hence,   (E) is the right answer choice.

5) Which of the following is cited in the passage as evidence supporting the author's claim about what the new research referred to in line 20 demonstrates? 
 
In the last paragraph of the passage, we have ''...widespread assumptions are unjustified. Not only..... but they (the Japanese firms) 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,...''
This is what we have in (D)

(D) The prevalence of “market-exchange” relationships between Japanese firms and their suppliers

hence,   (D) is the right answer choice.

zoezhuyan · Answer

dear  AndrewN ,  GMATNinja , 
 GMATNinjaTwo ,

I am struggling with B and E, both seem valid for me. I have no solid idea how to distinguish them, would you please clarify further?

thanks in advance

GMATNinja · Answer

Question 3 
 
Let's start with the purpose of the first paragraph:
  To describe the recent trend of Western business managers moving towards "strategic partnerships"  
 To explain why  experts  have advised this move

Now let's take a look at answer choice (B):
 
The passage states that the  experts'  advice about moving to strategic partnerships was a "natural reaction" to some studies of Japanese businesses. Then it cites the example of a "certain well-known Japanese automaker" as an example of one of these studies. So the Japanese automaker is cited to explain why Western  business experts  believed in "strategic partnerships." This fits well with answer choice (B).

Now let's consider answer choice (E):

The purpose of this piece of the paragraph is to explain why  experts  believe in strategic partnerships. But that doesn't mean the  author  of the passage supports strategic partnerships.

Notice that answer choice (E) suggests that the  author  believes that managers should "change their relationships with their external business partners." But this isn't the case -- it's the  experts  who believe this. So (E) is out and we're left with (B). As is often the case, understanding the purpose of the paragraph as a whole is essential to understanding the purpose of specific lines.

I hope that helps!

madhuresh819 · Answer

Can someone explain Q2. I was down to B & E ? OA-E  GMATNinja   Sajjad1994

RC00458-02
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

Sajjad1994 · Answer

Official Explanation

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

Difficulty Level:   600

Supporting idea

This question is concerned with identifying what the passage says about certain experts' advice. The passage indicates that the experts' advice is based on numerous studies carried out over the previous decade that compared Japanese manufacturing and supply practices with those of the rest of the world.

A.  The passage indicates that the major automobile manufacturers in the United States have decreased the number of suppliers they deal with, but the experts' advice was not in response to such a decrease; rather, the decrease was in response to the manufacturer's adoption of the experts' advice.

B.  The passage does not say anything about a debate within Western management circles regarding management partnerships.

C.  The passage mentions that European manufacturers have adopted strategic partnerships, but it does not indicate how successful those manufacturers have been.

D.  The passage does not indicate whether demand for automobiles has increased over the past decade.

E.  Correct.   The passage indicates that the experts' advice was made in reaction to studies that compared Japanese business practices regarding production and suppliers with those of other companies.

The correct answer is E.

GMATNinja · Answer

The passage states that the  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." So, the advice was  based  on these studies. Or, as answer choice (E) says, the advice was a " response " to these studies.

Regarding answer choice (B): notice that the passage describes "an unquestioning belief within Western management circles in the value of strategic partnerships." In other words, Western management circles currently believe in the value of strategic partnerships.

Was there a " debate " about the value of strategic partnerships "during the past decade," as answer choice (B) suggests? Since the passage never addresses this question directly, we simply don't know. So the advice might not be a response to a " debate ," since we don't know if this debate  even happened . All we know is that the advice was based on studies about Japanese production and supply practices. So, (B) is out.

I hope that helps!

samarth1222 · Answer

Hi,
I have a doubt in Question no 3 I Rejected option b because B it is saying that "cite a specific case that has convinced Western business experts of the value of a certain business practice" But in the passage, nothing is given about the specific example it is said that general practice is followed among Japanese business man and that is what it is written in option A. Can someone please explain where am I going wrong?

GMATNinja · Answer

Question 3 
 
Let's start with the purpose of the first paragraph (borrowed from our post above):

To describe the recent trend of Western business managers moving towards "strategic partnerships"  
 To explain why experts have advised this move

Now let's take a look at answer choice (B):

The passage states that the experts' advice about moving to strategic partnerships was a "natural reaction" to some studies of Japanese businesses. Then it cites the example of a "certain well-known Japanese automaker" as an  example  of one of these studies. So the Japanese automaker is cited to explain why Western business experts believed in "strategic partnerships." This fits well with answer choice (B).

Now let's consider answer choice (A):
 
The author does state that this particular automaker is "successful" in using strategic partnerships, but he/she doesn't really demonstrate the  reasons  why this business practice leads to success.

Additionally, the question asks us about the author's purpose in including this detail. As described above, the purpose of the first paragraph is to explain why Western experts are so enamored with strategic partnerships. This purpose is much better captured in (B) than in (A).

I hope that helps!

VerbalBot · Answer

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GMAT Reading Comprehension (RC) Questions

In recent years, Western business managers have been heeding the

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