r of its own investments in cost-cutting techniques, reducing its ability to develop new products. And managers under pressure to maximize cost-cutting will resist innovation because they know that more fundamental changes in processes or systems will wreak havoc with the results on which they are measured. Production managers have always seen their job as one of minimizing costs and maximizing output. This dimension of performance has until recently sufficed as a basis of evaluation, but it has created a penny-pinching, mechanistic culture in most factories that has kept away creative managers.
Every company I know that has freed itself from the paradox has done so, in part, by developing and implementing a manufacturing strategy. Such a strategy focuses on the manufacturing structure and on equipment and process technology. In one company a manufacturing strategy that allowed different areas of the factory to specialize in different markets replaced the conventional cost-cutting approach; within three years the company regained its competitive advantage. Together with such strategies, successful companies are also encouraging managers to focus on a wider set of objectives besides cutting costs. There is hope for manufacturing, but it clearly rests on a different way of managing.
01 The author of the passage is primarily concerned with ______.
A. summarizing a thesis
B. recommending a different approach
C. comparing points of view
D. making a series of predictions
02 It can be inferred from the passage that the manufacturers mentioned in paragraph 1 expected that the measures they implemented would ______.
A. encourage innovation
B. keep labor output constant
C. increase their competitive advantage
D. permit business upturns to be more easily predicted
03. The primary function of the first paragraph of the passage is to ______.
A. present a historical context for the author’s observations
B. anticipate challenges to the prescriptions that follow
C. clarify some disputed definitions of economic terms
D. summarize a number of long-accepted explanations
04. The author refers to Ahernathy’s study most probably in order to ______.
A. qualify an observation about one rule governing manufacturing
B. address possible objections to a recommendation about improving manufacturing competitiveness
C. support an earlier assertion about method of increasing productivity
D. suggest the centrality in the Unit States economy of a particular manufacturing industry
05. The author’s attitude toward the culture in most factories is best described as ______.
A. cautious B. critical C. disinterested D. respectful
Passage C
It can be argued that much consumer dissatisfaction with marketing strategies arises from an inability to aim advertising at only the likely buyers of a given
product. There are three
groups of consumers who are affected by the marketing process. First, there is the market segment—people who need th
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