• Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT

OG2017 RC 2

This topic has 1 expert reply and 4 member replies
richachampion Legendary Member
Joined
21 Jul 2015
Posted:
678 messages
Followed by:
24 members
Thanked:
31 times
Test Date:
∞ →
Target GMAT Score:
760
GMAT Score:
740

OG2017 RC 2

Post Fri Sep 09, 2016 7:54 pm
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    Ecoefficiency (measures to minimize environmental impact through the reduction or elimination of waste from production processes) has become a goal for companies worldwide, with many realizing significant cost savings from such innovations. Peter Senge and Goran Carstedt see this development as laudable but suggest that simply adopting ecoefficiency innovations could actually worsen environmental stresses in the future. Such innovations reduce production waste but do not alter the number of products manufactured nor the waste generated from their use and discard; indeed, most companies invest in ecoefficiency improvements in order to increase profits and growth. Moreover, there is no guarantee that increased economic growth from ecoefficiency will come in similarly ecoefficient ways, since in today’s global markets, greater profits may be turned into investment capital that could easily be reinvested in old-style eco-inefficient industries. Even a vastly more ecoefficient industrial system could, were it to grow much larger, generate more total waste and destroy more habitat and species than would a smaller, less ecoefficient economy. Senge and Carstedt argue that to preserve the global environment and sustain economic growth, businesses must develop a new systemic approach that reduces total material use and total accumulated waste. Focusing exclusively on ecoefficiency, which offers a compelling business case according to established thinking, may distract companies from pursuing radically different products and business models.


    Q1:The primary purpose of the passage is to
    A. explain why a particular business strategy has been less successful than was once anticipated
    B. propose an alternative to a particular business strategy that has inadvertently caused ecological damage
    C. present a concern about the possible consequences of pursuing a particular business strategy
    D. make a case for applying a particular business strategy on a larger scale than is currently practiced
    E. suggest several possible outcomes of companies’ failure to understand the economic impact of a particular business strategy



    Q2:According to the passage, an exclusive pursuit of ecoefficiency may cause companies to
    A. neglect the development of alternative business models and products
    B. keep the number of products that they manufacture unchanged
    C. invest capital from increased profits primarily in inefficient and outmoded industries that may prove unprofitable
    D. overemphasize the production process as the key to increasing profits and growth
    E. focus more on reducing costs than on reducing the environmental impact of production processes


    Q3:The passage mentions which of the following as a possible consequence of companies’ realization of greater profits through ecoefficiency?
    A. The companies may be able to sell a greater number of products by lowering prices.
    B. The companies may be better able to attract investment capital in the global market.
    C. The profits may be reinvested to increase economic growth through ecoefficiency.
    D. The profits may be used as investment capital for industries that are not ecoefficient.
    E. The profits may encourage companies to make further innovations in reducing production waste.



    Q4:The passage implies that which of the following is a possible consequence of a company’s adoption of innovations that increase its ecoefficiency?
    A. Company profits resulting from such innovations may be reinvested in that company with no guarantee that the company will continue to make further improvements in ecoefficiency.
    B. Company growth fostered by cost savings from such innovations may allow that company to manufacture a greater number of products that will be used and discarded, thus worsening environmental stress.
    C. A company that fails to realize significant cost savings from such innovations may have little incentive to continue to minimize the environmental impact of its production processes.
    D. A company that comes to depend on such innovations to increase its profits and growth may be vulnerable in the global market to competition from old-style ecoinefficient industries.
    E. A company that meets its ecoefficiency goals is unlikely to invest its increased profits in the development of new and innovative ecoefficiency measures.

    _________________
    R I C H A,
    My GMAT Journey: 470 → 720 → 740
    Target Score: 760+
    richacrunch2@gmail.com
    1. Press thanks if you like my solution.
    2. Contact me if you are not improving. (No Free Lunch!)



    Last edited by richachampion on Mon Oct 03, 2016 3:05 am; edited 2 times in total

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    richachampion Legendary Member
    Joined
    21 Jul 2015
    Posted:
    678 messages
    Followed by:
    24 members
    Thanked:
    31 times
    Test Date:
    ∞ →
    Target GMAT Score:
    760
    GMAT Score:
    740
    Post Fri Sep 09, 2016 7:54 pm
    ANSWERS ARE
    C
    A
    D
    B

    _________________
    R I C H A,
    My GMAT Journey: 470 → 720 → 740
    Target Score: 760+
    richacrunch2@gmail.com
    1. Press thanks if you like my solution.
    2. Contact me if you are not improving. (No Free Lunch!)



    Last edited by richachampion on Mon Oct 03, 2016 2:55 am; edited 1 time in total

    MBA Challengers Senior | Next Rank: 100 Posts
    Joined
    09 Sep 2016
    Posted:
    51 messages
    Thanked:
    20 times
    Post Sun Oct 02, 2016 4:01 am
    Hi richachampion,

    Few important points from the passage:

    1. Eco-efficiency is a goal for companies with many realising profits from it
    2. A new study sees that simply adopting eco-efficiency not useful ecologically - does not reduce no. of products produced or the waste from it - most companies adopt it for profit
    3. Greater profits could lead to it's reinvestment in old-style eco-inefficient industries
    4. Increase eco-efficient economy will still lead to more ecological damage than if the scale remains small
    5. Businesses must develop new approach to reduce total material use and total waste
    6. Focusing only on eco-efficiency may distract companies from pursuing radically different products and business models

    Q4. The passage is clearly talking about how while eco-efficiency sounds all good, there are enough pitfalls to that approach. This is properly covered in option C.

    Q5. As pointed out in pt. 6, if companies focus exclusively on eco-efficiency, they will not utilize resources to try and develop alternate products or business models. This is covered in option A.

    Q6. Point 3 mentions how increased profits due to low costs from eco-efficient business model could lead to the profit being reinvested in ecologically inefficient businesses. This is covered in option D.

    Q7. This question is slightly tricky as the passage seems to talk about both - more waste from usage of the products sold and neglect of innovative business models. However, one distinction is that the concern about increase in the waste from products of a company is spoken in terms of an individual company whereas neglect of innovative models is spoken as a macro area of concern. Thus, option B seems to be the more plausible option.

    So, the answers are C, A, D, B

    _________________
    Log on to www.mbachallengers.com for
    Easy strategic GMAT prep
    For any queries mail us at mba.challengers@outlook.com
    Follow MBA Challengers on Facebook

    Post Sun Oct 02, 2016 12:41 pm
    Please only post ONE question per post, and always include the Official Answer. Experts will be happy to respond if you do so.

    _________________


    Ceilidh Erickson
    Manhattan Prep GMAT & GRE instructor
    EdM in Mind, Brain, and Education
    Harvard Graduate School of Education


    Manhattan Prep instructors all have 99th+ percentile scores and expert teaching experience.
    Sign up for a FREE TRIAL, and learn why we have the highest ratings in the GMAT industry!

    Free Manhattan Prep online events - The first class of every online Manhattan Prep course is free. Classes start every week.
    richachampion Legendary Member
    Joined
    21 Jul 2015
    Posted:
    678 messages
    Followed by:
    24 members
    Thanked:
    31 times
    Test Date:
    ∞ →
    Target GMAT Score:
    760
    GMAT Score:
    740
    Post Sun Oct 02, 2016 12:45 pm
    ceilidh.erickson wrote:
    Please only post ONE question per post, and always include the Official Answer. Experts will be happy to respond if you do so.
    I have received instructions from the Forum owner to post complete RC with its questions, but yes I will take care of the answers part.

    _________________
    R I C H A,
    My GMAT Journey: 470 → 720 → 740
    Target Score: 760+
    richacrunch2@gmail.com
    1. Press thanks if you like my solution.
    2. Contact me if you are not improving. (No Free Lunch!)

    richachampion Legendary Member
    Joined
    21 Jul 2015
    Posted:
    678 messages
    Followed by:
    24 members
    Thanked:
    31 times
    Test Date:
    ∞ →
    Target GMAT Score:
    760
    GMAT Score:
    740
    Post Mon Oct 03, 2016 3:04 am
    ceilidh.erickson wrote:
    Please only post ONE question per post, and always include the Official Answer. Experts will be happy to respond if you do so.
    Hi Miss Erickson,

    I have updated the answers. Thanks!

    _________________
    R I C H A,
    My GMAT Journey: 470 → 720 → 740
    Target Score: 760+
    richacrunch2@gmail.com
    1. Press thanks if you like my solution.
    2. Contact me if you are not improving. (No Free Lunch!)

    Best Conversation Starters

    1 Vincen 180 topics
    2 lheiannie07 61 topics
    3 Roland2rule 61 topics
    4 ardz24 40 topics
    5 VJesus12 14 topics
    See More Top Beat The GMAT Members...

    Most Active Experts

    1 image description Brent@GMATPrepNow

    GMAT Prep Now Teacher

    160 posts
    2 image description Rich.C@EMPOWERgma...

    EMPOWERgmat

    102 posts
    3 image description GMATGuruNY

    The Princeton Review Teacher

    99 posts
    4 image description Jay@ManhattanReview

    Manhattan Review

    86 posts
    5 image description Matt@VeritasPrep

    Veritas Prep

    80 posts
    See More Top Beat The GMAT Experts