Published on March 6, 2014
Growing MARKET May 2013 Experts’ GMAT tips & tricks No5 share Luxury brand marketing STRATEGIES
MBAINTELLIGENCE MAY 2013 No5 3 Letter from the top: Editorial 25 Growing an online grocery business’ market share 4 The Popinator: How a small company’s marketing strategy went viral 46 Kaplan Test Prep: GMAT mythbusting from the top 9 Marketing & operations management at Aston Martin 51 Book Review: Roll the Bones by David G Schwartz 16 Practical GMAT test prep question from Manhattan Elite Prep 52 Essential Links and Resources for MBA’s 23 Back issues: What has MBA Intelligence been talking about? 53 Article References MBA Intelligence is published monthly by Redwood Apps Limited. MBA Intelligence reserves the right to prohibit the reproduction of the magazine in any manner, whole or part. MBA Intelligence considers its sources reliable and verifies as much data as possible, although inaccuracies can occur; consequently readers using this information do so at their own risk. Although persons and companies mentioned herein are believed to be reputable, MBA Intelligence does not accept any responsibility for their activities. 2
MBAINTELLIGENCE MAY 2013 No5 GMAT The GMAT Breakdown: Tips and Tricks by Manhattan Elite Prep 16
MBAINTELLIGENCE MAY 2013 No5 GMAT On route to attaining an M.B.A. and future success in the business world, most neophyte professionals must undergo the trials and tribulations of the GMAT. With hundreds of applications going to each school each year, the GMAT becomes one of the chief predictors that admissions boards use to evaluate a prospect's candidacy. there is no need to fret over this future determining, three and a half hour exam Unlike academic grades, the GMAT is a standardized exam that helps business schools assess the qualification of an individual against a large pool of applicants with diverse personal and professional backgrounds. The GMAT scores play a significant role in admissions decisions since they are more recent than most academic transcripts of an applicant and they evaluate a person’s verbal, quantitative and writing skills. However, there is no need to fret over this future determining, three and a half hour exam, because it can be mastered. It just takes some hard work and guidance. Below are a series of helpful hints, tricks and steps to aid you in your own GMAT preparation from the instructors of Manhattan Elite Prep. Understanding Data Sufficiency There are two categories in the Quantitative Section with 37 questions in total, Problem Solving and Data Sufficiency. The latter and more ominous of the two, Data-Sufficiency is designed to measure your ability to: • Analyze a quantitative problem • Recognize relevant information • Determine whether there is sufficient information to solve a problem Two Statements Data-Sufficiency questions are accompanied by some initial information and two statements, labeled (1) and (2). The two statements lay out possible conditions. You must decide whether the statements given offer enough data to enable you to answer the question. Data Sufficiency questions are not about the actual solution, but deciding whether a solution can be derived in the first place. It is important to analyze each statement independently . In other words, you cannot mix the information from one statement with the other. Two Types of Questions ??? ?? There are two common types of Data Sufficiency questions: • Close-ended: Is “Y” divisible by 3? • Open-ended: What is the value of “X”? In a close-ended question, you can judge whether each statement is sufficient by determining if its answer is always Yes or always No. A statement is insufficient if its answer is sometimes Yes or sometimes No. 17
MBAINTELLIGENCE MAY 2013 No5 GMAT Q In an open-ended question, you can judge whether each statement is sufficient by determining if its answer results in a single value. A statement is insufficient if its answer leads to a range of values, instead of a specific value. Five Possible Answers The answer choices are always the same; by the time you get to the test and have done enough practice problems, you will not even have to look at the answers if the question is of the data sufficiency variety. • Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient. • Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient. • BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient • EACH statement ALONE is sufficient. • Statement (1) and (2) TOGETHER are NOT sufficient. A Three Questions You Must Ask (1) Is the information in Statement 1 sufficient to answer the question uniquely, as in, is there only one possible answer? It does not matter what the answer is: yes, no, red, blue. Will it always be the same, no matter what? (2) Is the information in Statement 2 sufficient to answer the question uniquely, meaning do you know that only one answer is possible? (3) If both of these questions are answered with a ”No,” then the third question becomes necessary: Is the information in Statements 1 and 2 together enough to answer the question? 18
MBAINTELLIGENCE MAY 2013 No5 GMAT One Practice Problem If a real estate agent received a commission of 6 percent of the selling price of a certain house, what was the selling price of the house? (1) The selling price minus the real estate agent’s commission was $84,600. (2) The selling price was 250 percent of the original purchase price of $36,000. • Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient. • Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient. • BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient • EACH statement ALONE is sufficient. • Statement (1) and (2) TOGETHER are NOT sufficient. From (1) we know that $84,600 is 94% (100% - 6%) of the selling price, and thus the selling price, $84,600 / 0.94, can be determined. Therefore (1) alone is sufficient. While from (2) it follows that the selling price is 2.5($36,000). Thus, (2) alone is sufficient. The best answer is the fourth choice. To increase your speed it is important to practice your multiplication and divisibility. Learn the secret rule of 7 here. 19
MBAINTELLIGENCE MAY 2013 No5 GMAT Critical Reasoning: Think Outside the Book Achieving success in the Critical Reasoning section of the GMAT exam is as methodical as the name suggests. The section consists of a series of short passages (typically 100 words or less), a follow-up question, and five multiple-choice answers. Do not worry about being familiar with the content discussed in the passages. The goal of this section is to test your ability to make an argument, evaluate an argument, and formulate or assess various chains of reasoning. In the CR section you will come across four types of questions: Assumption – The most common type of question. Here you likely see a conclusion in the passage along with some evidence supporting that conclusion. You will then be asked to weaken or strengthen the argument, or to identify some unwritten flaw or assumption on which the argument relies. Inference – This question type is easy to spot because it typically contains the word infer, inference, conclude, or complete. The question will ask you to find the answer choice that represents a possible conclusion derived from the argument in the passage. This is different than Assumption because the passage will not provide you with a conclusion, instead it will ask you to form one. Paradox – Requiring more internal analysis than the previous two types, this question type will ask you to reconcile which of the answers if true would help to explain a specific reason, difference, or conclusion. Method of Reasoning – There is no “what to look out for” when it comes to this type of question. However it will generally ask you to break down the structure of the statement and evaluate or describe the role of a specific component. Try your luck at a question: Recent studies show that people between the ages of 13 and 55 produce 65 pounds more garbage per year now than they did in 1995. This increase has led them to hold a higher percentage of the total garbage produced by all age groups. This age group constitutes a growing percentage of the population, so it partially explains this rise. 20
MBAINTELLIGENCE MAY 2013 No5 GMAT Which of the following can be concluded from the passage above? (A) (B) (C) (D) People over the age of 55 produce less garbage than children below the age of 13. The population has risen since 1995. People between the ages of 13 and 55 are more than half of the current population. Before 1995 people below the age of 13 and over the age of 55 produced a higher percentage of the total garbage than they do now. (E) People between the ages of 13 and 55 produce more garbage than those that are younger or older. You can easily pick out the question type because you know that when you see concluded in a question, you are being asked an inference question. Using the limited information in the passage, you must deduce which option provides the most accurate conclusion. Option A seems possible, particularly because some may assume that people over the age of 55 produce more trash than people young than 13 – but a conclusion cannot come from your gut or even prior knowledge of a topic, if it’s not in the passage, it is wrong. Again B seems possible because the passage states the 13-55 constitutes a growing percentage of the population. However only that portion of the population is confirmed to be growing therefore B is too vague to be correct. C is easy to eliminate because it is a stretch and the least logical option compared to the first two. Answer choice D needs to be evaluated mathematically. If the increase in trash produced by 13-55 years olds has led them to now hold a higher percentage of total trash produced by all age groups, then the percentage of trash produced by those younger and older must have shrunk. Mathematically speaking, this is correct. However, because you must choose the best possible option, it is imperative to read all answers, unlike you would with say a math problem. The statement choice E is sneaky like a politician. It looks right because you would assume that if the majority percentage of trash comes from 13-55 years that people in that age group produce more trash. Sneaky right! But because the population is growing, there are likely more people in that age group which is why the percentage of trash produced increased. However this does not mean that people themselves are producing more trash, in fact they may even be producing less! This section can only be tackled successfully if you familiarize yourself with the different question types. If you learn to spot the buzzwords that signify a question type (that’s right read the question before the passage), you will know what to look for when reading the passage. Study outside of your GMAT book—read an analysis of the presidential debates, review Gallup polls. Familiarizing yourself with day-to-day critical reasoning will improve your instincts on test day. 21
MBAINTELLIGENCE MAY 2013 No5 GMAT Manhattan Elite Prep Services We here at Manhattan Elite Prep hope that this GMAT tutorial is a helpful first step in your efforts to reach your highest possible score potential. We offer assistance for the GMAT exam across a multitude of mediums. We have group courses, private 1-on-1 courses and tutoring, as well as Online preparation all run by experienced instructors who have aced the GMAT themselves. All course packages include 5 Computer Adaptive practice exams, as well as access to our Online Recording Library. Manhattan Elite Prep also provides expert assistance to students preparing for the GRE, TOEFL, LSAT and SAT exams as well as MBA Admissions Consulting services such as Essay Review. Check out our website, follow us on Twitter and Facebook, give us a call, or even stop in to our Manhattan based headquarters for a free consultation. We want to ensure that each and every student that utilizes our services are not only fully prepared for their exam and able to score to the highest of their abilities, but are primed for future success in their academic and professional careers. www.manhattaneliteprep.com 22
MBAINTELLIGENCE MARCH 2013 No4 PUBLISH WITH US MBA Intelligence is looking for students, past or present, to publish their work showcasing their assignments on how they have applied their learnings. With a global reach we are unique in offering MBA students the ability to reach a wide and engaged audience of fellow students and of course potential employers. We are looking for articles drawn from, but not limited to: Strategy • Accounting and Financial Reporting • Economics • Marketing • Operations Management • Organisation Design / HRM • Application of Quantitative Tools and Techniques • Corporate Finance • Corporate Social Responsibility and Business Ethics As the only magazine out there that’s dedicated to the MBA it’s a great way to get your name out there and get your work seen by the right people. MBA INTELLIGENCE Get in touch with us for more information at firstname.lastname@example.org is looking for articles regarding South America’s growing economy and articles on sustainability, please get in contact if you have an assignment on either of these subjects follow MBA Intelligence on Twitter and Facebook 50
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