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The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer?.

Solutions for The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The passage given below is followed by a set of questions. Choose the most appropriate answer to each question.Over the past decade the worlds corporate pecking order has been disturbed by the arrival of a new breed of plucky multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products, but they have challenged some of the Wests most cherished notions of how companies ought to organise themselves. Many emerging-market multinationals are focused companies that are admired in the West: the likes of Indias Infosys Technologies, Brazils Embraer and South Africas MTN. But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private. The most remarkable of these is Indias Tata group, active in everything from cars to chemicals and from hotels to steel; Tata is so big that several of its companies are important multinationals in their own right. But others are also global forces: they include Alfa from Mexico, Koc Holding from Turkey and the Votorantim Group of Brazil. And dozens more are trying to break free of their national moorings. Tarun Khanna, of the Harvard Business School, calculates that such organisations are the most common business form in emerging markets. In India about a third of companies belong to wider entities. In Hong Kong 15 families control more than two-thirds of the stockmarket.There are plenty of reasons to doubt the durability of these business groups. Many of them have thrived because they have close relations with their national governments. They are far too susceptible to scandal (witness the current furore in India over the sale of mobile-phone licences to favoured groups involving bribes). Others are incapable of managing their diverse portfolios. Western stockmarkets habitually apply a discount to conglomerates shares. Yet there is more to these groups than cronyism. A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business. Mr Khanna reckons firms that belong to Indias business groups frequently outperform free-standing companies. Such groups developed partly to deal with the problems of operating in places where governments are frequently incompetent and markets are hopelessly underdeveloped. Western management gurus love to advise companies to stick to their knitting. But in emerging markets your knitting may be your ability to stitch your way around underdeveloped markets rather than just your ability to manufacture a particular product.The business groups are nimble decision-takers and have proved strikingly successful at seizing opportunities in other emerging markets. Kocs food-retailing business, Migros, has expanded throughout the Balkans and the former Soviet Union. Carlos Slim has extended his telecoms empire across Latin America. Tata also suggests that there may be yet another advantage indiversification: the ability to develop skills across a wide range of businesses. Not only are various Tata companies trying to produce frugal products such as the Nano, an ultra-cheap car. They are pooling their resources: Tata Consultancy Services, Tata Chemicals and Titan Industries co-operated to produce the worlds cheapest water purifier. In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise thatfor the time being at leastthese diversified giants have plenty to offer. Western firms may need to form joint ventures with old-fashioned conglomerates in order to win entry to fast-growing emerging markets. They may even find that they have to embrace diversification as they try to compete in these markets. The best emerging-market companies have learned a great deal from the West in recent years. It is time for Western multinationals to return the compliment.Q.Which of the following could be the best example of emerging-market multinationals stitching their way around in underdeveloped markets?a)In 2005, K09 Holding acquired a 38% interest in Tupra, the largest company in Turkey which began operations in 1991.b)Tata Steel and Tata Motors have been snapping up Asian companies, such as Thailands Millennium Steel and South Koreas Daewoo trucks.c)Tata created many of Indias greatest institutions, such as the Indian Institute of Science, the Tata Institute of Fundamental Research and the Tata Memorial Hospital.d)The key to Tatas success is attributed to its ability to recruit talented local staff(against stiff Western competition) and to assure quality across a wide range of products.e)The Votoratim Group operates in 24 countries worldwide, and is focused on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy, steel mill, pulp and paper, concentrated orange juice, and energy self-generation.Correct answer is option 'D'. 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