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SAMPLE TEST 
PART I: VOCABULARY AND EXPRESSIONS (30 pts)   
1. Multiple choice (15 pts): Choose the best answer. Write your answers on the ANSWER  SHEET.  1.  “ 
” refers to the sector that produces and collects things like crops, metals, raw  materials, etc. 
A. Primary sector B. Secondary sector C. Tertiary sector D. Public sector  2.  “ 
” refers to the sector that uses raw materials to make goods to be sold or to 
make machines, etc. that are used to make goods. 
A. Primary sector B. Secondary sector C. Tertiary sector D. Public sector  3.  “ 
” refers to the sector whose work involves doing something for 
customers but not producing goods. 
A. Primary sector B. Secondary sector C. Tertiary sector D. Public sector  4. 
A top manager whose performance is unsatisfactory can be dismissed by   the company’s      .  A. board of management  B. board of directors  C. chairman  D. president  5. 
Managers have to decide how best to allocate the human, physical and capital      available to them.  A. supply  B. production  C. investment  D. resources  6.  “To 
” means to inspire, to induce, to give a reason or incentive to  someone to do something.  A. motivate  B. promote  C. provoke  D. encourage  7.  “ 
” is a person employed by someone else, working for money.  A. Earner  B. Employee  C. Employer  D. Distributor  8. 
Relationships between employers and employees, managers and workers, 
management and unions are called . 
A. human relations B. labor relations C. labor unions  D. personal relations    9.  “ 
” means having control of something as part of your job.  A. Command  B. Power 
C. Responsibility D. Accountability  10.  “ 
” means money paid per hour or day or week to manual  workers.  A. Earnings  B. Salary  C. Wages  D. Commission  11.  “ 
” is a fixed regular payment made by employers, usually monthly, for  professional or office work.  A. Earnings  B. Salary  C. Wages  D. Commission  12.  “ 
” means advantages that come with a job, apart from wages or salary. 
A. Benefits or perks B. Profits  C. Supplements  D. Insurances  13.  “ 
” means to be raised to a higher rank or better job.  A. motivation  B. promotion 
C. sales promotion D. marketing mix  14.  “ 
” means there is little risk of losing one’s job.  A. bureaucracy B. job safety  C. job security  D. job stability  15.  “ 
” means having particular abilities, acquired by training.  A. educated  B. skilled  C. talented  D. trained              1   
2. Matching (15 pts): Match each word/phrase in Column A with its 
definition/explanation in Column 
B. Write your answers on the ANSWER SHEET.  A  B  1. autonomous 
A. a system of authority with different levels, one above the  other  2. decentralization 
B. a specific activity in a company, e.g. production, marketing,  finance  3. function 
C. independent, able to take decisions without consulting  higher authority  4. hierarchy 
D. people working under someone else in a hierarchy  5. line authority 
E. dividing an organization into decision-making units that are  not centrally controlled  6. subordinates 
F. the power to give instructions to people at the level below  in the chain of command  7. industrial belt 
G. a company’s ways of working and thinking  8. worth-of-mouth 
H. alone, placed in a position away from others  advertising  9. productivity 
I. an area with lots of industrial companies, around the edge of  a city  10. corporate ethos 
J. breaking something up into pieces 
11. Institutional or prestige K. the amount of output produced  advertising  12. insulated or isolated 
L. free advertising when satisfied customers recommend  products to their friends  13. fragmentation 
M. advertising that mentions a company’s name but not  specific products  14. collective bargaining 
N. deliberately obeying every regulation in an organization, 
which severely disrupts normal operations    15. working- to -rule 
O. negotiation between unions and employers about their 
members’ wages and working conditions    PART II: READING (30 pts)   
Read the following text about marketing strategies and do the two exercises below.   
A company’s marketing strategies – sets of principles designed to achieve long-term 
objectives – obviously depend on its size and position in the market. Other determining 
factors are the extent of the company’s resources, the strategies of its competitors, the 
behaviors of the consumers in the target  2   
market, the stage in the product life-cycle of the products it markets, and the overall  macro-economic environment. 
The aim of a market leader is obviously to remain the leader. The best way to achieve this 
is to increase market share even further. If this is not possible, the leader will at least 
attempt to protect its current market share. A good idea is to try to find ways to increase 
the total market. This will benefit everyone in the field, but the market leader more than its 
competitors. A market can be increased by finding new users for a product, by stimulating 
more usage of a product, or by exploiting new uses, which can sometimes be uncovered by 
carrying out market research with existing customers. 
To protect a market share, a company can innovate in products, customer services, 
distribution channels, cost reductions, and so on; it can extend and stretch its products 
lines to leave less room for competitors; and it can confront competitors directly in 
expensive sales promotion campaigns. 
Market challengers can either attempt to attack the leader, or to increase their market share 
by attacking various market followers. If they choose to attack the leader, market 
challengers can use most of the strategies also available to market leaders: product 
innovation, price reductions, cheaper or higher quality versions, improved services, 
distribution channel innovations, manufacturing cost reduction, intensive advertising, and  so on. 
Market followers are in a difficult position. They are usually the favorite target of market 
challengers. They can reduce prices, improve products or services, and so on, but the 
market leader and challenger will usually be able to retaliate successfully. A market 
follower that takes on a larger company in a price war is certain to lose, given its lesser  resources. 
In many markets, market followers fall in the middle of a V-shaped curve relating to 
market share and profitability. Small companies focusing on specialized narrow segments 
can make big profits. So can the market leader, with a high market share and economies of 
scale. In between come the less profitable market followers, which are too big to focus on   
niches, but too small to benefit from economies of scale. 
One possibility for followers is to imitate the leaders’ products. The innovator has borne 
the cost of developing the new product, distributing it, and making the market aware of its 
existence. The follower can clone this product, depending on patents and so on, or improve 
adapt or differentiate it. Whatever happens, followers have to keep their manufacturing 
costs low and the quality of their products and services high. 
Small companies that do not establish their own niche – a segment of a segment – are in a 
vulnerable position. If their product does not have a ‘unique selling proposition”, there is 
no reason for anyone to buy it. Consequently, a good strategy is to concentrate on a niche 
that is large enough to be profitable and that is likely to grow, that doesn’t seem to interest 
the leader, and which the firm can serve effectively. The niche could be a specialized 
product, a particular group of end-users, and geographical region, the top end of a market, 
and so on. Of course unless a nicher builds up immense customer goodwill, it is vulnerable 
to an attack by the market leader or another larger company. Consequently, multiple 
niching – developing a position in two or more niches – is a much safer strategy.   
1. On the ANSWER SHEET, write T if the following statements are true and F if they are  false. (20pts)  1. 
If a market leader succeeds in increasing the size of the total market, its competitors  benefit.  2. 
The size of a market can be increased without attracting any new consumers.  3. 
Market challengers can attack the leader or market followers.  4. 
Market challengers cannot use the same strategies as leaders.  5. 
Market leaders generally win price wars.  3    6. 
Market challengers can attack leaders by way of any of the 4 Ps of the marketing  mix.  7. 
Market followers generally achieve cost reductions through economies of scale.  8. 
The most profitable companies are logically those with medium or high market  share.  9. 
For a market nicher, product imitation can be as profitable as product innovation.  10. 
A market nicher is never safe from an attack by a larger company.   
2. On the ANSWER SHEET, write your brief answers to the following questions. (10pts) 
1. What types of competitors are mentioned in the text? 
2. In what way do market challengers attack market leaders? 
3. What does a market leader do to maintain its position in the market? 
4. Why must a company confront its rivals? 
5. What expense does a market follower bear when using a strategy of product imitation?   
PART III: CASE STUDY & WRITING (40 pts)   
1. CASE STUDY (20 pts): Read the case and then answer the questions below. Write 
your answers on the ANSWER SHEET.   
The biggest obstacle, at least for most startups that are still in their infancy, is marketing. 
You might have a fantastic idea, but that won’t do you much good if no one else knows 
about it. You need a comprehensive plan for marketing your business: getting people’s 
initial attention, building a reputation for thought leadership, and, eventually, finding the 
viral appeal that will rake in the cash.   
But let’s not get carried away just yet. When you’re marketing a fledgling startup, you’ve 
got to start your journey from the very beginning. Here are four ways to get your 
marketing plan off the ground. 
• Begin with a good strategic position. Define your intended audience and learn   
where they tend to congregate online. 
• Content marketing is key. Brainstorm several kinds of topics about which your staff 
can be authoritative, then identify which types of content—for example, blogs, 
white papers, infographics, videos—you are confident creating. 
• A good PR strategy can help you enhance your reputation. Work on your 
relationship with the local media by reaching out and emphasizing the human 
interest elements of your business. 
• The final ingredient is “viral” potential. Consider how you can build social sharing 
right into your product or service.      Questions:   
1. In your opinion, why is marketing crucial for startups? 
2. In the four mentioned strategies, which is the most important for a startup? 
2. WRITING (20pts): Write your email on the ANSWER SHEET. 
You are organizing a conference and would like to receive an offer from a few hotels. Use 
the information below to WRITE AN ENQUIRY: 
- Conference dates: Saturday & Sunday (June 8 & 9, 2019)  - Participants: 80 
- 15 participants need rooms (5 single & 5 double) for one night (Saturday night) 
- Tea breaks with beverage, fruit and cakes  - Buffet at lunch time 
- 3 meeting rooms for 25-30 people  4   
The email should include all the above information (and add any relevant details) and 
must be in the appropriate layout, structure, and register.                                                                                                    5    
