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Hi people!

Can you have a look at the reading comprehension about Daewoo [url=http://www.market-leader.net/free_resources/test_prog1.pdf] here at the very end of the document[/url]
and tell me which you think the correct answers are?

My choices are as follows:

54) c

55) a) T b) C c) T d) T e) C f) T

56) a

57) b and c

Thanks a lot!

Mara.
Comments  
Hi Mara,

I'd be happy to help you with this, but my computer takes too long to load and access Adobe 6.0. Can you copy and post here what you want me to read, plus the questions? In other words, make it easy for me!

Thanks, Clive
Thanks Clive! Here is the fisrt part (the reading):

Daewoo and the art of customer focus

When Daewoo entered the UK car market in spring 1995 it was hardly known at all; its cars were technically average and had an unfashionable country of origin (Korea).

With around 40 carmakers, the market was crowded. Less than half of these had market shares of over 1%. Many companies had a ‘Buy UK’ or ‘Buy European’ policy for their fleet purchases, which account for about half of all car purchases.

Since the mid 1970s, no new entrant to the UK car market had achieved more than a 1% market share. Yet Daewoo did exactly that in less than a year. We believe it did so by achieving its aim of being the most customer focused car company in the UK. Daewoo’s market research revealed that its best target market would be drivers primarily interested in a car’s ability to get from A to B reliably and cheaply.

Surveys had shown that most motorists were afraid to visit car showrooms and found salespeople too aggressive. They believed that they were treated even worse after the sale.

Further, Daewoo’s research found that in its target segment, 84% of motorists believed that the treatment they got from the salesperson was at least as important as how they felt about the car itself.

Daewoo developed a new approach to selling:

1 They did not use dealers to sell their cars. By saving the money normally paid to dealers, Daewoo was able to offer higher specifications at a lower price.

2 Daewoo designed its car showrooms to be like high street stores, with free access to product information and a free café; salespeople were on a fixed salary and no negotiating on price was allowed.

3 The price included extensive guarantees and three years’ free servicing.

4 Daewoo offered free collection and delivery as well as a courtesy car during servicing.

Daewoo’s competitors had been unwilling or unable to rethink the way that they did business in the face of clear dissatisfaction in the market. This created a market opportunity that Daewoo was able to exploit.

Adapted from Mastering Marketing (Financial Times)


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And here's the second part (the questions):

54. Which of the following sentences best summarises the content of the article?

a) Daewoo’s share of the UK car market is declining.

b) Daewoo needs to research the UK car market more thoroughly.

c) Daewoo understands what their customers really want.

d) Daewoo sells cars by traditional methods.

55. Mark each of the following statements as T (true), F (false) or C (can’t tell).

a) Daewoo was not present in the UK car market until 1995.

b) Cars from the Far East are not popular in the UK.

c) There was very strong competition in the UK car market when Daewoo entered.

d) Company cars account for approximately 50% of the UK car market.

e) Only ten car manufacturers have a market share of more than 1%.

f ) Within a year, Daewoo had achieved a market share of more than 1%.

56. Which of the following statements best describes Daewoo’s cars, according to the information in the article?

a) inexpensive in relation to the specifications

b) technically very exciting

c) luxury class

d) unreliable

57. How does Daewoo sell its cars? Mark all the statements that are true.

a) Offering salespeople large bonuses if they sell more.

b) Making showrooms more friendly.

c) Offering good after-sales service.

d) Offering big discounts on price.

Thanks a million, Clive!!

Mara.
Hi Mara,

It seems to me that the answer for 55 (d) should be 'F'(alse) because the article nowhere mentions about Company cars.
Hi Rishonly! Doesn't "company cars" refer to the same thing as "fleet purchases" when it mentions "Many companies had a ‘Buy UK’ or ‘Buy European’ policy for their fleet purchases, which account for about half of all car purchases."

Thanks a lot!

Mara.
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Hi Mara,

I agree with your answers, except I wonder about this one.

55. Mark each of the following statements as T (true), F (false) or C (can’t tell).

b) Cars from the Far East are not popular in the UK.

You said 'can't tell'. On the other hand, despite Daiwoo's success, they only had about 1% of the market in 1996. Is not the implication that Far East cars were not hugely popular at that time? I guess it may depend on the date of the article. If it's dated 2005, who knows the current situation?

Best wishes, Clive
Hi Mara,

I agree with you. I wasn't able to visualize the term "Company cars" .