•In this part of the Reading Test you read a longer text and answer six questions.
•First read the questions, Try to get an idea of what the text will be about. Then read the text for general understanding,
•Then read the text and questions more carefully, choosing the best answer to each question. Do not choose an answer just because you can see the same words in the text.
？ Read the article on the opposite page about innovation in business and the questions below.
？ For each question 15 - 20, mark one letter (A, B, C or D) on your Answer Sheet for the answer you choose.
Not long ago innovation was The Big Idea in marketing circles. Now, however, it's hard to see the benefits of this rush to innovate. Indeed if anything, companies seem to be drawing back from innovation, not charging ahead. But just a few years ago many companies were combining a commitment to create entirely new product categories through innovative technologies - working to hugely ambitious growth targets -with a root-and-branch organisational overhaul designed to free up creativity and speed new product roll-outs.
The result was that as resources were shifted away from core businesses, sales and profits faltered, share prices slumped and CEOs were ousted. Now the mantra is a more conservative focus on the top brands, the top retail customers and the top markets. It's being rewarded in many cases by healthier share prices. This sustained effort to cut long tails of smaller brands and focus marketing resource on existing leaders seems to be paying off.
So were we wrong to pinpoint innovation as key to tong-term market success？ Surely not. But we might have underestimated the enormous complexity of this beast. The term 'innovation' may be simple enough but it spans a vast landscape, including the type and degree of innovation, marketing purpose, management process and market circumstance - not all of which are well understood.
Take 'type' of innovation. Are we talking about new products only？ Or new processes, new channels, underlying technologies, organisational structures and business models？ When should the innovation involve a new brand？ Or take 'degree'. Are we aiming for blue-sky inventions that will transform. markets and create new categories？ Or marginal tweaks in, say, formulation or packaging that give us an excuse to advertise something 'New! Improved!'？ Likewise, is the marketing purpose of the project to steal a march on competitors and drive incremental growth, or to update an obsolete product line and play catch-up to competitors？ As one business news editorial complained, 'innovation' is often just 'simple proliferation of similar products'. Then there's process. What is the best way to manage this particular innovation？ Is it to employ creative revolutionaries and set them free, or is disciplined risk management, requiring the careful testing and sifting of options to pick winners, a better approach？ In larger organisations, has, senior management really made time spent in cross4unctional teams a recognised element of successful career paths？ What time frames (eg payback periods) and degrees of risk is senior management comfortable with？ And does the organisation have a culture that fits the chosen approach？ Does it 'celebrate failure', for example, or is it actually a risk-averse blame culture (despite what the CEO says in the annual report)？
Successful innovation requires clearing two hurdles. First, it needs the right project with the right degree of innovation to fit with the right marketing purpose, the right innovation process, corporate culture and market circumstance. Second, it needs senior managers that understand the interplay between these different factors, so that rather than coming together simply by chance, they are deliberately broug
A．trusted in technology to improve existing products.
B．chose to focus heavily on marketing activities.
C．expected that growth would increase steadily, '
D．believed they needed to produce new goods.
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