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VA : XAT 2009 : Q14 to Q17

• Discuss the solution of the following questions below :
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Analyse the following passage and provide an appropriate answer for the questions 14
through 17 that follow.
Demography of organisations, also called population ecology is an interesting field. It proposes
that organisational mortality processes depend upon the age and size of the organisation, as well
as on characteristics of populations and environments. Moreover, there is evidence of an
imprinting process – meaning that environmental conditions at certain early phases in an
organisations development have long-term consequences. In particular, organisations subject to
intense competition have elevated mortality hazards at all ages. A central theme is structural
inertia, the tendency for organisations to respond slowly relative to the speed of environmental
change. A central argument holds that the inertia derives from the very characteristics that make
organisations favoured actors in modern society in terms of reliability and (formal) accountability.
It follows that changes in an organisations core features are disruptive and increase mortality
hazards, at least in the short-run. Research on this subject tends to support this view. The concept
of niche provides a framework of relative environmental variations and competition to population
dynamics and segmentation. Much empirical work examines the niches of organisational
populations in terms of dimensions of social, political, and economic environments. Most
research in this field builds on theories of resource partition and of density dependence. Resourcepartitioning
theory concerns the relationship between increasing market concentration and
increasing proliferation of specialists in mature industries. The key implication of this theory
concerns the effects of concentration on the viability of specialist organisations (those that seek to
exploit a narrow range of resources). The theory of density-dependent organisational evolution
synthesizes ecological and institutional processes. It holds that growth in the number of
organisations in a population (density) drives processes of social legitimatization and competition
that, in turn, shape the vital rates.

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14. Most top-notch business consultants recommended changing the entire configuration of an
organisations strategy, structure and systems. If the ideas contained in the passage are agreed
to, then such a recommendation:
A. tends to rejuvenate the organisation.
B. tends to make the organisation more aligned to the external environment.
C. tends to increase the competitiveness of the organisation by redefining its core competence.
D. tends to increase the vulnerability of the organisation.
E. tends to make the organisation industry leader by reformulating its niche.

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15. Consider the following: “Tata Steel, one of the biggest steel makers in the world, was born in
Jamshedpur.” If above passage is true, then it can be concluded that location of Tata Steel has
been one of the reasons for its success.
1. The conclusion is false.
2. This is a farfetched conclusion.
3. This is valid conclusion.
A. 1 only
B. 2 only
C. 3 only
D. 1 and 2
E. 2 and 3

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16. “Tata Steel, one of the biggest steel makers in the world, was born in Jamshedpur. The very
success of Tata Steel could lead to its failure in the future and hence the challenge for Tata
Steel is to recognise its strengths that make it successful in initial conditions and stick to
them.”
1. This is a valid conclusion.
2. The conclusion is contrary to the ideas described in the passage.
3. The conclusion is an internally contradictory.
A. 1 only
B. 2 only
C. 3 only
D. 1 and 2
E. 2 and 3

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17. Recently it was reported that Indian textile sector was not doing well. If the ideas contained in
the passage are agreed to, then which of the following could be possible reason(s)?
1. All Indian firms are as old as international firms.
2. Indian textile firms are dispersed all over the country, with most of them also having
international presence.
3. Textile firms in India were subjected to trade union activity in the period from 1960s to 1980s.
A. 1
B. 2
C. 3
D. 1 and 2
E. 1, 2 and 3

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