CONVERSATION ANALYSIS: Read the following transcript and choose the answer that is closest to each of the questions that are based on the transcript.
Lucia Rahilly (Global Editorial Director, The McKinsey Podcast): Today we’re talking about the next big arenas of competition, about the industries that will matter most in the global business landscape, which you describe as arenas of competition. What do we mean when we use this term?
Chris Bradley (Director, McKinsey Global Institute): If I go back and look at the top ten companies in 2005, they were in traditional industries such as oil and gas, retail, industrials, and pharmaceuticals. The average company was worth about $250 billion. If I advance the clock forward to 2020, nine in ten of those companies have been replaced, and by companies that are eight times bigger than the old guards.
And this new batch of companies comes from these new arenas or competitive sectors. In fact, they’re so different that we have a nickname for them. If you’re a fan of Harry Potter, it’s wizards versus muggles.
Arena industries are wizardish; we found that there’s a set of industries that play by very different set of economic rules and get very different results, while the rest, the muggles (even though they run the world, finance the world, and energize the world), play by a more traditional set of economic rules.
Lucia Rahilly: Could we put a finer point on what is novel or different about the lens that you applied to determine what’s a wizard and what’s a muggle?
Chris Bradley: Wizards are defined by growth and dynamism. We looked at where value is flowing and the places where value is moving. And where is the value flowing? What we see is that this set of wizards, which represent about ten percent of industries, hog 45 percent of the growth in market cap. But there’s another dimension or axis too, which is dynamism. That is measured by a new metric we’ve come up with called the ”shuffle rate.” How much does the bottom move to the top? It turns out that in this set of wizardish industries, or arenas, the shuffle rate is much higher than it is in the traditional industry.
Lucia Rahilly: So, where are we seeing the most profit?
Chris Bradley: The economic profit, which is the profit you make minus the cost for the capital you employ is in the wizard industries. It’s where R&D happens; they’re two times more R&D intensive. They’re big stars, the nebulae, where new business is born.
In the context of the conversation, "dynamism" most closely refers to
Show Hint
- the never-changing reliance on established and unchanging business practices.
- the stability and predictability of traditional industries.
- the rapid and frequent changes in leadership and market position within an industry.
- the slow, gradual growth and morphing of established companies.
The Correct Option is C
Solution and Explanation
This question asks for the definition of "dynamism" as it is used in the conversation.
Step 2: Detailed Explanation:
Chris Bradley explicitly defines "dynamism" in the conversation. He says, "...another dimension or axis too, which is dynamism. That is measured by a new metric we've come up with called the 'shuffle rate.' How much does the bottom move to the top? It turns out that in this set of wizard-ish industries, or arenas, the shuffle rate is much higher than it is in the traditional industry." The "shuffle rate," described as measuring how much "the bottom move to the top," is a measure of churn and change in market leadership. This directly corresponds to "rapid and frequent changes in leadership and market position within an industry." Options 1, 2, and 4 describe the opposite of dynamism.
Step 3: Final Answer:
In the context of the conversation, "dynamism" most closely refers to the rapid and frequent changes in leadership and market position within an industry.
In the context of the conversation, the term "arenas of competition" refers to
Show Hint
- government regulations that control business competition.
- broad categories of industries where companies engage in competitive activities.
- physical locations where businesses compete.
- specific companies that are considered to be powerful competitors.
The Correct Option is B
Solution and Explanation
The question asks for the meaning of the phrase "arenas of competition" based on the transcript.
Step 2: Detailed Explanation:
In the third paragraph, Chris Bradley says, "And this new batch of companies comes from these new arenas or competitive sectors." By using "or," he equates "arenas" with "competitive sectors." A sector is a broad category of industry. This aligns perfectly with option (2). The entire conversation is about different types of industries (oil and gas, retail, etc.), not specific companies (4), physical locations (3), or regulations (1).
Step 3: Final Answer:
The term "arenas of competition" refers to broad categories of industries where companies engage in competitive activities.
"Muggles" refers to industries that
Show Hint
- operate under traditional economic principles.
- are primarily focused on technological innovation.
- are characterized by rapid and frequent changes.
- exhibit high levels of market capitalization growth.
The Correct Option is A
Solution and Explanation
This question asks for the definition of "muggles" as used in the conversation to describe certain industries.
Step 2: Detailed Explanation:
Chris Bradley defines "muggles" in the fourth paragraph: "...while the rest, the muggles (even though they run the world, finance the world, and energize the world), play by a more traditional set of economic rules." This is a direct definition that matches option (1). Options (2), (3), and (4) are descriptions of the "wizard" industries, which are contrasted with the muggles.
Step 3: Final Answer:
"Muggles" refers to industries that operate under traditional economic principles.
Which one of the following does "shuffle rate" not measure?
Show Hint
- Volatility of market leadership.
- Overall profitability of traditional industries.
- Relative change within an industry.
- Churn within the arena of competition.
The Correct Option is B
Solution and Explanation
The question asks to identify what the "shuffle rate" metric does NOT measure, based on its description in the transcript.
Step 2: Detailed Explanation:
Chris Bradley describes the "shuffle rate" as a measure of dynamism, answering the question, "How much does the bottom move to the top?". This definition directly implies that the shuffle rate measures change, movement, and churn.
(1) Volatility of market leadership: This is what "bottom move to the top" describes. So, shuffle rate *does* measure this.
(3) Relative change within an industry: This is another way of describing the same concept. Shuffle rate *does* measure this.
(4) Churn within the arena of competition: "Churn" is a synonym for this kind of movement. Shuffle rate *does* measure this.
(2) Overall profitability of traditional industries: Profitability is discussed as a separate characteristic. Chris Bradley says, "So, where are we seeing the most profit? ... The economic profit... is in the wizard industries." He presents dynamism (measured by shuffle rate) and profitability as two different dimensions. Therefore, shuffle rate is not a direct measure of profitability.
Step 3: Final Answer:
"Shuffle rate" does not measure the overall profitability of traditional industries.
Which of the following best and correctly summarizes the main idea of the conversation?
Show Hint
- Newer, dynamic industries, termed "wizards," are experiencing significantly greater growth and profit compared to traditional industries.
- The global economy is shifting back towards traditional industries, as they offer more stable returns.
- Traditional industries are consistently more profitable than newer, "wizard-ish" industries.
- The terms "wizard" and "muggle" are used to describe the magical elements of business success.
The Correct Option is A
Solution and Explanation
This question requires summarizing the central argument of the entire conversation.
Step 2: Detailed Explanation:
The conversation introduces a distinction between two types of industries: traditional "muggles" and new "wizards." It then details how the "wizards" are outperforming the "muggles" in key areas. They are characterized by "growth" (hogging 45% of market cap growth), "dynamism" (high shuffle rate), and higher "economic profit." Option (1) perfectly encapsulates this main idea. Options (2) and (3) are directly contradicted by the text, which states that wizards are growing faster and are more profitable. Option (4) is a misinterpretation; the terms are a metaphor for economic principles, not literal magic.
Step 3: Final Answer:
The best summary is: Newer, dynamic industries, termed "wizards," are experiencing significantly greater growth and profit compared to traditional industries.
"Wizard" industries are characterized by
Show Hint
- a reliance on traditional economic rules and practices.
- a higher concentration of economic profit and research and development.
- lower research and development spending.
- a slower rate of market capitalization growth.
The Correct Option is B
Solution and Explanation
The question asks to identify the characteristics of "wizard" industries based on the transcript.
Step 2: Detailed Explanation:
In the last paragraph, Chris Bradley provides a clear summary of the characteristics of wizard industries: "The economic profit... is in the wizard industries. It's where R & D happens; they're two times more R & D intensive. They're big stars, the nebulae, where new business is born." This statement directly supports option (2), as it highlights both "economic profit" and high "research and development" (R & D) spending. Option (1) describes "muggles." Option (3) is the opposite of what is stated ("two times more R & D intensive"). Option (4) is also the opposite of what is stated (wizards "hog 45 percent of the growth in market cap").
Step 3: Final Answer:
"Wizard" industries are characterized by a higher concentration of economic profit and research and development.
Top Questions on Reading Comprehension
Meta is recalibrating content on its social media platforms as the political tide has turned in Washington, with Mark Zuckerberg announcing last week that his company plans to fire its US fact-checkers. Fact-checking evolved in response to allegations of misinformation and is being watered down in response to accusations of censorship. Social media does not have solutions to either. Community review — introduced by Elon Musk at X and planned by Zuckerberg for Facebook and Instagram — is not a significant improvement over fact-checking. Having Washington lean on foreign governments over content moderation does not benefit free speech. Yet, that is the nature of the social media beast, designed to amplify bias.
Information and misinformation continue to jostle on social media at the mercy of user discretion. Social media now has enough control over all other forms of media to broaden its reach. It is the connective tissue for mass consumption of entertainment, and alternative platforms are reworking their engagement with social media. Technologies are shaping up to drive this advantage further through synthetic content targeted precisely at its intended audience. Meta’s algorithm will now play up politics because it is the flavour of the season.
The Achilles’ Heel of social media is informed choice which could turn against misinformation. Its move away from content moderation is driven by the need to be more inclusive, yet unfiltered content can push users away from social media towards legacy forms that have better moderation systems in place. Lawmakers across the world are unlikely to give social media a free run, even if Donald Trump is working on their case. Protections have already been put in place across jurisdictions over misinformation. These may be difficult to dismantle, even if the Republicans pull US-owned social media companies further to the right.
Media consumption is, in essence, evidence-based judgement that mediums must adapt to. Content moderation, not free speech, is the adaptation mechanism. Musk and Zuckerberg are not exempt- IPMAT - 2025
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According to the French philosopher Jean Baudrillard, commodities available for consumption are not inherently negative things. Baudrillard tried to interpret consumption in modern societies by engaging with the ’cargo myth’ prevalent among the indigenous Melanesian people living in the South Pacific. The Melanesians did not know what aeroplanes were. However,they saw that these winged entities descended from the air for white people and appeared to make them happy. They also noted that aeroplanes never descended for the Melanesian people. The Melanesian natives noted that the white people had placed objects similar to the aeroplane on the ground. They concluded that these objects were attracting the aeroplanes in the air and bringing them to the ground. Through a magical process, the aeroplanes were bringing plenty to the white people and making them happy. The Melanesian people concluded that they would need to place objects that simulated the aeroplane on the ground and attract them from the air. Baudrillard believes that the cargo myth holds an important analogy for the ways in which consumers engage with objects of consumption.
According to Baudrillard, the modern consumer ”sets in place a whole array of sham objects, of characteristic signs of happiness, and then waits for happiness to alight”. For instance, modern consumers believe that they will get happiness if they buy the latest available version of a mobile phone or automobile. However, consumption does not usually lead to happiness. While consumers should ideally be blaming their heightened expectations for their lack of happiness, they blame the commodity instead.
They feel that they should have waited for the next version of a mobile phone or automobile before buying the one they did. The version they bought is somehow inferior and therefore cannot make them happy. Baudrillard argues that consumers have replaced ’real’ happiness with ’signs’ of happiness. This results in the endless deferment of the arrival of total happiness. In Baudrillard’s words, ”in everyday practice, the blessings of consumption are not experienced as resulting from work or from a production process; they are experienced as a miracle”. Modern consumers view consumption in the same magical way as the Melanesian people viewed the aeroplanes in the cargo myth. Television commercials also present objects of consumption as miracles. As a result, commodities appear to be distanced from the social processes which lead to their production. In effect, objects of consumption are divorced from the reality which produces them.- IPMAT - 2025
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- On the first day of January 2025, the Indian Meteorological Department [IMD] announced that 2024 was the hottest year on record. A study by the Council on Energy, Environment and Water shows that nearly eight out of ten Indians live in districts that are at risk of either a flood, a cyclone, or a drought. Nearly twenty three States in India are heatwave-prone. In the summer of 2024, India recorded more than 44,000 cases of heatstroke and over 300 heat-related mortalities, as per the bulletin of the Ministry of Health and Family Welfare. Water reservoirs and the energy demand that keeps India powered are impacted too. During a ten-day long heatwave in Delhi, peak power demand was 16% higher than the previous year.
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- What is a classical dance ?
A dance which is created or choreographed and performed according to the tenets of the Natya Shastra is called a classical dance. The two broad aspects of classical dancing are the tandava and the lasya. Power and force are typical of the tandava; grace and delicacy, of the lasya. Tandava is associated with Shiva, and lasya with Parvati. Dance which is pure in movement is called nritta, and dance which is interpretative in nature is called nritya. A dancer in the classical tradition has to have years of training before he or she can begin to perform on the stage.
What are the main schools of classical dancing ?
Bharata Natyam, Kathakali, Manipuri, Kathak. Bharata Natyam is the oldest and most popular dance-form of India. Earlier, it was known by various names. Some called it Bharatam, some Natyam some Desi Attam and some Sadir.
The districts of Tanjore and Kanchipuram of Tamil Nadu were the focal points in the development of Bharata Natyam. It was danced as a solo performance by devadasis (temple dancers) on all auspicious occasions. Later, kings and rich people lent their patronage to it and it started shedding its purely sacred character.- Maharashtra Class X Board - 2025
- English
- Reading Comprehension
- O moon,
give me moonlight,
basketful or two baskets full,
with seeds of moonlight.
From the city to my village,
on the sides of the path
I want to sow many,
small, small moons of light.
The whole village goes to the city
daily to work.
It becomes dark on its way back
as my village is quite far.
The route is tough and full of
snakes and scorpions.
Neither bus nor cart plies.
When my father returns home
I am asleep.
And he goes back early in the morning
while I am sleeping.- Maharashtra Class X Board - 2025
- English
- Reading Comprehension
Questions Asked in IPMAT exam
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• Every team has at least 2 members from each of the three skill sets.
• Teams C and D have 6 biologists each, and Team A has 6 geologists.
• Every team except A has more biologists than explorers.
• The number of explorers in each team is distinct and decreases in the order A, B, C, D, and E.- IPMAT - 2025
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The table given below provides the details of monthly sales (in lakhs of rupees) and the value of products returned by the customers (as a percentage of sales) of an e-commerce company for three product categories for the year 2024. Net sales (in lakhs of rupees) is defined as the difference between sales (in lakhs of rupees) and the value of products returned (in lakhs of rupees).
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- The sentences given below, when properly sequenced, form a coherent paragraph. Each sentence is labelled with a number. Decide on the most logical order and enter the sequence of numbers in the space provided.
In drought conditions, water often depletes in the topsoil and remains accessible only in the deeper subsoil layers.
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Abscisic acid plays an important role in helping plants adapt to these challenging conditions.
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- Para Jumbles
- The sentences given below, when properly sequenced, form a coherent paragraph. Each sentence is labelled with a number. Decide on the most logical order and enter the sequence of numbers in the space provided.
Among its major urban centres, Harappa and Mohenjo-Daro stand out as prime examples of this architectural prowess, revealing large public structures, residential areas, and sophisticated water management systems indicative of a complex societal structure.
Showing remarkable sophistication for its time, this ancient culture developed meticulously planned cities, complete with advanced sanitation systems and intricate grid layouts that underscore their profound understanding of urban design and engineering.
Economically, the civilization thrived on a foundation of extensive trade networks, connecting them with distant lands, alongside a robust agricultural system that sustained their large populations and facilitated surplus production.
Despite its impressive achievements and longevity, the reasons behind the eventual decline of this remarkable civilization remain largely enigmatic, prompting ongoing research and speculation among historians and archaeologists.
The Indus Valley Civilization, flourishing in the Bronze Age, represents one of humanity's earliest urban societies, evidenced by archaeological discoveries dating back thousands of years.
- IPMAT - 2025
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