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Trimester 2, 2021



Assessment Weight:       50 total marks


  • All questions must be answered by using the answer boxes provided in this paper.
  • Completed answers must be submitted to Blackboard by the published due date and time.

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This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit


Description: There are 6 questions in the Final Assessment. Once the assignment available, you will have 24 hours to finish and submit it. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the questions contained in the assignment, and include tutorial questions covered over Week 2 to Week 11 inclusive.

It is important when you answer the questions, you do not just copy and paste the answers from other sources, but rather, try to paraphrase it and provide reference (in- text referencing or citation) to all your answers. All references must be listed appropriately at the end of the report using Adapted Harvard referencing style.


Question 1                                                                                                    (7 marks)

PepsiCo operates 45 plants, 490 distribution centers, warehouses and offices located globally, Australia, Chile, and Uzbekistan are being considered as a potential markets for PepsiCo top global brands and everyday nutrient products.  As a senior executive for PepsiCo you and your team have decided to adopt the four strategies in the Ansoff matrix to expand and grow the business.

Discuss each of the four matrix models when formulating your competitive strategies.

Answer this question in 400 words


ANSWER:  ** Answer box will enlarge as you type

Ansoff matrix is a framework that assists the business in the process of identification of new opportunities in terms of growth. The framework is used to analyse products and markets based on the opportunities available to the business. There are four strategies of the Ansoff Matrix what are:

Market penetration: With a market entry strategy, the company uses its products within the existing market. It focuses on increasing market share with a market entry strategy (Srikrishna, 2020, p. 50(2)). PepsiCo can use a penetration strategy of lowering prices to attract new customers, increase marketing and sales activities, and acquire competitors such as Coca-Cola in the same market.

Product development: The product development strategy states that the company must develop new products to meet the requirements of the existing market. This can be done through extensive research and development and expansion of the company’s existing product lines. PepsiCo will implement a product development strategy by investing most of its revenue in research and development to develop new products. It can enter into strategic partnerships with other commercial companies to gain access to partners’ sales and logistics channels. The product development strategy can be implemented at PepsiCo because the company knows its current markets in Australia, Chile and Uzbekistan well and can offer innovative solutions to existing market needs.

Market Development: When a business enters into a new market with its existing product line, it is known as the market development strategy. PepsiCo can develop one of the below approaches to use market development strategy-

  1. Entering into a new domestic market in Australia, Chile, and Uzbekistan for regional market development
  2. Entering into a foreign market for international market development
  3. Catering to various customer segment to develop new market opportunities

Diversification: Within the diversification strategy, a company makes an entry into a new market with new products. This is considered to be the riskiest strategy as it involves both market development and product development simultaneously (McDonald, 2016, p965(3)). Similarly, the diversification strategy derives the highest revenue to the business in comparison to all the three strategies by opening up a new revenue stream for the business. PepsiCo can employ related diversification wherein the potential synergies can be realised between the existing business and new products or markets. For example, PepsiCo is initially known as the beverage brand. It can enter into the food and snacks market to diversify its products and revenue stream.



Question 2                                                                                                    (7 marks)

Four  Seasons  Hotels is a Toronto, Canada–based manager of  luxury hotel properties.  They have  92 properties located in many  of the world’s most popular tourist destinations and business centers.

Identify and discuss which international strategy and which mode of entry could be used by Four Seasons when entering foreign markets. Explain the logic behind Four Seasons international strategy.

Answer this question in 400 words



An international strategy allows a business to sell its goods and services outside the domestic market. There are three kinds of international corporate-level strategies which are- Global strategy, Multi-domestic strategy and Transnational strategy. Four Seasons Hotels should adopt Global Strategy for entering into the new foreign market. The benefits to be served from global strategy shall offer Four Seasons Hotels to standardise its services across all the international markets with the competitive strategy being directed by Toronto, and it is a home office. It shall facilitate strategic and operating decisions to be standardised at the home office. This strategy involves the active involvement of the interdependent SBUs which are operating in each of the countries. The home country shall make all attempts in achieving the integration of the SBUs that adds complexity in the management (Zong-Sheng et al, p635(2)). It is advantageous to Four Seasons Hotels as it produces lower risk. The following are the logic behind Four Seasons to use the Global International Strategy-

Expansion of target customer: Four Seasons Hotels is a big name in the hospitality industry with hotels situated in Northern America, Central and Southern America, European countries , Middle East and Africa and Asia and Pacific Region. The global strategy shall facilitate in targeting the ideal customers properly to promote the hospitality services to the international market. Four Seasons shall resort to social media platforms and website content to cut down its marketing expenditure.

Diversity of business: Global strategy helps in offsetting any financial losses that Four Seasons might have suffered during the economic downturn on the domestic market. An establishment of a global strategy shall sustain both the domestic-based business as well as promote in the international country to improve the economic situation.

The entry method used by Four Seasons is a wholly owned subsidiary. This is also known as greenfield, where companies invest directly in other countries or markets to expand globally through the creation of new wholly-owned subsidiaries. The preferred approach is to have a wholly-owned subsidiary, ie a company whose equity is 100% owned by the parent company (Bielialov et al, p. 5(4)). Wholly owned subsidiaries allow Four Seasons to diversify, manage and mitigate risk. Through wholly-owned subsidiaries, you have legal control over business procedures, products and processes. The logic behind using a wholly owned subsidiary as an entry system through Four Seasons is

Four Seasons will have complete control over the suppliers will be beneficial from the wholly-owned subsidiary.

It forms vertical integration wherein all the subsidiaries will be under the direct control of Four Seasons.

It shall provide space to Four Seasons as the parent company to breathe and diversity in a growing market and manage risk.



Question 3                                                                                                    (7 marks)


From humble beginnings in Gates’s family garage, Microsoft has grown to exceed $77.85 billion of revenue in 2013.  It offers a product line extending from        gaming and internet services  to mobile devices .  It is continuously diversifing its product line yet again through an aggressive acquisition strategy.  Discuss how Microsoft can effectively manage the integration challenges when implementing the acquisition strategies?

Answer this question in 400 words



An acquisition occurs when a company acquires a majority stake in another company with the intention of turning the acquired company into a subsidiary in its own business portfolio. The acquisition strategy is adopted by the company to increase market power, overcome market entry barriers, increase the cost of developing new products and increase business diversification, reduce the risk of newly developed products, and reshapes the company’s level of competition. Over the years, Microsoft has pursued an aggressive acquisition strategy that has resulted in a number of integration challenges. Microsoft was faced with obstacles in the form of a different corporate culture, different alignment of financial and control systems, loss of key employees and more.

Below are the effective ways of managing the business integration challenges faced by Microsoft while implementing the acquisition strategies-

Employee Engagement: The best way to overcome the loss of key personnel is to implement a change management program. It shall require the installation of change management critics to oversee the process and to bring in employee engagement. The employees must be made to understand the need for business integration undertaken by Microsoft. Business cultures will one of the biggest concerns for the biggest concerns for the change management experts. Several researchers propound that employee engagement can only be possible through communication. Therefore, overcoming low employee engagement can be mitigated with communication.

Maintaining Momentum of corporate culture: The challenge faced in difference of corporate culture can be overcome by setting demand from a wide range of KPIs from the outset both for the Microsoft business and its integration process. The KPIs will smoothly allow realizing whether Microsoft or the integration process or both have fallen behind to meet the required criteria (Galavotti et al, p6721(4)). It shall also focus on the critical areas that are likely to suffer from the business integration and instruct to give attention in the following periods.

Senior Management Issues: It can be avoided simply by preparation and communication. The senior managers might need to undertake training for the newly launched systems after acquisition and routines that they shall often encounter in their new roles and responsibilities. The new responsibilities to be discharged by Microsoft’s senior management will also warrant additional remuneration (Andrašić et al, 2017, p1395(4)). All these considerations must be previously dealt to avoid future problems.

Technology Integration: Windows is known to offer state-of-the-art technology to its users. It is not always possible for the acquired company to be equally at par in terms of technology with Windows. To overcome this challenge, Windows shall require to bring in technology consultant from external source who would be directing out the technology stack of each subsidiary company of Windows. Moreover, the technology expert shall highlight the training gaps among the workforce.


Question 4                                                                                                    (7 marks)

Whirlpool Corporation has  59 manufacturing and technology centers around the world and        sales in some 170 countries.  Senior management has a vision of Whirlpool appliances in “Every Home . . . Everywhere with Pride, Passion, and Performance.”

Discuss Whirlpool’s two reasons why they have formulated a diversification strategy. Analyse Whirlpool’s products and apply the BCG matrix .

Answer this question in 400 words



The two reasons for Whirlpool using a diversification strategy are-

Product Variety: Whirlpool formulated a diversification strategy to enlarge its product line by means of conducting excellent R&D, which will result in introducing a variety of products for the business. Diversification of a variety of products will help Whirlpool to capture a new market, attract customer attention. Whirlpool has received a tremendous boost in growth and earned high profits. Therefore, diversity has helped the business to offer more products in the market.

Expansion of market: Diversification strategy has allowed Whirlpool to increase its market reach with a variety of products to sell to customers. A large product variety, as well as a new market, is a perfect combination of diversification strategies. Expansion of the market means an increase in the distribution channel and overall sales increases. Although market penetration involves high costs and expenses, once the business is penetrated into the market, it shall bring in regular profits to sustain the profit-maximisation goals.

The BCG stock growth matrix is ​​a planning tool that presents a company’s products and services in graphical form to help companies decide what to keep, sell, or invest more in. The matrix defines the firm’s offerings in a four-square matrix, where the x-axis represents market share and the y-axis represents market growth (Wang et al, 2020, p. 80 (1)). The four quadrants of the BCG matrix are – stars, question marks, money cows, and dogs.

Cows: Supplier management services for strategic business units called Whirlpool Corporations’ till. Supplier management services bring significant revenue to the company. The company’s market share is high; However, the general market is shrinking as Whirlpool manages its suppliers instead of outsourcing them.

Star: In this category, the product generates a lot of sales due to its high market share, but at the same time consumes high investment costs due to high market growth. Refrigerators and freezers are Whirlpool’s flagship products because they have a reasonable market share and growth. LG, on the other hand, is aggressively competing with Whirlpool in the innovation arena.

Question mark: Products under the question mark category represent rapid growth and therefore consume high investment. However, due to their low market share, they were not able to generate sufficient sales. Whirlpool has launched the Duet series of front loading washing machines with both a dryer and a single machine function. The machine can save up to 74% water compared to existing models and can save $900 every 5 years. This product became a market problem for the company because the Duet series did not have enough market share. With its unique nature and competitive pricing strategy, this product can capture a large market share in the long term in the future.

Dogs: Products with low market share and low market growth are considered dogs (Madsen, 2017, p.20(1)). Cooking utensils are whirlpool dog items for different parts of the world, such as Asian countries, which prefer to use local brands because of their low prices. Whirlpool companies must also consider these characteristics to question their products.


Question 5                                                                                                    (11 marks)

Kraft Foods, the 90-year-old darling of the consumer packaged-goods industry, moved to improve its long-term performance by restructuring the corporation.  This has been one of the latest moves by CEO Irene Rosenfeld.  She was brought in to turn around the company’s performance in 2012. Irene Rosenfeld was the CEO of Kraft Foods from 2012 to November 2017.  She was considered a successful entrepreneur.

Discuss in detail the characteristics of a successful entrepreneur and indicate how CEO and entrepreneur Irene Rosenfeld demonstrates each characteristic.  Note it is these characteristics which earned her the title of one of the 100 most powerful women in the world by Forbes.

Answer this question in 750 words

An entrepreneur is a person who is passionate about creation and has the ability to implement ideas into the business. An entrepreneur is a person who takes risks start a business that is based on a unique idea. The entrepreneur is responsible for organising and managing the enterprise, which usually considers taking the initiative and risk.

The following are the essential characteristics of a successful entrepreneur-

  1. Creativity: Creativity allows in giving birth to something new. The absence of creativity results in no innovation. Entrepreneurs often have the tendency to jot down a variety of unique ideas and act on them to determine whether they are successful or not, as not all ideas need to be successful. The CEO and entrepreneur Irene Rosenfeld shall be initiative creative that will help Kraft Foods to come up with new solutions to the problems faced by the business. The CEO shall allow choosing one of the perfect solutions from the various alternatives that are unique. It shall also give entrepreneur Irene Rosenfeld the potential to devise new products for similar markets that Kraft Foods is currently operating at.
  2. Professionalism: It is the quality that all successful entrepreneurs must possess. An entrepreneur must behave with their employees and client that goes into long-way in developing the organisational culture (Santamaria-Alvarez et al, p1015(1)). The CEO and entrepreneur Irene Rosenfeld must discharge professionalism that would bring in reliability and discipline within the business. Self-discipline shall enable CEO and business entrepreneur for achieving business targets, be organised and set a corporate example for everyone.
  3. Risk-taking: The risk-taking ability is an essential characteristic of an entrepreneur. It is said that without the will to explore the unknown, a person cannot discover something unique. Every entrepreneur is unique to one another, and this uniqueness brings in the difference. Risk-taking involves using non-traditional business methods that require investing in different ideas that no one believed previously (BEĞENDİK, 2017, p460(2)). The CEO and entrepreneur can undertake risk-taking for the business by using a differentiated approach towards risks. The company can implement biodegradable materials to be used for consumer packaging that are new in the business as well as sustainable for the environment. Using such kind of out of the box initiative shall refer the CEO and entrepreneur Irene Rosenfeld ready to make an investment in time and money. However, it must keep a backup of using its existing materials of consumer packaging. Moreover, before venturing into such kind of risk, Irene Rosenfeld should always have a backup place for all the possible risks as well as evaluate the risk in terms of its impact and probability of occurrence.
  4. Planning: Planning is defined as strategising the entire course of business before time. It is the summation of all kinds of resources that are easily available and enable to come up with a framework and a thought process of how to reach the designated goals (Ramasobana et al, p9351(2)). Irene Rosenfeld should be articulate in formulating the plan and must involve different ways to make optimisation of its resources towards the packaging goods industry to reach the apex of success. Before facing a contingency or crisis, an existing plan shall help the CEO of Kraft Foods to perform better. The planning should involve basic guidelines available for the consumer packaging goods industry that causes no to minimize damage to the business.
  5. Knowledge: Knowledge is the key to success. A successful entrepreneur should possess a wide and complete knowledge about the industry as knowledge can resolve a difficulty or crisis situation in the business (White, 2017, p10(3)). Therefore, the CEO and entrepreneur of Kraft Foods should possess adequate knowledge to keep track of the recent development undertaken in the consumer packaging industry. The necessary changes must immediately be implemented within Kraft Foods to be at par with the market standards. New knowledge can be in the form of a new trend in the industry or technological advancement in the industry, or new advertising and marketing strategy; all must be known by the CEO of the business. The extensive knowledge shall act as a guiding force to Irene Rosenfeld when it is represented to attain a greater competitive advantage. New information improves the usefulness of the knowledge and to formulation newly devised business strategy.
  6. Social Skills: In the era of internet, social skill acts as an arsenal for an entrepreneur. Social skills that the CEO and Irene Rosenfeld must possess to become a successful entrepreneur are building a long-term relationship with the customers, hiring new talents and talent sourcing and team strategy formulation. Social media marketing helps to cater for the different modes through which a successful entrepreneur can attain social skills in a wide arena.




Question 6                                                                                                    (11 marks)

W.L. Gore & Associates is best known for GORE-TEX brand. The brand is known for their commitment to supporting the passions that keep people moving since 1976.  Using RBV (Resource Based View) model, identify both tangible and intangible resources of Gore & Associates. Apply the P.R.O.F.I.T. model and explain qualities among the identified resources and capabilities creates a sustainable competitive advantage which is considered valuable, rare, inimitable and non-subsitutable?

Answer this question in 750 words


Resource-Based View

A strategic management framework and tool that is applied by organisations and companies to recognise and discover the resources present purposefully with the view to generate a justifiable competitive advantage for the companies in the situation of a long run is termed as resource-based view (Hamdoun, 2020, p467(3)). The framework of RBV is dependent on evaluating and recognising resources that will verify to enhance competitiveness to a company and lining them up intentionally. Established on the principles of fairness, commitment, freedom and respect for the waterline of the enterprise is Gore & Associates. It was founded by Vieve and Bill George in the year 1976, and initially, it dealt with the electronic market. In this segment, with the help of a resource-based view, the intangible and tangible resources of Gore & Associates have been identified.

Figure 1: Resource-based view of the firm

(Source: Knott, 2015)

The resource-based model divides the accessible resources of the company into intangible and tangible.


The resources that have physical attributes and can be very easily recognised by competitors and organisation.


It is considered to be a tangible resource of the company that inculcates all rented and owned with the intention of hosting a unit of production and even for warehousing requirements. The units that the company owns for carrying out their packaging purposes are even inculcated in this tangible resource.  


This tangible resource inculcates every piece of equipment that the company has for the purpose of packaging, production and other operational needs (Knott, 2015, p1818(4)). In this way, all kinds of technological integration and advancements for improvising operations and procedures.


This inculcates all the facilities and lands in technology, office materials, buildings and maintenance and appropriation of power resources like electricity to the plants by W L Gore Associates. The infrastructural build-up is an essential resource for the organisation for confirming high performance and comfort of actions for the organisations.


The resources have negligible physical worth but still are possessed and owned by the company.

Brand reputation

It is constructed over historical nature in which section the company has worked quite hard to offer products of high-quality nature and gain the trust of the consumer for decades. The brand reputation of the organisation is dependent on its culture and relation with the consumers and cannot be copied by the competitors and has the capability to become an origin of competitive advantage.

Patents and Copyright

The company enjoys copyrights and patents not just for its product composition and product procedure but even for development and research actions that it accepts for product enhancement and improvement.


This also is developed with historical uniqueness where consumer experience and reputation of the brand have permitted the progress of long-standing goodwill for the organisation. This has helped in lifting up the entire brand equity of the company. This has been birthed by the company after doing hard work for a very long duration and cannot be counterfeit by its competitors.

Marketing rights

It is depended on strategic direction and strategic leadership along with the history and legal compliance of the company. This cannot be copied, neither can it be bought by any of its competitors as the company has developed this with many stringent procedures over time and means permitting it an uncommon standing over its competitors in the market.

Customer experience

It offers an uncommon consumer experience with the help of its brand actions, offering and marketing actions (Chatzoglou et al, 2018, pp70(2)). However, it is possible for the marketing activities to get copied by the competitors, but it is not possible for them to imitate the intent and strategic direction through which the brand actions and consumer experience are schemed and prides an uncommon origin of competitive advantage.

VRIO Analysis

For the purpose of determining if the available resources have a competitive advantage and can be applied in the long run, it is essential that resources are recognised for the company to satisfy the VRIO criteria.

Figure 2: VRIO Analysis

(Source: Chatzoglou et al, 2018)

This framework judges tools depending on criteria of being imitable, valuable and rare to the company (Andre Luiz et al., 2017, pp10(6)}.  In the case of W L Gore Associates, this tool may be used to the recognised resources to evaluate if the resources permit the construction of competitive advantage over the long run. Hence, in the case of this organisation, it is viewed as:

Resources Valuable Rare Inimitable Organised Advantage
Land Y N N Y Competitive Parity
Equipment Y N N Y Competitive Parity
Infrastructure Y N N Y Competitive Parity
Brand reputation


Y Y Y Y Competitive advantage
Patents and Copyright


Y Y Y Y Competitive advantage


Y Y Y Y Competitive advantage
Marketing rights


Y N Y Y Competitive advantage
Customer experience


Y Y Y Y Competitive advantage

Table 1: VRIO Analysis





Reference List

Andrašić, J., Mirović, V., Milenković, N., Kalaš, B. and Pjanić, M. (2017), “IMPACT OF TAKEOVER PROCESSES ON EMPLOYEES – EVIDENCE FROM FOOD, RETAIL AND FINANCIAL SECTOR”, Ekonomika Poljoprivrede, vol. 64, no. 4, pp. 1393-1412.

Andre Luiz, S.S., Cristina Dai, P.M., Piscopo, M.R. & Marcos Paixão Garcez 2017, “Project management as a competitive advantage for the internationalisation of Brazilian companies”, Internext, vol. 12, no. 3, pp. 1-15.

BEĞENDİK, B. (2017), “Dimensions of Entrepreneurial Orientation and Entrepreneur’s Characteristics That Affect The Internetionalization Process of Turkish Born Global Firms”, Gazi Universitesi Iktisadi ve Idari Bilimler Fakultesi Dergisi, vol. 19, no. 2, pp. 454-474.

Bielialov, T., Loiko, V.V., Bihus, M.M., Kulynych, Y. and Omelchenko, K. (2019), “ANALYSIS OF COMPETITIVE STRATEGIES OF STARTUPS UNDER CONDITIONS OF GLOBAL CHALLENGES”, Academy of Strategic Management Journal, vol. 18, pp. 1-6. doi:

Chatzoglou, P., Chatzoudes, D., Sarigiannidis, L. & There, G. 2018, “The role of firm-specific factors in the strategy-performance relationship: Revisiting the resource-based view of the firm and the VRIO framework”, Management Research Review, vol. 41, no. 1, pp. 46-73.

Galavotti, I., Cerrato, D. and Cantoni, F. (2020), “Surviving after Cross-Border Acquisitions: How Business Relatedness, Host Country Experience, and Cultural Distance Affect Acquired Firms”, Sustainability, vol. 12, no. 17, pp. 6721.

Hamdoun, M. 2020, “The antecedents and outcomes of environmental management based on the resource-based view: A systematic literature review”, Management of Environmental Quality, vol. 31, no. 2, pp. 451-469.

Knott, P.J. 2015, “Does VRIO help managers evaluate a firm’s resources?”, Management Decision, vol. 53, no. 8, pp. 1806-1822.

Madichie, N.O., Mpiti, N. and Rambe, P. (2019), “Impact assessment of funding on technology acquisition by small businesses: A case study of hair salons in a South African municipality”, Journal of Enterprising Communities, vol. 13, no. 1, pp. 145-166.

Madsen, D.Ø. (2017), “Not dead yet: the rise, fall and persistence of the BCG Matrix”, Problems and Perspectives in Management, vol. 15, no. 1, pp. 19-34. doi:

McDonald, M. (2016), “Marketing in B2B organisations: as it is; as it should be – a commentary for change”, The Journal of Business and Industrial Marketing, vol. 31, no. 8, pp. 961-970. doi:

Ramasobana, M., Fatoki, O. and Oni, O. (2017), “ENTREPRENEURS’ CHARACTERISTICS AND MARKETING COMMUNICATION PRACTICES OF SMEs IN SOUTH AFRICA”, Gender and Behaviour, vol. 15, no. 3, pp. 9350-9371.

Santamaria-Alvarez, S., Sarmiento-González, M.A. and Arango-Vieira, L. (2019), “Transnational migrant entrepreneur characteristics and the transnational business nexus: The Colombian case”, International Journal of Entrepreneurial Behaviour and Research, vol. 25, no. 5, pp. 1014-1044.

Srikrishna, C. (2020), “—Business Expansion and Marketing Dilemma: A Case Study to Discuss the Ansoff Growth Matrix Concepts Combined with Business Expansion Strategies for Expanding into Emerging Markets”, Emerging Economies Cases Journal, vol. 2, no. 1, pp. 44-53. doi:

Wang, S., Chung-Jen, C., Andy Ruey-Shan Guo and Ya-Hui, L. (2020), “Strategy, capabilities, and business group performance: The endogenous role of industry diversification”, Management Decision, vol. 58, no. 1, pp. 76-97. doi:

White, J.C. (2017), “Analyzing Entrepreneurship in the U.S. Arts Sector: Identifying Arts Entrepreneurs’ Demographics and Shared Characteristics”, Artivate, vol. 6, no. 1, pp. 8-32.

Widiatama, Y., Aceng, A.H. and Matrono, M. (2018), “Business Environmental Analysis with Competitive Profile Matrix Method on Market Optimization in Real Estate Company (A Case Study at Tangerang Selatan Area)”, International Journal of Economics and Financial Issues, vol. 8, no. 4, pp. 222-226.

Yavas, B.F., Grave, K. and Vardiabasis, D. (2019), “Diversification strategies and equity market performances: Implications for investors and MNES”, Review of International Business and Strategy, vol. 29, no. 3, pp. 207-225. doi:

Zong-Sheng, W., Jung, L., Chang, G.S. and Sun-Jeong, K. (2020), “Efficient Chaotic Imperialist Competitive Algorithm with Dropout Strategy for Global Optimization”, Symmetry, vol. 12, no. 4, pp. 635. doi:








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