XAT 2015 — LRDI Question 15
Answer the questions on the basis of information given in the following case.
Mohan’s was a popular fast-food joint at Connaught Place, Delhi. Initially Mohan handled his business alone. His sons, Ram and Kishan, joined the business after graduation from college. Ram was entrepreneurial in nature. Subsequently, another branch of Mohan’s was opened in Panipat. Mohan had chosen Ram to head the Panipat branch. Though Ram increased sales in short time, he had stopped using premium quality organic vegetables, the speciality of Mohan’s. Mohan and Kishan were not happy with his way of doing business.
Now, the foremost challenge for Mohan was to sort out this issue with Ram. Mohan knew that replacing Ram with Kishan was difficult as Kishan did not want to leave Delhi. However, giving a freehand to Ram might have long term negative consequences. Mohan was confused about the future of course of actions.
Mohan sought feedback from a few of his businessmen friends, who were familiar with both the branches. Here is what they said:
- Businessman 1 : Customers of Connaught place and Panipat are very different.
- Businessman 2 : Customers in Panipat are extremely happy with Ram’s behaviour.
- Businessman 3 : Panipat branch does not use the same quality of ingredients but maintains good hygiene and taste.
- Businessman 4 : Who knows, tomorrow the customers of Panipat might also appreciate what Connaught place customers appreciate today!
If Mohan thinks all these are valid concerns, which of the following actions would be best for the business?
Answer & solution
- A
Training Kishan to replace Ram in a few months.
- B
Not worrying about ingredients as long as business grows.
- C
Bringing Ram to Connaught place branch.
Naming the Panipat branch as ‘Ram’s’, and changing it back to Mohan’, when needed.
- E
Asking Kishan to run the Panipat branch.
It can be inferred from the businessmen's statements that none of them has any harsh or strong opinion about Ram's approach of not using organic vegetables. Thus, according to the businessmen, substituting organic vegetables at the Panipat branch is not required.
Options 1 and 5 would unnecessarily complicate things as Kishan would take more time to get himself acquainted to the Panipat branch, also it is not guaranteed that it would yield the desired results for Mohan. Eliminate options 1 and 5.
The passage states that giving a free hand to Ram might have long term negative consequences. However, option 2 doesn't take this into consideration. Eliminate option 2.
Ram has already established the Panipat branch and he is the ideal person to carry out future operations there. Bringing him back to Connaught place will complicate things and serve no purpose. Eliminate option 3.
If the name of the Panipat branch is changed to 'Ram's' instead of 'Mohan's', then the identity of the business in Panipat will be linked to Ram. Thus, option 4 satisfies all the opinions expressed by the four businessmen.
Hence, the correct answer is option 4.