XAT 2015 — LRDI Question 16
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.
After discussing with a few customers, Mohan realised that compromising on the quality of ingredients at Panipat branch may not be good idea but at the same time he also realised that Panipat branch had grown fast. He was contemplating following five actions. Which of the following actions would be the best for the future of his business?
Answer & solution
- A
Creating awareness campaign for organic vegetables in Panipat.
Mohan himself should took after the Panipat branch.
- C
Close down the Panipat branch.
- D
Send Kishan to Panipat branch and bring Ram to Connaught place permanently.
- E
Hire a new person to run the Panipat branch
If an awareness campaign related to organic vegetables is generated in Panipat it can malign the reputation of the Panipat branch as it was previously not using organic vegetables.
As Mohan is an experienced person and is the one responsible for taking the Connaught Place branch to where it is today, he is the best candidate to run the Panipat branch as he is likely to generate the required sales whilst also maintaining the quality of food.
Closing down the Panipat branch would be a silly idea, as the place is already established and generates revenue.
Sending Kishan to the Panipat branch is a bad idea as he would take more time to get himself acquainted to the place. Mohan has already established the place and is the better person between the two brothers to carry out the operations there.
Option 5 can be eliminated for the same reason presented above to eliminate option 4.
Hence, the correct answer is option 2.