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XAT 2016 — Decision Making Question 19

Decision MakingEasy
Passage / Data

Answer the following question based on the information given below.

Recently a private food testing agency reported the presence of a harmful chemical in Crunchy Chips, a product of a fast moving consumer goods giant. The report sparked a nationwide outcry.

Rajan Shekhawat, the CEO of the company, feared this incident might affect the company’s image among consumers. Rajan had the following options:

  1. Apologizing publicly for this inconvenience and immediately withdrawing the products from all stores.
  2. Communicate ‘the correct findings’ to the public.
  3. Hire a reputed independent testing agency to verify the claims of the report.
  4. Establish internal mechanisms to prevent repetition of such incidences in future.
  5. Give higher incentives to distributors and retailers for selling the company brands.

Which of the following would be the MOST APPROPRIATE ORDER of options for Rajan, starting from the immediate?

Answer & solution

Correct answer: 3, 2, 4

  • A

    3, 1, 5 

  • 3, 2, 4 

  • C

    1, 3, 5 

  • D

    1, 2, 5

  • E

    5, 3, 2

Solution

Option 5 is the most unethical course of action as it encourages selling adulterated product to the consumers and harming their health.
Option 1 is a hasty course of action as the company should dig deep into the issue and find out the truth.
Of the three options, option 3 is the foremost step in finding the truth behind this accusation in a bid to clear company's name. Chronologically, option 2 should be the next step in order to be transparent with the customers to gain their trust. Finally, the company should ensure that such incidents don't repeat in future.
Hence, the correct sequence is 3,2,4.
Hence, the correct answer is option 2.

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XAT 2016 Decision Making Q19: Rajan Shekhawat, the CEO of the company, feared this incident might affect the company’s image among con — Solution | TheCATExam