Instructions

Answer questions 36-38 on the basis of information given in the following situation.

Ava is the CEO of Ratan Brothers, a bicycle manufacturing company. The organization is doing well financially, with a steadily increasing share price. Recently, Ava promoted Bhushan, her nephew, to the position of head of procurement after he completed five years in the organization. After the promotion, he was automatically inducted into the quality council headed by Ava.

Dev and Sons is a supplier to Ratan Brothers. It supplies “ball bearings”, an important part of any bicycle. After Bhushan took over, he switched to a new supplier citing quality deficiencies in Dev and Sons’ product. Dev and Sons responded by publicly declaring that quality was not compromised. Further, it alleged that its competitor bribed Bhushan to get the contract.

Question 36

Post this public allegation, the share price of Ratan Brothers started falling.

Which of the following is the best option for Ava to immediately stem the falling stock prices?

Solution

The goal is to find a solution that will immediately stem the falling stock prices.

Here, the options A, D and E will not help and can even exacerbate the problem and hence are eliminated.

Option B could help, but the committee’s investigation might take a considerable time, and we want an immediate solution.

Option C will show the consumers that the company prioritises quality. Their openness to letting people scrutinise the relevant documents will show that the company has nothing to hide.

Hence, this option has the best chance of solving the problem and is the answer.


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