Instructions

Answer 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.

Question 46

Mohan sought the help of five consultants, who give the following opinions:
I. Organic vegetables might be a big success at Connaught place but awareness about organic vegetables is low among Panipat customers.
II. The Connaught place model can be implemented in Panipat provided the business is prepared to face the consequences.
III. Many high end restaurants in Panipat use organic vegetables. So, using organic vegetables will not be a differentiating factor.
IV. Selling prices of their dishes in Panipat are significantly lower. Using organic vegetables will bring down profits.
V. Premium quality organic vegetables are not easily available in Panipat.

Which of the following set of options would support Ram’s argument of not using organic vegetables?

Solution

Statement I mentions that the awareness about organic vegetables is low in Panipat. Therefore, this supports Ram's argument. Statement II doesn't mention anything about Ram not using premium quality organic vegetables. Statements III, IV and V support Ram's argument for not using organic vegetables.

The answer is option C.

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