Instructions

Read the following caselet and answer the questions that follow:

Due to increased competition, Electro Automobiles, the Indian subsidiary of Robert Automobile Company (RAC) reported lower sales and profits. RAC expects its new model Limo, developed especially for value conscious customers of India and China, would revive its fortunes. In order to prevent customers from buying competing products, RAC announced the launch of Limo six months ahead of schedule. Unrest in its Indian supplier resulted in delayed delivery of essential components to its main plant. Hence, Limo was launched on schedule only in China. Within a short span, Limo captured 30% of the Chinese market , which was 200% higher than expectation. Indian customers were becoming increasingly restless because they couldn't get a Limo in India. Electro’s dealers were worried, customers might switch to other cars.

Question 47

Mr. Murugan from Chennai experienced the comfort of Limo during his visit to China. He was willing to deposit an approximate price of Limo to buy the first available unit from Mr. Ahmed, a dealer in Chennai. Electro Automobile is yet to announce the actual price, and the process for allocation of the vehicles.
Which of the following is the best option for Ahmed?

Solution

Since Mr Murugan is willing to deposit an amount and wait for the first car to be available, option B makes the most sense. It ensures that Mr Murugan purchases the car and also lets him know about policy.

Option A is also valid but not as suitable as B.

Transferring the amount to Electro Automobile's account does not make sense. Hence, C can be dismissed.

Options D and E can lead to Mr Murugan cancelling his order.

Hence, the answer is option B.


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