XAT 2014 Question 47

Instructions

Read the following case - let and answer the questions that follow

Intercontinental Business Manufacturing (IBM) was doing a roaring business. Demand of the products was high and supply of raw - material was abundant. IBM was manufacturing three different products. Some customers bought two types of products and some bought only one. The three products were “quickie - quick”, “run - of - the - mill”, and “maxi - max”. Customers were not complaining loudly. Ram, the product manager, was confused! Demand for “quickie - quick “was increasing .Raw material suppliers wanted to supply lower quality at cheaper price. It was profitable for the company to increase production .Quality department was not happy with the product. Ram met Rahim, the CEO, who, as always, wanted higher profits. He said that IBM will set up a committee for improving the quality.

Question 47

What must not be done by Ram?

Solution

Since there is good demand for quickie-quick it is essential that the quality is maintained to ensure the demand doesn't fall. Therefore, options B and C can be done. Options D and E may reduce the sales for some period but it is good keeping the market in view. Only producing quickie-quick products not concerning about the quality is not a good idea. Therefore, the answer is option A.



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