XAT 2014 Question 48

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 48

Rahim set up a “brand” committee comprising of a few selected managers, headed by Robert. The
committee proposed that IBM should continue to manufacture the three differently branded products. It also proposed to recruit a new brand manager for improving brand image of the products. It agreed with Rahim that the company should increase the price. Rocket Singh, head of sales, was confused because he realized that customers were miffed with “run - of - the - mill” and “maxi - max”.
What should Rocket Singh do?

Solution

Options A and B doesn't address the dissatisfaction of customers. Options C and D also doesn't help in finding the reason for customer's dissatisfaction. The answer is option E.



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