List of top Decision Making Questions

Wind turbine maker Leone Energy posted a net loss of Rs. 250 crore for the fourth quarter ended March 31, 2010 as against a net profit of Rs. 350 crore in the same quarter a year ago. In the financial year 2009–10, the company clocked a gross income of Rs. 6,517 crore, as against Rs. 9,778 crore in the previous year. Leone Energy clocked a loss of Rs. 1,100 crore in 2009–10, as against a net profit of Rs. 2,300 crore in 2008–09. The sales revenue stood at Rs. 22,400 crore for the year, approximately 21% less than Rs. 28,350 crore last year. For the financial year ending March 31, 2010, Leone Energy’s sales volume (in terms of capacity of projects executed) was 4,560 MW from 2,935 MW a year ago.
The CEO of Leone Energy in his message to shareholders suggested that the poor performance of the company was the result of adverse economic conditions during the year ended March 31, 2010. You are a shareholder owning 5% of the shares of Leone Energy, have seen the stock price decline by more than 50% during the year 2009–10, and are quite upset with the way the management has been handling the business. You have decided to confront the management at the next shareholders’ meeting and have chosen the following 5 points to argue against the CEO’s version of the story.
Select the most appropriate order of these 5 statements that you, as a disappointed shareholder, should adopt as a strong and robust preface in your case against the management in front of the management and other shareholders:
a. The management is not doing its best to maintain the profitability of the company.
b. The company has actually increased its sales volume during the year under consideration.
c. The adverse economic conditions have led to a worldwide increase in the adoption of alternative energy sources, reflecting in all-time highest profits for wind turbine makers in both developed and developing countries.
d. The management has been lax with its employees as the management enjoys a large set of benefits from the company that they would have to forgo if they became strict with employees.
e. The company is trying to increase sales by charging lower, unprofitable prices.
Dr. Puneet worried about the test results of his patient, Ms. Benita. Ms. Benita was an old rich widow with no dependents. The results indicate that Ms. Benita has the potentially fatal Lymphangioleiomyomatosis (LAM) disease. LAM is rare and difficult to diagnose. People with LAM often need oxygen and lung transplants as the disease continues its course. According to the test results, Ms. Benita might have got it.
Dr. Puneet explained the situation to Ms. Benita carefully. Without naming the disease, he explained that the disease was progressive and would need treatment using drugs which were still at the experimental stage. Even then, the chance of success was not too bright. If the treatment was unsuccessful, then they would have to get ready for a lung transplant. The lung transplant itself was a risky course of treatment. Even if successful, she would require constant medical support and treatment.
Ms. Benita looked blank. She asks Dr. Puneet for his advice about the course of action. He nods gravely, “I’m afraid, Ms. Benita, I think there is only one course we can take.”
What should be Dr. Puneet’s advice?
Some environmentalists, tired of waiting for ‘green economics’ to catch up with society at large, have adopted their own strategies for tipping the financial calculation in favour of the land. In the forest surrounding Vancouver, where trees are being felled for paper to print philosophy books, groups have used metal spikes hidden in trees to prevent chainsaws from operating safely, pushing up the cost of harvesting trees. In Phoenix, Arizona, where mountain nature reserves have been encroached on by new houses, hooded vigilantes have burnt down the new residences. The arsonists, according to the local paper, pray before they burn down a house that no one will get hurt, thinking primarily of the firefighters; the new houses are burned while still empty. “We don’t pray for ourselves not to get caught – that’s God’s will,” one is quoted as saying.
As per the activists, all aforementioned activities seem clearly very principled. But is it ethical?

Answer questions based on the following information: 

An automobile company's annual sales of its small cars depends on the state of the economy as well as on whether the company uses some high profile individual as its brand ambassador in advertisements of its product. The state of the economy is "good", "okay" and "bad" with probabilities 0.3, 0.4 and 0.3 respectively. The company may choose a high profile individual as its brand ambassador in TV ads or may go for the TV ads without a high profile brand ambassador.

If the company fixes price at Rs. 3.5 lakh, the annual sales of its small cars for different states of the economy and for different kinds of TV ads are summarized in Table 1. The figures in the first row are annual sales of the small cars when the company uses a high profile individual as its brand ambassador in its TV ads and the ones in the second row are that when the company does not use any brand ambassador in TV ads, for different states of the economy.

 

 GoodOkayBad
With brand ambassador1000008000050000
Without brand ambassador800005000030000


Table 1

Without knowing what exactly will be the state of the company in the coming one year, the company will either have to sign a TV ad contract with some high profile individual, who will be the company's brand ambassador for its small car for the next one year, or go for a TV ad without featuring any high profile individual. It incurs a cost of Rs. 3.45 lakh (excluding the payment to the brand ambassador) to put a car on the road.

When the company's profit is uncertain, the company makes decisions on the basis of its expected profit. If the company can earn a profit xi with probability pi (the probability depends on the state of economy), then the expected profit of the company is:

∑ (xi × pi)
 

Read the following case and choose the best alternative.

Ranjan Tuglák, the youngest cabinet minister of the newly elected coalition, glanced through the notes prepared by his secretary regarding the recent controversies on racket, the most popular game of the country. While International Racket Association (IRC) has agreed to implement Drug Testing Code (DTC) promoted by World Athletic and Gamer Federation, Racket Club which controls the entire racket related activities (unlike any other sports and games of the country) had some reservations regarding the initiative. Majority of the citizens waited for the international competitions eagerly and were fanatical about their country’s participation in them. As a result of the popularity of the game, 70% of the total revenue associated with the game originates from the country. Hence Racket Club has high bargaining power with IRC and can change any decision that is not aligned with its interests. Three most popular and senior players, including the captain, are against the application of DTC citing security reasons. A decision against the interests of these players may result in law and order problems throughout the country. Other players support the decision of their senior colleagues and if Racket Club refuses to agree, players may support Counter Racket Club, a new national level initiative. Counter Racket Club may threaten the monopoly of Racket Club, if it succeeds to attract some popular racket players.

Ranjan’s father had been forced to resign from politics due to alleged corruption charges. Ranjan had completed his entire education from abroad before returning to join politics. He is a great soccer player and has major reservations against racket. According to him, racket has negative influence on the country’s youth and diverts their attention from productive work. He also considers drug testing as an essential feature for any sports and games across the world. As the new cabinet minister for Youth and Sports he needs to take some important decisions on this controversial issue.
Read the following case and choose the best alternative – Guruji's guidance

Bhola, an avid nature lover, wanted to be an entrepreneur. He dreamt of establishing a chain of huts in Chaptur region to cater to tourists, who came attracted by the beauty and splendour of the Himalayas.

However, he was appalled by current degradation of the Himalayan environment. He remembered the early times when everything was so green, clean and peaceful. Now, greenery was replaced by buildings, peace was shattered by honking of vehicles and flocking of tourists, and cleanliness was replaced by heaps of plastics.

Bhola had a strong sense of right and wrong. On speaking to few locals about the issue, he realized that the locals were aware of these issues. However, they pointed out the benefits of development: pucca houses for locals; higher disposable income and with that, ability to send their children to better schools and colleges, better road connectivity, and access to latest technology in agriculture. Most locals wanted the development to continue.

Saddened by the lack of support from the locals, Bhola took up the issue with the government. He met the chief minister of the state to find out if government could regulate the developmental activities to prevent environmental degradation. However, the chief minister told Bhola that such an action would slow down the economic progress. That also meant loss of substantial tax revenues for the government.

Bhola needed to resolve the dilemma. Bhola always wanted to be an entrepreneur, who could contribute to the society and earn money as well. However, his business would also be responsible for destroying environment. If he did not set up his business, he would not be able to earn money and contribute to the society.

After mulling over the issues, he went to his mentor “Guruji”. Guruji realized that it was really a difficult puzzle: if one saves the environment, there seems to be no development and if the people and the government sought development, the environment and hence future of this planet and human beings was at stake. After careful thought, he felt that the dilemma could be resolved. He fixed up a meeting with Bhola to answer Bhola's queries.
Direction: Read the following scenario and answer the questions that follow.
Riya, a brilliant young scientist, comes from a small town with limited resources and opportunities. Despite the challenges, Riya has always been passionate about scientific research and dreams of making groundbreaking discoveries. She excels in her studies and actively participates in science competitions, where she consistently wins accolades for her innovative projects. Riya's parents, although supportive, struggle to provide the financial means necessary to support her scientific pursuits. Determined to overcome these obstacles, Riya is ready to take the next steps towards achieving her dream.
Riya successfully conducts several groundbreaking experiments and gains recognition for her contributions to the scientific community. She now wants to expand her research and collaborate with other scientists from around the world. Which strategy would be most effective for Riya to achieve this?
Direction: Read the following scenario and answer the questions that follow.
Riya, a brilliant young scientist, comes from a small town with limited resources and opportunities. Despite the challenges, Riya has always been passionate about scientific research and dreams of making groundbreaking discoveries. She excels in her studies and actively participates in science competitions, where she consistently wins accolades for her innovative projects. Riya's parents, although supportive, struggle to provide the financial means necessary to support her scientific pursuits. Determined to overcome these obstacles, Riya is ready to take the next steps towards achieving her dream.
With her ingenuity and determination, Riya finds a way to attract international collaborators and establish herself as a respected scientist in her field. However, she realises that her research findings are not effectively reaching the general public. To increase awareness and foster public interest in scientific research, which of the following options would be most beneficial for Riya?
Direction: Read the following scenario and answer the questions that follow.
Rahul is the CEO of a multinational corporation that operates in a country where discrimination based on caste is prevalent. Rahul has been urged by stakeholders to address the underrepresentation of individuals from marginalised castes in the company's workforce. However, Rahul is hesitant and unsure about the benefits and feasibility of actively promoting diversity in this regard.
The following arguments are presented to Rahul about the benefits of hiring individuals from lower castes:
1) Individuals from marginalised castes bring diverse perspectives, experiences, and cultural insights, which can foster innovation and creativity within the organisation.
2) Hiring individuals from marginalised castes can help reduce societal inequalities by providing them with opportunities for economic mobility and social upward mobility.
3) Creating an inclusive work environment that promotes diversity can attract top talent from all backgrounds, leading to a more competitive and successful organisation.
4) Individuals from marginalised castes often possess resilience, determination, and a strong work ethic due to the challenges they have faced, making them valuable assets to the company.
5) Promoting diversity and social inclusion can improve the company's reputation, enhance brand image, and attract a wider customer base.
From the above arguments, which of the following options indicate that Rahul's apprehensions are misplaced?
Direction: Read the following scenario and answer the questions that follow.
Rahul is the CEO of a multinational corporation that operates in a country where discrimination based on caste is prevalent. Rahul has been urged by stakeholders to address the underrepresentation of individuals from marginalised castes in the company's workforce. However, Rahul is hesitant and unsure about the benefits and feasibility of actively promoting diversity in this regard.
After careful consideration, Rahul decides to implement diversity initiatives to address the underrepresentation of individuals from marginalised castes in the company. Which of the following actions would be most effective in promoting diversity and inclusivity?
Direction: Read the following scenario and answer the questions that follow.
Rahul is the CEO of a multinational corporation that operates in a country where discrimination based on caste is prevalent. Rahul has been urged by stakeholders to address the underrepresentation of individuals from marginalised castes in the company's workforce. However, Rahul is hesitant and unsure about the benefits and feasibility of actively promoting diversity in this regard.
Despite Rahul's efforts to promote diversity and inclusivity, some employees continue to exhibit discriminatory behaviour towards their colleagues from marginalised castes. The following actions are recommended to Rahul.
1) Implementing a zero-tolerance policy for discrimination and providing clear guidelines on appropriate behaviour.
2) Conducting diversity and inclusion training sessions for all employees to raise awareness and foster a respectful work environment.
3) Encouraging open communication channels where employees can report incidents of discrimination or harassment.
4) Establishing a grievance redressal committee to investigate and take appropriate actions against discriminatory behaviour.
5) Celebrating cultural festivals and organising events that highlight the contributions of employees from diverse backgrounds. Which of these actions represent the BEST combination of one positive and one punitive measure?
Direction: Read the following scenario and answer the questions that follow. XYZ Hospital, a renowned healthcare facility, has been facing significant challenges in providing quality healthcare services due to a shortage of doctors. The hospital administration is deeply concerned about the impact on patient care and is determined to find effective Solutions. They have analysed the situation and identified some key factors contributing to the shortage.
Firstly, the hospital has experienced a surge in patient demand and a growing population in the surrounding area, resulting in increased pressure on the existing medical staff. Secondly, the hospital is located in a remote region, making it less attractive for doctors seeking career opportunities in urban areas. Lastly, the retirement of several senior doctors in the coming years will exacerbate the shortage and the loss of valuable expertise.
To address these challenges and ensure the efficient delivery of healthcare services, the hospital administration is considering different strategies and recruitment options.
Which of the following strategies should XYZ Hospital adopt to address the shortage of doctors and maintain quality healthcare services?
Direction: Read the following scenario and answer the questions that follow.
XYZ Hospital, a renowned healthcare facility, has been facing significant challenges in providing quality healthcare services due to a shortage of doctors. The hospital administration is deeply concerned about the impact on patient care and is determined to find effective Solutions. They have analysed the situation and identified some key factors contributing to the shortage.
Firstly, the hospital has experienced a surge in patient demand and a growing population in the surrounding area, resulting in increased pressure on the existing medical staff. Secondly, the hospital is located in a remote region, making it less attractive for doctors seeking career opportunities in urban areas. Lastly, the retirement of several senior doctors in the coming years will exacerbate the shortage and the loss of valuable expertise.
To address these challenges and ensure the efficient delivery of healthcare services, the hospital administration is considering different strategies and recruitment options.
In order to ensure the highest level of patient satisfaction and quality care, which of the following factors should XYZ Hospital prioritise when recruiting new doctors?
Direction: Read the following scenario and answer the questions that follow.
XYZ Hospital, a renowned healthcare facility, has been facing significant challenges in providing quality healthcare services due to a shortage of doctors. The hospital administration is deeply concerned about the impact on patient care and is determined to find effective Solutions. They have analysed the situation and identified some key factors contributing to the shortage.
Firstly, the hospital has experienced a surge in patient demand and a growing population in the surrounding area, resulting in increased pressure on the existing medical staff. Secondly, the hospital is located in a remote region, making it less attractive for doctors seeking career opportunities in urban areas. Lastly, the retirement of several senior doctors in the coming years will exacerbate the shortage and the loss of valuable expertise.
To address these challenges and ensure the efficient delivery of healthcare services, the hospital administration is considering different strategies and recruitment options.
XYZ Hospital wants to reduce patient waiting times and improve efficiency in its operations. Which of the following strategies should the hospital consider implementing?
Direction: Read the following scenario and answer the questions that follow.
Nimit has been associated with Superb Coaching Classes (SCC. as an independent trainer for the past ten years. He signs a yearly contract with SCC every year in April. According to the contract signed in April 2022, Nimit was being paid Rs. 1,50,000 per month as per the minimum guarantee of 100 hours per month @Rs. 1500 per hour. At the end of the year, Nimit was asked to pay Rs. 2,25,000 as SSC could not provide 100 classes per month to Nimit. Overall there was a deficit of 150 hours out of a total of 1200 hours in the years.
Given the above context, which of the following is the first thing Nimit should do?
Direction: Read the following scenario and answer the questions that follow.
Nimit has been associated with Superb Coaching Classes (SCC. as an independent trainer for the past ten years. He signs a yearly contract with SCC every year in April. According to the contract signed in April 2022, Nimit was being paid Rs. 1,50,000 per month as per the minimum guarantee of 100 hours per month @Rs. 1500 per hour. At the end of the year, Nimit was asked to pay Rs. 2,25,000 as SSC could not provide 100 classes per month to Nimit. Overall there was a deficit of 150 hours out of a total of 1200 hours in the years.
When Nimit checked his contract, he found that there is no clause for payment in case of deficit in the number of hours. He approached the HR department at SCC and told them that he is not liable to pay. The HR department does not take it well and tells him that his contract won’t be renewed for the next year if he doesn’t pay Rs. 2,25,000. Which of the following will be the MOST beneficial course of action for Nimit?
Direction: Read the following scenario and answer the questions that follow:
Raveena, who is working at a leading tech company, also runs a food van on weekends near her home. She sells chicken sandwiches and veg wraps at her food van. The food van is a favourite among college students who form a major part of her clientele as the food offered is pocket friendly (₹ 60- 70). The students visit the van generally for evening snacks and prefer the sandwiches and wraps sold by Raveena over the ones offered by leading food chains. She is able to sell 550- 650 units on the weekend.
One of Raveena’s customers, Akshay, asks her to open a stall in the college he is studying in. He offers to run the stall on the weekdays if she pays him a minimal amount each month.
Which of the following will persuade Raveena to open a stall in the college?
Direction: Read the following scenario and answer the questions that follow:
Raveena, who is working at a leading tech company, also runs a food van on weekends near her home. She sells chicken sandwiches and veg wraps at her food van. The food van is a favourite among college students who form a major part of her clientele as the food offered is pocket friendly (₹ 60- 70). The students visit the van generally for evening snacks and prefer the sandwiches and wraps sold by Raveena over the ones offered by leading food chains. She is able to sell 550- 650 units on the weekend.
Raveena sets up a stall at the college which is run by Akshay. The stall sells a chicken sandwich for ₹ 65 and a veg wrap for ₹ 55 . The stall is operational from Monday to Saturday and sells only 400 units in the first month of operation. Raveena is not convinced with the sales numbers and doubts that Akshay is not reporting the correct figures to her. Which of the following steps should Raveena take to address the issue?
I. File a police complaint against Akshay
II. Ask some of the other college students to keep an eye on Akshay.
III. Discuss the issue with Akshay and ask him for an explanation.
IV. Install CCTV cameras near the food stall in college.
V. Visit the food stall randomly without informing Akshay.
Direction: Read the following scenario and answer the questions that follow.
Vipul is working with the operations department at Awsum Ventures. He reports to Suresh, who heads the operations department. Seven months ago Suresh got married to Reena, who is Vipul’s counterpart. After the marriage, Vipul realised that Suresh used to ask him to finish all the tasks Reena could not handle and therefore, he started feeling overburdened. Vipul tried talking to Suresh about the issue but received a cold response.
What should Vipul do?
Direction: Read the following scenario and answer the questions that follow.
Vipul is working with the operations department at Awsum Ventures. He reports to Suresh, who heads the operations department. Seven months ago Suresh got married to Reena, who is Vipul’s counterpart. After the marriage, Vipul realised that Suresh used to ask him to finish all the tasks Reena could not handle and therefore, he started feeling overburdened. Vipul tried talking to Suresh about the issue but received a cold response.
Two months later, it was the time of appraisals at Awsum Ventures. Vipul was pretty sure about getting a promotion as he had received awards and appreciation from his seniors at many occasions during the year. Almost everyone in the team was sure of Reena being fired as she was on PIP for 6 months and on leave for 1 month for his wedding during the year. Suresh took the following decisions during the appraisal cycle:
1) Did not hold an appraisal meeting with Vipul to review his performance.
2) Gave a 5% hike, which was given to everyone in the company, to Vipul.
3) Gave a 15% hike to Reena.
Arrange these decisions in a descending order wherein the most unjust decision is the first.
Direction: Read the following scenario and answer the questions that follow:
Mohan, Kishan, Manohar, and Kripa own a dry cleaning shop each in Skardi Plaza. They are the only dry cleaners in a township which is home to over 5,000 families. Each of them offered three services: Dry cleaning, Darning, and Alteration. One morning they met at a snack shop and verbally agreed to charge Rs. 200 for any of the three services on weekdays. On weekends and holidays, they agreed to increase the rate by Rs. 50.
The very next day after the four dry cleaners had met and agreed upon fixing the prices, Kripa, being the most skilled dry cleaner in the township, was thinking about setting his rates a bit higher than the one all the dry cleaners had agreed upon.
Which of the following options would let Kripa charge the rate he wants to, without violating the agreement in a major way?
Direction: Read the following scenario and answer the questions that follow:
Mohan, Kishan, Manohar, and Kripa own a dry cleaning shop each in Skardi Plaza. They are the only dry cleaners in a township which is home to over 5,000 families. Each of them offered three services: Dry cleaning, Darning, and Alteration. One morning they met at a snack shop and verbally agreed to charge Rs. 200 for any of the three services on weekdays. On weekends and holidays, they agreed to increase the rate by Rs. 50.
The business of Manohar heavily relies on the income made from providing services to a particular set of customers who were loyal to him. He is worried that since the rates would be the same everywhere in the township, he might not be able to retain his loyal customers.
Which of the following options would enable him to retain his customers while also keeping the rates same as other dry cleaners?
Direction: Read the following scenario and answer the questions that follow:
Mohan, Kishan, Manohar, and Kripa own a dry cleaning shop each in Skardi Plaza. They are the only dry cleaners in a township which is home to over 5,000 families. Each of them offered three services: Dry cleaning, Darning, and Alteration. One morning they met at a snack shop and verbally agreed to charge Rs. 200 for any of the three services on weekdays. On weekends and holidays, they agreed to increase the rate by Rs. 50.
After two months from the date of the agreement, Mohan observed a decrease in his revenues. He wasn’t as skilled as Kripa, nor did he have a loyal customer base like Manohar. In order to increase his customer base, he lowered his prices to Rs. 150 per service. After two months, Kishan, Manohar, and Kripa found out about this and shared a common concern that everyone’s revenue would take a hit because of this. What should they do so that Mohan returns to the fold and keeps his part of the agreement henceforth?
Direction: Read the following scenario and answer the questions that follow:
Licensed taxi drivers in the metropolitan city of Tropur in North India are up in arms at the emergence of appbased taxis. App based taxis are easy to obtain quickly, come in various capacities, are more comfortable to ride in than are licensed taxis. Moreover, payment can be made by debit/credit cards or online or even by cash wallets. Within a short time, these app based taxis have taken 30% of the total taxi market. The local taxi association implores the mayor of the city to do something to protect the business of licensed taxis.
What should the mayor do to help licensed taxi owners and yet ensure that customers have a wide choice in transportation?
Direction: Read the following scenario and answer the questions that follow:
Licensed taxi drivers in the metropolitan city of Tropur in North India are up in arms at the emergence of appbased taxis. App based taxis are easy to obtain quickly, come in various capacities, are more comfortable to ride in than are licensed taxis. Moreover, payment can be made by debit/credit cards or online or even by cash wallets. Within a short time, these app based taxis have taken 30% of the total taxi market. The local taxi association implores the mayor of the city to do something to protect the business of licensed taxis.
What should the mayor do to mitigate this situation?