Comprehension
Answer questions on the basis of information given in the following situation.
Ava is the CEO of Ratan Brothers, a bicycle manufacturing company. The organization is doing well financially, with a steadily increasing share price. Recently, Ava promoted Bhushan, her nephew, to the position of head of procurement after he completed five years in the organization. After the promotion, he was automatically inducted into the quality council headed by Ava.
Dev and Sons is a supplier to Ratan Brothers. It supplies “ball bearings”, an important part of any bicycle. After Bhushan took over, he switched to a new supplier citing quality deficiencies in Dev and Sons’ product. Dev and Sons responded by publicly declaring that quality was not compromised. Further, it alleged that its competitor bribed Bhushan to get the contract.
Ava is the CEO of Ratan Brothers, a bicycle manufacturing company. The organization is doing well financially, with a steadily increasing share price. Recently, Ava promoted Bhushan, her nephew, to the position of head of procurement after he completed five years in the organization. After the promotion, he was automatically inducted into the quality council headed by Ava.
Dev and Sons is a supplier to Ratan Brothers. It supplies “ball bearings”, an important part of any bicycle. After Bhushan took over, he switched to a new supplier citing quality deficiencies in Dev and Sons’ product. Dev and Sons responded by publicly declaring that quality was not compromised. Further, it alleged that its competitor bribed Bhushan to get the contract.
Question: 1
Post this public allegation, the share price of Ratan Brothers started falling.
Which of the following is the best option for Ava to immediately stem the falling stock prices?
Post this public allegation, the share price of Ratan Brothers started falling.
Which of the following is the best option for Ava to immediately stem the falling stock prices?
Which of the following is the best option for Ava to immediately stem the falling stock prices?
Updated On: Aug 9, 2024
- Fire Bhushan, blacklist Dev and Sons and inform the press.
- Issue a press statement that a committee has been formed to look into the matter.
- Issue a press statement that the company's quality standards have increased and that anyone is welcome to scrutinize the relevant documents.
- Cancel the remaining order and call for a fresh tender.
- Do nothing, as Bhushan, as the head of procurement, has the right to decide on the supplier.
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The Correct Option is C
Solution and Explanation
The correct option is (C): Issue a press statement that the company's quality standards have increased and that anyone is welcome to scrutinize the relevant documents.
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Question: 2
Under pressure from media and suppliers, Ava constituted a cross-functional committee of senior executives to investigate Dev and Sons' allegation against Bhushan. The committee exonerated Bhushan. However, rumors within the organization began to spread that the decision was influenced by nepotism.
Which of the following should be the best response from Ava?
Under pressure from media and suppliers, Ava constituted a cross-functional committee of senior executives to investigate Dev and Sons' allegation against Bhushan. The committee exonerated Bhushan. However, rumors within the organization began to spread that the decision was influenced by nepotism.
Which of the following should be the best response from Ava?
Which of the following should be the best response from Ava?
Updated On: Aug 9, 2024
- Do nothing, as the committee has exonerated Bhushan.
- Force Bhushan to resign temporarily. Make an independent enquiry, if found innocent, reinstate Bhushan.
- Communicate to all shareholders that these kinds of practices are very common in organizations.
- Sack all those employees who questioned the authority of Ava.
- Explain in a town hall meeting, open to all the employees, how the decision to exonerate Bhushan was taken.
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The Correct Option is
Solution and Explanation
The correct option is (E): Explain in a town hall meeting, open to all the employees, how the decision to exonerate Bhushan was taken.
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Question: 3
A few months after the issue of Dev and Sons, a vigilance committee discovered some financial irregularities attributable to Bhushan in his earlier stint as a senior manager in marketing. The board of directors was concerned about this and demanded a response from the CEO.
Ava contemplated following responses:
1. Offer to resign from the post of CEO, since as the CEO she is ultimately responsible for everything in the organization.
2. Sack Bhushan immediately and make the reason public.
3. Have a town hall meeting with all the employees and deny any financial irregularities in the organization.
4. Communicate to the board that as the CEO, the organization's financial health is her top priority, on which she has delivered stellar performance in the last five years.
5. Inform the board that Bhushan was promoted because his initiatives helped the company immensely.
Which of the following sequence of actions is the most appropriate for Ava?
A few months after the issue of Dev and Sons, a vigilance committee discovered some financial irregularities attributable to Bhushan in his earlier stint as a senior manager in marketing. The board of directors was concerned about this and demanded a response from the CEO.
Ava contemplated following responses:
1. Offer to resign from the post of CEO, since as the CEO she is ultimately responsible for everything in the organization.
2. Sack Bhushan immediately and make the reason public.
3. Have a town hall meeting with all the employees and deny any financial irregularities in the organization.
4. Communicate to the board that as the CEO, the organization's financial health is her top priority, on which she has delivered stellar performance in the last five years.
5. Inform the board that Bhushan was promoted because his initiatives helped the company immensely.
Which of the following sequence of actions is the most appropriate for Ava?
Ava contemplated following responses:
1. Offer to resign from the post of CEO, since as the CEO she is ultimately responsible for everything in the organization.
2. Sack Bhushan immediately and make the reason public.
3. Have a town hall meeting with all the employees and deny any financial irregularities in the organization.
4. Communicate to the board that as the CEO, the organization's financial health is her top priority, on which she has delivered stellar performance in the last five years.
5. Inform the board that Bhushan was promoted because his initiatives helped the company immensely.
Which of the following sequence of actions is the most appropriate for Ava?
Updated On: Aug 9, 2024
- 5,2,1
- 5,4,3
- 1,2,3
- 2,1,4
- 3,4,1
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The Correct Option is
Solution and Explanation
The correct option is (E): 3,4,1
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