Case Study:- Vishal started a south Indian restaurant in old Delhi region. He invested 10 lakhs of his own and borrowed ₹15 lakh from SBH Bank @ 10% p.a. The sales revenue for the first year was ₹ 5 lakhs while the cost of goods sold was ₹ 7 lakh. Vishal realised that earning rewards is a must for a business to survive for long. In order to increase his sales he focused on customers satisfaction and regularly collected customers feedback. He also advertised about his restaurant in the local daily and offered discount coupons to customers who placed orders above ₹ 2000. This effort enabled Vishal to increase his sales revenue to ₹ 15,00,000 with COGS at ₹10,00,000. Today Vishal has expanded his business by opening outlets in other parts of Delhi on his own. Vishal's vision for the future is that he wants to be in business for himself but not by himself. He aspires to give exclusive rights of his trade marked product to independent retailer in return for their payment of royalties and conformance to standardized operating procedures.

Question

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Identify the most suitable channel of distribution for Vishal's restaurant if he focuses only on Dine-in facility and avoids home delivery.

The Correct Option is A

Solution and Explanation

Identify the legal document that will bind Vishal and the independent retailer if he gives exclusive rights of his trademarked product in return for royalty.

The Correct Option is C

Solution and Explanation

Vishal aspires to give on exclusive rights of his trade marked product to independent retailer in return for their payment of royality and conformance to standardized operating procedures in future. Identify the form of expansion from the above lives.

The Correct Option is B

Solution and Explanation

At present Vishal has expanded his business by opening outlets in other parts of Delhi.' Which method of expansion has he foilowed.

The Correct Option is A

Solution and Explanation

Calculate the Gross Margin earned by Vishal during the first year of his Business?

The Correct Option is B

Solution and Explanation

Calculate the Net Profit/Loss earned by Vishal during the second year.

The Correct Option is C

Solution and Explanation

Identify the idea field that enabled Vishal to start his restaurant ?

The Correct Option is D

Solution and Explanation

Identify the promotion strategy adopted by Vishal when he advertised about his restaurant in the local daily newspaper.

The Correct Option is A

Solution and Explanation

Identify the promotion strategy adopted by Vishal when he offers discounts to customers who place orders above ₹ 2,000

The Correct Option is B

Solution and Explanation

'Vishal realised that earning rewards is a must for a business to survive for long'. Identify the characteristic of business highlighted in the above line.

The Correct Option is A

Solution and Explanation

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