Comprehension

Girirajan an unemployed youngster from Kumbakonam, Tamilnadu, visited Singapore where his school friend worked as software engineer. In Singapore, Girirajan realized that there were a lot of Tamils in “Little India” area. He soon assessed that there were very few restaurants serving authentic Tamil food and decided to set-up a restaurant “Giri’s” in “Little India” serving authentic Tamil food in traditional banana leaf. Customers loved the food. Very soon word spread about the good quality food served in the traditional way. Girirajan expanded operation recruiting 10 employees, all Tamils. 
Six months later, Girirajan realized that a lot of Kannadiga and Telugu customers started visiting the restaurant along with their Tamil friends. One day, a Kannadiga customer looking for Devangere Benne Dosa suggested that it may not be a bad idea for Girirajan to serve Karnataka and Andhra cuisines along with Tamil. With time, the popularity of the reastaurant kept soaring. As a result, a lot of Malays, Indonesians and Chinese started visiting the restaurant. His software engineer friend advised to cater to customers of all nationalities. Despite his desire to go grand, Girirajan realized he did not have enough money to get extra space anywhere in Singapore and banks were also reluctant to lend.
One day, while assessing the business, he realized that the restaurant had 90% occupancy rate during peak hours and 40% during the non-peak hours. Both gures were increasing with time.

Question: 1

Which of the following options would be most suitable for the growth of the business?

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In business strategy questions, growth is not always about expansion. Often, focusing on specialization and improving quality in a niche is more effective than diluting resources across many domains.
Updated On: Aug 23, 2025
  • Include Karnataka and Andhra cuisines in the menu.
  • Include Indonesian and Chinese in the menu.
  • Keep the focus on Tamil food only with an increased focus on quality improvement.
  • Expand to include either Karnataka and Andhra cuisines or Indonesian and Chinese cuisines.
  • Include Karnataka and Andhra cuisines as well as Indonesian and Chinese.
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The Correct Option is C

Solution and Explanation

Step 1: Identifying the business context.
The business already specializes in Tamil cuisine. The challenge for growth lies not in diversification but in building a strong reputation for excellence within its niche. Expanding too broadly may dilute brand identity and strain resources.

Step 2: Evaluating each option.
(A)

Include Karnataka and Andhra cuisines.
While related regional cuisines may appeal to some, this would shift the focus away from Tamil food and require additional resources. Risk of dilution. (B)

Include Indonesian and Chinese cuisines.
This expansion into international cuisines would be drastic. It dilutes the restaurant’s Tamil identity and may confuse its customer base. Unsuitable. (C)

Keep the focus on Tamil food only with an increased focus on quality improvement.
This is the most sustainable choice. It preserves brand identity, strengthens customer loyalty, and enhances competitiveness through quality rather than overextension. (D)

Expand to include either Karnataka and Andhra cuisines or Indonesian and Chinese cuisines.
Although offering flexibility, this still means diversifying too broadly and moving away from the brand’s original strength. Not the best strategy. (E)

Include Karnataka and Andhra cuisines as well as Indonesian and Chinese.
This is excessive diversification. Managing multiple cuisines would overwhelm the business and erode its focus. Least suitable.

Step 3: Conclusion.
The best path for growth is to focus narrowly on Tamil cuisine but improve its quality and customer experience. This creates differentiation and builds long-term sustainability.

Final Answer: \[ \boxed{\text{C. Keep the focus on Tamil food only with an increased focus on quality improvement.}} \]
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Question: 2

Girirajan started analyzing his quarterly customer data to assess growth opportunities. He discovered that 20% of his customers are Kannadigas and many of them were requesting for a few Karnataka dishes. He was not sure if it was a good idea to serve Karnataka food. He wanted to experiment before taking the final call. Which of the following options will be worth experimenting in the next fortnight?

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When testing customer preferences, the best strategy is to introduce small, transparent changes that allow accurate measurement of demand.
Updated On: Aug 23, 2025
  • Introduce a Karnataka food day every week to please the Kannadiga customers.
  • Recruit a few Kannadiga waiters to interact with Kannadiga customers.
  • Rename a few Tamil dishes as Karnataka dishes.
  • Serve Karnataka dishes as and when requested by customers without the menu displaying these dishes.
  • Add a few Karnataka dishes to the cuisine and display these in a separate menu.
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The Correct Option is

Solution and Explanation

Step 1: Understanding the Problem
Girirajan is analyzing customer demand to decide whether introducing Karnataka food is a good business move. Since 20% of his customers are Kannadigas, it makes sense to experiment first before making a large-scale decision.


Step 2: Evaluating Each Option
-

Option A: Introducing a Karnataka food day is too rigid and may alienate non-Kannadiga customers.
-

Option B: Recruiting Kannadiga waiters may improve communication but does not test the actual demand for Karnataka food.
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Option C: Renaming Tamil dishes as Karnataka dishes is misleading and unethical.
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Option D: Serving Karnataka dishes secretly upon request does not allow for a fair test of popularity since customers won’t see them on the menu.
-

Option E: Adding Karnataka dishes to the menu and highlighting them separately provides a clear, transparent experiment. Customers can freely choose, and demand can be accurately measured.


Step 3: Conclusion
The best experimental approach is

Option E, as it allows Girirajan to test customer response in a fair and visible way before making a long-term decision.
\[ \text{Correct Answer: (E)} \]
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Question: 3

Giriraja experimented with Karnataka food for a fortnight. He collected sales data for Karnataka food along with the trend of overall sales for the last seven days. Which of the following datasets, IF TRUE, will give Girirajan greater confidence to continue serving Karnataka food? (Figures below represent Karnataka food sales as percentage of total sales.)

Show Hint

When analyzing sales data, look for both consistency and alignment with overall growth trends. A steady upward trend combined with rising total sales provides the best evidence for long-term sustainability.
Updated On: Aug 23, 2025
  • 14, 15, 16, 17, 18, 19, 20, with total sales trend increasing by 0.4%.
  • 20, 20, 20, 20, 20, 20, 20, with total sales trend increasing by 0.4%.
  • 50, 47, 44, 40, 47, 45, 40, with total sales trend remaining same.
  • 45, 44, 43, 42, 41, 40, 39, with total sales trend remaining same.
  • 20, 50, 10, 45, 43, 13, 36, with total sales trend coming down.
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The Correct Option is A

Solution and Explanation

The goal is to identify which dataset provides the strongest case for Girirajan to continue serving Karnataka food. Two conditions need to be satisfied: 1. The sales share of Karnataka food as a percentage of total sales should be improving or stable.
2. The overall sales trend should also be positive or at least not declining. Step 1: Evaluate Option A
The dataset (14, 15, 16, 17, 18, 19, 20) shows a clear, steady upward trend in Karnataka food’s share, moving consistently from 14% to 20%. Alongside this, the total sales are increasing by 0.4%. This combination of rising share and growing overall sales is highly encouraging.

Step 2: Evaluate Option B
Here, Karnataka food remains constant at 20% while overall sales increase. Although positive, this does not show rising popularity of Karnataka food; hence it is less convincing than Option A.

Step 3: Evaluate Option C
Sales percentages fluctuate and overall trend shows decline from 50% to 40%. Even though overall sales are stable, Karnataka food’s share is inconsistent and falling, which is not a strong indicator.

Step 4: Evaluate Option D
A steady decline from 45% to 39% with flat overall sales indicates waning interest. Not favorable.

Step 5: Evaluate Option E
Highly erratic values (20, 50, 10, 45, 43, 13, 36) and overall declining sales. This reflects instability and downward pressure, making it the worst case.

Step 6: Inference
The most convincing dataset is

Option A, since it reflects a steadily increasing trend in Karnataka food’s share alongside growth in overall sales. This would give Girirajan the strongest confidence to continue offering Karnataka food.

Final Answer: \[ \boxed{\text{A. 14, 15, 16, 17, 18, 19, 20, with total sales trend increasing by 0.4%}} \]
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