Comprehension

Mohan’s was a popular fast-food joint at Connaught Place, Delhi. Initially Mohan handled his business alone. His sons, Ram and Kishan, joined the business after graduation from college. Ram was entrepreneurial in nature. Subsequently, another branch of Mohan’s was opened in Panipat. Mohan had chosen Ram to head the Panipat branch. Though Ram increased sales in short time, he had stopped using premium quality organic vegetables, the speciality of Mohan’s. Mohan and Kishan were not happy with his way of doing business.
Now, the foremost challenge for Mohan was to sort out this issue with Ram. Mohan knew that replacing Ram with Kishan was difficult as Kishan did not want to leave Delhi. However, giving a freehand to Ram might have long term negative consequences. Mohan was confused about the future course of actions. 

Question: 1

Mohan sought the help of five consultants, who give the following opinions:
I. Organic vegetables might be a big success at Connaught Place but awareness about organic vegetables is low among Panipat customers.
II. The Connaught Place model can be implemented in Panipat provided the business is prepared to face the consequences.
III. Many high-end restaurants in Panipat use organic vegetables. So, using organic vegetables will not be a differentiating factor.
IV. Selling prices of their dishes in Panipat are significantly lower. Using organic vegetables will bring down profits.
V. Premium quality organic vegetables are not easily available in Panipat.
Which of the following set of options would support Ram’s argument of {not using organic vegetables?}

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For “select the set that supports an argument,” classify each statement as {for}, {against}, or {neutral/conditional}; then choose only the consistently supporting ones.
Updated On: Aug 30, 2025
  • I, III, IV
  • II, IV, V
  • I, III, IV, V
  • II, III, IV, V
  • All of the above
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The Correct Option is C

Solution and Explanation

Step 1: Identify statements that {discourage using organic vegetables in Panipat.}
I — Low awareness in Panipat \Rightarrow weak demand \Rightarrow supports {not} using organics.
III — Many rivals already use organics \Rightarrow no differentiation benefit \Rightarrow supports {not} using.
IV — Prices in Panipat are low; organics would cut profits \Rightarrow financial disincentive \Rightarrow supports {not} using.
V — Poor availability of premium organics \Rightarrow supply risk/quality issues \Rightarrow supports {not} using. Step 2: Eliminate statements that don’t support the argument.
II — Says the CP model {can} be implemented (with conditions). This is not a reason {against} using organics; at best it’s conditional support, so exclude it. Therefore the set that supports Ram’s “do not use” stance is \[ \boxed{I,\ III,\ IV,\ V} \quad \Rightarrow \quad \boxed{\text{Option (C)}}. \]
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Question: 2

Mohan sought feedback from a few of his businessmen friends, who were familiar with both the branches. Here is what they said:
Businessman 1: Customers of Connaught place and Panipat are very different.
Businessman 2: Customers in Panipat are extremely happy with Ram’s behaviour.
Businessman 3: Panipat branch does not use the same quality of ingredients but maintains good hygiene and taste.
Businessman 4: Who knows, tomorrow the customers of Panipat might also appreciate what Connaught place customers appreciate today!
If Mohan thinks all these are valid concerns, which of the following actions would be best for the business?

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Adapt to customer preferences, but maintain flexibility in your business strategy by using branding to reflect leadership changes.
Updated On: Aug 30, 2025
  • Training Kishan to replace Ram in a few months.
  • Not worrying about ingredients as long as business grows.
  • Bringing Ram to Connaught place branch.
  • Naming the Panipat branch as ‘Ram’s’, and changing it back to ‘Mohan’, when needed.
  • Asking Kishan to run the Panipat branch.
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The Correct Option is D

Solution and Explanation

- Based on the feedback, the customers in Panipat seem to be highly satisfied with Ram’s behaviour. Hence, naming the branch ‘Ram’s’ could reinforce this satisfaction.
- On the other hand, if Mohan wants to ensure his involvement, he can rename the branch to ‘Mohan’ when needed. This allows flexibility in maintaining the business’s image while adapting to customer preferences.
- This approach balances both customer satisfaction and the leadership role, thus making it the most suitable action. \[ \boxed{D} \]
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Question: 3

After discussing with a few customers, Mohan realised that compromising on the quality of ingredients at Panipat branch may not be a good idea but at the same time he also realised that Panipat branch had grown fast. He was contemplating following five actions. Which of the following actions would be the best for the future of his business?

Show Hint

In business decision-making, when quality is questioned, direct intervention by leadership is often the best way to safeguard reputation and ensure sustainable growth.
Updated On: Aug 30, 2025
  • Creating awareness campaign for organic vegetables in Panipat.
  • Mohan himself should look after the Panipat branch.
  • Close down the Panipat branch.
  • Send Kishan to Panipat branch and bring Ram to Connaught place permanently.
  • Hire a new person to run the Panipat branch.
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The Correct Option is B

Solution and Explanation

The Panipat branch has been growing fast but faces quality concerns regarding ingredients. For the long-term success of the business, quality must be safeguarded, since compromising it may damage reputation.
- Option A: Awareness campaigns will not directly address quality control issues.
- Option B: Mohan personally supervising ensures that quality concerns are addressed directly by the owner, maintaining customer trust while also leveraging the fast growth of the branch. This is the best option for the future of the business.
- Option C: Closing down a fast-growing branch is not logical.
- Option D: Reassigning Kishan and Ram does not guarantee control over quality.
- Option E: Hiring a new person may take time and does not ensure immediate quality control.
Thus, the best action is for Mohan to personally take charge of the Panipat branch.
\[ \boxed{\text{Mohan himself should look after the Panipat branch.}} \]
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