Two industrial towns, Jayanagar and Ramnagar, about 15 kms. apart, are similar in land area, population, ethnic diversity and per capita incomes.
Jagdeep Singh owns a bakery named Le Baguette in Jayanagar. He specializes in croissants, masala bread and whole wheat bread; eggless cakes are also a favorite.
Among the four bakeries in Jayanagar, Jagdeep’s bakery with a market share of 30% is second only to the oldest Le Croissant bakery whose market share is 40%. Le Croissant commands a loyal customer base and does not offer eggless varieties.
Jagdeep has decided to open a branch in Ramnagar. Which of the following facts about Ramnagar will BEST support his decision?
- 3% of Le Baguette’s current revenue comes from Ramnagar
- Jagdeep has managed to acquire a big space in Ramnagar at a nominal rent.
- Before starting his own bakery, Jagdeep was supplying bread to most bakeries in Ramnagar
- Ramnagar is served by 4 bakeries, with the two largest bakeries having market shares of 55% and 25% respectively
- Le Croissant’s Ramnagar branch struggles with a market share of 10%
The Correct Option is A
Solution and Explanation
- The existing revenue: The revenue already coming from Ramnagar shows a ready market for Le Baguette's products, indicating that customers are willing to purchase from them despite the lack of a local branch.
- Market potential: A portion of the current revenue indicates a demand for Le Baguette's offerings, suggesting that with a physical presence, market share could increase due to improved accessibility and customer engagement.
- Risk reduction: Having current revenue from Ramnagar minimizes risk compared to starting a branch with an entirely untested market. This existing revenue stream provides a foundation for expansion.
Jagdeep wishes to open a 100% eggless branch in Ramnagar. To explore feasibility, he collected the following facts:
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.
From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST
supports Jagdeep’s decision.
1. Eggless products account for 30% of Le Baguette’s sales.
2. At least 20% of all bakery sales in Ramnagar is from eggless products.
3. The eggless varieties of Le Baguette contain minute traces of egg.
4. Le Baguette currently makes 3% of its revenue from Ramnagar customers and all of it comes from eggless products.
5. Le Croissant’s Ramnagar branch struggles with a market share of 10%.
From the combinations below, in the DESCENDING order of effectiveness, choose the one that BEST
supports Jagdeep’s decision.
- 5, 2, 1
- 2, 1, 3
- 2, 4, 1
- 4, 3, 2
- 5, 4, 1
The Correct Option is C
Solution and Explanation
- Statement 1: Eggless products account for 30% of Le Baguette’s sales.
This indicates substantial demand but does not specifically highlight the potential in Ramnagar. - Statement 2: At least 20% of all bakery sales in Ramnagar is from eggless products.
This highlights an existing demand in Ramnagar for eggless products, making it a strong indicator of potential success for an eggless bakery. - Statement 3: The eggless varieties of Le Baguette contain minute traces of egg.
This could be a concern for opening a 100% eggless branch, so it potentially detracts from Jagdeep's decision. - Statement 4: Le Baguette currently makes 3% of its revenue from Ramnagar customers, all from eggless products.
This shows existing customer interest in Ramnagar, reinforcing demand for eggless products and supporting the decision. - Statement 5: Le Croissant’s Ramnagar branch struggles with a market share of 10%.
This implies competitive weakness of existing bakeries, suggesting an opportunity for Jagdeep.
From a newspaper, Jagdeep has learnt that Americans use their own ovens to bake ready-to-bake products, sold by some bakeries. This idea is apparently catching up in Indian metros as well.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.
Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.
Jagdeep wants to try this out in his bakery. He has gathered the following facts:
1. US bakeries that also sell ready-to-bake products earned higher revenues compared to those that do not.
2. Around 7% of Jagdeep’s regular customers own baking ovens in their homes.
3. The sale of baking ovens in India is forecast to increase by 12% every year, for the next three years.
4. 50% of Jagdeep’s regular customers are fulltime working couples.
5. In Indian metros, ready-to-bake products give higher profit margins compared to finished products.
Select the BEST of the following sequences of the above facts, in DESCENDING order of effectiveness, to support Jagdeep.
- 2, 5, 1, 3, 4
- 3, 4, 5, 1, 2
- 1, 5, 3, 2, 4
- 2, 3, 5, 1, 4
- 3, 2, 1, 4, 5
The Correct Option is D
Solution and Explanation
The problem is about deciding the most effective sequence of facts to support Jagdeep's decision to introduce ready-to-bake products in his bakery. Let's analyze the facts for their effectiveness:
- 7% of customers own ovens:The fact that a certain percentage of customers can immediately use ready-to-bake products is very effective as it shows an existing market.
- Sales of baking ovens are increasing by 12% annually:This indicates a growing future market, giving Jagdeep a chance to capitalize on the trend before it matures.
- Ready-to-bake products have higher profit margins:This is crucial for business profitability and thus very compelling.
- US bakeries with ready-to-bake products earn higher revenues:This provides international precedence and trend data supporting the business move.
- 50% of customers are full-time working couples:They likely have less time for baking from scratch, making ready-to-bake products more appealing.
Ordering the facts in descending order of effectiveness: 2, 3, 5, 1, 4. This sequence reflects prioritizing immediate customer potential, anticipated growth, profit benefits, proven success, and customer demographics.
Top Questions on Caselets
Mr. Zubin Mistry is the owner and the chief editor of the newspaper The Pluralist, renowned for its high reporting standards and outstanding writing quality. The Pluralist’s authentic reporting distinguishes it from other newspapers that sensationalize news. They are responsible employers, known to be highly supportive towards their employees. Its news editing team is led by Ms. Ramya Kattabomman, a respected veteran in the newspaper reporting industry, wellknown for her stringent adherence to the ethical standards of newspaper reporting.
Mr. Aditya Swaroop Verma, an award-winning senior journalist, has brought in an exposé into the activities of a mining company, operating in an ecologically vulnerable area. In his hardhitting reporting style, he has presented interviews with tens of people, delineating how the mining company has used illegal means to start mining in that area. These mining activities may lead to the destruction of the local ecological balance. However, Aditya Swaroop is unable to obtain an interview with the management of the mining company.
Aditya Swaroop’s investigative report article offers signi cant revelations about the alleged illegal activities of the mining company which were hardly covered in the media otherwise. Nevertheless, his sources have requested for complete anonymityNed Flanders and Homer Simpson Partners Limited is a law rm, known for its unwavering commitment to client satisfaction. They treat the clients as family members who have grown along with the rm. Further, they are highly regarded in the industry, consulted by the country’s top organizations. Among the founders, Homer Simpson is amboyant, while Ned Flanders is serious. Together, they bring a dynamic balance to the team.
The organization believes in a strong socialization ritual that bonds the new lawyers (newcomers) with the existing members. Also, the socialization ritual ensures that newcomers fully understand the nature of their work and integrate seamlessly into the company’s culture. During their rst week, newcomers are overloaded with a barrage of artificial tasks, unexpected client calls, and a challenging meeting with the founders. This results in newcomers getting overwhelmed, and doubting their decision to join the rm, only for the founders to meet them and reveal that this is one big prank and a way to welcome them to the organization. This socialization ritual has served them well for the past two decades. However, not all the newcomers appreciate the utility of this ritual.
One of the lawyers, Ms. Lisa Simpleton, who joined in 2023 and went through the same socialization ritual, found it unwelcoming. She believes that other newcomers might also share the same opinion. Lisa thinks that the current generation, especially post-COVID, needs more friendly welcome, and the rm must put an end to this ritual.- Read the following scenario and answer the questions that follow.
Mr. Singh lived in a sprawling housing society. He employed two part-time domestic helps, Vimla and Sharda. Vimla was responsible for cleaning and dusting, while Sharda took care of cooking.
Once Sharda fell ill and consequently took leave for three days. When Sharda returned to work, she learned that Mr. Singh’s gold ring, a gift from his mother, was missing. Suspecting theft, Mr. Singh had terminated Vimla. Mr. Singh asked Sharda to take additional responsibility of cleaning the house, along with an offer to double her salary. Sharda accepted the offer as her previous two jobs were lost due to frequent health-related absences. She was struggling to make ends meet; this offer would go a long way to help her.
Next day, while cleaning under the dressing table, Sharda found the gold ring. Overjoyed, Mr. Singh expressed his gratitude by presenting Sharda a reward of one thousand rupees! However, he made no mention of reinstating Vimla. - Read the following scenario and answer the questions that follow.
In Symbolis, an upcoming medium sized IT services organization, only 1% of the employees were awarded an annual performance bonus. This annual performance bonus was decided by a committee formed of different functional heads. When Ms. Nalini Kattakayam received the annual bonus for the first time in her five years at Symbolis, Ms. Shalini Sampath, a colleague with seven years of tenure at Symbolis, told Nalini that this annual bonus was less a reflection of Nalini’s performance and more a recognition of those who have fostered a strong rapport with the powers that be. Incidentally, Shalini had never received any performance bonus in her tenure at the company. - Read the following scenario and answer the questions that follow.
Raman had been working tirelessly as a Project Manager in the IT department of Flying Groceries, a renowned app-based supply chain company, for the past three years. Having graduated from a top-tier engineering college, he dived straight into the corporate world, managing projects with great zeal that inspired his seniors.
At the end of his first year with Flying Groceries, impressed with his hard work, Raman’s boss, Suraj, the founder-CEO of Flying Groceries, fast-tracked his promotion and made him Delivery Manager responsible for multiple projects of a vertical. Suraj also promised Raman the position of Chief Operation Officer in the fifth year of his tenure.
In search of a greater career trajectory, Raman pursued entrance exams for business schools. His efforts bore fruits as he secured a place in the country’s best business school, known for a strong alumni base, stellar placement records and demanding academic requirements.
Raman was delighted; he had three months to join the business school. Flying Groceries demanded that any employee who wished to leave the organization should give at least a month’s notice. Raman decided to continue working and enriching his work experience, which will be beneficial when applying to companies after graduating from the business school. Therefore, he decided not to share the news of the offer with anyone else for the time being.
Questions Asked in XAT exam
- What is the name of the AI-based app recently launched by the central government of India to provide study materials in regional languages?
- XAT - 2025
- Scientific Developments
- Which shipyard built INS Tushil, a stealth guided missile frigate, commissioned on Dec 9, 2024?
- XAT - 2025
- General Science
Match the following authors with their respective works.
Authors Books 1. Andy Weir A. Dune 2. Cixin Liu B. The Time Machine 3. Stephen Hawking C. The Brief History of Time 4. HG Wells D. The Martian 5. Frank Herbert E. The Three Body Problem - XAT - 2025
- Books and Authors
- Who won the SVERIGES RIKSBANK PRIZE in ECONOMIC Sciences in memory of Alfred Nobel 2024 for studies of how institutions are formed and affect prosperity?
- XAT - 2025
- Economy
- Who was the world’s first female to be elected as the prime minister of a country?
- XAT - 2025
- Famous personalities and their contributions