Question

While reviewing his monthly accounts, Sundaram realized that he was barely breaking even, primarily due to the substantial rent he was paying to the residents' association. He realized that while his sales were stagnated, the rental costs were contractually scheduled to increase every three years. He was determined to do something to increase his profits.
Which of the following will be the MOST sustainable way to increase Sundaram’s profits?

• A. He should offer to procure items unavailable at his shop from the town on residents’ demand.
• B. He should meet with the residents’ association to negotiate a lower rent.
• C. He should introduce “cheap Wednesdays” where he will sell groceries at 40% discount.
• D. He should advertise about his shop through a leaflet in the gated community.
• E. He should remove all the discounts he was offering and sell at the maximum retail price.
• A. The residents’ association should impose a fine on Sundaram since he was not contracted to sell vegetables.
• B. The residents’ association should ask Sundaram to give a specific quantity of vegetables to the maintenance staff for free.
• C. The residents’ association should discount the rent for the vegetable vendor to increase competition and ask him to continue.
• D. The residents’ association should request for bids from various shop owners to open another grocery store in the vacant place.
• J. The residents’ association should ask Sundaram to use the erstwhile space for selling vegetables and pay rent for the same.
• A. Sundaram should not bother since the nearest town is 30 kilometers away.
• B. Sundaram should employ a few helpers who will do home delivery of his products within 10 minutes across the three gated communities.
• C. Sundaram should demand that his rent be reduced to one-third since Rush’em has free access to these societies.
• D. Sundaram should start giving discounts on every product he sells.
• O. Sundaram should explore starting his own delivery startup Finish’em, dedicated to the suburb, competing with Rush’em.

Answer 1

The Correct Option is B

Step 1: Understand the problem.
Sundaram is facing stagnant sales and increasing rent, which is threatening the viability of his store.
Step 2: Assess the options.
Meeting with the residents' association to negotiate a lower rent is the most sustainable solution as it addresses his major expense. Other options, such as discounts or advertising, might lead to short-term improvements but are not sustainable in the long term.
Final Answer: \[ \boxed{\text{(B) He should meet with the residents’ association to negotiate a lower rent.}} \]

Answer 2

Step 1: Understand the issue.
Sundaram’s selling of vegetables is affecting the vendor’s business and the maintenance staff’s benefits. The residents’ association has to address these concerns.
Step 2: Evaluate the options.
Option (E) is the most reasonable approach since it allows Sundaram to continue with his business in a controlled manner, and he can be made to pay rent for using the space.
Final Answer: \[ \boxed{\text{(E) The residents’ association should ask Sundaram to use the erstwhile space for selling vegetables and pay rent for the same.}} \]

Answer 3

Step 1: Understand the problem.
Sundaram is facing competition from a new startup, Rush’em, which has a quick delivery promise that Sundaram is struggling to match. The key factor is delivery speed within the community.
Step 2: Evaluate the options.
- Option (A) does not work because Sundaram cannot ignore competition simply based on distance. - Option (B) is the best because employing helpers for faster delivery directly addresses the challenge Sundaram faces with Rush’em’s delivery time, which is key in retaining his customers. - Option (C) does not address the core issue, as rent reduction won’t help with the delivery competition. - Option (D) could hurt Sundaram’s business in the long run, as discounts cannot sustain business if the core product offering is inferior. - Option (E) would create a new business in competition with Rush’em but doesn’t solve the immediate problem of delivery speed.
Final Answer: \[ \boxed{\text{(B) Sundaram should employ a few helpers who will do home delivery of his products within 10 minutes across the three gated communities.}} \]