Comprehension

TrueColor, an event management company in eastern India, had been in a business of inviting Tollywood singers to a city called Tivanna, and made money out of selling tickets of their concerts. The stars were paid a xed fee regardless of the number of tickets sold. The company had a specialized team that negotiated the singers’ fee with their managers. However, for selling the tickets of such events, they were reliant on an external media agency called Zedius. Zedius had a long-standing relationship with TrueColor, and had been instrumental in achieving a target of 50,000 tickets for each of the agship events.. 
Mr. Sukanta Rao joined TrueColor as an inhouse sales and marketing manager, a position exclusively created for him. The CEO, Mr. Adil Banerjee, had assigned a task of increasing the sales of tickets to 100,000. In Sukanta’s earlier stint, he had seen that similar cities sell more than 75,000 tickets for such events. He felt that, over time, reaching 100,000 was plausible for TrueColor

Question: 1

Sukanta felt that the aspirational target can be achieved only if Zedius is replaced. However, he is not sure if he should make any major changes in his first year. .
Which of the following reasons will BEST help Sukanta NOT to start making major changes immediately?

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In leadership roles, especially as a newcomer, it is crucial to first understand the environment before making major strategic changes.
Updated On: Sep 4, 2025
  • The owners of Zedius are respected citizens of Tivanna.
  • TrueColor recruited Sukanta specifically to increase ticket sales by whatever means necessary.
  • Zedius has managed TrueColor’s marketing for the last five years.
  • Sukanta needs more time to learn about the dynamics of the eastern market.
  • For around a decade, ticket sales have consistently hovered at 50,000.
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The Correct Option is D

Solution and Explanation

Step 1: Understand the scenario.
Sukanta has just joined TrueColor with a mandate to increase ticket sales to 100,000. He feels Zedius, the long-standing media partner, may need to be replaced. However, rushing into such a decision without experience in the local market could be premature.
Step 2: Evaluate each option.
- Option A: The personal reputation of Zedius’s owners is irrelevant to Sukanta’s business decision. - Option B: Being recruited to increase sales does not mean he should act rashly. Strategic decisions require context. - Option C: Past association with TrueColor shows stability but is not a strong reason to delay immediate change. - Option D: This is the most logical reason. As a new entrant, Sukanta should first understand the local market and competitive dynamics before making disruptive moves. - Option E: Stagnant sales highlight the need for change, not a reason to delay.
Step 3: Select the best answer.
Option D is correct as it emphasizes the importance of learning and assessing before acting, a responsible approach for a new manager.
Final Answer: \[ \boxed{\text{D}} \]
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Question: 2

Just two weeks before the flagship event, Adil received a few emails from competing media agencies that accused Zedius of selling phony tickets in the “black” market. When Adil enquired with the security agency in charge of gatekeeping the events, they told him that they had no mechanism to check the authenticity of tickets.
Which of the following options will BEST help Adil to ignore the accusations from the competing media agencies, and maintain status quo?

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In competitive markets, unverified allegations from rivals should be carefully weighed against context before reacting.
Updated On: Sep 4, 2025
  • In Tivanna, the competing media agencies keep defaming each other out of fierce competition.
  • Tivanna being a small city, a few prominent personalities have to be allowed in without tickets.
  • Zedius is the largest media agency in Tivanna.
  • Some attendees admitted to paying cash to gate keepers to get in.
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The Correct Option is A

Solution and Explanation

Step 1: Identify the situation.
Adil is facing serious allegations against Zedius, his long-standing partner, just before the flagship event. The accusations may be true or may simply be rivalries at play. Adil needs a reason to ignore the claims and continue with status quo.
Step 2: Evaluate each option.
- Option A: If the industry is known for constant mudslinging among rival agencies, then these accusations may be disregarded as competitive tactics. This gives Adil a reasonable ground to ignore the allegations. - Option B: Allowing VIPs without tickets is irrelevant to the issue of black-market ticket sales. - Option C: Zedius’s size does not prove innocence; being the largest agency does not eliminate malpractice risks. - Option D: Evidence of cash payments to gatekeepers indicates malpractice, which would require investigation, not ignorance.
Step 3: Best justification.
Option A provides the strongest rationale for maintaining status quo, as the accusations can reasonably be dismissed as competitive defamation.
Final Answer: \[ \boxed{\text{A}} \]
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Question: 3

The following year, Sukanta discussed with Adil that unless they got into the ticket selling process, they might not be able to improve the ticket numbers. However, this would mean moving away from Zedius, and the transition could cause short-term pains since TrueColor would be entering into unchartered territory. Further, Sukanta added that TrueColor would achieve self-sufficiency over couple of years.
Adil was concerned about the risk of taking over an activity that the organization was not competent at, but understood Sukanta’s point. In the interest of building long-term competencies, he authorized Sukanta to take it forward. Sukanta did not renew Zedius’s contract in the following year; instead, he recruited a skeletal team of three freshers from a premier business school as his support staff.
As the event approached, the team dedicated themselves to executing their plan. However, by the time the ticket sales window closed, they managed to sell only 40,000 tickets. This shift in strategy provoked considerable dissent within the company, challenging Sukanta’s decision. Disturbed by the situation, witnessing the internal turmoil, Adil must now navigate the company’s immediate reaction.
Which of the following should now be Adil’s BEST course of action?

Show Hint

Strategic transformations often underperform in the short term. Patience and continuous improvement are key to realizing long-term benefits.
Updated On: Sep 4, 2025
  • He should make Sukanta and his team to go back to Zedius immediately.
  • He should dismiss Sukanta’s team and let the earlier media agency to take over.
  • He should threaten Sukanta that if sales do not improve by next year, he and his team will be fired.
  • He should engage a different media agency which is working for TrueColor’s main competitor.
  • He should wait and watch as the investment in Sukanta may need more time to bear result.
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The Correct Option is

Solution and Explanation

Step 1: Understand the context.
Adil approved Sukanta’s risky strategy of internalizing the ticket sales process instead of relying on Zedius. The first attempt failed, with only 40,000 tickets sold, leading to dissent in the company. The key issue: should Adil immediately reverse the decision or give Sukanta more time?
Step 2: Evaluate the options.
- Option A: Immediately going back to Zedius undermines Sukanta’s initiative and sends a message that the company cannot build long-term competencies. It’s too hasty. - Option B: Dismissing Sukanta’s team outright after one failure discourages innovation and risks morale collapse. - Option C: Threatening Sukanta creates fear rather than accountability. It does not help build sustainable capacity. - Option D: Engaging a competitor’s media agency could bring conflicts of interest and worsen risks. - Option E: This is the best choice. Organizational investments in new capabilities often take time to yield results. Waiting and supporting Sukanta gives the plan a fair chance while maintaining long-term vision.
Step 3: Select the best course.
Option E balances patience with strategic foresight. Adil should monitor progress while giving Sukanta time to refine his approach.
Final Answer: \[ \boxed{\text{E}} \]
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