Mohan's Fast Food Joint Operations Case

XAT 2015 · DM · Medium · Decision Making

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Passage / data set

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 of course of actions.

Question 1 of 3

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?

  1. A.

    I, III, IV

  2. B.

    II, IV, V

  3. C.

    I, III, IV, V

  4. D.

    II, III, IV, V

  5. E.

    All of the above

Question 2 of 3

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?

  1. A.

    Training Kishan to replace Ram in a few months.

  2. B.

    Not worrying about ingredients as long as business grows.

  3. C.

    Bringing Ram to Connaught place branch.

  4. D.

    Naming the Panipat branch as 'Ram's', and changing it back to Mohan', when needed.

  5. E.

    Asking Kishan to run the Panipat branch.

Question 3 of 3

After discussing with a few customers, Mohan realised that compromising on the quality of ingredients at Panipat branch may not be 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?

  1. A.

    Creating awareness campaign for organic vegetables in Panipat.

  2. B.

    Mohan himself should look after the Panipat branch.

  3. C.

    Close down the Panipat branch.

  4. D.

    Send Kishan to Panipat branch and bring Ram to Connaught place permanently.

  5. E.

    Hire a new person to run the Panipat branch.

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