DM Caselet: Puru and Sons Sweetshop

XAT 2016 · DM · Medium · Decision Making

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Passage / data set

Purushottam Bhatnagar own and operates a sweetshop Puru and Sons. He is about 60 years old is eager to hand over the business to his sons Ratan and Pramod. He however, fears that his sons, fresh from college may not understand the tricks of the trade.

Question 1 of 3

Purushottam sends a batch of sweets to the police station across the street every day. Ratan construed it as a bribe and wanted to stop this practice.

Which of the following arguments, IF TRUE, would BEST convince Ratan NOT to given up this practice?

  1. A.

    In the last three years, three attempts to burgle Puru and Sons were effectively foiled by the police.

  2. B.

    Each policeman receives only two piece of sweet, too small to be considered a bribe.

  3. C.

    The police in return send two policemen in mufti to mingle with the customers during rush hours to prevent pickpockets.

  4. D.

    Every day, Purushottam also sends a batch of sweets to the school next to the station, an orphanage nearby and the temple at the end of the street.

  5. E.

    Purushottam's competitor Uttampurush who runs a sweetshop in the same street and his neighbour Mahapurush who runs a samosa stall, both do similar things every day.

Question 2 of 3

Purushottam's eldest son discovered that the shop repackaged sweets that were close to expiry and sold them at a discount under different names. These sweets usually get sold very fast. But his son was concerned about the possible consequences of this practice. Purushottam was thinking of the following arguments to convince his son.

  1. These sweets are consumed the same day and therefore there is no cause for worry.
  2. Reduced prices give enough indication about the sweets to the customers.
  3. These products are preferred by those who cannot afford full price and in a way, this is a service done to them.
  4. In the past 30 years not a single person has reported ill because of consumption of these sweets.
  5. Repacking and selling sweets is a common practice.

Which combination of arguments below is MOST LIKELY to convince Ratan?

  1. A.

    1 and 3

  2. B.

    1 and 4

  3. C.

    2 and 3

  4. D.

    2 and 5

  5. E.

    4 and 5

Question 3 of 3

Purushottam's younger son Pramod discovered that 10% of their customers whom Purushottam called privileged customers purchased sweets at prices fixed 10 years ago (which is significantly lower than the current prices). Purushottam told him, "This 10% are my core and loyal customers with whom I have personal connect and therefore they deserve this privilege". Pramod refuted his father's argument citing the following Information.

  1. These customers are from the top 20% of the income bracket of the city.
  2. These customers frequently purchase from other sweetshops at market prices.
  3. None of them recognises and greets Purushottam at the shop or at anywhere else.
  4. None of them was present at Pramod's marriage.
  5. These customers actually buy sweets at Puru and sons for others not part of the core and loyal customer group.

Which of the following combination of the above will MOST LIKELY convince Purushottam to charge market price to all?

  1. A.

    1 and 2

  2. B.

    2 and 4

  3. C.

    2 and 5

  4. D.

    3 and 4

  5. E.

    4 and 5

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