Decision Making: Dhan's Entrepreneurial Venture
XAT 2023 · DM · Medium · Decision Making
Passage / data set
Read the following scenario and answer the THREE questions that follow.
Dhan, a poor but enterprising 15-year-old, resided in the world's largest slum in a metropolitan city, along with her widowed mother. The densely packed slum housed about a million people, mostly in rickety one room tenements, connected by labyrinthine lanes and by-lanes. Dhan's mother worked intermittently as a daily wager in a small savoury factory. For a 15-year-old, Dhan's life was hectic. She spends two hours every day in fetching water for the household, packing breakfast and lunch for her mother. In addition, she had to prepare supper. On her mother's insistence, Dhan also attended an evening bridge school run by an NGO. Dhan's dream was to provide a comfortable life to her mother and take her family out of poverty. Of late, Dhan observed that the customers to a nearby tea-cum-savoury stall (TCS), were mostly the slum dwellers, who thronged the stall for its low prices and lack of alternatives. Further, Dhan gathered that the TCS could not cater to all of its customers, and the owner still made a neat Rs.800 profit per day. Dhan saw that a probable first step towards her family's economic independence could be to own her own TCS.
Question 1 of 3
From the following, choose the BEST option that will increase Dhan's chances of realising her dream of starting a venture?
- A.
Hire someone at Rs.10 per day to fetch water for the household
- B.
Request mother to fetch water for the household
- C.
Request mother to pack her own breakfast and lunch
- D.
Request mother to stop working and be a partner in the new venture
- E.
Stop going to the bridge school
Question 2 of 3
Within two years of establishment, Dhan's TCS is not only outcompeting its nearest rivals in the slum but has also earned a goodwill for the quality and taste of its products. Hence, it has become famous within the slum as "Dhan Dhana Dhan" brand. Dhan now aspires to expand the reach of her savouries into the metropolitan region. Dhan wishes to scale up her savoury production from 100 kg to 1000 kg per day while maintaining quality. Dhan realizes that her establishment does not have the space for expansion on its own. Which of the following options will BEST help Dhan to scale up production with least investment, tightly control quality, and also protect her business interests?
- A.
Buy additional space within the slum and establish own manufacturing unit
- B.
Outsource the production, along with secret recipes, to a mass savoury production unit outside the slum
- C.
Lease space in the metropolitan region and establish a manufacturing unit of TCS
- D.
Stop catering to the slum dwellers and start serving the metropolitan region exclusively
- E.
Provide the savoury dough and preparation instructions to 100 willing women in the slum and co-opt them as business partners
Question 3 of 3
Dhan with her ingenuity finds a way to scale up her production capacity on her own terms. Though Dhan's TCS has become the famous "Dhan Dhana Dhan" brand within the slum, it is still unknown to the outside world. Thus, Dhan embarks on the next challenge of creating a market for savouries amongst the masses in the metropolitan region. From the following, choose the BEST option that will help Dhan to sell her products, at the lowest price, to a maximum number of metropolitan customers?
- A.
Hire a celebrity who currently endorses a diamond jewellery brand to endorse the "Dhan Dhana Dhand" brand
- B.
Overwhelm the metropolitan residents with digital advertisements on Instagram.
- C.
Engage slum dwellers commuting daily to metropolitan region for work, to sell the products on commission basis
- D.
Hire a few sales executives to sell products of Dhan Dhana Dhan brand
- E.
Reach out to the malls and high-end retail stores in the metropolitan region through a few marketing executives to sell the products
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