Sundaram Stores Strategy in Gated Community
XAT 2025 · Decision Making · Medium · Decision Making
Passage / data set
Sundaram Stores operates in a gated community 30 km from town. Sundaram pays high rent and promised a 15% discount on groceries. High rent and discounts leave him barely breaking even.
Question 1 of 3
Which of the following will be the MOST sustainable way to increase Sundaram's profits?
- A.
He should meet with the residents' association to negotiate a lower rent.
- B.
He should advertise about his shop through a leaflet in the gated community.
- C.
He should remove all the discounts he was offering and sell at the maximum retail price.
- D.
He should offer to procure items unavailable at his shop from the town on residents' demand.
- E.
He should introduce "cheap Wednesdays" where he will sell groceries at 40% discount.
C
Explanation
Residents rely on him for daily essentials and urgent needs where convenience outweighs minor discounts; removing discounts restores normal profit margins.
Question 2 of 3
Sundaram started selling vegetables, driving away the weekly vegetable vendor. The residents' association lost vendor rent and maintenance staff lost free/cheap leftover veggies. Which option BEST addresses the association's concerns?
- A.
The residents' association should request for bids from various shop owners to open another grocery store in the vacant place.
- B.
The residents' association should ask Sundaram to use the erstwhile space for selling vegetables and pay rent for the same.
- C.
The residents' association should impose a fine on Sundaram since he was not contracted to sell vegetables.
- D.
The residents' association should discount the rent for the vegetable vendor to increase competition and ask him to continue.
- E.
The residents' association should ask Sundaram to give a specific quantity of vegetables to the maintenance staff for free.
D
Explanation
Discounting vendor rent incentivizes the vendor to return, restoring rental income, competition, and informal perks for maintenance staff.
Question 3 of 3
App-based startup Rush'em starts 60-minute delivery to the gated communities. Sundaram starts losing business. What should Sundaram BEST do to protect his revenues?
- A.
Sundaram should not bother since the nearest town is 30 kilometers away.
- B.
Sundaram should explore starting his own delivery startup Finish'em, dedicated to the suburb, competing with Rush'em.
- C.
Sundaram should employ a few helpers who will do home delivery of his products within 10 minutes across the three gated communities.
- D.
Sundaram should demand that his rent be reduced to one-third since Rush'em has free access to these societies
- E.
Sundaram should start giving discounts on every product he sells.
C
Explanation
Leveraging local physical presence to offer 10-minute home delivery directly beats Rush'em's 60-minute timeframe at minimal cost.
Related Decision Making questions
- #2261Micro-Finance Branch Management and Performance EvaluationXATDMSET · 3QMedium
- #2275Domestic Helps Vimla and ShardaXATDMSET · 3QMedium
- #2292Symbolis Performance BonusXATDMSET · 3QMedium
- #2293Raman's Career DilemmaXATDMSET · 3QMedium
- #2294Prabhu's Taxi ServiceXATDMSET · 3QMedium
- #2295Vineeta's SUV PurchaseXATDMSET · 3QMedium
- #2296ABC Business School StrategyXATDMSET · 3QHard
- #2297DeepSea Pipeline Safety ValvesXATDMSET · 3QHard
Practise this under exam conditions
Sign in to solve it with a live timer, the on-screen CAT calculator, and streak and accuracy tracking across every question you attempt.
Solve in the workspace