Sundaram Stores Strategy in Gated Community
XAT 2025 · DM · 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.
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.
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.
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