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?

  1. A.

    He should meet with the residents' association to negotiate a lower rent.

  2. B.

    He should advertise about his shop through a leaflet in the gated community.

  3. C.

    He should remove all the discounts he was offering and sell at the maximum retail price.

  4. D.

    He should offer to procure items unavailable at his shop from the town on residents' demand.

  5. 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?

  1. A.

    The residents' association should request for bids from various shop owners to open another grocery store in the vacant place.

  2. B.

    The residents' association should ask Sundaram to use the erstwhile space for selling vegetables and pay rent for the same.

  3. C.

    The residents' association should impose a fine on Sundaram since he was not contracted to sell vegetables.

  4. D.

    The residents' association should discount the rent for the vegetable vendor to increase competition and ask him to continue.

  5. 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?

  1. A.

    Sundaram should not bother since the nearest town is 30 kilometers away.

  2. B.

    Sundaram should explore starting his own delivery startup Finish'em, dedicated to the suburb, competing with Rush'em.

  3. C.

    Sundaram should employ a few helpers who will do home delivery of his products within 10 minutes across the three gated communities.

  4. D.

    Sundaram should demand that his rent be reduced to one-third since Rush'em has free access to these societies

  5. E.

    Sundaram should start giving discounts on every product he sells.

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