XAT 2017 Preparation Test on Decision Making | XAT 2017 Preparation for CAT & MBA Exams

Question 1

Recently a private food testing agency reported the presence of a harmful chemical in CrunchyChips, a product of a fast moving consumer goods giant. The report sparked a nationwideoutcry.

RajanShekhawat, the CEO of the company, feared this incident might affect the company’simage among consumers. Rajan had the following options:
1. Apologizing publicly for this inconvenience and immediately withdrawing the productsfrom all stores.
2. Communicate ‘the correct findings’ to the public.
3. Hire a reputed independent testing agency to verify the claims of the report.
4. Establish internal mechanisms to prevent repetition of such incidences in future.
5. Give higher incentives to distributors and retailers for selling the company brands.
Which of the following would be the MOST APPROPRIATE ORDER of options for Rajan,starting from the immediate?

Question 2

Recently a private food testing agency reported the presence of a harmful chemical in CrunchyChips, a product of a fast moving consumer goods giant. The report sparked a nationwideoutcry.

Mukesh Routray, a shopkeeper in a remote village was surprised to read in the newspaper,his only source of information, about harmful chemicals in Crunchy Chips. He had stocked a large quantity of Crunchy Chips for the forthcoming festive season. He also realized that people in his village are completely unaware of this controversy. He had the following options:
1. Sell the entire stock at a discount before the news spreads.
2. Destroy the entire stock and advise customers not to buy this product from othershops as well.
3. Donate the entire stock of Crunchy Chips to a local orphanage.
4. Inform customers about the controversy but understate its seriousness.
5. Ignore the news and sell the stock at the forthcoming festive season as planned.
6. Explore the veracity of the report and then take decision
If arranged from ethical to unethical which of the following is DEFINITELY the WRONGorder?

Question 3

Recently a private food testing agency reported the presence of a harmful chemical in CrunchyChips, a product of a fast moving consumer goods giant. The report sparked a nationwideoutcry.

An independent and trustworthy confidante of Rajan Shekhawat, the CEO of the company, informed him that one of their main competitors had bribed the
food testing agency to manipulate the report.
Which of the following actions will BEST help Crunchy Chips to bounce back?

Question 4

Geetha Gawde can cultivate up to 6 crops a year. Crop A and B are ready for harvest in 2months; crop C and D in 3 months, and crop E and F in 4 months. Crop A can be cultivated
from January to June; crop B can be cultivated from April to September; crop C can be cultivated from May to December; crops D as well as E can be cultivated from August to December, and crop Ffrom November to May.
If Geetha plans a change of crop the soil should be left fallow for one month; however, if the same crop is sown no fallow time is needed. Sowing takes place only at the beginning of a month. Geetha can only harvest a maximum of 1000 units of any crop at anypoint in time. The production cost per unit (incurred at the time of sowing) and price per unit of crop are as follows:
$Description: E:\CAT\XAT\XAT_2016_Question_Paper_and_Ans_Key_files\image003.png$
For Geetha soil preparation does not incur any cost. If a crop is abandoned before the scheduled harvesting, she gets no money. Geetha is preparing a cropping schedule to maximize her annual profits (i.e. price – cost). She plans to replicate the schedule in the coming years.

Which of the following would DEFINITELY be a part of the ideal schedule?

Question 5

Geetha Gawde can cultivate up to 6 crops a year. Crop A and B are ready for harvest in 2months; crop C and D in 3 months, and crop E and F in 4 months. Crop A can be cultivated
from January to June; crop B can be cultivated from April to September; crop C can be cultivated from May to December; crops D as well as E can be cultivated from August to December, and crop Ffrom November to May.
If Geetha plans a change of crop the soil should be left fallow for one month; however, if the same crop is sown no fallow time is needed. Sowing takes place only at the beginning of a month. Geetha can only harvest a maximum of 1000 units of any crop at anypoint in time. The production cost per unit (incurred at the time of sowing) and price per unit of crop are as follows:
$Description: E:\CAT\XAT\XAT_2016_Question_Paper_and_Ans_Key_files\image003.png$
For Geetha soil preparation does not incur any cost. If a crop is abandoned before the scheduled harvesting, she gets no money. Geetha is preparing a cropping schedule to maximize her annual profits (i.e. price – cost). She plans to replicate the schedule in the coming years.

Which of the following schedules would maximize her annual profit while minimizing the costs, if Geetha decides NOT to repeat a crop in a calendar year?