Dicision Making Test - 11

Direction: Read the information below and answer the questions that follow.

Sant Dharmapal has been in the news all the wrong reasons in the last two weeks. The self proclaimed god-man was undergoing a trial in a land-grab case and was summoned on numerous occasions to appear before the court. The Sant refused to do so. The High Court of the state finally issues non-bailable warrants against the Sant and ordered the state machinery to bring the god-man to court using all possible state machinery at hand (police included). The Sant, in response to the court, accumulated around 10000 of his followers at his ashram and challenged the state government to enter the premises with the use of force. The state government is in a fix as on the one side, it has to obey the orders of the court and on the other hand, it has to be judicious with the use of force as the Sant has effectively built a human shield around himself.

Direction: Read the information below and answer the questions that follow.

Hitesh, a bachelors in pharma, has been working in the pharmaceutical industry for the last 5 years.

He has decided to set-up a pharmaceutical plant in Solan, Himachal Pradesh. Solan is a tax-free zone set-up by the HP government to promote business. Solan is situated at a distance of 75 kms from Chandigarh, the nearest town from the industrial town and also the place of residence for Hitesh. Solan, though offering a massive tax advantage, has its peculiar shortcomings. First of all, it is located in a hilly region and keeping that in mind, there is additional transportation cost involved. Also, the region does not have any major industrial or commercial centers around it, and that means all industrial goods produced have to be delivered to far-off regions. Thirdly, the power supply available in the region is not reliable, and private sources of energy generation (such as diesel operated generators) need to be kept at standby in order to ensure that productivity does not suffer.

Hitesh is planning to take a bank loan of 5 crores to set up the project and will invest an equal sum of his own into the project. He has planned that it will take one year to set-up the plant and 6 months to install the machinery. By the end of the third year, he believes that the plant will be able to cover its operational cost and by the end of the fourth year, it should be able to break even. His calculation is based on the existing demand of the medicines he plans to produce and on the assumption that he will be able to capture 10% of the market.

Direction: Read the information below and answer the questions that follow.

Hitesh, a bachelors in pharma, has been working in the pharmaceutical industry for the last 5 years.

He has decided to set-up a pharmaceutical plant in Solan, Himachal Pradesh. Solan is a tax-free zone set-up by the HP government to promote business. Solan is situated at a distance of 75 kms from Chandigarh, the nearest town from the industrial town and also the place of residence for Hitesh. Solan, though offering a massive tax advantage, has its peculiar shortcomings. First of all, it is located in a hilly region and keeping that in mind, there is additional transportation cost involved. Also, the region does not have any major industrial or commercial centers around it, and that means all industrial goods produced have to be delivered to far-off regions. Thirdly, the power supply available in the region is not reliable, and private sources of energy generation (such as diesel operated generators) need to be kept at standby in order to ensure that productivity does not suffer.

Hitesh is planning to take a bank loan of 5 crores to set up the project and will invest an equal sum of his own into the project. He has planned that it will take one year to set-up the plant and 6 months to install the machinery. By the end of the third year, he believes that the plant will be able to cover its operational cost and by the end of the fourth year, it should be able to break even. His calculation is based on the existing demand of the medicines he plans to produce and on the assumption that he will be able to capture 10% of the market.

Direction: Read the information below and answer the questions that follow.

Hitesh, a bachelors in pharma, has been working in the pharmaceutical industry for the last 5 years.

He has decided to set-up a pharmaceutical plant in Solan, Himachal Pradesh. Solan is a tax-free zone set-up by the HP government to promote business. Solan is situated at a distance of 75 kms from Chandigarh, the nearest town from the industrial town and also the place of residence for Hitesh. Solan, though offering a massive tax advantage, has its peculiar shortcomings. First of all, it is located in a hilly region and keeping that in mind, there is additional transportation cost involved. Also, the region does not have any major industrial or commercial centers around it, and that means all industrial goods produced have to be delivered to far-off regions. Thirdly, the power supply available in the region is not reliable, and private sources of energy generation (such as diesel operated generators) need to be kept at standby in order to ensure that productivity does not suffer.

Hitesh is planning to take a bank loan of 5 crores to set up the project and will invest an equal sum of his own into the project. He has planned that it will take one year to set-up the plant and 6 months to install the machinery. By the end of the third year, he believes that the plant will be able to cover its operational cost and by the end of the fourth year, it should be able to break even. His calculation is based on the existing demand of the medicines he plans to produce and on the assumption that he will be able to capture 10% of the market.

Direction: Read the information below and answer the questions that follow.

You run an education business in which you provide coaching to students preparing for MBA entrance exams. Your company is the market leader in the North Indian state of Punjab and currently also enjoys the highest revenue per student in the region. Your industry is run in a way in which the students who come for enrolment need to be counseled first and informed of the various career options they have. In the past five years, the trend of counseling has intensified and the service has changed from being an add-on to one that delivers enrolments. Your competitors have improved their standard of counseling significantly, and with those levels going up, you are faced with the situation of significant competition from your competitors.

In the last five years, you have had a fairly stable team of counselors who continue to operate in the traditional manner, and continue to deliver counseling services in the way they used to. You have tried to inform them of the urgent need to change their current ways of operation but they still continue to stick to their old habits and continue to operate in the way they used to. In one of your business centers, your 3 members of the old team were replaced as they had to leave for personal reasons (marriage or city change because of their spouses). This gave you an opportunity to hire a new team altogether and train them according to the existing market standards. The new team has now performed the best in the last quarter and is further putting pressure on you to improve your other business centers.

But this does not mean that the new team does not pose challenges itself. One of the counselors in the new team decided to leave without serving the notice period and this has meant your team has been under immense pressure for the past few days. As a counter for this problem, you have decided to introduce a bond for your employees and have asked them to keep one month's salary with you as security in case they wish to break their bond. This bond has been introduced for the old employees as well and all the counselors are meant to sign it. Majority of the old counselors have refused to sign this bond as they view this as a change in their employment condition and the new counselors are also not signing the bond stating they will only do so when the old counselors sign the bond.

Direction: Read the information below and answer the questions that follow.

You run an education business in which you provide coaching to students preparing for MBA entrance exams. Your company is the market leader in the North Indian state of Punjab and currently also enjoys the highest revenue per student in the region. Your industry is run in a way in which the students who come for enrolment need to be counseled first and informed of the various career options they have. In the past five years, the trend of counseling has intensified and the service has changed from being an add-on to one that delivers enrolments. Your competitors have improved their standard of counseling significantly, and with those levels going up, you are faced with the situation of significant competition from your competitors.

In the last five years, you have had a fairly stable team of counselors who continue to operate in the traditional manner, and continue to deliver counseling services in the way they used to. You have tried to inform them of the urgent need to change their current ways of operation but they still continue to stick to their old habits and continue to operate in the way they used to. In one of your business centers, your 3 members of the old team were replaced as they had to leave for personal reasons (marriage or city change because of their spouses). This gave you an opportunity to hire a new team altogether and train them according to the existing market standards. The new team has now performed the best in the last quarter and is further putting pressure on you to improve your other business centers.

But this does not mean that the new team does not pose challenges itself. One of the counselors in the new team decided to leave without serving the notice period and this has meant your team has been under immense pressure for the past few days. As a counter for this problem, you have decided to introduce a bond for your employees and have asked them to keep one month's salary with you as security in case they wish to break their bond. This bond has been introduced for the old employees as well and all the counselors are meant to sign it. Majority of the old counselors have refused to sign this bond as they view this as a change in their employment condition and the new counselors are also not signing the bond stating they will only do so when the old counselors sign the bond.

Direction: Read the information below and answer the questions that follow.

You run an education business in which you provide coaching to students preparing for MBA entrance exams. Your company is the market leader in the North Indian state of Punjab and currently also enjoys the highest revenue per student in the region. Your industry is run in a way in which the students who come for enrolment need to be counseled first and informed of the various career options they have. In the past five years, the trend of counseling has intensified and the service has changed from being an add-on to one that delivers enrolments. Your competitors have improved their standard of counseling significantly, and with those levels going up, you are faced with the situation of significant competition from your competitors.

In the last five years, you have had a fairly stable team of counselors who continue to operate in the traditional manner, and continue to deliver counseling services in the way they used to. You have tried to inform them of the urgent need to change their current ways of operation but they still continue to stick to their old habits and continue to operate in the way they used to. In one of your business centers, your 3 members of the old team were replaced as they had to leave for personal reasons (marriage or city change because of their spouses). This gave you an opportunity to hire a new team altogether and train them according to the existing market standards. The new team has now performed the best in the last quarter and is further putting pressure on you to improve your other business centers.

But this does not mean that the new team does not pose challenges itself. One of the counselors in the new team decided to leave without serving the notice period and this has meant your team has been under immense pressure for the past few days. As a counter for this problem, you have decided to introduce a bond for your employees and have asked them to keep one month's salary with you as security in case they wish to break their bond. This bond has been introduced for the old employees as well and all the counselors are meant to sign it. Majority of the old counselors have refused to sign this bond as they view this as a change in their employment condition and the new counselors are also not signing the bond stating they will only do so when the old counselors sign the bond.

Direction: Read the information below and answer the questions that follow.

Viren is currently completely his engineering degree and is in the final year of engineering. Viren lives and studies in the small but upcoming town of Sundernagar.

Sundernagar is a peculiar town, both in terms of its physical attributes as well its population demographics. Being a new city, the town has been developed in a planned manner and is spread out over a radius of 50 kilometers. The city is situated in an earthquake prone zone and this means that is has virtually no high rise structures. The city is filled with parks and overall, adopts a very open form of architecture.

Though the structure of the city has obvious benefits, the city also suffers because of it. Considering the low population density and the spread out nature of the city, most of the shopping districts in the city are located in central locations and majority of the people have to travel a couple of kilometers at least to the nearest markets. Shopkeepers are also under pressure as the individual areas they cater to do not have high population densities and this means they are under constant pressure. The second aspect of the city which is unique is that the city is primarily a base for service sector employees and the in general, the per capita income of the city is well above the national average.

Viren and two of his friends saw a small business opportunity and decided to act upon it. Considering the vast distances in the city, and the general problems city residents face, Viren and his friends set-up a small delivery service for gift items (mainly bouquets and cakes). Initially, they offered this service for areas near their college and use pamphlet distribution as a method of promotion. In general, the fee they charged for the delivery service included fuel costs plus roughly a 10% mark-up on the products they delivered. This simple delivery service managed to generate a profit of 25000 in the first month itself. Buoyed by the return, the three friends decided to set-up a website displaying their products and taking orders online, doubled their radii of operation and even hired an assistant to carry out the deliveries during their college hours. The second month saw the doubling of profits (even after the incursion of additional costs) and this further motivated the students to expand their business. They set-up a company, and took up a small office space, hired two more employees and started steadily expanding their work. The business has been running in a steady state for the last six months and has been generating steady revenues for the three friends.

Since the three friends are in their final year of engineering, all of them appeared for campus placements and have secured jobs that offer remuneration which is higher than their individual take-home from their venture. The three friends now need to decide their future and take a call on their company as well. Viren has told his two other friends that he is willing to give up his job and take forward their venture full time. In exchange, the other two friends would have to give up their stake in the company. Viren believes this to be a fair deal as till now profits have been divided equally and since he is the only one who will be working full time in company, he should get the full profits in the future. So far, the other two partners have shown an inclination towards joining the job as they have doubts about the scalability of their project but the two are not willing to give up their stake. They believe they have put in a lot of effort to bring up the company and they believe their share should be respected.

Direction: Read the information below and answer the questions that follow.

Viren is currently completely his engineering degree and is in the final year of engineering. Viren lives and studies in the small but upcoming town of Sundernagar.

Sundernagar is a peculiar town, both in terms of its physical attributes as well its population demographics. Being a new city, the town has been developed in a planned manner and is spread out over a radius of 50 kilometers. The city is situated in an earthquake prone zone and this means that is has virtually no high rise structures. The city is filled with parks and overall, adopts a very open form of architecture.

Though the structure of the city has obvious benefits, the city also suffers because of it. Considering the low population density and the spread out nature of the city, most of the shopping districts in the city are located in central locations and majority of the people have to travel a couple of kilometers at least to the nearest markets. Shopkeepers are also under pressure as the individual areas they cater to do not have high population densities and this means they are under constant pressure. The second aspect of the city which is unique is that the city is primarily a base for service sector employees and the in general, the per capita income of the city is well above the national average.

Viren and two of his friends saw a small business opportunity and decided to act upon it. Considering the vast distances in the city, and the general problems city residents face, Viren and his friends set-up a small delivery service for gift items (mainly bouquets and cakes). Initially, they offered this service for areas near their college and use pamphlet distribution as a method of promotion. In general, the fee they charged for the delivery service included fuel costs plus roughly a 10% mark-up on the products they delivered. This simple delivery service managed to generate a profit of 25000 in the first month itself. Buoyed by the return, the three friends decided to set-up a website displaying their products and taking orders online, doubled their radii of operation and even hired an assistant to carry out the deliveries during their college hours. The second month saw the doubling of profits (even after the incursion of additional costs) and this further motivated the students to expand their business. They set-up a company, and took up a small office space, hired two more employees and started steadily expanding their work. The business has been running in a steady state for the last six months and has been generating steady revenues for the three friends.

Since the three friends are in their final year of engineering, all of them appeared for campus placements and have secured jobs that offer remuneration which is higher than their individual take-home from their venture. The three friends now need to decide their future and take a call on their company as well. Viren has told his two other friends that he is willing to give up his job and take forward their venture full time. In exchange, the other two friends would have to give up their stake in the company. Viren believes this to be a fair deal as till now profits have been divided equally and since he is the only one who will be working full time in company, he should get the full profits in the future. So far, the other two partners have shown an inclination towards joining the job as they have doubts about the scalability of their project but the two are not willing to give up their stake. They believe they have put in a lot of effort to bring up the company and they believe their share should be respected.

Direction: Read the information below and answer the questions that follow.

Viren is currently completely his engineering degree and is in the final year of engineering. Viren lives and studies in the small but upcoming town of Sundernagar.

Sundernagar is a peculiar town, both in terms of its physical attributes as well its population demographics. Being a new city, the town has been developed in a planned manner and is spread out over a radius of 50 kilometers. The city is situated in an earthquake prone zone and this means that is has virtually no high rise structures. The city is filled with parks and overall, adopts a very open form of architecture.

Though the structure of the city has obvious benefits, the city also suffers because of it. Considering the low population density and the spread out nature of the city, most of the shopping districts in the city are located in central locations and majority of the people have to travel a couple of kilometers at least to the nearest markets. Shopkeepers are also under pressure as the individual areas they cater to do not have high population densities and this means they are under constant pressure. The second aspect of the city which is unique is that the city is primarily a base for service sector employees and the in general, the per capita income of the city is well above the national average.

Viren and two of his friends saw a small business opportunity and decided to act upon it. Considering the vast distances in the city, and the general problems city residents face, Viren and his friends set-up a small delivery service for gift items (mainly bouquets and cakes). Initially, they offered this service for areas near their college and use pamphlet distribution as a method of promotion. In general, the fee they charged for the delivery service included fuel costs plus roughly a 10% mark-up on the products they delivered. This simple delivery service managed to generate a profit of 25000 in the first month itself. Buoyed by the return, the three friends decided to set-up a website displaying their products and taking orders online, doubled their radii of operation and even hired an assistant to carry out the deliveries during their college hours. The second month saw the doubling of profits (even after the incursion of additional costs) and this further motivated the students to expand their business. They set-up a company, and took up a small office space, hired two more employees and started steadily expanding their work. The business has been running in a steady state for the last six months and has been generating steady revenues for the three friends.

Since the three friends are in their final year of engineering, all of them appeared for campus placements and have secured jobs that offer remuneration which is higher than their individual take-home from their venture. The three friends now need to decide their future and take a call on their company as well. Viren has told his two other friends that he is willing to give up his job and take forward their venture full time. In exchange, the other two friends would have to give up their stake in the company. Viren believes this to be a fair deal as till now profits have been divided equally and since he is the only one who will be working full time in company, he should get the full profits in the future. So far, the other two partners have shown an inclination towards joining the job as they have doubts about the scalability of their project but the two are not willing to give up their stake. They believe they have put in a lot of effort to bring up the company and they believe their share should be respected.