Question

Goodricke Group Ltd is planning to give top priority to the core competence of production and marketing of tea in 2007. The company plans to increase the production of orthodox varieties of tea. Goodricke intends to invest Rs. 10 crore to modernize its factories. The company has reported a net profit of Rs. 5.49 crore for 2006, against Rs. 3.76 crore in 2005.

Which of the following can be deduced from the caselet?

• A. Production and marketing is the core competence of Goodricke Group.
• B. Increase in production of existing products enhances core competence.
• C. Core competence can be used for furthering the company's interests.
• D. Core competence leads to modernization.

Hint:

Check which option merely repeats a fact from the caselet and which one draws a genuine logical conclusion from the trend in profit alongside the investment in core competence.

Answer 1

The Correct Option is C

Step 1: Understanding the Question.
The caselet gives four facts about Goodricke Group Ltd: it is prioritizing production and marketing of tea, it is investing Rs. 10 crore to modernize its factories, and its net profit rose from Rs. 3.76 crore in 2005 to Rs. 5.49 crore in 2006. We need to pick the statement that can be logically deduced from these facts, not one that just repeats them or adds an assumption the passage does not support.

Step 2: Key Approach.
A deduction must follow strictly from what is stated. A statement that merely restates a given fact is not a deduction; a statement that introduces a cause-effect link the passage never claims is also not a valid deduction. Check each option against this rule.

Step 3: Detailed Explanation.
Option 1 says production and marketing is the core competence of Goodricke Group. This is not deduced, it is copied almost directly from the passage's own wording about giving top priority to core competence of production and marketing, so it is a restatement, not an inference.
Option 2 says an increase in production of existing products enhances core competence. The passage only says production is increasing for orthodox tea varieties; it never says this increase enhances or strengthens core competence, so this option adds a claim the caselet does not support.
Option 3 says core competence can be used for furthering the company's interests. The company is sharpening its focus on core competence and investing further in it (the Rs. 10 crore modernization), while its profit has grown from Rs. 3.76 crore to Rs. 5.49 crore in the same period. Putting these facts together supports the idea that leaning on core competence is working in the company's favour. This is a genuine inference and survives scrutiny.
Option 4 says core competence leads to modernization. The passage lists modernizing factories as a separate, parallel plan alongside prioritizing core competence; it never states that one causes the other, so this is an unsupported cause-effect claim.

Step 4: Final Answer.
Only option 3 draws a conclusion the facts actually support, without repeating them word for word or inventing a link the passage never makes. Core competence can be used for furthering the company's interests. \[ \boxed{\text{Option 3}} \]